# EDGAR Filing Document

**Accession Number:** 0001881567
**File Stem:** 0001193125-26-016568
**Filing Date:** 2026-1
**Character Count:** 4624451
**Document Hash:** a7e06e33b59f761f00f1ebf260946745
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-016568.hdr.sgml**: 20260120

**ACCESSION NUMBER**: 0001193125-26-016568

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 60

**FILED AS OF DATE**: 20260120

**DATE AS OF CHANGE**: 20260120

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Clear Street Group Inc.
- **CENTRAL INDEX KEY:** 0001881567
- **STANDARD INDUSTRIAL CLASSIFICATION:** SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 862376416
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-292822
- **FILM NUMBER:** 26542911

**BUSINESS ADDRESS:**
- **STREET 1:** 55 BROADWAY
- **STREET 2:** SUITE 2102
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10006
- **BUSINESS PHONE:** (646) 845-0036

**MAIL ADDRESS:**
- **STREET 1:** 55 BROADWAY
- **STREET 2:** SUITE 2102
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10006

##### [**Table of Contents**](#toc)
**As filed with the Securities and Exchange Commission on January 20, 2026** 

**Registration No. 333-** 

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM S-1** 

**REGISTRATION STATEMENT** 

***UNDER***

***THE SECURITIES ACT OF 1933***

## Clear Street Group Inc.
**(Exact Name of Registrant as Specified in Its Charter)** 

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| | | |
|:---|:---|:---|
| **Delaware** | **6211** | **86-2376416** |
| **(State or Other Jurisdiction of<br>Incorporation or Organization)** | **(Primary Standard Industrial<br>Classification Code Number)** | **(I.R.S. Employer<br>Identification Number)** |

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**150 Greenwich Street, 45th Floor** 

**New York, NY 10007** 

**Telephone: (646) 845-0036** 

**(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)** 

**Edward T. Tilly** 

**Chief Executive Officer** 

**Clear Street Group Inc.** 

**150 Greenwich Street, 45th Floor** 

**New York, NY 10007** 

**(Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent For Service)** 

***Copies to:***

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| | | |
|:---|:---|:---|
| **Richard D. Truesdell, Jr.**<br> **Hillary A. Coleman**<br> **Davis Polk & Wardwell LLP**<br> **450 Lexington Avenue**<br> **New York, NY 10017**<br> **(212) 450-4000** | **Kenneth Sicklick, Esq.**<br> **Chief Legal Officer**<br> **Clear Street Group Inc.**<br> **150 Greenwich Street, 45<sup>th</sup> Floor**<br> **New York, NY 10007**<br> **(646) 845-0036** | **Daniel I. Goldberg**<br> **Eric Blanchard**<br> **Richard Segal**<br> **Minkyu Park**<br> **Cooley LLP**<br> **55 Hudson Yards**<br> **New York, NY 10001**<br> **(212) 479-6000** |

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**Approximate date of commencement of proposed sale to the public:** As soon as practicable after this Registration Statement becomes effective.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box: ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☒ |

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until this Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.** 

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The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

Subject to Completion, dated , 2026

**PRELIMINARY PROSPECTUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares

![LOGO](g39893g01z01.jpg)

**Clear Street Group Inc.** 

Class A Common Stock

This is an initial public offering of Clear Street Group Inc. We are offering shares of our Class A common stock.

Prior to this offering, there has been no public market for our Class A common stock. It is currently estimated that the public offering price will be between $ and $ per share. We intend to apply to list our Class A common stock on the Nasdaq Global Select Market ("Nasdaq") under the symbol "CSIG."

Upon completion of this offering, we will have two classes of common stock: Class A common stock and Class B common stock (together, our "common stock"). The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting, conversion and transfer rights. Each share of Class B common stock is entitled to ten votes per share and convertible at any time into one share of Class A common stock. Upon completion of this offering, all of our Class B common stock will be held by Clear Street Global Corp. ("Global Corp."). For more information about our capital stock, see the section titled "Description of Capital Stock."

Upon completion of this offering, all shares of our Series A preferred stock will remain outstanding. The rights of the holders of our Series A preferred stock include a quarterly dividend and a liquidation preference. We may redeem the Series A preferred stock, in whole or in part, on any dividend payment date on or after October 30, 2026 for $25.00 per share, plus accrued and unpaid dividends. Our Series A preferred stock is not convertible. See the section titled "Description of Capital Stock" for additional information regarding the rights of the holders of our Series A preferred stock.

Upon completion of this offering, the holders of our Class A common stock issued in this offering will collectively hold approximately % of our capital stock and approximately % of the combined voting power in us and Global Corp. will beneficially own approximately % of our capital stock and approximately % of the combined voting power in us. As a result, we will be a "controlled company" within the meaning of the corporate governance standards of Nasdaq. See "Management—Controlled Company Exemption."

We are an "emerging growth company" as defined under the federal securities laws, and as such, we have elected to comply with certain reduced reporting requirements for this prospectus and may elect to do so in future filings. See "Prospectus Summary—Implications of Being an Emerging Growth Company."

*Investing in our Class A common stock involves risks. See "[Risk Factors](#toc39893_4)" beginning on page 23 to read about factors you should consider before buying shares of our Class A common stock.* 

**Neither the Securities and Exchange Commission (the "SEC") nor any other regulatory body has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.** 

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| | | |
|:---|:---|:---|
|  | Per Share | Total |
|  Initial public offering price | $| $|
|  Underwriting discounts and commissions<sup>(1)</sup> | $| $|
|  Proceeds, before expenses, to Clear Street Group Inc. | $| $|

---

(1) See "Underwriting (Conflicts of Interest)" for a description of compensation payable to the underwriters.

We have granted the underwriters the option for a period of 30 days after the date of this prospectus to purchase up to an additional shares of Class A common stock at the initial public offering price, less certain of the underwriting discounts and commissions.

At our request, the underwriters have reserved up to shares of our Class A common stock, or 5% of the shares being offered pursuant to this prospectus, for sale at the initial public offering price to certain individuals and entities as determined by certain of our officers through a directed share program. See "Underwriting (Conflicts of Interest)—Directed Share Program" for additional information.

The underwriters expect to deliver the shares of our Class A common stock against payment in New York, New York on , 2026.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Goldman Sachs & Co. LLC** | **BofA Securities** | **Morgan Stanley** | **UBS Investment Bank** | **Clear Street** |

---

Prospectus dated , 2026

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**TABLE OF CONTENTS** 

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| | |
|:---|:---|
|  | **<u>Page</u>** |
|  [Founder's Letter](#toc39893_1a) | 1 |
|  [Prospectus Summary](#toc39893_1) | 2 |
|  [The Offering](#toc39893_2) | 12 |
|  [Summary Consolidated and Other Financial Data](#toc39893_3) | 19 |
|  [Risk Factors](#toc39893_4) | 24 |
|  [Special Note Regarding Forward-Looking Statements](#toc39893_5) | 84 |
|  [Use of Proceeds](#toc39893_6) | 86 |
|  [Dividend Policy](#toc39893_7) | 87 |
|  [Capitalization](#toc39893_8) | 88 |
|  [Dilution](#toc39893_9) | 91 |
|  [Management's Discussion and Analysis of Financial Condition and Results of Operations](#toc39893_10) | 94 |
|  [Quantitative and Qualitative Disclosures About Market Risk](#toc39893_11) | 126 |
|  [Business](#toc39893_12) | 129 |
|  [Management](#toc39893_13) | 158 |
|  [Executive and Director Compensation](#toc39893_14) | 164 |
|  [Principal Stockholders](#toc39893_15) | 177 |
|  [Certain Relationships and Related Party Transactions](#toc39893_16) | 180 |
|  [Description of Capital Stock](#toc39893_17) | 185 |
|  [Shares Eligible for Future Sale](#toc39893_18) | 192 |
|  [Material U.S. Federal Income and Estate Tax Considerations to Non-U.S. Holders](#toc39893_19) | 196 |
|  [Underwriting (Conflicts of Interest)](#toc39893_20) | 200 |
|  [Legal Matters](#toc39893_21) | 216 |
|  [Experts](#toc39893_22) | 217 |
|  [Where You Can Find More Information](#toc39893_23) | 219 |
|  [Index to Consolidated Financial Statements](#toc39893_24) | F-1 |

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Through and including (the 25th day after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

Neither we nor the underwriters have authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses we have prepared. Neither we nor the underwriters take any responsibility for, and can provide no assurance as to the reliability of, any other information that others may provide you. We are offering to sell, and seeking offers to buy, shares of Class A common stock only in jurisdictions where offers and sales are permitted. The information contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of the Class A common stock.

For investors outside of the United States, neither we nor any of the underwriters have done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. You are required to inform yourselves about, and to observe any restrictions relating to, this offering and the distribution of this prospectus outside of the United States.

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**Basis of Presentation** 

As used in this prospectus, unless the context otherwise requires. "Company," "we," "us," "our," "Clear Street," the "Issuer," the "Registrant," and similar references refer to Clear Street Group Inc., the issuer of the Class A common stock offered hereby, and its consolidated subsidiaries.

**Market, Industry, and Other Data** 

This prospectus includes estimates regarding market and industry data. Unless otherwise indicated, information concerning our industry and the markets in which we operate, including our general expectations, market position, market opportunity and market size, are based on our management's knowledge and experience in the markets in which we operate, together with currently available information obtained from various sources, including publicly available information, industry reports and publications, surveys, our clients, trade and business organizations, and other contacts in the markets in which we operate. Certain information is based on management estimates, which have been derived from third-party sources, as well as data from our internal research.

In presenting this information, we have made certain assumptions that we believe to be reasonable based on such data and other similar sources and on our knowledge of, and our experience to date in, the markets in which we operate. While we believe the market and industry data included in this prospectus is reliable, such information is inherently uncertain and imprecise. Market and industry data is subject to change and may be limited by the availability of raw data, the nature of the data gathering process, and other limitations inherent in any statistical survey of such data. In addition, projections, assumptions, and estimates of the future performance of the markets in which we operate are necessarily subject to uncertainty and risk due to a variety of factors, including those described in "Risk Factors" and "Special Note Regarding Forward-Looking Statements." These and other factors could cause results to differ materially from those expressed in the estimates made by third parties and by us. Accordingly, you are cautioned not to place undue reliance on such market and industry data or any other such estimates. The content of the above sources, except to the extent specifically set forth in this prospectus, does not constitute a portion of this prospectus and is not incorporated herein.

**Non-GAAP Financial Measures** 

We report our financial results in accordance with generally accepted accounting principles in the United States ("GAAP"); however, management evaluates our results of operations using, among other measures, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net income (loss), which are non-GAAP financial measures.

We present Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net income (loss) because we view them as important supplemental measures of operating performance and we believe they are useful to securities analysts, investors, and other interested parties in evaluating our results. Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net income (loss) allow for an assessment of ongoing platform performance without the effect of (cash and non-cash) charges that do not relate to the core operations of our business.

These non-GAAP financial measures are not universally consistent calculations, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, these non-GAAP financial measures are not measurements of financial performance under GAAP. In order to facilitate a

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clear understanding of our consolidated historical operating results, you should examine our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto included elsewhere in this prospectus. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Performance Metrics" for more information regarding our use of non-GAAP financial measures.

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**Founder's Letter** 

When I started my career, I came to appreciate the extraordinary accomplishment of capital markets infrastructure. But it was clear that the foundations had been built for an earlier era.

I lived with those limitations firsthand as a trader. The market infrastructure we relied on failed to deliver consistent and timely information. Risk was often mismeasured, and balances took time to reconcile.

My assumption was that this infrastructure would eventually be rebuilt by the largest institutions. Each time I asked, the answer was the same: it would take years, cost billions, and carry significant execution risk. Incremental patching was the practical choice for them.

In 2018, I partnered with Chris Pento and Sachin Kumar, two industry veterans who shared my frustrations. Together, we founded Clear Street to rebuild core capital markets infrastructure from the ground up.

We started with the records that we consider matter most: clearing, settlement, custody, and financing. By rebuilding this core on modern, cloud-native architecture, we envisioned a single, real-time ledger to support market activity across markets and workflows. Today, billions of dollars of client balances and trillions of dollars in trading activity have run through our platform.

We believe the industry is moving toward unified data architectures that provide a consistent, real-time view of activity. That shift matters. Clearer data reduces operational risk, allows capital and collateral to move more efficiently, and enables risk to be monitored continuously. As new technologies are adopted, including advanced analytics, artificial intelligence, and tokenized assets, their effectiveness will heavily depend on the quality and timeliness of the underlying data.

Clear Street's platform was built with this foundation in mind. The applications we offer today are not the end state. They are early expressions of a broader platform, and I'm excited about the products that can be built as this platform grows over time.

The revenues we generate today are important—but they are not the full story. They are evidence that our infrastructure functions at scale.

Rebuilding capital markets infrastructure requires more than just technology. It requires people who understand markets, risk, and use cases deeply. It also requires engineers capable of building extensible, resilient, and scalable systems that must operate reliably across market environments. That is the team we have assembled.

Becoming a public company is the next step in this effort. It reflects our commitment to transparency and accountability as we continue to build infrastructure designed to support market participants over the long term.

Thank you to all the employees, clients, partners, investors, and everyone on this journey with us in building a financial infrastructure company for the next evolution of capital markets.

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| |
|:---|
| /s/ Uriel Cohen |
| Uriel Cohen |

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**PROSPECTUS SUMMARY** 

*This summary highlights selected information contained elsewhere in this prospectus and does not contain all of the information that you should consider before investing in our Class A common stock. For a more complete understanding of us and this offering, you should read and carefully consider the entire prospectus, including the more detailed information set forth under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the related notes included in this prospectus. Some of the statements in this prospectus are forward-looking statements. See "Special Note Regarding Forward-Looking Statements."* 

**Our Mission** 

***Clear Street's mission is to give every sophisticated investor access to every asset, in every market, through a unified platform built for speed, transparency and scale.***

We give our clients the technology, tools, and service once reserved for the largest institutions, rebuilt with modern infrastructure. Our single, cloud-native, end-to-end capital markets platform powers investor growth today and is transforming how investors can interact with markets tomorrow.

**Business Overview** 

Capital markets are the greatest engine of wealth creation in the world, with trillions of dollars and billions of trades moving through them every day.

Today, all but the largest investors are constrained by legacy capital markets infrastructure built decades ago. We believe that the vast majority of sophisticated investors are caught in between, too complex for retail and self-directed platforms, but not prioritized by global incumbents. As a result, these sophisticated investors typically hold excess capital and devote significant time and resources to managing fragmented workflows, from funding and risk management, to reconciliation and reporting—leaving capital trapped instead of invested for growth.

Because every activity runs on one platform rather than across multiple systems, we have observed that adoption compounds naturally. Clients benefit from faster onboarding, more efficient financing, and deeper integration. In addition, our single real-time ledger captures a record of all client activity on the platform, which forms a differentiated dataset that provides deep insights into market activity and risk levels. As client activity scales and is captured by our ledger, our dataset is further enriched, which sharpens our risk models and supports more efficient uses in capital. This in turn creates a self-reinforcing cycle of growth and defensibility that makes the platform increasingly difficult for competitors to replicate.

Our infrastructure underpins every client interaction and allows us to expand functionality without rebuilding or duplicating systems. Our cloud-native platform enables clients to trade, manage risk, and

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finance activity across asset classes, financial instruments and geographies through a modular, connected suite of proprietary applications. Studio, the client interface of our platform, unifies access to these applications—providing a single environment through which clients interact with our infrastructure via a Clear Street web interface or through Clear Street application programming interfaces ("APIs"). Applications form the functional layers of our platform by transforming client activity into value. All applications draw from the same real-time dataset and connect directly to counterparties, exchanges, and clearing houses globally turning trading, risk, and financing into one unified platform. Together, they span the full lifecycle of a trade:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Trading and Execution.** Clients can trade by utilizing our execution management system ("EMS")
application or by connecting directly to our infrastructure through the Financial Information Exchange connectivity protocol ("FIX") or our APIs. These enable clients to send electronic trade orders directly to executing brokers,
trading algorithms, exchange or trading venues. Clients may also choose to engage our high-touch trading desk, where experienced market professionals provide tailored trading strategies, source liquidity across venues, and advise on complex or
sensitive trades. This service enables clients to leverage our market expertise and relationships to optimize outcomes that may not be achievable through fully electronic trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Clearing and Custody applications** handle settlement, recordkeeping, and safekeeping of client assets, ensuring
trades are processed accurately, positions and collateral are reconciled, and assets remain protected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Risk and Margin applications** then calculate exposure and capital requirements in real time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Portfolio Management and Analytics applications** provide a single view of performance and positions across accounts,
asset classes and financial instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Lifecycle Management applications** automate post-trade events such as option exercises, assignments, and other
corporate actions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Financing and Stock Loan applications** handle funding and securities lending, helping clients finance positions,
optimize collateral, facilitate shorts, and generate yield.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Other Operational Workflow and Compliance applications** facilitate the entire end-to-end trade lifecycle, including regulatory reporting, reconciliation, trade surveillance, account onboarding, account master, security master, and pricing.

Clients have the optionality of utilizing the entire suite of applications, or selecting specific ones based on their needs. These applications also support various asset classes and financial instruments, including equities, options, futures, security-based swaps, foreign exchange, fixed income, and a select number of digital assets. We also build specialized applications on the same infrastructure to support new markets and client needs, extending the platform without duplicating technology stacks. For example, clients can leverage our algorithmic trading models to reduce trading costs.

Today our platform serves Individuals, Institutions, Intermediaries, and Corporates. All of these market participants are impacted by legacy infrastructure's costly and fragmented processes. Because every one of our clients runs on our single platform, regardless of which applications they choose to use, we believe we can serve a broader range of clients, more profitably, than our competitors.

We generate revenue primarily across two categories: net financing and transactions. Net financing revenues are primarily generated by our financing, stock loan and custody applications and include net financing generated from customer margin debit, credit and short balances associated with equities, options, futures, and fixed income positions, as well as net financing generated from security-

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based swaps in equities. Transaction revenues are primarily generated by our trading, execution and clearing applications and include (i) commissions, clearing fees and locate service fees, (ii) investment banking income, and (iii) client pass-through fees. See also "Management's Discussion and Analysis of Financial Condition and Results of Operations" for more information.

For the month of September 2025, our platform supported over 2,000 clients and more than $31.3 billion in daily trading activity. As of September 30, 2025, our platform supported more than $17.2 billion in interest-bearing client balances, clearing approximately 3.8% of the U.S. equity market. For the nine months ended September 30, 2025, we generated $783.7 million in revenue, representing 160% year-over-year growth, and $157.2 million in net income. For the year ended December 31, 2024, we generated $463.6 million in revenue, representing 137% year-over-year growth, and $89.1 million in net income. In total, our clients traded more than $4 trillion across equities and other asset classes and financial instruments through our platform in 2024, averaging 50 million transactions per month. For the nine months ended September 30, 2025, our clients traded more than $5 trillion across equities and other asset classes and financial instruments through our platform, with approximately 90 million transactions in September 2025. With the platform and applications we have today, we estimate that our serviceable addressable market ("SAM") is approximately $128 billion in annual revenue based on market activity in the geographies we serve across the asset classes and financial instruments we currently support and client personas we currently serve. In addition, we estimate that our total addressable market ("TAM") is approximately $310 billion and includes approximately $182 billion of additional opportunity for us. We believe that our current growth roadmap will allow us to generate additional revenue and capture more of our TAM by adding new platform applications, such as subscription-based revenue models for certain products; servicing new client personas, such as wealth managers; launching in new geographies, such as Europe, the Middle East and Africa as well as Asia-Pacific; and expanding our capabilities into new asset classes and financial instruments, such as digital assets. See "Business—Market Opportunity" and "Business—Growth Strategies" for additional information on our estimated market opportunity and growth plans.

Clear Street's platform gives us three core competitive advantages:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Client-driven.** A single view of each client allows us to anticipate needs, provide high quality tailored service and
empower growth opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Speed.** We launch new asset classes, financial instruments and applications in months rather than years, without
duplicating technology stacks or requiring capital-intensive builds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Scale and Reliability.** Our cloud-native platform expands dynamically with market activity, is designed to power any
market in real time. For example, we architected our platform to be able to clear the full U.S. equity-market volume, the largest and most liquid market globally.

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Since our architecture is designed to extend quickly into new asset classes, financial instruments, applications, geographies, and client personas, our infrastructure is the foundation for continued expansion and growth.

Other industries have already shifted to cloud-based, data-centric platforms that operate in real or near real-time. Cloud computing providers such as Amazon Web Services ("AWS") have transformed how companies deploy technology by offering flexible, scalable resources on demand. Snowflake has demonstrated how a unified data architecture can eliminate silos and enable secure data collaboration across organizations in near real-time. Stripe has shown how payments can be simplified through modern APIs that abstract away legacy complexity while creating compounding network effects as adoption grows.

By contrast, capital markets infrastructure has not undergone the same transformation. As a result, capital markets remain one of the last major industries not yet rebuilt around modern, real-time platforms.

We believe we will define the next era of global capital markets. We see a future where global capital markets run in real time on unified infrastructure, data replaces legacy manual processes, access replaces hierarchy, and efficiency compounds for every participant. That future is Clear Street.

**Recent Developments** 

***Series C Preferred Financing***

In December 2025 and January 2026, we issued and sold an aggregate of 3,379,682 shares of our Series C preferred stock, par value $0.00001 per share (the "Series C Preferred Stock") (not giving effect to the Stock Split (as defined herein)), at a price per share of $40.06, for an aggregate purchase price of approximately $135.4 million.

***2030 Notes***

On January 13, 2026, our subsidiary, Clear Street Holdings LLC ("CSH LLC"), issued $78.5 million of its 2030 Notes pursuant to the 2030 Note Purchase Agreement (each as defined herein), bringing the total amount outstanding under the 2030 Notes to $300.0 million. See "Management's Discussion and Analysis of Financial Condition and Results of Operations" for additional information on the terms of our outstanding indebtedness.

***Preliminary Estimated Unaudited Financial Results for the Year Ended December 31, 2025***

Set forth below are preliminary estimates of selected unaudited financial and other information, including non-GAAP financial measures, as of and for the year ended December 31, 2025 and financial information as of and for the year ended December 31, 2024, certain of which was derived from the audited financial statements included elsewhere in this prospectus. We have provided a range for the preliminary estimated financial results for the year ended December 31, 2025 because our closing procedures for our year ended December 31, 2025 are not yet complete, and are subject to the completion of our financial closing procedures, including our management's and our audit committee's reviews, and our independent auditor's audit of our consolidated financial statements as of and for the year ended December 31, 2025. Actual results for such period will not be available until after the completion of this offering. The following information reflects our preliminary estimates based on currently available information and is subject to change. As a result, while the preliminary estimated

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results provided below sets forth ranges that we consider to be reasonable, they are inherently uncertain and remain, in all cases, subject to change pending finalization. Accordingly, you should not place undue reliance on the preliminary financial results provided below, which are not guarantees of future performance and are not necessarily indicative of the results to be achieved in any future period. In addition, the preliminary estimates and actual results provided below do not represent a comprehensive statement of our financial results and should not be viewed as a substitute for full annual financial statements prepared in accordance with GAAP. This information should be read in conjunction with our consolidated financial statements and "Management's Discussion and Analysis of Financial Condition and Results of Operations" for prior periods included elsewhere in this prospectus. Our independent registered public accounting firm has not audited, compiled, reviewed or otherwise applied any procedures to the preliminary estimated unaudited financial results presented herein and, accordingly, does not express an opinion or any other form of assurance on it.

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2025** | **2024** |
| **(in thousands)** | **Low** | **High** | **Actual** |
|  Net revenues |  |  | $463609 |
|  Net income  |  |  | $89128 |
|  Adjusted EBITDA |  |  | $142911 |

---

As reflected above, we expect to report increases in revenue, net income and Adjusted EBITDA for the year ended December 31, 2025 as compared to the year ended December 31, 2024. The expected increase in revenue for the period was driven by . The expected increase in net income for the period was driven by . The expected increase in Adjusted EBITDA was attributable to .

The following table reconciles estimated Adjusted EBITDA to the most comparable GAAP measure, net income, for the year ended December 31, 2025, and reconciles actual Adjusted EBITDA to the most comparable GAAP measure, net income, for the year ended December 31, 2024:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2025** | **2024** |
| **(in thousands)** | **Low** | **High** | **Actual** |
|  **Net income**  |  |  | $**89128** |
|  Non-GAAP adjustments: |  |  |  |
|  Interest expense on borrowings |  |  | 10039 |
|  Amortization and depreciation |  |  | 29236 |
|  Income tax expense (benefit) |  |  | 10618 |
|  Share-based compensation expense<sup>(1)</sup> |  |  | 3890 |
|  **Adjusted EBITDA** |  |  | $**142911** |

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(1) Share-based compensation expense consists primarily of costs associated with equity awards granted to employees.

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Set forth below are preliminary estimates of our key performance metrics we use to evaluate our business as of and for the year ended December 31, 2025 and our actual key performance metrics as of the year ended December 31, 2024:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2025** | **2024** |
| **($ in thousands)** | **Low** | **High** | **Actual** |
|  Interest-Bearing Client Balances<sup>(1)</sup> |  |  | $7814722 |
|  Average Daily Trades<sup>(2)</sup> |  |  | 2392812 |
|  Average Daily Volume<sup>(3)</sup> |  |  | 347253091 |

---

(1) Interest-bearing client balances represent the average daily balances held in client accounts that generate net financing
revenues, including margin, cash and securities balances, during the period.

(2) Average daily trades ("ADT") represent the average number of trades cleared and/or executed by us per day
during the period.

(3) Average daily volume ("ADV") represents the average number of shares or contracts cleared and/ or executed by
us per day during the period.

(4) See the section titled "Management's Discussion and Analysis of Financial Condition and Results of
Operations—Non-GAAP Financial Measures" for more information.

**Summary of Risk Factors** 

There are a number of risks relating to our business, this offering and our Class A common stock that you should consider before you decide to invest in our Class A common stock, as they could have an adverse effect on our business, financial condition, results of operations, and prospects, which could in turn have an adverse effect on the trading price of our Class A common stock and could cause you to lose all or part of any investment you make in our Class A common stock. You should consider carefully the risks described under the heading "Risk Factors" beginning on page 16 of this prospectus, and other risks discussed in this prospectus. Among the principal risks are the following:

***Risks Related to Our Business and Industry***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If we are unable to manage our growth effectively, our business may suffer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If we fail to provide and monetize new and innovative applications on our platform that are adopted by clients and maintain
our technological differentiation, our business may become less competitive, and our revenue may decline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our involvement in securities, futures, security-based swaps, options and other derivatives markets subjects us to the
risks inherent in conducting business in those markets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to risk of defaults by parties with whom we do business.

***Risks Related to Our Intellectual Property, Technology, Data Privacy, Data Protection and Cybersecurity***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Applications on our platform, including Studio, and services we offer rely on software and systems that are highly
technical and have been, and may in the future be, subject to interruption, instability, and other potential flaws due to software errors, design defects, and other processing, operational, and technological failures, whether internal or external;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If our systems and infrastructure fail to keep pace with the operational requirements of our clients, we may experience
operating inefficiencies, client dissatisfaction and lost revenue opportunities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may not be able to adequately establish, maintain, protect and enforce our intellectual property and other proprietary
rights or may be prevented from using intellectual property necessary for our business.

***Risks Related to Regulatory and Legal Matters***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to extensive, complex and evolving statutes, rules and regulations, which are interpreted and enforced by
various federal, state, local and foreign government authorities and SROs and can result in substantial compliance costs, and our business would be adversely affected if our qualifications, memberships or licenses are impaired as a result of non-compliance with those requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have been, and expect to continue to be, subject to regulatory inquiries, examinations, audits, investigations and
enforcement matters; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our businesses are subject to the regulatory frameworks applicable to broker-dealers, security-based swap dealers, futures
commission merchants ("FCMs") and investment firms in the United States and their respective foreign equivalents.

***Risks Related to Digital Assets***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The future development and growth of digital assets is subject to a variety of factors that are difficult to predict and
evaluate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our failure to safeguard and adequately custody our clients' digital assets, or any failures in transacting with
digital assets on our platform, could adversely impact our business, financial condition, results of operations and prospects.

***Risks Related to this Offering and Ownership of Our Class A Common Stock***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We will be a "controlled company" under Nasdaq listing rules and, as a result, our stockholders may not have
certain corporate governance protections that are available to stockholders of companies that are not controlled companies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The dual class structure of our common stock will have the effect of concentrating voting power with Global Corp., and we
cannot predict the impact our dual class structure may have on the market price of our Class A common stock.

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**Organizational Structure** 

The following diagrams depict our simplified ownership structure immediately prior to and immediately following the completion of this offering and the transactions related thereto, including the Pre-IPO Transactions (as defined herein) (assuming that the underwriters' option to purchase additional shares in this offering is not exercised and based on the fully diluted share count immediately prior to and immediately following the completion of this offering):

![LOGO](g39893g01k05.jpg)

\* Three (3) third-party broker-dealers each hold one Class B Unit as joint back-office participants in Clear Street LLC within the meaning of Section 220.7(c) of Regulation T under the Securities Exchange Act of 1934 and FINRA Rule 4210.

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![LOGO](g39893g01k06.jpg)

\* Three (3) third-party broker-dealers each hold one Class B Unit as joint back-office participants in Clear Street LLC within the meaning of Section 220.7(c) of Regulation T under the Securities Exchange Act of 1934 and FINRA Rule 4210.

**Corporate Information** 

We launched our operations in 2019, and our holding company and the issuer of Class A common stock in this offering, Clear Street Group Inc., was incorporated in the state of Delaware on December 29, 2020. Our principal executive offices are located at 150 Greenwich Street, 45th Floor, New York, NY 10007. Our telephone number is (646) 845-0036. Our website address is www.clearstreet.io. The information contained on, or that can be accessed through, our website is not incorporated by reference into this prospectus, and you should not consider any information contained on, or that can be accessed through, our website as part of this prospectus or in deciding whether to purchase our Class A common stock.

This prospectus includes our trademarks and service marks, including our corporate names and logos, which are protected under applicable intellectual property laws and are our property and the property of our subsidiaries. This prospectus also contains trademarks, service marks, trade names, and copyrights of other companies, which are the property of their respective owners. Solely for convenience, trademarks and trade names referred to in this prospectus may appear without the <sup>®</sup> or <sup>™</sup> symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights, or the rights of any applicable licensor, to these trademarks and trade names.

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**Implications of Being an Emerging Growth Company** 

As a company with less than $1.235 billion (as adjusted for inflation from time to time pursuant to SEC rules) in revenue during our last fiscal year, and because we have not, during the previous three-year period, issued more than $1.0 billion in non-convertible debt, we qualify as an "emerging growth company" under the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). An emerging growth company may take advantage of reduced reporting requirements and is relieved of certain other significant requirements that are otherwise generally applicable to public companies. As an emerging growth company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may present as few as two years of audited financial statements and two years of related management's discussion
and analysis of financial condition and results of operations in this prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will be exempt from the requirement to obtain an attestation report from our auditors on management's assessment
of our internal control over financial reporting under the Sarbanes-Oxley Act of 2002 for up to five years following the completion of this offering or until we no longer qualify as an emerging growth company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are permitted to provide reduced disclosure regarding our executive compensation arrangements pursuant to the rules
applicable to smaller reporting companies, which means we do not have to include a compensation discussion and analysis and certain other disclosures regarding our executive compensation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are not required to hold non-binding advisory votes on executive compensation.

In addition to the relief described above, the JOBS Act permits us an extended transition period for complying with new or revised accounting standards affecting public companies. We have elected to use this extended transition period, which means that our consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards on a non-delayed basis.

In this prospectus we have elected to take advantage of some or all of these reduced disclosure requirements, and in the future, we may take advantage of any or all of these exemptions for so long as we remain an emerging growth company. We will remain an emerging growth company until the earliest of (i) the end of the fiscal year during which we have total annual gross revenue of $1.235 billion (as adjusted for inflation pursuant to SEC rules from time to time) or more, (ii) the end of the fiscal year following the fifth anniversary of the completion of this offering, (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt or (iv) the date on which we are deemed to be a "large accelerated filer" under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which would occur if the market value of our common stock held by non-affiliates exceeded $700.0 million as of the last business day of the second fiscal quarter of such year.

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**THE OFFERING** 

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| | |
|:---|:---|
|  Class A common stock offered | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares. |
|  Underwriters' option to purchase additional shares of Class A common stock | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares. |
|  Class A common stock to be outstanding immediately following the completion of this offering | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares (or shares if the underwriters' option to purchase additional shares is exercised in full). |
|  Class B common stock to be outstanding immediately following the completion of this offering | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares. |
|  Total Class A common stock and Class B common stock to be outstanding immediately following the completion of this offering | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares. |
|  Series A preferred stock to be outstanding immediately following the completion of this offering | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares. |
|  Voting and conversion rights of our common stock | <br>We have two classes of authorized common stock: Class A common stock and Class B common stock. The rights of holders of Class A common stock and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Shares of our Class A common stock are entitled to one vote per share and shares of our Class B common stock are entitled to ten votes per share. Each share of our Class B common stock is convertible, at the option of the holder, into one share of Class A common stock. In addition, shares of Class B common stock will automatically convert into shares of Class A common stock upon sale or transfer except for certain transfers described in our New Charter (as defined below). See "Description of Capital Stock."<br>Upon completion of this offering, all shares of our Class B common stock will be held by Global Corp., and Global Corp. will beneficially own approximately % of our capital stock and approximately % of the combined voting power of our outstanding capital stock (or approximately % of our capital stock and approximately % of the combined voting power of our outstanding capital stock if the underwriters exercise their option to purchase additional shares of Class A common stock in |

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|:---|:---|
|  | full). All shares of our Class B common stock will convert automatically into shares of Class A common stock on the earliest to occur of (a) the date fixed by the board of directors (the "Board of Directors") that is no less than 61 days and no more than 180 days following the date that the outstanding shares of Class B common stock represent less than thirty percent (30)% of the shares of Class B common stock outstanding upon the filing of our New Charter (*provided*, for the avoidance of doubt, that if no such date is fixed by the Board, then the Final Conversion Date for purposes of this clause shall be the 180th day following such trigger date) or (b) at such date and time, or the occurrence of an event, specified by the affirmative vote of the holders of a majority of the then-outstanding shares of Class B common stock, voting as a separate class (the "Final Conversion Date"). In addition, each share of our Class B common stock will convert automatically into one share of our Class A common stock upon any transfer (as defined in our New Charter), whether or not for value, except for certain permitted transfers (as defined in our New Charter). See "Description of Capital Stock" for additional information regarding permitted transfers. |
|  Additional rights of our Series A preferred stock | Shares of our Series A preferred stock, par value $0.00001 per share (the "Series A preferred stock"), have voting rights that are equal to the voting rights of the Class A common stock, in addition to certain additional rights with respect to amendments to our New Charter that would adversely affect the rights of the holders of the Series A preferred stock. Holders of the Series A preferred stock are entitled to receive quarterly dividends at a rate of 7.0% per annum up to, but excluding, October 30, 2026 (the "First Reset Date"). From and after the First Reset Date, the holders of the Series A preferred stock are entitled to quarterly dividends at a rate equal to the sum of the five-year treasury date on the applicable Reset Date (as defined below) and 6.0%. The dividend rate on the Series A preferred stock resets every five years (each such date, a "Reset Date").<br>In the event of our voluntary or involuntary liquidation, dissolution, or winding up, the holders of our Series A preferred stock will be entitled to |

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|:---|:---|
|  | receive out of the net assets legally available for distribution to stockholders, and in the event of a deemed liquidation event (as defined in our New Charter), the holders of our Series A preferred<br> stock will be entitled to be paid out of the consideration payable to stockholders in such deemed liquidation event or out of the available proceeds (as defined in our amended and restated certificate of incorporation), on a *pari passu* basis, an amount per share equal to the sum of, an amount of $25.00 per share for each then-outstanding share of Series A preferred stock, which is equal to $24.0 million in the aggregate as of the date of this prospectus, plus accrued and unpaid dividends on such shares.<br>We may redeem the Series A preferred stock, in whole or in part, on any dividend payment date on or after the First Reset Date for $25.00 per share of Series A preferred stock, plus accrued and unpaid dividends. Shares of Series A preferred stock are not convertible.<br>See the section titled "Description of Capital Stock" for additional information regarding the rights of the Series A preferred stock. |
|  Use of proceeds | We estimate that the net proceeds of this offering will be approximately $ million (or approximately $ million if the underwriters' option to purchase additional shares is exercised in full) assuming a public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, and after deducting certain of the underwriting discounts and commissions and estimated offering expenses payable by us. We will receive all proceeds from sales of shares in this offering made to the public through Clear Street LLC ("CS LLC"). See "Underwriting (Conflicts of Interest)."<br>The principal purpose of this offering is to increase our capitalization and financial flexibility. We intend to use the net proceeds of this offering for working capital, capital expenditures and general corporate purposes. See "Use of Proceeds." |

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|:---|:---|
|  Directed share program | At our request, the underwriters have reserved up to shares of our Class A common stock, or 5% of the shares being offered pursuant to this prospectus, for sale at the initial public offering price to certain individuals and entities as determined by certain of our officers through a directed share program. The number of shares of our Class A common stock available for sale to the general public in this offering will be reduced to the extent these individuals and entities purchase such reserved shares. Any reserved shares that are not so purchased will be offered by the underwriters to the general public on the same basis as the other shares offered by this prospectus. See "Underwriting (Conflicts of Interest)—Directed Share Program." |
|  Risk factors | Investing in our Class A common stock involves a high degree of risk. See "Risk Factors" elsewhere in this prospectus for a discussion of factors you should carefully consider before deciding to invest in our Class A common stock. |
|  Dividend policy | We currently expect to retain all available funds and any future earnings to fund the development, operation and growth of our business and to potentially repay any indebtedness and, therefore, we do not anticipate paying any cash dividends in the foreseeable future on our common stock. Holders of the Series A preferred stock are entitled to receive quarterly dividends at a cumulative rate of 7.0% per annum up to, but excluding the First Reset Date. From and after the First Reset Date, holders of the Series A preferred stock are entitled to quarterly dividends at a rate equal to the sum of the five-year treasury date on the applicable Reset Date and 6.0%. See "Dividend Policy." |
|  Controlled company | Upon completion of this offering, Global Corp. will hold approximately % of the voting power of our outstanding capital stock (or approximately % if the underwriters exercise their option to purchase additional shares of Class A common stock in full). As a result, we will be a "controlled company" as defined under the corporate governance rules of the and, therefore, will qualify for exemptions from certain corporate governance requirements of Nasdaq. See "Management—Controlled Company Exemption." |

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|  Conflicts of interest | Clear Street Group Inc. is an affiliate of CS LLC, a member of Financial Industry Regulatory Authority, Inc. ("FINRA"), which will act as an underwriter for the sale of shares of Class A common stock to the public in this offering. Because Clear Street Group Inc. will receive all the net proceeds from sales of shares made to the public through CS LLC, CS LLC is deemed to have a "conflict of interest" within the meaning of FINRA Rule 5121. Consequently, this offering will be conducted in compliance with the provisions of FINRA Rule 5121. In accordance with Rule 5121, CS LLC is not permitted to sell shares of Class A common stock in this offering to an account over which it exercises discretionary authority without the prior specific written approval of the account holder. Goldman Sachs & Co. LLC, one of the underwriters of this offering, will act as "qualified independent underwriter" as defined in FINRA Rule 5121. In that role, Goldman Sachs & Co. LLC has participated in the preparation of the registration statement of which this prospectus forms a part and has exercised the usual standards of "due diligence" in connection with this offering, as required by FINRA Rule 5121. We have agreed to indemnify Goldman Sachs & Co. LLC against certain liabilities incurred in connection with acting as a qualified independent underwriter, including liabilities under the Securities Act. Goldman Sachs & Co. LLC will not receive any additional compensation for acting as a qualified independent underwriter.<br>See "Underwriting (Conflicts of Interest)" for more information. |
|  Listing | We intend to apply to have our Class A common stock listed on Nasdaq under the symbol "CSIG." |

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The number of shares of our capital stock to be outstanding immediately after the completion of this offering is based on shares of our Class A common stock outstanding, shares of our Class B common stock outstanding and shares of our Series A preferred stock outstanding as of September 30, 2025, which does not include (in each case, after giving effect to the Stock Split):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon exercise of stock options outstanding
under our 2021 Clear Street Group Inc. 2021 Stock Incentive Plan (the "2021 Plan") as of September 30, 2025, at a weighted average exercise price of $ per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon vesting and settlement of restricted
stock units ("RSUs") outstanding under the 2021 Plan as of September 30, 2025;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon exercise of stock options outstanding under
the 2021 Plan granted subsequent to September 30, 2025, at a weighted average exercise price of $ per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon vesting and settlement of RSUs outstanding
under the 2021 Plan and granted subsequent to September 30, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon the vesting and settlement of the RSUs granted
to Global Corp pursuant to the Global Corp. RSU Agreement (as defined in "Executive and Director Compensation-Grants to Clear Street Global Corporation") subsequent to September 30, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an aggregate of      shares of Class A common stock issuable upon the vesting and exercise of the
Global Corp. Grants (as defined under "Executive and Director Compensation—Grants to Clear Street Global Corporation"), with an exercise price of $ per share, which is the midpoint of the price range set forth
on the cover page of this prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock reserved for future issuance under the 2021 Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock reserved for future issuance under our Clear Street
Group Inc. 2026 Omnibus Incentive Plan (the "2026 Plan");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock reserved for future issuance under our Clear Street Group
Inc. Employee Stock Purchase Plan (the "ESPP"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon vesting and settlement of RSUs held by certain
current and former clients and service providers originally issued outside the 2021 Plan and the 2026 Plan.

Except as otherwise indicated, all information in this prospectus assumes or gives effect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the reclassification of all shares of Class Z common stock, par value $0.00001 ("Class Z common
stock"), into an equal number of shares of Class B common stock in December 2025 as if such reclassification had occurred on September 30, 2025 (the "Share Reclassification");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the exercise of the VC Right to Purchase (as defined herein) into 8,982,036 shares of Series B-1 Preferred Stock in October
2025 as if such exercise had occurred on September 30, 2025 (the "Warrant Exercise");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the issuance and sale of 3,379,682 shares of Series C Preferred Stock in December 2025 and January 2026 as if such
issuances and sales had occurred on September 30, 2025 (the "Series C Issuance");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the issuance and sale of 1,040,974 shares of Class A common stock issued in connection with the Pulse Acquisition (as
defined herein) in November 2025 as if such issuance had occurred on September 30, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the subsequent automatic conversion of all outstanding shares of our Series B-1 Preferred Stock, Series B-2
Preferred Stock and Series C Preferred Stock into     shares of Class A common stock, which will occur immediately prior to the completion of this offering (the "Preferred Stock Conversion");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a    -for-1 split of our Class A common stock and Class B common stock, to be effectuated after the
effectiveness of the registration statement of which this prospectus forms a part and before the completion of this offering (the "Stock Split");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no exercise or settlement of the outstanding stock options or RSUs described above;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no exercise by the underwriters of their option to purchase up to an additional    shares of our
Class A common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an initial public offering price of $ per share, which is the midpoint of the price range set
forth on the cover page of this prospectus; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the adoption, filing and effectiveness of our amended and restated certificate of incorporation (the "New
Charter") and the adoption of our amended and restated bylaws (the "New Bylaws"), each of which will occur immediately prior to the completion of this offering.

The Stock Split, Share Reclassification, Warrant Exercise, Series C Issuance, the Pulse Acquisition, and Preferred Stock Conversion are hereafter referred to as the "Pre-IPO Transactions."

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**SUMMARY CONSOLIDATED FINANCIAL AND OTHER DATA** 

The following tables summarize our consolidated financial data and other financial and key performance metrics. The summary consolidated financial statement data as of and for the nine months ended September 30, 2025 and 2024 and for the years ended December 31, 2024 and 2023 are derived from our consolidated financial statements that are included elsewhere in this prospectus. The summary consolidated financial data in this section are not intended to replace the consolidated financial statements and related notes thereto included elsewhere in this prospectus and are qualified in their entirety by the consolidated financial statements and related notes thereto included elsewhere in this prospectus. Our historical results are not necessarily indicative of the results that may be expected in the future. You should read the summary historical financial data below in conjunction with the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the financial statements and related notes included elsewhere in this prospectus.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **(in thousands, except per share amounts)** | **2025** | **2024** | **2024** | **2023** |
|  | *(unaudited)* | *(unaudited)* |  |  |
|  **Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net financing revenues | $515711 | $210558 | $325704 | $100935 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction revenues | 267130 | 90333 | 136698 | 93719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other revenue | 866 | 990 | 1207 | 1137 |
|  **Net revenues** | $**783707** | $**301881** | $**463609** | $**195791** |
|  **Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensation and benefits | 239235 | 124768 | $170002 | $87976 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction and market access costs, net | 82747 | 46853 | 72965 | 48919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and market data | 49726 | 28780 | 42617 | 30238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees, marketing and other | 50714 | 28427 | 47046 | 27432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization and depreciation | 25664 | 20404 | 29236 | 19491 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense on borrowings | 11043 | 6558 | 10039 | 8150 |
|  **Total operating expenses** | **459129** | **255790** | **371905** | **222206** |
|  **Operating income (loss)** | **324578** | **46091** | **91704** | **(26415)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on the termination of lease |  |  |  | 1835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss from change in fair value of warrant liability | (87186) |  |  |  |
|  **Income (loss) from continuing operations before income tax expense** | **237392** | **46091** | **91704** | **(24580)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | 80196 | 5386 | 10618 | (714) |
|  **Income (loss) from continuing operations** | **157196** | **40705** | **81086** | **(23866)** |
|  **Discontinued operations:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income from discontinued operations |  | 8042 | 8042 | 6032 |
|  **Net income (loss)** | $**157196** | $**48747** | **89128** | **(17834)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) attributable to noncontrolling interests |  | 24991 | 46257 | (20388) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to redeemable noncontrolling interests |  | 3076 | 3493 | 7578 |
|  **Net income (loss) attributable to Clear Street Group Inc.** | $**157196** | $**20680** | $**39378** | $**(5024)** |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **(in thousands, except per share amounts)** | **2025** | **2024** | **2024** | **2023** |
|  | *(unaudited)* | *(unaudited)* |  |  |
|  **Basic earnings per share attributable to Class A and Class Z common shares<sup>(1)</sup><sup>(2)</sup>:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic earnings per share from continuing operations | $0.68 | $0.14 | $(0.35) | $(0.29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic earnings per share from discontinued operations. |  | 0.03 | $0.10 | $0.06 |
|  **Basic earnings per share attributable to stockholders** | $**0.68** | $**0.17** | $**(0.25)** | $**(0.23)** |
|  **Diluted earnings per share attributable to Class A and Class Z common shares<sup>(1)(2)</sup>:** |  |  |  |  |
|  Diluted earnings per share from continuing operations | $0.68 | $0.14 | $(0.35) | $(0.29) |
|  Diluted earnings per share from discontinued operations. |  | 0.03 | $0.10 | $0.06 |
|  **Diluted earnings per share attributable to stockholders** | $**0.68** | $**0.17** | $**(0.25)** | $**(0.23)** |
|  **Weighted-average shares used in computing per share amounts:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 142762 | 30880 | 30966 | 32514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 229928 | 115580 | 30966 | 32514 |
|  | **Nine Months Ended<br>September 30, 2025** | **Nine Months Ended<br>September 30, 2025** | **Year Ended December 31,<br>2024** | **Year Ended December 31,<br>2024** |
| **Pro Forma Presentation** |  |  |  |  |
|  Basic earnings per share attributable to stockholders—pro forma as adjusted<sup>(3)</sup> |  |  |  |  |
|  Diluted earnings per share attributable to stockholders—pro forma as adjusted<sup>(3)</sup> |  |  |  |  |
|  Basic weighted-average shares outstanding—pro forma as adjusted<sup>(2)</sup> |  |  |  |  |
|  Diluted weighted-average shares outstanding—pro forma as adjusted<sup>(2)</sup> |  |  |  |  |

---

(1) The sum of the earnings per share amounts may not equal the totals due to rounding.

(2) Subsequent to September 30, 2025, we reclassified our Class Z common stock as Class B common stock.

(3) Basic and diluted pro forma as adjusted basic earnings (loss) per share, and the basic and diluted weighted-average
shares in computing pro forma net income (loss) per share, give effect to (i) the Pre-IPO Transactions (including the Share Reclassification), (ii) the filing and effectiveness of our New Charter and the adoption and effectiveness of our
New Bylaws, and (iii) the issuance and sale of shares of our Class A common stock in this offering at an assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the
cover page of this prospectus, after deducting certain of the underwriting discounts and commissions and estimated offering expenses payable by us and the application of the net proceeds of this offering as set forth under "Use of
Proceeds."

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| | | | |
|:---|:---|:---|:---|
|  | **As of September 30, 2025** | **As of September 30, 2025** | **As of September 30, 2025** |
|  | ***(unaudited)*** | ***(unaudited)*** | ***(unaudited)*** |
|  | **Actual** | **Pro Forma<sup>(1)</sup>** | **Pro Forma As<br>Adjusted<sup>(2)(3)</sup>** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
|  **Consolidated Balance Sheet Data** |  |  |  |
|  Cash and cash equivalents | $327392 |  |  |
|  Cash segregated under federal and other regulations | 532387 |  |  |
|  Total assets | 72698879 |  |  |
|  Total liabilities | 71759691 |  |  |
|  Total temporary equity | 755937 |  |  |
|  Total stockholders' equity | 183251 |  |  |

---

(1) The pro forma consolidated balance sheet data gives effect to (i) the Pre-IPO Transactions, (ii) the issuance
and sale of $78.5 million of the 2030 Notes in January 2026, and (iii) the filing and effectiveness of our New Charter and the adoption and effectiveness of our New Bylaws.

(2) The pro forma as adjusted consolidated balance sheet data gives effect to (i) the pro forma adjustments set forth in
footnote (1) above, and (ii) our sale of shares of Class A common stock in this offering at an assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the
cover page of this prospectus, after deducting certain of the underwriting discounts and commissions and estimated offering expenses payable by us, expenses related to the accelerated vesting of certain RSUs and stock options for which the time-based service condition has been met and for which the liquidity condition will be satisfied upon the completion of this offering and the application of the net proceeds therefrom as described under "Use
of Proceeds."

(3) The pro forma as adjusted information is illustrative only and will be adjusted based on the actual public offering price
and other terms of this offering determined at pricing. For example, a $1.00 increase or decrease in the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover
page of this prospectus, would increase or decrease, respectively, each of cash and cash equivalents, total assets and total stockholders' equity by $ million or $ million, respectively,
assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting certain of the underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, an
increase or decrease of 1,000,000 shares in the number of shares offered by us would increase or decrease, respectively, each of cash and cash equivalents, total assets and total stockholders' equity by $ million or
$ million, respectively, assuming the assumed initial public offering price of $ per share remains the same, and after deducting certain of the underwriting discounts and commissions and
estimated offering expenses payable by us. We will receive all proceeds from sales of shares in this offering made to the public through CS LLC. See "Underwriting (Conflicts of Interest)."

**Key Performance Metrics and Non-GAAP Financial Measures** 

In addition to the measures presented in our consolidated financial statements, we monitor the following key performance metrics and non-GAAP financial measures to help us evaluate our business, measure our performance, identify trends affecting our business, and make strategic decisions.

Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) adjusted for interest expense on borrowings, amortization and depreciation expense, income tax expense (benefit), and share-based compensation expense. Adjusted EBITDA margin is a non-GAAP financial

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measure that we define as Adjusted EBITDA divided by Net revenues for the same period. Adjusted net income (loss) is a non-GAAP financial measure that we define as net income (loss) adjusted for share-based compensation expense, amortization related to acquisitions, and tax impact of non-GAAP adjustments to net income (loss). We believe that the key performance metrics and non-GAAP financial measures, together with GAAP financial measures, such as net income (loss), are useful to securities analysts, investors, and other interest parties in evaluating our results, and are helpful in assessing our ongoing platform performance without the effect of (cash and non-cash) charges that do not relate to the core operations of our business.

The following table sets forth our key performance metrics and non-GAAP financial measures we use to evaluate our business for the nine months ended September 30, 2025 and 2024 and for the years ended December 31, 2024 and 2023.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **($ in thousands)** | **2025** | **2024** | **2024** | **2023** |
|  Interest-Bearing Client Balances<sup>(1)</sup> | $12997529 | $7013391 | $7814722 | $2577375 |
|  Average Daily Trades<sup>(2)</sup> | 4018448 | 2110283 | 2392812 | 1825763 |
|  Average Daily Volume<sup>(3)</sup> | 588635994 | 313846794 | 347253091 | 252510644 |
|  Adjusted EBITDA<sup>(4)</sup> | $362817 | $84059 | $142911 | $8879 |
|  Adjusted EBITDA margin<sup>(4)</sup> | 46.3% | 27.8% | 30.8% | 4.5% |
|  Adjusted net income (loss)<sup>(4)</sup> | $251039 | $50486 | $88033 | $(9564) |

---

(1) Interest-bearing client balances represent the average daily balances held in client accounts that generate net financing
revenues, including margin, cash and securities balances, during the period.

(2) Average daily trades represents the average number of trades cleared and/or executed by us per day during the period.

(3) Average daily volume represents the average number of shares or contracts cleared and/or executed by us per day during
the period.

(4) See the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures" for more information.

The following table shows reconciliations of Adjusted EBITDA and Adjusted EBITDA margin to the most comparable GAAP measures, net income (loss) and net income (loss) margin, respectively, for the periods presented:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **($ in thousands)** | **2025** | **2024** | **2024** | **2023** |
|  **Net income (loss)** | $**157196** | $**48747** | $**89128** | $**(17834)** |
|  Non-GAAP adjustments: |  |  |  |  |
|  Interest expense on borrowings | 11043 | 6558 | 10039 | 8150 |
|  Amortization and depreciation | 25664 | 20404 | 29236 | 19491 |
|  Income tax expense (benefit) | 80196 | 5386 | 10618 | (714) |
|  Share-based compensation expense<sup>(1)</sup> | 1532 | 2964 | 3890 | (214) |
|  Loss from change in fair value of warrant liability<sup>(2)</sup> | 87186 |  |  |  |
|  **Adjusted EBITDA** | $**362817** | $**84059** | $**142911** | $**8879** |
|  Net revenues | $783707 | $301881 | 463609 | 195791 |
|  **Net income (loss) margin** | **20.1%** | **16.1%** | **19.2%** | **(9.1)%** |
|  **Adjusted EBITDA margin** | **46.3%** | **27.8%** | **30.8%** | **4.5%** |

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(1) Share-based compensation expense consists primarily of costs associated with equity awards granted to employees.

(2) Represents the loss from the change in fair value of the VC Right to Purchase warrant liability.

The following table shows a reconciliation of Adjusted net income (loss) to the most comparable GAAP measure, net income (loss) for the periods presented:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **(in thousands)** | **2025** | **2024** | **2024** | **2023** |
|  **Net income (loss)** | $**157196** | $**48747** | $**89128** | $**(17834)** |
|  Non-GAAP adjustments: |  |  |  |  |
|  Share-based compensation expense<sup>(1)</sup> | 1532 | 2964 | 3890 | (214) |
|  Amortization related to acquisitions<sup>(2)</sup> | 7155 | 5760 | 8180 | 6498 |
|  Loss from change in fair value of warrant liability<sup>(3)</sup> | 87186 |  |  |  |
|  Tax impact of non-GAAP adjustments to net income (loss) | (2030) | (6985) | (13165) | 1986 |
|  **Adjusted net income (loss)<sup>(4)</sup>** | $**251039** | $**50486** | $**88033** | $**(9564)** |

---

(1) Share-based compensation expense consists primarily of costs associated with equity awards granted to employees.

(2) Represents amortization expense related to intangible assets recognized in connection with acquisitions, including client
relationships, developed technology, and trade names.

(3) Represents the loss from the change in fair value of the VC Right to Purchase warrant liability.

(4) For purposes of calculating Adjusted net income (loss), we have presented our results as if all member units of CSH LLC
were converted into Class A common stock (as if the termination of the Up-C structure was enacted on January 1, 2023) and the adjusted results would be subject to U.S. federal corporate income tax.

See "—Key Performance Metrics" and "—Non-GAAP Financial Measures" under the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" for more information.

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**RISK FACTORS** 

*Investing in our Class A common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described below, together with all of the other information contained in this prospectus, including our consolidated financial statements and the related notes thereto, before making a decision to invest in our Class A common stock. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, may also become important factors that affect us. If any of the events described in the following risk factors occur, our business, financial condition, results of operations and prospects could be adversely affected. In that event, the price of our Class A common stock could decline, and you could lose all or part of your investment.* 

**Risks Related to Our Business and Industry** 

***If we are unable to manage our growth effectively, our business may suffer.***

We have experienced significant growth in recent years. Our net revenues were $783.7 million and $301.8 million for the nine months ended September 30, 2025 and 2024, respectively, representing a year over year increase of 160%, and $463.6 million and $195.8 million for the years ended December 31, 2024 and 2023, respectively, representing a year over year increase of 137%. However, we cannot assure you that our operations and business will continue to grow at a similar rate, if at all, and investors should not rely on the revenue growth of any prior quarterly or annual period as an indication of our future performance. Even if our revenue continues to increase, our revenue growth rate may decline in the future as a result of a variety of factors, including the maturation of our business, slowing demand for our platform, our failure to continue to capitalize on growth opportunities, including as a result of our inability to scale to meet such growth, regulatory issues, including increasing regulatory costs, increasing capital requirements imposed by federal, state and international regulators and self-regulatory organizations ("SROs"), cash deposit and collateral requirements under the rules of the Depository Trust and Clearing Corporation ("DTCC"), the National Securities Clearing Corporation ("NSCC") and the Options Clearing Corporation ("OCC"), economic conditions that reduce financial activity and increased competition.

To effectively manage the expected growth of our operations, we will need to continue to improve our operational, compliance, financial and management processes and systems, as well as adjust our strategy to meet changing market dynamics. Our growth strategy contemplates significant expenditures to increase client acquisition, invest in client service, develop our technological systems, launch new applications, broaden asset classes and financial instruments on our platform, and expand into new countries and markets organically and through strategic acquisitions, and we cannot guarantee that we will be successful in these efforts. Specifically, we intend to offer our clients the ability to invest and trade in digital assets, including stablecoins, and prediction markets, which will make us subject to additional regulations and could be time-consuming and costly to incorporate into our existing platform and, if trading does not grow as we expect, our business, financial condition, results of operations and prospects could be adversely affected. Execution of our growth strategies entails significant risks and may be impacted by factors outside of our control, including competition, general economic, political and market conditions and industry, legal and regulatory changes. Failure to manage our growth effectively could result in our costs increasing at a faster rate than our revenues and distracting management from our core business and operations. For example, we may incur substantial development, sales and marketing expenses and expend significant management effort to create and update applications on our platform, and the period before such applications are successfully developed, introduced and adopted, if ever, may extend over many months or years. Even after we have incurred these costs, such applications may not achieve market acceptance or may otherwise have a limited impact, if any, on our business.

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In addition, our business is highly dependent on our technology stack, and we also rely on certain third-party service providers and computer systems. Any failure to maintain or upgrade our technology or network infrastructure effectively as necessary to support our growth, particularly as our client base grows, our geographic presence expands and we experience any corresponding surges in trading volume could adversely affect our business, financial condition, results of operations and prospects. Any interruption in the third-party services or deterioration in the quality of such services or their performance, could result in unanticipated system disruptions, platform outages or other performance problems, which may result in degraded service, partial or full service outages on our platforms, costly litigation, regulatory inquiries, examinations and investigations, client dissatisfaction, arbitration and complaints and reputational harm and may have an adverse effect on our ability to grow our business. Further, any growth must be accomplished in a manner that is consistent with regulatory requirements that apply to our business. If we do not adapt to meet these evolving challenges and requirements, or if our management team does not effectively scale our business, we may experience erosion to our brand, the quality of our applications and value-added services may suffer, and we may face regulatory investigations that may result in adverse enforcement actions, fines, censures, other regulatory restrictions on growth or expansion, or failure to obtain regulatory approvals required for certain types of business or for geographic or personnel expansion. We may also experience difficulty in providing adequate client services to our growing client base. Failure to improve maintain or increase client support now or in the future may inhibit our growth. The occurrence of any of these events could have an adverse effect on our business, financial condition, results of operations and prospects.

***We have experienced losses in the past, and we may be unable to sustain profitability or generate profitable growth in the future.***

Although we generated net income in prior periods, including net income of $157.2 million for the nine months ended September 30, 2025, $48.7 million for the nine months ended September 30, 2024, and $89.1 million for the year ended December 31, 2024, we have experienced net losses in prior periods, including a net loss of $17.8 million for the year ended December 31, 2023. We may not maintain profitability in the future. We will need to sustain or increase revenue while managing our costs to sustain profitability or generate profitable growth in the future.

Our efforts to maintain and increase our profitability may not succeed as we continue to invest in the growth of our business due to increasing operating expenses, including due to increasing our sales and marketing efforts, continuing investments in research and development, further developments to our technological systems and applications, broadening into improving and expanding our client support functions, broadening asset classes and financial instruments on our platform and expanding into new geographies. In addition, as a public company, we will incur significant legal, accounting and other expenses that we did not incur as a private company. Further, our revenue growth may slow or our revenue may decline for a number of reasons, including those described in these "Risk Factors."

***We have a limited operating history, which makes it difficult to evaluate our business, future expenses and prospects.***

We began our operations in 2019 and, in the period since then, we have continued to design and develop our platform, introducing new asset classes and financial instruments, features and applications. As a result, our business model has not been fully proven and we have limited financial data that can be used to evaluate our current business and prospects, which subjects us to a number of uncertainties, including our ability to plan for, model and manage future growth and risks. We face numerous challenges to our success, including our ability to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• accurately forecast our key performance metrics, revenue or volume, and to plan our operating expenses;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successfully attract new clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successfully build our brand and protect our reputation from negative publicity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increase the effectiveness of our marketing strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• add additional asset classes and financial instruments to our platform;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successfully adjust our proprietary technology, applications, and services in a timely manner in response to changing
macroeconomic conditions and fluctuations in the markets in which we operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successfully introduce new applications and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adapt to rapidly evolving trends in the way our clients and our network of partners interact with technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• comply with and successfully adapt to complex and evolving regulatory environments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• avoid interruptions or disruptions in our platform;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• effectively secure and maintain the confidentiality of the information received, accessed, stored, provided, used, and
otherwise processed across our systems and our third-party vendors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successfully obtain and maintain funding and liquidity to support continued growth and general corporate purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• attract, integrate, and retain qualified employees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• effectively manage growth in our personnel and operations.

Our historical revenue, revenue growth and key performance metrics should not be considered indicative of our future performance.

***Our operating results have fluctuated and will continue to fluctuate from period to period, including due to market conditions.***

Our business is impacted by conditions of the various markets in which our platform is offered (such as equities, options and derivatives markets) and our operating results and key performance metrics have fluctuated in the past and can be expected to continue to fluctuate significantly from period to period. See also "—*Our business may be harmed by events beyond our control, including overall slowdowns in securities trading and market fluctuations, which could have an adverse impact on our business*."

Any prolonged period of market weakness and low trading volumes could adversely impact parts of our business, as there is a correlation between the volume of our clients' trading activity and our results of operations. Investment strategies, asset classes, and financial instruments could come in and out of favor for reasons outside of our control, which could lead to unpredictable market activities. A downturn in trading activity in certain asset classes or financial instruments on which our clients depend, such as equities, options, and leveraged exchange-traded funds ("ETFs"), among others, would have an adverse impact on our revenues and overall financial condition of our business. In addition, a significant portion of our revenues is generated from financing activities, including margin lending, securities lending and related funding transactions. Significant market movements in either direction can impact our client's ability to meet their margin requirements, which could lead to reduced client activity and expose us to potential losses where the collateral is not sufficient to meet the client's obligations. As a result of the foregoing, period to period comparisons of our performance may not be meaningful, and historical results should not be relied upon as indicators of future outcomes and any future changes in market volatility and investor appetite could have an adverse effect on our business, financial condition, cash flows and results of operations. See "Management's Discussion and Analysis of Financial Condition and Results of Operations" for additional information on our net revenues.

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***We depend on a limited number of clients for a significant portion of our revenues.***

Our ten largest clients as of September 30, 2025 and September 30, 2024 accounted for approximately 53.7% and 39.2%, respectively, of our net revenues for the nine months then ended. Our largest client, an Institution, accounted for approximately 14.3% and 21.9% for the nine months ended September 30, 2025 and September 30, 2024, respectively, of our net revenues. Our ten largest clients as of December 31, 2024 and December 31, 2023 accounted for approximately 39.6% and 15.0%, respectively, of our net revenues for the years then ended. Our largest client, an Institution, accounted for approximately 22.9% and 2.4% for the years ended December 31, 2024 and December 31, 2023, respectively, of our net revenues. We believe our revenue for the foreseeable future will continue to depend on these large clients. In the future, these clients may decide not to utilize our platform or services at all or utilize our platform or services to a lesser extent than in past years. The loss of any of these clients, or their election to utilize our platform to a lesser extent, could cause our revenues to decline significantly. To attract new clients or retain existing clients, we may offer these clients favorable terms, including pricing reductions or financial incentives, any of which could impair our operating results. We cannot guarantee that any of our largest clients will continue to use our applications or services in the future. The loss of any large clients would have an adverse effect on our business, financial condition, results of operations and prospects. 

***We are subject to risks, including potential losses, as a result of our clearing activities, particularly during periods of market volatility.***

In providing clearing services to certain of our brokerage clients, we are ultimately responsible for their financial performance in connection with various stock, options and futures transactions. Where a client enters into a transaction that is cleared by us, we will post margin with a central clearing party (a "clearing house") to cover the clearing house's margin requirements in connection with the client's open positions. We will issue a margin call to the client for the payment of the margin due to us when the client's margin is below our house or regulatory determined threshold. If adequate collateral cannot be collected from a client through the life of its trades or if the client fails to pay any cash settlement amount due to us on termination or expiry of the transaction, we remain financially liable for such obligations. Although these obligations are collateralized, we are subject to the market risk that the liquidation of the client's collateral is not sufficient to satisfy those obligations. There can be no assurance that our risk management procedures will be adequate. Any liability arising from clearing operations could have an adverse effect on our business, financial condition, results of operations and prospects.

In addition, we are dependent on clearing houses to clear certain of our trading activity. There can be no assurance that a clearing house's risk management methodology will be adequate to manage one or more defaults, and any failure by a clearing house to manage a default properly could lead to a systemic market failure.

We have in the past experienced, and may experience in the future, heightened credit and clearing house risk during periods of significant market volatility. Clearing house margin requirements are generally tied to the size and volume of transactions submitted for clearing. As our business has expanded, we have experienced sizeable increases in these requirements. In periods of market stress, counterparties and clearing houses may demand increased collateral, delay settlement or otherwise adjust their risk management practices in ways that could adversely impact our liquidity, capital resources and ability to transact. In addition, our clients' trading activity, especially high levels of trading in volatile securities, can cause unexpected spikes in our deposit requirements, which, in extreme cases, may exceed our excess net capital, resulting in premium charges from the NSCC. In addition, our clients may face liquidity issues due to increased margin calls, which may, in turn, lead to an increase in late or failed margin payments to us by clients. While to date we have managed through

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such circumstances, there can be no assurance that future periods of market volatility will not result in more severe disruptions or losses. If our clients or other trading counterparties do not meet their obligations to us, or if any clearing houses fail to manage defaults by market participants properly, there could be an adverse effect on our business, financial condition, results of operations and prospects.

Further, clearing houses require member firms to deposit cash and/or approved government securities to a clearing fund. If a clearing member defaults in its obligations to the clearing house in an amount larger than its own margin and clearing fund deposits, the shortfall is absorbed pro rata from remaining clearing members. These clearing houses have the authority to assess their members for additional funds if the default fund is depleted. Thus, a large clearing member default could result in substantial costs to us if the clearing house used our margin or clearing fund deposits, and/or if we were required to pay any such assessments. In addition to failures to meet margin or default funds requirements established by these clearing houses, errors in performing settlement functions, including clerical, technological and other operational errors related to the handling of funds and securities and failure to properly monitor our clients, could lead to suspension of clearing privileges, censures, fines, or other sanctions imposed by applicable regulatory authorities, as well as losses, liability and reputational harm as a result of related lawsuits and proceedings brought by transaction counterparties and others. Any such suspension of clearing services, sanctions or liability arising from our clearing operations could have an adverse effect on our business, financial condition, results of operations and prospects.

While our clearing platform, operational processes, risk methodologies, infrastructure and current and future financing arrangements have been carefully designed, we may nevertheless encounter difficulties that may lead to operating inefficiencies, including delays in implementation, disruption in the infrastructure that supports the business, inadequate liquidity and financial loss, which could negatively impact our ability to effect transactions and manage our exposure to risk.

***Our risk management processes and procedures as a regulated financial services company may not be effective, including due to abrupt and erratic market movements, which may cause us to be unable to execute or adjust our risk management practices in a timely manner, which could result in potential losses, client dissatisfaction, regulatory investigations, and litigation.***

Our risk management processes and procedures are vital to the mitigation of financial, settlement, interest rate, liquidity, cybersecurity, trading, funding, credit and other risks. While we have invested significant resources in developing policies, processes, procedures and controls intended to reduce risk, there can be no assurance that these measures will be effective in mitigating our risk exposures in all market environments or against all types of risks, including risks that are unidentified or unanticipated. Our framework relies on technical systems and human oversight, both subject to errors and limitations, and incorporates discretionary strategies based on historical data and industry practices, which may not account for extreme or unprecedented market events. Reassessments of our policies may reveal gaps requiring additional resources and management attention. These methods may not adequately prevent losses, particularly as they relate to extreme market movements, which may be significantly greater than historical fluctuations in the market. In addition, our risk management policies and procedures may not adequately prevent losses due to technical errors if our testing and quality control practices are not effective in preventing software or hardware failures. Furthermore, technical errors or adjustments to increase risk tolerance could expose us to greater losses.

Additionally, periods of erratic or unexpected market movements can cause significant market volatility, which we may not have foreseen, and which could prove our policies to be insufficient or fail. Sudden movements in the various markets in which we offer our services may also result in us being unable to execute or adjust our risk management practices in a timely manner or implementing

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measures such as restrictions on trading, which could result in potential losses, client dissatisfaction, regulatory investigations and litigation. Our market risk analysis is based on, among other things, regular scenario-based stress tests, position-level surveillance, automated margin and value at risk analysis and may not be able to fully anticipate extreme market conditions or "black swan events." Recent stock run-ups, divergences in valuation ratios relative to those seen during traditional markets, high short interest or "short squeezes," or strong and atypical investor interest in the markets may significantly adversely affect our business. Further, when conducting trading activities as a principal we hold positions that are at risk of significant price fluctuations, rapid changes in the liquidity of markets, deterioration in the creditworthiness of our counterparties and other risks that may cause the value of our positions to decline, which would lead to greater losses.

***We are subject to risk of defaults by parties with whom we do business.***

We, our clients, and other counterparties are exposed to credit risk in the event of sudden market movements. By permitting clients to purchase securities on margin, we are subject to risks inherent in extending credit. If securities prices decline rapidly and/or drastically, the value of collateral may fall below the indebtedness it secures. Conversely, in rapidly and/or drastically appreciating markets, our credit risk may increase as we are required to post additional cash to finance stock borrowings to support client short positions and may be unable to recoup the funds from our clients depending on the nature of their positions. In securities transactions, we are also subject to credit risk during the period between the trade initiation and its settlement by the client. Our financing, securities lending, and trading activities expose us to credit risk if a counterparty fails to perform or if the collateral supporting its obligations proves insufficient to cover potential losses as we remain financially liable for a counterparty's obligations.

***Any inability to execute trades or liquidate our clients' positions could lead to client dissatisfaction and adversely affect our business.***

We are highly susceptible to client disgruntlement and dissatisfaction and to loss of clients if clients ****are unable to execute trades as desired. Any inability to execute trades or any liquidation of our clients' positions, whether due to events within or outside of our control, could lead to client dissatisfaction, which would in turn increase our risk of client complaints, litigation and regulatory scrutiny, which could have an adverse effect on our business, financial condition, results of operations and prospects.

Provisions typically included in our client agreements that attempt to limit our exposure to claims may not be enforceable or adequate to protect us from liability with respect to any particular claim. Even if not successful, a claim brought against us by any of our clients, and any related regulatory engagement or review, would likely be time-consuming, costly to manage and defend, divert the attention of management and could seriously damage our reputation and brand.

***Our involvement in securities, futures, security-based swaps, options and other derivatives markets subjects us to the risks inherent in conducting business in those markets.***

Our participation in securities, futures, security-based swaps, options and other derivatives markets exposes us to the risks inherent in conducting business in highly regulated and often volatile and levered markets. We act as a clearing member for securities, options and futures on behalf of our clients and their respective clients, engage in security-based swap transactions as principal with clients and trade securities, options and futures on a proprietary basis using our own capital as risk mitigation tools in order to hedge certain of our clients' transactions and in our role as a market marker. These activities often involve leverage, which amplifies both potential gains and potential losses for our clients. The heightened leverage associated with these instruments increases the likelihood that clients

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may incur substantial trading losses. In turn, such losses may impair a client's ability to satisfy its obligations to us. A client default of this nature could expose us to financial losses, increase our capital requirements and adversely impact our liquidity. A particular risk arises in the options and derivatives markets when clients maintain positions that are sensitive to sharp increases in market volatility, especially when such positions are held overnight and are susceptible to price changes before they are able to liquidate their positions. For example, a significant market event occurring outside of trading hours could cause volatility levels to escalate abruptly, resulting in substantially higher margin requirements when markets reopen. If a client is unable to meet these increased obligations due to illiquidity or default, we may be required to fund the shortfall on behalf of the client and incur losses. The chance of subsequently recouping those losses from clients is subject to a variety of factors and may never occur. In addition, such events could subject us to heightened regulatory scrutiny, reputational harm and reduced client confidence in us, our platform and our services. Any of these outcomes could adversely affect our business, financial condition, results of operations and prospects.

***A failure in the operational systems of third-parties or any failure of third parties in performing the services they provide for us or maintaining their systems adequately, or any interruption, delay or cessation of these services, could have an adverse effect on our business, financial condition, results of operations and prospects.***

We rely on various third parties, including exchanges, clearing houses and other financial intermediaries, to facilitate our business. Any operational failure, termination, capacity constraints or other disruptions of these third parties could adversely affect our business operations. In recent years, there has been significant consolidation of financial intermediaries, and an increasing number of derivative transactions are cleared on exchanges, which has increased our exposure to operational failure, termination, capacity constraints or other disruptions of the particular financial intermediaries that we use and could affect our ability to find adequate and cost-effective alternatives in the event of any such failure, termination, constraint or other disruptions. Any such failure, termination, or other constraints could adversely affect our ability to effect transactions, service our clients and manage our exposure to risk, which could significantly disrupt our business.

In addition, we rely on various third-party providers for portions of our platforms, including financial market data, cost basis and tax reporting, order management, order routing and trade processing, regulatory reporting and securities lending, among other functions. Specifically, we rely heavily on AWS to deliver our platform to our clients. See "—*We rely on third-party cloud infrastructure services providers, such as AWS, to deliver our platform to our clients, and any disruption of, or interference with, our use of these providers could adversely affect our business, financial condition and results of operations.*" In addition, we rely on third-party systems for email, security and authentication and data and analytics for our business. Any shut down, unavailability or breach of those third-party systems could result in a significant disruption of our business and our results of operations could be negatively impacted. Further, we have contracted with a number of major financial market data providers for our pre- and post-trade checks and risk controls, which is fundamental to our ability to provide accurate and reliable trade processing on behalf of our clients. Any failure of such financial market data providers to update or deliver the data in a timely and accurate manner could lead to potential losses for us or for our clients, which would in turn affect our business operations and reputation.

We do not control these third-parties or their employees and contractors, and their inability to meet our business needs could have an adverse effect on our business, financial condition, results of operations and prospects. These third-party service providers face technical, operational, and security risks of their own, including financial, legal, regulatory, and labor issues, cybersecurity incidents, break-ins, computer viruses, denial-of-service attacks, sabotage, acts of vandalism, privacy breaches, service terminations, disruptions, interruptions, and other misconduct. They are also vulnerable to

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damage or interruption from human error, power loss, telecommunications failures, fires, floods, earthquakes, hurricanes, tornadoes, pandemics, and other events beyond our or their control. We also cannot control the costs of these third parties and are susceptible to the risk that they greatly increase our costs or that we will be unable to find a replacement in a timely manner or on a cost-efficient basis. Our platform and software applications may contain defects or errors, especially when first introduced or when new versions or enhancements are released. Further, any interruption in service of our third-party providers could adversely impact our ability to conduct our business. The inability of third parties to supply us with software or systems and facilitate our integration of new software and system updates on a reliable, timely basis or to allocate sufficient capacity to meet our trading and new account volume requirements could harm relationships with our clients and our ability to achieve our target growth levels.

Furthermore, in the event that any of the agreements with the third-party service providers we rely on are terminated, there are eliminations of the services or features that we utilize, or there is damage to any such facilities, we would experience interruptions in access to our platform as well as significant delays and additional expense in arranging for or creating new facilities or re-architecting our platform for deployment on a different cloud infrastructure service provider, which would adversely affect our business, financial condition and results of operations. In addition, such contracts may not contain limitations of liability, and even where they do, there can be no assurance that limitations of liability in our contracts are sufficient to protect us from liabilities, damages, or claims related to our data privacy, data protection and cybersecurity obligations.

***We rely on third-party cloud infrastructure services providers, such as AWS, to deliver our platform to our clients, and any disruption of, or interference with, our use of these providers could adversely affect our business, financial condition and results of operations.***

We rely on third-party cloud infrastructure services providers, in particular AWS, to deliver our platform to our clients. We outsource substantially all of the infrastructure relating to our cloud-native platform to AWS. For our platform to operate effectively, our clients need to be able to access our platform at any time, without substantial interruption or degradation of performance. Although we have disaster recovery plans, any incident affecting the AWS infrastructure that may be caused by fire, flood, severe storm, earthquake or other natural disasters, power loss, telecommunications failures, cyber-attacks, terrorist or other attacks, and other similar events beyond our control, could adversely affect our cloud-native platform. Additionally, AWS may experience threats or attacks from computer malware, ransomware, viruses, social engineering (including phishing attacks), denial of service or other attacks, employee theft or misuse and general hacking, each of which have become more prevalent in our industry, particularly against cloud-native services and vendors of security solutions. Any of these security incidents could result in unauthorized access to, damage to, disablement or encryption of, use or misuse of, disclosure of, modification of, destruction of, or loss of our data or clients' data or disrupt our ability to provide our platform or service. Any of the aforementioned incidents could lead to outages of such third-party cloud infrastructure providers' services, including AWS. Such outages have in the past caused, and may in the future cause, interruptions in access to our platform. For example, in October 2025, AWS experienced a widespread outage which affected their customers' services, including ours, for several hours. Although access to our platform was not interrupted severely or for a substantial amount of time, any prolonged service disruption affecting our platform for any of the foregoing reasons would adversely impact our ability to serve our marketplace and could damage our reputation with current and potential clients, including the loss of clients, expose us to liability, result in substantial costs for remediation, or otherwise harm our business, financial condition or results of operations. In addition, we may also incur significant costs for using alternative hosting sources or taking other actions in preparation for, or in reaction to, events that damage the AWS services we use.

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Furthermore, our relationship with AWS is governed by their standard customer agreement (the "AWS Agreement"). The AWS Agreement will remain in effect until terminated by either party in accordance with the agreement. AWS can change or discontinue services provided under the AWS Agreement from time to time, provided that they provide twelve months' prior notice if such changes are material (except in certain situations, for example, if such notice period would be economically or technically burdensome or cause AWS to violate legal requirements). AWS can also modify the AWS Agreement at any time by posting a revised version of the customer agreement or standard terms of service on their website or by notifying us, provided that they provide at least 90 days' advance notice of any adverse changes. In the event that the AWS Agreement is terminated, there is an elimination of the AWS services or features that we utilize, or there is damage to any such facilities, we would experience interruptions in access to our platform as well as significant delays and additional expense in arranging for or creating new facilities or re-architecting our platform for deployment on a different cloud infrastructure service provider, which would adversely affect our business, financial condition and results of operations.

***We require financial liquidity to facilitate our day-to-day operations. Lack of sufficient liquidity could adversely impact our operations and limit our future growth potential.***

We require substantial financial liquidity to facilitate our operations. Our business involves the establishment and carrying of substantial open positions for our clients on securities exchanges. We must post and maintain margin or credit support for these positions. Significant adverse price movements can occur that require us to post margin or other deposits on short notice, whether or not we are able to collect additional margin or credit support from our clients. From time to time, we access our debt financing arrangements with other financial institutions to fund margin calls and other operating activities. As a result, our business relies heavily on our relationship with our lenders, and if we are unable to maintain relationships with such parties and enter into new arrangements, we may be unable to execute our clients' trades or enter into hedge trades, and our business and financial performance could be negatively affected, and we may encounter a reduction in client confidence. Any limitations on these sources of liquidity may limit our future growth potential. Our failure to fund margin calls and other operating activities, or a general lack of sufficient liquidity, may prohibit us from developing, enhancing and growing our business, taking advantage of future opportunities and responding to competitive pressure, any of which may adversely affect our business, financial condition, results of operations and prospects. As of September 30, 2025, we had $770.0 million available for borrowing under our credit facilities. See "Management's Discussion and Analysis of Financial Condition and Results of Operations" for additional information on our outstanding credit facilities.

There can be no assurance that our lenders will actually lend funds to us when needed. Additionally, consistent with industry practice, all of our existing facilities require periodic renewal. If any of our borrowing facilities is terminated or is not renewed, we may be unable to find replacement financing on favorable terms, or at all, and we might not be able to grow our business or have sufficient liquidity to settle transactions and operate our businesses, which would have an adverse effect on our business, financial condition, results of operations and prospects. In addition, the agreements governing our existing indebtedness contain, and the agreements governing any future debt financings could contain, financial covenants, that may make it difficult to draw down on the facilities if we are not otherwise in compliance with these covenants. Furthermore, a downgrade in our credit rating could affect borrowing rates and increase borrowing costs under our senior unsecured notes outstanding, which could also increase our exposure to credit and counterparty risk.

We could also be adversely affected by the actions and commercial soundness of such financial services institutions. As a result, defaults by, or even negative speculation about, one or more financial services institutions, or the financial services industry in general, have led to market-wide liquidity problems in the past and could lead to losses or defaults by us or by other institutions in the future.

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***If we fail to provide and monetize new and innovative applications on our platform, asset classes, financial instruments and services that are adopted by clients and maintain our technological differentiation, our business may become less competitive, and our revenue might decline.***

Our ability to provide our platform and brokerage, clearing, custody and related services and our success in these areas are largely attributable to our sophisticated proprietary technology. The financial services industry is continually undergoing rapid technological change, with frequent introductions of new technology-driven applications and other value-added services. New services, applications and technologies may render our existing services, applications and technologies less competitive or obsolete. Our future success will depend, in part, on our ability to maintain our technological differentiation, including by introducing new applications, asset classes, financial instruments and catalysts on a timely and cost-effective basis and adapting to technological advancements and changing standards to address the increasingly sophisticated requirements and varied needs of our clients. We cannot assure you that we will be successful in developing, accessing, introducing, integrating or marketing new services, applications, asset classes, financial instruments, such as digital assets, including stablecoins, and prediction markets, on a cost-effective basis or at all, which may cause us to fail to attract and retain clients and expand, or even maintain client engagement, and thereby adversely affect our business, financial condition, results of operations and prospects. Our international expansion efforts may increase these risks as we expect to adapt our platform to reflect local regulatory requirements, client preferences, and other location-specific factors. See "—*We currently operate in certain international markets and plan to further expand our international operations, which exposes us to increased business, economic and regulatory risks*" for additional information on certain risks related to our international operations. These risks may be heightened as a result of our competitors having substantially greater resources to invest in technological improvements than we do.

To remain technologically competitive and operationally efficient, we have made, and expect to continue to make, significant investments in new technological solutions, substantial core system upgrades and other technology enhancements. Our efforts to innovate have been and might continue to be inhibited or delayed by industry-wide standards, regulatory scrutiny, legal restrictions, incompatible client expectations, demands, and preferences, or third-party intellectual property and other proprietary rights. Many of our services, applications and platform enhancements have a significant ramp-up time, include phased implementation schedules, are tied to critical systems and require substantial internal and external resources for design, implementation, maintenance and service. We may encounter significant adverse developments in the completion and implementation of these initiatives. These may include time delays, cost overruns, loss of key personnel, technological problems, processing failures, distraction of management and other adverse developments. In addition, new services, applications and platform enhancements may not achieve market acceptance to the level necessary to offset the related costs. Any failure on our part to anticipate or respond adequately to technological advancements, client requirements or changing industry standards, or any delays or interruptions in the development, access, introduction, integration or availability of new services, applications or other platform enhancements could have an adverse effect on our business, financial condition, results of operations and prospects.

***Any significant service interruptions could result in loss of clients or funds, regulatory scrutiny, enforcement and fines, a decrease in demand for our platform and adversely affect our business, financial condition, results of operations and prospects.***

We rely heavily on technology to conduct our business and allow clients to complete financial transactions on our platform. Our reputation and ability to attract and retain clients, expand client engagement with our platform and grow our business depends, in part, on our ability to operate our

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platform and services at high levels of reliability, scalability and performance, including the ability to process and monitor a large number of transactions that occur at high volume and frequencies across multiple systems. Events beyond our control, including hurricanes, earthquakes, fires, floods and other natural disasters, public health crises, power outages, telecommunications failures and similar events, terrorism, cyberattacks, insider threats, sabotage, human errors, computer viruses and other malware, and other criminal, tortious or unintentional actions, may damage our ability to maintain our platform and provide services to our clients. Despite any precautions we may take, system interruptions and delays could occur if there is a natural disaster, if a third-party provider closes a facility we use without adequate notice for financial or other reasons, or if there are other unanticipated problems at our leased facilities. Because we rely heavily on our servers, computer and communications systems and the internet to conduct our business, disruptions could harm our ability to run our business effectively. We may be unable to switch instantly or completely to an alternative cloud system or systems in the event of failure to access the cloud services we currently use. This means that an outage could result in the system being impaired or unavailable for a period of time, which may lead to, among other things, the inability of clients to access Clear Street Studio, our client-facing user interface ("Studio"), and their accounts and trades, slower response times, delays in our clients' trade activities and processing, failed settlement of trades, incomplete or inaccurate accounting, recording or processing of trades, unauthorized trades, loss of client information, increased demand on limited client support resources, client claims, complaints with regulatory organizations, lawsuits, or enforcement actions.

We may not have sufficient funds to cover our losses that may result from interruptions in service as a result of system failures or other disruptions. Comparable natural and other risks may reduce demand for our platform or cause our clients to suffer significant losses and/or incur significant disruption in their respective operations, which may affect their ability to satisfy their obligations towards us. All of the foregoing could have an adverse effect on our business, financial condition, results of operations and prospects.

***If we lose access to exchanges or clearing houses, or otherwise lose access to other market infrastructure arrangements, our ability to undertake some or all of our trading and clearing services would be affected.***

As of September 30, 2025, we were members of 52 exchanges and clearing houses including the New York Stock Exchange ("NYSE"), the Nasdaq Stock Market LLC ("Nasdaq"), the Chicago Mercantile Exchange ("CME"), the DTCC, NSCC, Fixed Income Clearing Corporation ("FICC"), OCC, Eurex, the London Metal Exchange, the Intercontinental Exchange and significant alternative trading system ("ATS") venues such as IntelligentCross, Level, Blue Ocean, Moon OTC, and Bruce. Our memberships with exchanges allows us to generate revenue through commissions earned on executing and clearing trades. In order to maintain these memberships, we are required to comply with the rules of the exchanges and trading systems. We have in the past been, and may in the future be, subject to inquiries or actions by exchanges and trading systems for non-compliance with applicable rules. If we fail to comply with such rules or default on our membership obligations (for example, by failing to pay required margin), we may be exposed to potential action from such exchanges and trading systems including warnings, monetary penalties, suspension or cancellation of membership. If we lose some or all of our memberships, or if any of the relevant exchanges and trading systems cease their operations, we will lose access to these revenue streams. We would be required to enter into contractual arrangements with counterparties who do have access, which could be time-consuming and costly. In addition, if any exchange or trading system implements structural changes, such as adverse fee structures or higher margin requirements, our business could be negatively impacted. If the exchanges or trading systems relax membership requirements, our clients may decide to become members, and the demand for our platform and services may decline as a result.

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In addition, we use various clearing houses and settlement systems across our businesses. Loss of access to, or restrictions on our use of, these services due to non-compliance with membership or participants' requirements, regulatory changes, credit or reputational issues or for other reasons could impact our ability to carry out our activities. If exchanges, clearing houses or other relevant counterparties fail to perform their obligations, or they take certain actions in response to, for example, market volatility, we and our clients may experience financial losses and margin calls and our business, financial condition, results of operations and prospects would suffer.

***If we fail to retain existing clients or attract new clients, or if our clients decrease their level of engagement with our platform, our business, financial condition, results of operations and prospects may be adversely affected.***

Our success depends on our ability to retain existing clients and attract new clients to increase engagement with our platform. To do so, in addition to adding new assets and financial instruments, we must continue to ensure that our platform is secure, reliable and engaging. We must also expand our platform, the applications on our platform and/or the services we offer and may offer competitive prices in an increasingly price-sensitive and competitive market. Any decline in our client base or the growth rate thereof could have a negative impact on our business, financial condition, results of operations and prospects.

Our efforts to attract and retain clients and expand client engagement with our platform might fail due to a number of factors, including clients losing confidence in us or preferring a competitor's offerings. Additional factors that could impact our ability to retain existing clients, add new clients and expand client engagement include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• client demand shifting to other applications and services, including those that we are unable to offer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our failure to introduce new and improved applications, asset classes, financial instruments or services that are favorably
received;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our failure to support new and in-demand asset classes and financial instruments or
if we elect to support certain asset classes and financial instruments with negative reputations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decline in our brand and reputation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ineffective marketing efforts or a reduction in marketing activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in client sentiment about the quality or usefulness of our platform;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse changes in our applications and/or the services we offer that are mandated by legislation, regulatory authorities
or litigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on our ability to access markets in certain jurisdictions due to legislation, regulatory requirements, or
interventions by regulatory authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• technical or other problems preventing us from delivering our applications and services with the speed, functionality,
security and reliability that our clients expect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delays in withdrawal from client accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our inability to comply with current and evolving regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our inability to keep up with technological developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cybersecurity incidents, employee or service provider misconduct or other unforeseen activities causing losses to us or our
clients, including losses to assets held by us on behalf of our clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• modifications to our pricing model or modifications by competitors to their pricing models;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our failure to provide adequate client service; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse media reports or other negative publicity relating to our business, competitors or the industry as a whole.

From time to time, certain of these factors have negatively affected, and may continue to negatively affect, client retention, growth and engagement to varying degrees. Any decrease in client retention, growth or engagement could render our applications and the other services we offer less attractive to clients and may have an adverse effect on our revenue, business, financial condition, results of operations and prospects.

***Our business may be harmed by events beyond our control, including overall slowdowns in securities trading and market fluctuations, which could have an adverse impact on our business.***

Our business and profitability are affected by elements that are beyond our control, such as economic and political conditions, broad trends in business and finance, the availability and cost of capital and credit, inflation, deflation, incidences of client fraud, changes in federal, state and local laws and regulatory oversight, changes in the volume of securities, futures and other derivatives transactions, changes in the markets in which such transactions occur and changes in how such transactions are processed. We are, and may in the future be, subject to heightened risks as a result of fluctuations in the securities, futures and other derivatives markets, including digital asset and prediction markets, and our trading, lending and clearing activities may subject our capital to significant risks. Each of these factors could result in increased costs to operate our business, including costs related to compensation, clearing and technology, which could reduce profitability.

We are exposed to macroeconomic conditions and their effect, in turn, on market conditions. Although our risk management practices and procedures have helped protect us during past periods of unexpected volatility, there can be no assurance that we will be able to fully mitigate losses or other adverse impact during future periods of extreme volatility. Any such events may put significant strain on our platform, decrease revenues, force us to reassess our risk management procedures and lead to client dissatisfaction in our applications and other services we offer.

Our business may also be adversely affected by unstable economic and political conditions outside the United States and geopolitical conflict, among other disruptions to global markets. A weakness in equity markets, such as a slowdown causing a reduction in trading volume in U.S. or foreign securities, futures and derivatives, has historically resulted in reduced transaction revenues. Any future weakness in equity markets could similarly cause a reduction in our transaction revenues, which would have an adverse effect on our business, financial condition, results of operations and prospects and may impact the amount of margin balances our clients take on, which would in turn reduce our net financing revenues. Some of our clients derive revenue from offering financial products, such as ETFs, to the investing public and any reduction in market conditions and trends could impact the utilization of their products, which in turn would reduce the transaction and net financing revenues we earn from such clients. Other elements beyond our control could impact us and the financial services industry as a whole. All of the above factors may adversely affect our business, financial condition, results of operations and prospects.

***We face intense and increasing competition and if we do not compete effectively, our business, financial condition, results of operations and prospects can be expected to be adversely affected.***

The industries in which we operate are highly competitive, and we expect competition to further intensify in the future as existing and new competitors introduce new applications or enhance existing

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applications. We primarily compete with financial technology companies offering a variety of financial services similar to the applications on our platforms. We also compete with brokers and tech-led brokers that provide self-directed, multi-asset investment services and other large, traditional financial institutions, such as banks, wealth management firms and other clearing providers.

Some of our current and potential competitors are substantially larger than us, have longer operating histories, have more established brand recognition, have greater market presence, and have greater financial, technological, marketing and other resources than we do. Further, certain larger and better capitalized competitors, including commercial and investment banking firms, may have access to capital in greater amounts and at lower costs than we do, and thus, may be better able to respond to changes in the industries in which we operate, to compete for skilled professionals, to finance acquisitions, to fund internal growth and to compete for market share generally. This may allow them to, among other things, offer more competitive pricing or other terms or features, a broader range of financial or technology products, or a more specialized set of specific products or services.

In addition to competition from established commercial and investment banking firms, we may also face competition from new entrants attempting to capitalize on the same, or similar, opportunities as we do. Our existing or future competitors may develop applications or services that are similar to ours or that achieve greater market acceptance than our applications. They could also begin offering more asset classes and financial instruments on their platforms. All of the foregoing could attract clients away from our platform and services and reduce our market share. Additionally, when new competitors seek to enter the markets in which we operate, or when existing market participants seek to increase their market share, these competitors sometimes undercut, or otherwise exert pressure on, the pricing terms prevalent in that market. This could lead us to reducing our prices in order to compete with these market participants, which may adversely affect our business and results of operations.

We believe that our ability to successfully compete depends upon many factors both within and beyond our control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ease of use, speed and reliability of our technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our marketing and sales efforts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overall market conditions and trading volume;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in global and U.S. economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory and policy developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the strength of our brand relative to our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to develop and implement new technologies that enhance economies of scale and reduce operating costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to recruit and retain highly skilled personnel and senior management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintaining our relationships with our counterparties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ease of use, performance, price and reliability of solutions developed either by us or our competitors.

Further, we operate in an industry characterized by rapid technological advances. Our success depends, in large part, on our ability to develop, acquire and introduce new applications or introduce changes to our existing applications and services to meet the evolving needs of our clients in a timely and cost-effective manner. Developing and incorporating new applications and services into our business may require substantial expenditures and take considerable time and ultimately may not be successful. In addition, we operate in markets across the world and are continually expanding into new

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markets. We may be unable to conduct our operations as planned or compete effectively due to different competitive landscapes in these new areas. Even if we expand our businesses into new jurisdictions or areas, the expansion may not yield the intended profitable results. We expect new services and technologies to continue to emerge and evolve, which may be superior to, or render obsolete, the applications and services that we currently provide. We cannot predict the effects of new services and technologies on our business.

Our current clients and prospects for future business demand that we act to meet these competitive challenges, and any failure to so act could have a negative effect on our business. There is no guarantee that any actions taken to address competitive challenges will be successful, and such actions could be costly. All of the foregoing factors and events could have an adverse effect on our business, financial condition, results of operations and prospects.

***We are directly and indirectly exposed to fluctuations in interest rates, and rapidly changing interest rate environments could reduce our profitability.***

We maintain cash balances on behalf of our clients with banks, clearing houses, depositories, brokers and exchanges. We also maintain our own cash balances. We earn interest on these balances and share a percentage of interest we earn on our clients' cash balances with them. Although our economic model is not directly sensitive to interest rate fluctuations, interest rates do affect the returns we earn on cash balances that we hold, and as such they may influence a portion of our overall revenues. In periods of rising interest rates, we may earn higher returns on cash balances, which can increase our net revenues. Conversely, in periods of declining interest rates or a return to a low-rate environment, the yield on cash balances would decrease, reducing this portion of our revenues. While this interest income is not our primary revenue driver, it may contribute meaningfully in certain market environments, and reductions could negatively impact our results of operations.

***Adverse changes in our credit ratings could have a negative impact on our business, financial condition, results of operations and prospects.***

Our ability to access capital markets is important to our ability to operate our business. Increased scrutiny of our industry and the impact of regulation, as well as changes in our financial performance and unfavorable conditions in the capital markets generally, could result in credit agencies reexamining and downgrading our credit ratings. A downgrade in our credit ratings may restrict or discontinue our ability to access capital markets at attractive rates and increase our borrowing costs, which could adversely affect our business, financial condition and results of operations. In particular, our borrowings under our senior unsecured notes are subject to an upwards interest rate adjustment in the event of a downgrade in our credit rating below a specified minimum threshold.

***We may require additional capital to support the growth of our business, and this capital might not be available on reasonable terms or at all.***

Historically, we have financed our operations primarily through equity issuances, debt financing and cash generated from our operations. To support our growing business and to effectively compete, we must have sufficient capital to continue to make significant investments in our platform and to support our business operations. We may decide to engage in equity, equity-linked or debt financings, and it is possible that we will not be able to secure any such additional financing or refinancing on favorable terms, in a timely manner, or at all. If we issue equity or convertible debt securities, holders of shares of our Class A common stock could suffer significant dilution, and the new shares could have rights, preferences and privileges superior to those of holders of our Class A common stock.

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Further, the terms of our existing indebtedness involve, and the terms of any future debt financings could involve, restrictive covenants including, among other things, minimum liquidity requirements, restrictions on raising debt in excess of a percentage of our total capitalization, net worth requirements, interest coverage covenants, interest reserve covenants, restrictions on our ability to dispose of assets, make acquisitions or investments, incur debt or liens, make distributions to our stockholders, increase salaries of our employees and executives or enter into related-party transactions while an event of default is continuing and restrictions on our ability to materially change the nature of our business. These agreements also contain financial covenants, including obligations to maintain certain capitalization amounts and other financial ratios. These covenants may make it more difficult for us to obtain additional capital and to pursue future business opportunities. For example, our Credit Agreements (as defined herein) require that we comply with various financial tests and impose certain restrictions on us, including among other things, restrictions on our ability to incur additional indebtedness, create liens on assets, make loans or investments, or return capital to stockholders through share repurchases or paying dividends. Failure to comply with these covenants could have an adverse effect on our business, financial condition, or results of operations. Furthermore, access to capital determines our creditworthiness, which if perceived negatively in the market could impair our ability to provide clearing services and attract new clients.

In addition, we may not generate sufficient funds to service our debt and meet our business needs, such as funding working capital, capital expenditures or the expansion of our operations. If we are not able to repay or refinance our debt as it becomes due, we may be subject to increased regulatory supervision, and ultimately, receivership or similar proceedings, and we could be forced to take unfavorable actions, including significant business and legal entity restructuring, limited new business investment, selling assets or dedicating an unsustainable level of our cash flow from operations to the payment of principal and interest on our indebtedness. In addition, our ability to withstand competitive pressures and react to changes in our industry could be impaired. In the event we default, the lenders who hold our debt could also accelerate amounts due, which could potentially trigger a default or acceleration of the maturity of our other debt. In addition, the level of our indebtedness could put us at a competitive disadvantage compared to our competitors that are less leveraged than us. These competitors could have greater financial flexibility to pursue strategic acquisitions and secure additional financing for their operations. The level of our indebtedness could also impede our ability to withstand downturns in our industry or the economy generally.

***We may be unable to return cash to clients in the event of an unknown or unforeseeable market event that results in a significant exodus of client cash balances.***

Our clients maintain significant cash balances with us and the SEC and FINRA have stringent rules with respect to the protection of client assets and maintenance of specific levels of net capital by

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securities broker-dealers. We regularly perform stress tests aimed at confirming that we have sufficient contingency funding to meet our regulatory cash requirements. In addition, we segregate client funds and maintain them in special reserve bank accounts for the exclusive benefit of our clients, as required under applicable regulations, including Rule 15c3-3 under the Exchange Act (the "Customer Protection Rule"). We might be adversely affected by regulatory changes related to the Customer Protection Rule or by any regulatory changes related to our obligations with regard to capital maintenance requirements. A failure by one or more of these banks or our failure to comply with the Customer Protection Rule, or other applicable rule, could result in our inability to promptly return client funds, which could have a significant adverse impact on our reputation, result in the loss of clients, trigger regulatory inquiries, and/or cause a deterioration of our capital base and operations. Further, if there is a significant market event and our clients need to withdraw cash in unusually large amounts, we may be unable to return such funds in a short period of time or at all. This could lead to, among other things, client dissatisfaction and potential claims by our clients, which could result in adverse regulatory, legal and operational consequences and would result in a reduction in our revenues.

Further, a significant portion of our cash management and treasury functions, as well as our settlement functions with clearing houses, is concentrated with a single bank, BMO Bank N.A. ("BMO Bank"). Any failure or termination of that relationship, or inability by BMO Bank to meet its obligations, including as a result of any banking failure and subsequent takeover by another bank or the Federal Deposit Insurance Corporation, could impair our ability to comply with our regulatory requirements, including obligations under the Customer Protection Rule, and could otherwise adversely affect our business operations and our ability to meet financial obligations. In addition, while only one of a consortium of lenders under our Revolving Credit Facility (as defined herein), our settlement and clearing relationship with BMO Bank may be further deteriorated in the event of any default under the Revolving Credit Facility. See also "—*We may require additional capital to support the growth of our business, and this capital might not be available on reasonable terms or at all*."

***Future acquisitions or joint ventures of, or investments in, as applicable, other companies, applications or technologies could require significant management attention, disrupt our business, dilute stockholder value and adversely affect our results of operations.***

As part of our business strategy, we have in the past acquired, and may in the future seek to acquire, businesses, applications or technologies that we believe could complement or expand our platform, technical capabilities or otherwise offer growth opportunities. For example, in 2024, we completed the acquisition of the Fox River algorithmic trading business ("Fox River") from Instinet. See "Business." The identification of suitable acquisition or investment candidates can be difficult, time-consuming and costly, and we may not be able to successfully complete identified acquisitions or investments on a timely basis or at all. Even if we are able to successfully complete acquisitions or investments, we may fail to successfully integrate them into our existing business or realize the anticipated benefits of such acquisitions. Additional risks we face in connection with acquisitions include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• diversion of management time and focus from operating our business to addressing acquisition integration challenges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• coordination of technology, product development, risk management, compliance, finance and sales and marketing functions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• retention of employees from the acquired company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• retention of our current employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cultural challenges associated with integrating employees from the acquired company into our organization;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• integration of the acquired company's accounting, management information, human resources and other administrative
systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the need to implement or improve controls, procedures and policies at a business that prior to the acquisition may have
lacked effective controls, information security safeguards, procedures and policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential write-offs or impairments of intangible assets or other assets acquired in the acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• liability for activities of the acquired company before the acquisition, claims of infringement, misappropriation or other
violation of intellectual property or other proprietary rights, violations of law, commercial disputes, tax liabilities and other known and unknown liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation or other claims in connection with the acquired company, including claims from terminated employees, clients,
former stockholders or other third-parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• known and unknown regulatory compliance risks, including elevated risks related to tax compliance, money laundering
controls, and supervisory controls oversight.

Our failure to address these risks or other problems encountered in connection with our acquisitions and investments could cause us to fail to realize the anticipated benefits of these acquisitions or investments, cause us to incur unanticipated liabilities and harm our business. Moreover, in connection with these types of transactions, we may issue additional equity securities that would dilute stockholder value, use cash that we may need in the future to operate our business, incur debt on terms unfavorable to us or that we are unable to repay, incur large charges or substantial liabilities, encounter difficulties integrating diverse business cultures and become subject to adverse tax consequences, substantial depreciation, or deferred compensation charges. Further, regulators may scrutinize our proposed business combinations and acquisitions given the regulatory landscape in which we operate, and additional regulatory approvals may be required for the completion of certain business combinations or acquisitions, which could be time-consuming and costly. These challenges related to acquisitions or investments could have an adverse effect on our business, financial condition, results of operations and prospects.

***We may not be able to obtain adequate insurance to cover all known risks and our insurance policies may not be sufficient to cover all claims.***

We currently carry insurance in connection with our business, including fiduciary liability insurance, employment practices liability insurance, directors' and officers' liability insurance, comprehensive crime insurance, general liability insurance and professional liability insurance. We do not maintain business interruption insurance and are self-insured against certain cybersecurity incidents and related risks.

We are growing rapidly and our insurance coverage may not be sufficient to protect us from any loss now or in the future and we may not be able to successfully claim our losses under our current insurance policies on a timely basis, or at all. In addition, as a public company, we will need to increase our directors' and officers' liability insurance, which may be costly. Further, because of the nature of our business and our expanding applications, insurers may be reluctant to insure our business, which would require us to bear all losses with respect to claims we receive. Our inability to obtain and maintain appropriate insurance coverage, could cause substantial business disruptions, adverse reputational impact and regulatory scrutiny. If we incur any loss that is not covered by our insurance policies, or the compensated amount is significantly less than our actual loss, our business, financial condition, results of operations and prospects could be adversely affected.

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***The estimates of market opportunity and forecasts of market growth included in this prospectus may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, our business could fail to grow at similar rates, or at all.***

The estimates of market opportunity and forecasts of market growth included in this prospectus may prove to be inaccurate. Market opportunity estimates and growth forecasts are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate, including as a result of any of the risks described in this prospectus.

The variables that go into the calculation of our market opportunity are subject to change over time, and there is no guarantee that any particular number or percentage of addressable client personas or adjacent markets covered by our market opportunity estimates will become a client or generate any particular level of revenues for us. In addition, our ability to expand in any of our target markets depends on a number of factors, including the cost, performance and perceived value associated with our applications and services we offer. Even if the markets in which we compete meet the size estimates and growth forecasted in this prospectus, our business could fail to grow at similar rates, or at all. Our growth is subject to many factors, including our success in implementing our business strategy, which is subject to many risks and uncertainties. Accordingly, the forecasts of market growth included in this prospectus should not be taken as indicative of our future growth.

***Key performance metrics and other estimates are subject to inherent challenges in measurement, and our business, financial condition, results of operations and prospects could be adversely affected by real or perceived inaccuracies in those metrics.***

We regularly review key performance metrics to evaluate growth trends, measure our performance and make strategic decisions. These key metrics are calculated using internal company data, have not been validated by an independent third-party and might differ from estimates or similar metrics published by other parties due to differences in sources, methodologies, or the assumptions on which we rely. Our internal systems and tools are subject to a number of limitations and our methodologies for tracking these metrics have changed in the past and might change further over time, which could result in unexpected changes to our metrics or otherwise limit the comparability from period to period of such metrics, including the metrics we publicly disclose. In addition, if the internal systems and tools we use to track these metrics undercount or overcount performance or contain algorithmic or other technical errors, the data we report might not be accurate. While these numbers are based on what we currently believe to be reasonable estimates for the applicable period of measurement, there are inherent challenges in such measurements. If we fail to maintain an effective analytics platform, our key performance metrics calculations may be inaccurate, and we may not be able to identify those inaccuracies. You should not place undue reliance on such operational metrics when evaluating an investment in our Class A common stock. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Performance Metrics" for definitions of our key performance metrics.

If our operational metrics are not accurate representations of our business, or if investors do not perceive these metrics to be accurate, or if we discover material inaccuracies with respect to these figures, our reputation could be significantly harmed, the trading price of our Class A common stock could decline and we might be subject to stockholder litigation, which could be costly.

***We may incur trading losses from trading as a principal for our own account or from trading as a principal to hedge our clients' security-based swap positions.***

A portion of our revenues and operating profits is derived from trades we make as principal in our role as a market maker, trades we make as principal in connection with non-market making activities

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and trades we make in order to hedge certain of our clients' transactions. We may incur trading losses relating to these activities since each primarily involves the purchase or sale of securities for our own account. In any period, we may incur trading losses for a variety of reasons including price changes in securities, reduced spreads and lack of liquidity in securities in which we have positions. From time to time, we may have large position concentrations in securities of a single issuer or issuers engaged in a specific industry or traded in a particular market. Such a concentration could result in higher trading losses than would occur if our positions and activities were less concentrated. In addition, in our security-based swaps business, we hedge the security-based swap positions we enter into with principal positions and post margin to support their security-based swap. In the event of a significant market movement our client's margin may not be sufficient to support the movement in the underlying position(s) in the security-based swap and as a result we may incur losses from such default.

***An increase in fraudulent or malicious activity could lead to reputational damage to our brand and adverse legal, regulatory and financial exposure.***

We, our clients, regulators, vendors and other third-party providers with whom we work, as well as other technology providers in the financial and clearing industry, have experienced a significant increase in attempted unauthorized intrusions, data exfiltration and other fraudulent activity in recent years and may continue to be the target of increasingly sophisticated criminals and fraud rings in the future.

Although we develop and maintain systems and processes aimed at detecting and preventing unauthorized access to our systems and other fraudulent activity, the possibility of fraudulent or other malicious activities and human error or malfeasance cannot be eliminated entirely and will evolve as new and emerging technology is deployed, including the increasing use of personal mobile and computing devices that are outside of our network and control environments. Such systems and processes require significant investment, maintenance and ongoing monitoring and updating as technologies and regulatory requirements change and as threat actor efforts to overcome security and anti-fraud measures become more sophisticated, and any malicious or fraudulent activities which penetrate our systems could require additional features and further testing to prevent future activities from occurring. See also "—*Risks Related to Our Intellectual Property, Technology, Data Privacy, Data Protection and Cybersecurity*—*Applications on our platform, including Studio, and services we offer rely on software and systems that are highly technical and have been, and may in the future be, subject to interruption, instability, and other potential flaws due to software errors, design defects, and other processing, operational, and technological failures, whether internal or external*." Risks associated with each of these include exfiltration of confidential, proprietary, personal or otherwise sensitive information (including those of our clients and other third parties with whom we do business) and theft of funds and other monetary loss, the effects of which could be compounded if not detected quickly. Indeed, fraudulent activity may not be detected until well after it occurs and the severity and potential impact may not be fully known for a substantial period of time after it has been discovered.

Fraudulent activity in the industry and other actual or perceived failures to maintain a product's integrity and/or security has led to increased regulatory scrutiny in the industry and may lead to regulatory investigations and intervention, increased litigation (including class action litigation), remediation, fines and response costs, negative assessments of us and our subsidiaries by regulators, reputational and financial damage to our brand and reduced usage of our platform, all of which could have an adverse impact on our business. Actual or perceived successful fraudulent activity and other related incidents related to actual or perceived failures to maintain the integrity of our systems, processes and controls could negatively affect us, including harming market perception of the effectiveness of our security measures or harming the reputation of the financial system in general,

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which could result in reduced use of our platform. Such events could also result in legislation and additional regulatory requirements.

***We currently operate in certain international markets and plan to further expand our international operations, which exposes us to increased business, economic and regulatory risks.***

In addition to the United States, we currently operate regulated entities in Canada and the United Kingdom and have offices in five countries, including in the United States, Canada and the United Kingdom. As part of our business strategy, we intend to further expand our international operations, which will require significant resources and management attention and will subject us to additional regulatory, economic, operational, and political risks on top of those we already face. We are subject to a variety of risks inherent in establishing and doing business internationally, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conformity of our platform with applicable business customs, including translation into foreign languages and associated
expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the need to support and integrate with local vendors and service providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• political, social and economic instability in the countries in which we operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to governmental regulation in foreign jurisdictions, including laws and regulations relating to data privacy,
data protection and cybersecurity and unexpected changes in legal and regulatory requirements and enforcement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compliance with multiple, potentially conflicting and changing governmental laws and regulations, including banking,
securities, employment, tax, data privacy, data protection and cybersecurity laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compliance with U.S., U.K. and other foreign anti-bribery laws, including the U.S. Foreign Corrupt Practices Act of 1977
(the "FCPA") and the U.K. Bribery Act of 2010 (the "U.K. Bribery Act");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential restrictions on repatriation of earnings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competition with vendors and service providers that have greater experience in the local markets than we do or that have pre-existing relationships with potential consumers and investors in those markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in currency exchange rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• higher levels of credit risk and fraud;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ability to recruit and retain talented and capable employees in foreign countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• less protection of intellectual property and other proprietary rights in certain countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulty of staffing and managing global operations and increased travel, infrastructure, legal and compliance costs
associated with multiple international locations and subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• different regulations and practices with respect to employee/employer relationships, existence of workers' councils
and labor unions, and other challenges caused by distance, language and cultural differences, making it harder to do business in certain international jurisdictions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expanded compliance with potentially conflicting and changing laws of taxing jurisdictions where we conduct business and
applicable U.S. tax laws as they relate to international operations, the complexity and adverse consequences of such tax laws, and potentially adverse tax consequences due to changes in such tax law.

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We have limited experience with international legal and regulatory environments and market practices, and we might not be able to penetrate or successfully operate in the markets we choose to enter. Even if we are able to enter a particular international market, we may face challenges in complying with different regulatory requirements, which may lead to significant increased costs in maintaining our international operations. Thus, we might incur significant expenses as a result of our international expansion, and we might not be successful, which could lead to substantial losses. If we are unable to manage the complexity of global operations successfully, our business and results of operations could suffer.

***We rely on the experience and expertise of our co-founder and Executive Chairman, Uriel Cohen, and of our Executive Vice Chairman, Elli Ausubel, as well as on our management team and highly skilled employees with experience in our industry and will require additional key personnel to grow our business, and the loss of key management members or key employees, or an inability to hire key personnel, could harm the business.***

We believe that our success has depended, and after the completion of this offering will continue to depend, on the efforts and talents of our senior management, including, Uriel Cohen and Elli Ausubel, who have significant experience in the financial services and technology industries, are responsible for our core competencies and would be difficult to replace. Our success depends on our continuing ability to attract, develop, motivate and retain highly qualified and skilled employees who provide specialized services in our technology and compliance functions. Qualified individuals are in high demand, and we may incur significant costs to attract and retain them. The competition in the technology industry for qualified employees is intense and many of these employees hold extensive knowledge and experience in highly technical and complex areas spanning technology and capital markets, including the options, equities and futures trading and clearing industry. Because of the complexity and risks associated with our business and the specialized knowledge required to conduct this business effectively, and because the growth in this industry has increased demand for qualified personnel, many of our employees could find employment at other well established financial technology companies if they choose to do so, particularly if we fail to provide competitive levels of compensation. If we fail to retain our current employees, including senior management, it would be difficult and costly to identify, recruit and train replacements needed to continue to implement and expand our business. In particular, failure to retain and attract qualified systems and compliance personnel could result in systems errors, technology failures or regulatory infractions, which could ultimately harm our reputation and lead us to incur additional costs. Our executive officers and other employees are, and will continue to be after the completion of this offering, at-will employees, which means they may terminate their employment relationship with us at any time, and their knowledge of our business and industry would be extremely difficult to replace. If we fail to attract well-qualified employees or retain and motivate existing employees, our business could be adversely affected. In addition, we have been receiving and expect to continue to receive certain important operational, managerial, strategic, consulting and other support services from Global Corp. following this offering. Each of Uriel Cohen and Elli Ausubel is an officer and member of the board of directors of Global Corp. Any loss of their services at Global Corp., or the loss of any other key employees at Global Corp., could have an adverse impact on our business.

***We may not detect, deter or prevent misconduct, errors, failures or fraudulent activity by our clients, employees or agents and therefore we are subject to risks relating to potential securities law and regulatory liability.***

We are exposed to potential losses due to fraud or misconduct by, or breaches of the terms we have in place with, our clients, counterparties, employees, agents and third parties and, consequently, to substantial risks of liability under federal and state securities laws and other federal and state laws and court decisions, as well as rules and regulations promulgated by international, federal and state

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securities regulators. For example, clients or people impersonating clients may engage in fraudulent activities, including the improper use of legitimate client accounts or providing fraudulent documentation in connection with transactions. Such events have occurred in the past and may occur in the future.

Our employees and agents may engage in unauthorized trading activity, attempt to defraud us or violate our policies or legal or regulatory standards. There are also risks that our employees may improperly use or disclose confidential information and material non-public information provided by our clients that could subject us to regulatory and criminal investigations, disciplinary action, fines, or sanctions and we could suffer serious harm to our reputation, financial position, the trading price of our Class A common stock, current client relationships and ability to attract future clients. These risks may increase as the result of recent scrutiny of electronic trading and market structure from regulators, lawmakers and the financial news media. The use of off-channel electronic messaging applications by our employees to transmit confidential or sensitive data could subject us to investigations and regulatory fines and severely impact our reputation. In addition, although we have established policies and procedures designed to train, prevent and detect misconduct, errors and fraud, the precautions that we take to detect and deter employee misconduct might not be effective. If any of our employees engages in illegal, improper, or suspicious activity or other misconduct, we could suffer serious harm to our reputation, financial condition, client relationships and ability to attract new clients. Our reputation may also be damaged by any involvement, or the involvement of any of our employees, former employees or agents, in any regulatory investigation and by any allegations or findings by relevant regulators or courts, even if the associated fine or penalty is not material.

***Our reputation and brand are important to our success, and if we are not able to continue developing our reputation and brand, our business, financial condition, results of operations and prospects could be adversely affected.***

We believe that building a strong reputation and brand is critical to our ability to achieve our business objectives. We spend a significant amount of money and other resources to create brand awareness and build our reputation. The successful development of our reputation and brand will depend on a number of factors, many of which are outside our control. Negative perception of our platform or our company may harm our reputation and brand, including as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation involving, or regulatory actions or investigations into, our platform or our business, including litigation or
regulatory actions that result in changes to, or prohibit us from offering, certain features, applications or services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• complaints or negative publicity about us, our platform, our services, or our industry as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or perceived disruptions or defects in our software, such as data privacy, data protection or cybersecurity
breaches, service outages or other incidents that impact the reliability of our platform and the ability for our clients to retrieve their funds or execute their trades;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any imposition of temporary trading restrictions or any outright failure to meet our deposit or capital requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any failure to comply with legal, tax and regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any perceived or actual weakness in our financial strength or liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any failure to operate our business in a way that is consistent with our values and mission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inadequate or unsatisfactory support service experiences;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• illegal or otherwise inappropriate behavior by our management team or other employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• negative responses to new securities or product verticals that we may enter into in the future;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• negative responses to the discontinuation of an existing business, segment, or securities or product vertical;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• negative or insufficient responses to our marketing and advertising campaigns; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any of the foregoing with respect to our competitors, to the extent such resulting negative perception affects the
public's perception of us or our industry as a whole.

Moreover, repairing our brand and reputation in the case of any adverse event may be difficult, time-consuming and expensive. Our failure to address, or the appearance of our failure to address, issues that give rise to reputational risk could significantly harm our brand and reputation. To the extent we fail to respond quickly and effectively to address corporate crises and other threats to our brand and reputation, the ensuing negative public reaction could significantly harm our brand and reputation, which could result in loss of trust from our clients, third-party partners and employees and could lead to an increase in litigation claims and asserted damages or subject us to regulatory actions or restrictions.

Maintaining and enhancing our brand also requires ongoing investment in marketing, technology, and client experience. If these efforts fail to produce the desired results or if competitors outperform us in brand perception, it could limit our growth opportunities. The loss of confidence in, or any failure to maintain or enhance, our brand or our reputation could adversely affect our ability to attract and retain clients, agents, and partners, thereby negatively impacting our business, financial condition, results of operations, and prospects.

If we do not successfully develop our brand and reputation and successfully differentiate our platform and services from those of our competitors, we may not be able to compete effectively. In particular, third parties' use of trademarks and branding similar to ours could materially harm our business or result in litigation or other expenses. We may not be able to adequately prevent such practices, which could harm the value of our business, result in the abandonment, dilution, invalidity, reduction in scope or other loss of trademarks associated with our business and adversely affect our results of operations, or financial condition. Failure to successfully maintain, defend, enforce, and enhance our brand could cause us to lose existing clients or struggle to attract new clients, and we may incur substantial expenses in attempts to maintain, defend, enforce and enhance our brand.

***Our company culture has contributed to our success and if we cannot maintain this culture as we grow, our business, financial condition, and results of operations could be harmed.***

We believe that our company culture has been critical to our success. We face a number of challenges that may affect our ability to sustain our corporate culture, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to identify, attract, reward, and retain people in leadership positions who value kindness, perseverance, and
teamwork and further our culture, values, and mission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the increasing size and geographic diversity of our workforce;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competitive pressures to move in directions that may divert us from our mission, vision, and values;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the continued challenges of a rapidly evolving industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the increasing need to develop expertise in new areas of business that affect us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the integration of new personnel and businesses from acquisitions.

If we are not able to maintain and evolve our culture, our business, financial condition, results of operations and prospects could be adversely affected.

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**Risks Related to Our Intellectual Property, Technology, Data Privacy, Data Protection and Cybersecurity** 

***Applications on our platform, including Studio, and services we offer rely on software and systems that are highly technical and have been, and may in the future be, subject to interruption, instability, and other potential flaws due to software errors, design defects, and other processing, operational, and technological failures, whether internal or external.***

We rely on technology, including the internet and mobile services, to conduct much of our business activities and operations and allow our clients to conduct financial transactions on our platforms, and as a result, we depend on the efficient and uninterrupted operation of our computer infrastructure and other systems and networks, both internal and third-party. We, and the third-party providers we rely on, are subject to an increasing risk of employee or other human error, natural disasters, power loss, telecommunication failures, break-ins, sabotage, computer viruses or other malicious code, malware or ransomware, intentional acts of vandalism, disruptions, terrorism or other catastrophic events, malfunctions, outages or other interruptions, software bugs or vulnerabilities, impersonation and other social engineering schemes, malfeasance, unauthorized access attempts, theft of intellectual property, trade secrets or other corporate assets, denial of service attacks, phishing, hacking and other cyberattacks or other incidents. For example, in June 2021 we experienced a cyberattack, following which we concluded that the personal information of certain employees and certain other proprietary information, such as our accounting information, may have been accessed and exfiltrated. Among other actions taken in response to the attack, we made certain investments designed to remediate the relevant vulnerabilities and notified state government agencies and potentially impacted employees. While we do not believe that the cyberattack had a material adverse impact on us or the affected employees, our remedial measures may not be successful in mitigating or remediating any future cyber incidents, any of which may result in failures or disruptions in our client relationship management, securities trading, general ledger, deposits, computer systems, settlement, batch processing or other systems and networks.

If we or our third-party service providers experience any of the foregoing cybersecurity issues, it could result in the unauthorized access, disclosure or loss of confidential, proprietary, personal or otherwise sensitive information (including those of our clients and other third parties with whom we do business), client dissatisfaction, obligations to notify affected individuals and other third parties and additional costs to repair systems and networks or add new personnel or protection technologies, and we could be exposed to disruption of service, reputational damage, litigation risk, regulatory penalties and fines, remediation costs and other financial losses to both us and our clients, any of which could have an adverse effect on our business.

Our continued success will depend, in part, upon our ability to successfully maintain, secure and upgrade the capability of our systems and networks and our ability to address the needs of our clients by using technology to provide a platform and value-added services that satisfy their demands, including as we expand our business with new asset classes and financial instruments added to our platform, introduce new applications offered on our infrastructure and enter into additional geographies. Further, in order to maintain our competitive advantage, our systems and networks are under continuous development. As we maintain and upgrade our systems and networks, there is a risk that software failures may occur and result in service interruptions and have other unintended consequences, which could have an adverse effect on our business, financial condition, results of operations and prospects. However, there is no guarantee that resources that we devote to maintaining and upgrading our systems and networks to safeguard critical business applications can provide adequate security. We employ detection and response mechanisms designed to contain and mitigate cyberattacks and other incidents, but our protective measures may not promptly detect such cyberattacks and other incidents, and we may experience losses or incur costs or other damage

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related to cyberattacks and other incidents that go undetected or go undetected for significant periods of time, which could adversely affect our financial results or reputation. These risks may be increased as more employees utilize network connections, computers and devices outside our premises or network, including working from home, while in transit and in public locations. Attacks may be targeted at us, our clients or third-party providers. Furthermore, cybersecurity risks in the financial services industry have increased recently, in part because of the proliferation of new technologies to conduct financial and other business transactions and the increased sophistication and activities of organized criminals, perpetrators of fraud, hackers, terrorists, state-sponsored actors, nation states, hacktivists and others, any of whom may see their effectiveness enhanced or facilitated by artificial intelligence ("AI"). Because the methods used to cause cyberattacks and other incidents change frequently, or in some cases cannot be recognized until launched, we may be unable to implement preventative measures or proactively address these methods until they are discovered.

Significant malfunctions or failures of our systems or networks in the trading process, such as record retention and data processing functions performed by third-party providers and third-party software or other disruption in the proper functioning of our software, including as a result of erroneous or corrupted data or cyberattacks or other incidents, could cause delays or suspensions in client and/or firm trading and settlement activity or cause us to make erroneous trades. In addition, we may not discover a cyberattack or other incident for a significant amount of time after the breach, and our efforts to mitigate, remediate or investigate any cyberattack or other incident may be costly, difficult, or may not be successful. Any such issues could cause substantial losses for clients or for our own trading books and could subject us to claims from clients for losses, including litigation claiming fraud or negligence. As a result of cyberattacks and other incidents, in addition to the various consequences discussed above, we may incur costs to mitigate, remediate or investigate the applicable cyberattack or other incident, provide identity protection services, including credit monitoring and other legal and professional services to individuals who may have been impacted, may incur expenses in the future including legal, operational and other professional expenses and claims for damages, and could also suffer interruptions or malfunctions in our operations. Any actual or perceived threat of disruption to our platform or our services or any compromise of confidential, proprietary, personal or otherwise sensitive information (including those of our clients and other third parties with whom we do business) could impair our reputation and cause us to lose clients or revenue, or face litigation or administrative proceedings, necessitate client service or repair work that would involve substantial costs and divert our management's attention and resources. We cannot assure you that we will be fully protected from cyberattacks and other incidents, the occurrence of which could adversely affect our business, financial condition, results of operations and prospects. Additionally, we have elected to self-insure for certain cybersecurity matters, and in the event of a cyberattack or other incident, we may be at a greater risk that our financial condition will be adversely affected.

***If our systems and infrastructure fail to keep pace with the operational requirements of our clients, we may experience operating inefficiencies, client dissatisfaction and lost revenue opportunities.***

The global securities industry is characterized by increasingly complex infrastructures and applications, new and changing business models and rapid technological changes. Our clients' needs and demands for our platform and the other services we offer evolve with these changes. We believe that the current and anticipated future needs of our clients will require the implementation of new and enhanced communications and information systems, the training of personnel to operate these systems and the expansion and upgrade of core technologies. We expect to need to make significant investments in additional hardware and software to accommodate changing client and regulatory requirements, which may be costly and time-consuming to incorporate into our existing systems and infrastructure. In addition, we cannot assure you that we will be able to accurately predict the timing or rate of changes, expand and upgrade our systems and infrastructure on a timely basis, or find

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satisfactory alternative systems or infrastructure on favorable pricing and terms, on a timely basis or at all. Our failure to expand, upgrade, or replace systems and infrastructure that do not meet the operational requirements of our clients may cause us to experience operating inefficiencies, client dissatisfaction and lost revenue opportunities.

***We may not be able to adequately establish, maintain, protect and enforce our intellectual property and other proprietary rights or may be prevented from using intellectual property necessary for our business.***

We rely primarily on a combination of trade secret, trademark contract and copyright laws to protect our proprietary technology that enables us to successfully provide our platform, as well as confidentiality and license agreements with our employees, contractors, consultants and third parties with whom we have relationships to establish, maintain, and protect our intellectual property and other proprietary rights.

Our efforts to establish, maintain, protect, and enforce our intellectual property and other proprietary rights may not be sufficient or effective. Our intellectual property and other proprietary rights, including rights in our proprietary technology, trade secrets, know-how and confidential information depends in part on agreements we have in place with our employees, independent contractors and other third parties that allocate ownership of intellectual property and place restrictions on the use and disclosure of this intellectual property and confidential information, such as confidentiality and invention assignment agreements.

Furthermore, we may, over time, strategically increase our intellectual property investment through additional trademark and other intellectual property filings. While we have previously elected to not pursue patent protection, we may, over time, strategically increase our intellectual property investment through new patent filings. These processes are expensive and time-consuming and may not be successful in all jurisdictions or for every such application, and we may not pursue such protections in all jurisdictions that may be relevant, for all our goods or services or in every class of goods and services in which we operate. For example, although we do not currently rely on patent protection, there can be no assurance that any patent applications we may file in the future will be approved, any patents issued therefrom will be of sufficient scope or strength to provide us with meaningful protection, or such patents or patent applications will not be challenged by third parties. We may also fail to accurately predict all of the countries where patent protection will ultimately be desirable, and if we fail to timely file a patent application in any such country, we may be precluded from doing so at a later date. Any patents issued may vary in scope of coverage depending on the country in which such patents are issued. Even if we are successful in obtaining a particular patent, trademark or copyright registration, it is expensive to enforce our rights, including through maintenance costs, monitoring, sending demand letters, initiating administrative proceedings and filing lawsuits. We will not be able to protect our intellectual property and other proprietary rights if we are unable to enforce our rights or if we do not detect or determine the extent of unauthorized use of our intellectual property and other proprietary rights.

In addition to registering certain of our intellectual property rights, we rely to a degree on contractual restrictions to establish, maintain, protect and enforce our intellectual property and other proprietary rights. We strive to require third parties who may have access to our proprietary information, such as trade secrets, know-how and confidential information, to enter into non-disclosure agreements or to be bound by professional, fiduciary, or other contractual obligations requiring the applicable third party to protect our trade secrets, know-how and confidential information. However, such agreements may be insufficient or breached, or otherwise may not be enforceable in full or in part in all jurisdictions. The contractual provisions that we enter into or any other measures we employ to limit the access and distribution of our proprietary information may not prevent unauthorized use or

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disclosure of our intellectual property and other proprietary rights, and our remedies may be limited. Additionally, employees, independent contractors and other third parties may make adverse ownership claims to our current and future intellectual property, and, to the extent that our employees, independent contractors or other third parties with whom we do business use intellectual property owned by others in their work for us, disputes may arise as to the rights in related or resulting know-how and inventions. Moreover, we cannot guarantee that we have entered into such agreements with each party that may have or have had access to our proprietary information, such as trade secrets, know-how and confidential information, or otherwise developed intellectual property for us, and we cannot guarantee such agreements are effective in conveying ownership in our proprietary information, such as trade secrets, know-how and confidential information, or otherwise developed intellectual property for us. Individuals and entities not subject to invention assignment agreements may make adverse ownership claims to our current and future intellectual property, and, to the extent that such individuals and entities not subject to invention assignment agreements with whom we do business use intellectual property owned by others in their work for us, disputes may arise as to the rights in related or resulting know-how and inventions. Failure to obtain, maintain or protect our intellectual property and other proprietary rights and information could adversely affect our competitive position, business, financial condition and results of operations. Moreover, any of our intellectual property and other proprietary rights may be infringed, misappropriated or otherwise violated, which could result in them being narrowed in scope or declared invalid or unenforceable. Additionally, competitors or other third parties may independently discover our trade secrets, reverse engineer, copy or otherwise obtain and use our proprietary technology or portions thereof without our authorization or consent or infringe, misappropriate or otherwise violate our rights.

In addition, our platforms and systems may infringe upon, misappropriate or otherwise violate claims of third-party intellectual property, and we have in the past and may in the future face intellectual property challenges from such other parties that could interfere with our ability to use technology that is important to our business operations. We may not be successful in defending against any such challenges or in obtaining licenses to avoid or resolve any intellectual property disputes. The costs of defending any such claims or litigation could be significant and, if we are unsuccessful, could result in a requirement that we pay significant damages or licensing fees, which would have an adverse effect on our results of operations. Additionally, such litigation or claims could require that we enter into costly settlement or license agreements, prevent us from offering our applications or using certain technologies, force us to rebrand, implement expensive workarounds, or re-engineer our applications or impose other unfavorable terms, or satisfy indemnification obligations.

The pursuit of a claim against a third party for infringement, misappropriation or other violation of our intellectual property and other proprietary rights could be costly and time-sensitive, and there can be no guarantee that any such efforts would be successful. In the future, we may have to rely on litigation to enforce our intellectual property and other proprietary rights, protect our trade secrets, determine the validity, enforceability and scope of the intellectual property and other proprietary rights of others or defend against claims of infringement, misappropriation or other violations of intellectual property or other proprietary rights. In particular, enforcing a claim that a party infringed, misappropriated or otherwise violated a trade secret or know-how is difficult, expensive, and time-consuming, and the outcome is unpredictable. Further, trade secrets and know-how can be difficult to protect, some courts in the United States may be less willing than other courts to protect trade secrets and know-how, and some courts outside the United States may be unwilling to protect trade secrets and know-how. Any such litigation, whether successful or unsuccessful, and regardless of merit, could result in substantial costs, our intellectual property or other proprietary rights being held invalid or unenforceable or otherwise reduced in scope and the diversion of resources and the attention of management, any of which could have an adverse effect on our results of operations. There can be no assurance that our intellectual property and other proprietary rights will be sufficient to protect against others offering applications or technologies that are substantially similar to ours and that compete with our business.

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Additionally, intellectual property protection may not be available to us in every country in which our applications are available, and the laws of certain countries do not protect proprietary rights to the same degree as the laws of the United States. For example, effective trade secret protection may not be available in every country in which our platform is available or where we have employees or independent contractors. The loss of trade secret protection could make it easier for third parties to compete with our platform by copying previously protected functionality. Any changes in, or unexpected interpretations of, the trade secret and employment laws in any country in which we operate may compromise our ability to enforce our trade secret and intellectual property and other proprietary rights. In addition, we believe that the protection of our trademark rights is an important factor in product recognition, protecting our brand and maintaining goodwill and if we do not adequately protect our trademark rights from infringement, misappropriation or other violations, any goodwill that we have developed in those trademarks could be lost or impaired, which could harm our brand and our business. The legal systems of certain countries do not favor the enforcement of trademarks, trade secrets, or other intellectual property and proprietary protection. Therefore, in certain jurisdictions, we may be unable to adequately protect our intellectual property or other proprietary rights against third-party infringement, misappropriation or other violation, which could adversely affect our competitive position. Any changes in, or unexpected interpretations of, intellectual property and similar laws may compromise our ability to enforce our intellectual property and other proprietary rights. If we fail to establish, maintain, protect and enforce our intellectual property and other proprietary rights, our brand, business, financial condition, results of operations and prospects may be harmed.

***Our anticipated use and provision of AI-powered solutions could lead to operational or reputational damage, competitive harm, legal and regulatory risk and additional costs.***

We anticipate relying more on AI, including generative AI, in connection with core parts of our business and operations in the future, including the development and provision of potential AI-powered solutions. Any use of AI, including generative AI, a relatively new and emerging technology in the early stages of commercial use, could expose us to additional risks and liabilities, such as damage to our reputation, competitive position and business, legal and regulatory risks and additional costs. For example, generative AI has been known to produce false or "hallucinatory" inferences or output, and certain generative AI uses machine learning and predictive analytics, which can create inaccurate, incomplete or misleading output, unintended biases and other discriminatory or unexpected results, errors or inadequacies, any of which may not be easily detectable. In addition, we may license AI technologies from third parties that use models trained on data that could potentially violate intellectual property, privacy, or other third party rights or violate law. These AI technologies may also produce results or generate content that is inaccurate or misleading or that cannot be explained by data. If the content, algorithms, analyses or responses that AI-powered solutions rely on or assist in producing on our platform are, or are perceived to be, deficient, inaccurate, biased, unethical or otherwise flawed, our reputation, competitive position and business may be adversely affected.

Additionally, if any of our employees, contractors or third-party providers use any third-party AI-powered software in connection with our business or the services they provide to us, it may lead to the inadvertent disclosure of our confidential, proprietary, personal, or other sensitive information, including inadvertent disclosure of our confidential information into publicly available third-party training sets, which may impact our ability to realize the benefit of, or adequately maintain, protect and enforce our intellectual property or confidential information, harming our competitive position and business. Our ability to mitigate risks associated with disclosure of our confidential information, including in connection with AI-powered software, will depend on our implementation, maintenance, monitoring and enforcement of appropriate technical and administrative safeguards, policies and procedures governing the use of AI in our business and operations. Further, any use of AI to automate client touchpoints, including client service, may come with additional risks, including potential that these interactions are seen as inducement, investment advice or investment recommendations.

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In addition, certain third-party AI technologies that we utilize in our business may include open source software. These AI technologies may incorporate data from third-party sources, including our clients' information they input into the AI tools, which may expose us to risks associated with data rights and protection. If we are unable to maintain rights to use these AI technologies on commercially reasonable terms, we may be forced to acquire or develop alternate AI technologies, which may limit or delay our ability to provide competitive offerings and may increase our costs.

As the utilization of AI becomes more prevalent, we anticipate that it will continue to present new or unanticipated ethical, reputational, technical, operational, legal, competitive and regulatory issues, among others. We expect that such utilization of AI will require additional resources, including the incurrence of additional costs, to develop and maintain our platform offerings, services and features to minimize potentially harmful or unintended consequences, to comply with applicable and emerging laws and regulations, to maintain or extend our competitive position and to address any ethical, reputational, technical, operational, legal, competitive or regulatory issues which may arise as a result of any of the foregoing. As a result, the challenges presented with our anticipated use of AI could adversely affect our business, financial condition and results of operations. See also "—*Regulatory and legislative developments related to the use of AI could adversely affect our anticipated use and provision of AI-powered solutions in our applications, services and business*." 

***We use open source software, and any failure to comply with the terms of one or more of the related open source licenses could negatively affect our business.***

We incorporate open source software into our proprietary platforms and into other processes supporting our business. Such open source software may include software covered by licenses. Some open source licenses contain requirements that we make available source code for modifications or derivative works we create based upon the type of open source software we use. If portions of our proprietary platforms are determined to be subject to an open source license, or if the license terms for the open source software that we incorporate change, we could be required to publicly release the affected portions of our source code, re-engineer all or a portion of our platform or change our business activities. In addition to risks related to license requirements, the use of open source software can lead to greater risks than the use of third-party commercial software, as open source licensors

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generally do not provide support, indemnification, warranties, controls on origin of the software, or other contractual protections regarding infringement claims or the quality of the code. In addition, the public availability of such software may make it easier for others to compromise our platform, leading to greater cybersecurity risks. Many of the risks associated with the use of open source software cannot be eliminated and could adversely affect our business.

We monitor our use of open source software to avoid subjecting our platform to conditions we do not intend, but we cannot provide assurance that our processes will successfully detect all open source software licensed on unfavorable terms or will otherwise be effective for controlling our use of open source software. If we are held to have breached or failed to fully comply with all the terms and conditions of an open source software license, we could face litigation, infringement or other liability, or be required to seek costly licenses from third-parties to continue providing our offerings on terms that are not economically feasible, to re-engineer our platform, to discontinue or delay the provision of our offerings if re-engineering could not be accomplished on a timely basis or to make generally available, in source code form, our proprietary code, any of which could adversely affect our business, financial condition, results of operations and prospects.

Moreover, the terms of various open source licenses are ambiguous and have not been interpreted by U.S. or foreign courts, and there is a risk that such licenses could be construed in a manner that limits our use of the software, inhibits certain aspects of our platforms and negatively affects our business operations. For example, there is a risk that there may be a failure in our procedures for controlling the usage of open source software or that these licenses could be construed in a way that could impose unanticipated conditions or restrictions on our ability to provide, commercialize or distribute our platform or applications. Additionally, from time to time, there have been claims challenging the ownership of open source software against companies that incorporate open source software into their solutions. As a result, we could be subject to lawsuits by parties claiming ownership of what we believe to be our open source software. In either event, we could be required to seek licenses from third parties in order to continue offering our platform, to make generally available (in source code form) proprietary code that links to certain open source modules, to reengineer our platform, applications or systems or to discontinue the licensing of our platform if re-engineering could not be accomplished on a timely basis. The risks associated with our use of open source software described above can result in adverse impacts on our reputation, business, results of operations, and financial condition.

**Risks Related to Regulatory and Legal Matters** 

***We are subject to extensive, complex and evolving statutes, rules and regulations, which are interpreted and enforced by various federal, state, local and foreign government authorities and SROs and can result in substantial compliance costs, and our business would be adversely affected if our qualifications, memberships or licenses are impaired as a result of non-compliance with those requirements.***

The regulatory landscape in the jurisdictions in which we operate, specifically in the United States, Canada and the United Kingdom, and in additional jurisdictions in which we are currently seeking to become licensed, such as Singapore and the Netherlands, or in which we otherwise have clients, includes extensive laws, rules and regulations with which we are required to comply, along with supervision and enforcement by various governmental, regulatory, and enforcement bodies and SROs, each of which could restrict our business practices. We are primarily regulated in the United States by the SEC, the Commodity Futures Trading Commission (the "CFTC"), FINRA, the National Futures Association (the "NFA"), CME, exchange SROs, clearing houses and state securities commissions. In Canada, we are regulated by the Canadian Investment Regulatory Organization ("CIRO"), the Ontario Securities Commission (the "OSC") and Canadian provincial securities commissions and in the United

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Kingdom the Financial Conduct Authority (the "FCA") and the Prudential Regulation Authority (the "PRA").

These laws, rules and regulations govern all aspects of our business and include, or might in the future include, those relating to all aspects of the securities industry, financial services, money transmission (including virtual currency business activity), the source of funds/assets, servicing, foreign exchange, payments services (such as payment processing and settlement services), handling and execution of securities orders, custody services, extensions of credit, fraud detection, consumer protection, anti-money laundering ("AML"), counter-terrorism financing ("CTF"), sanctions regimes and export controls, data privacy, data protection, cybersecurity, as well as climate risk and environmental impact (including applicable disclosure requirements). See "Business—Regulation and Compliance" for specific legislative and regulatory schemes we are subject to. These legal and regulatory regimes, including the laws, rules and regulations thereunder, evolve frequently and may be modified, interpreted and applied in an inconsistent manner from one jurisdiction to another, and may conflict with one another. Moreover, the complexity and evolving nature of our business and the significant uncertainty surrounding the regulation of certain areas of our business, including the regulations of various asset classes and financial instruments we support or will support, such as digital assets, requires us to exercise our judgment as to whether and how certain laws, rules and regulations apply to us, and it is possible that governmental bodies and regulators may disagree with our conclusions.

International and U.S. federal and state financial services regulators and SROs also enforce existing laws, regulations and rules aggressively and may, in the future, enhance their supervisory expectations regarding the management of legal and regulatory compliance risks. To the extent government bodies and/or regulators and/or SROs are of the view or conclude that we have not complied with such laws, rules and regulations, we may be subject to significant fines, revocation of licenses, limitations on our platform, restrictions on growth, reputational harm, client redress and other regulatory consequences. In addition, regulators have imposed restrictions and conditions on the licenses held by us, and may in the future impose further restrictions or conditions, limiting the extent and type of business which we and certain of our subsidiaries may conduct. Any imposition of additional requirements by regulators could materially negatively impact our business operations and/or our prospects for business expansion. We have devoted, and will continue to devote, substantial costs and resources to meeting our dynamic regulatory obligations, including procuring automated solutions, enhancing our systems, procedures and controls, hiring knowledgeable employees, engaging with external legal counsel and providing them with adequate resources to respond to heterogenous and possibly conflicting regulatory requirements, in order to meet our compliance obligations, however, there can be no guarantee that these efforts do not result in a lack of compliance with the applicable regulatory requirements. Regulatory changes and uncertainties make our business planning more difficult and could result in changes to our business model that potentially adversely impact our results of operations.

Regulators have taken and may take views on the regulatory treatment of certain of our applications and/or services we offer or may offer in the future which may not align with how we have interpreted the relevant regulatory requirements. In each case, any such measures could expose us to regulatory action, including fines, license revocation, or reputational harm and may have a material adverse effect on our business, financial condition, and results of operations. Any future regulations may affect the availability of our applications and adversely affect our business. The complexity of the international and U.S. federal and state regulatory and enforcement regimes could result in a single event prompting several overlapping investigations and legal and regulatory proceedings by multiple government authorities in different jurisdictions. Any of the foregoing could, individually or in the aggregate, harm our reputation, damage our brand and business and adversely affect our financial condition and results of operations. Due to the uncertain application of existing laws and regulations, it may be that, despite our regulatory and legal analysis concluding that certain applications, asset classes, financial instruments or services we offer are currently unregulated, such applications or

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services may indeed be subject to financial regulation, licensing, or authorization obligations that we have not obtained or with which we have not complied. As a result, we are at a heightened risk of enforcement action, litigation, regulatory and legal scrutiny which could lead to sanctions, cease and desist orders, or other penalties and censures which could adversely affect our continued operations and financial condition.

Failure to obtain, qualify for, maintain or comply with the authorizations, approvals, licenses, permits or the regulatory frameworks established in each of the jurisdictions in which we and our subsidiaries are regulated, located, operate, serve clients or market our platform and services gives rise to a number of significant risks, including, but not limited to, the removal or denial of permissions to operate, prohibitions on future operations, or fines and client redress. Failure to maintain licenses or registrations in particular jurisdictions may require that we cease marketing or providing some or all applications and services to clients located in that particular jurisdiction. We may also be subject to litigation, investigations, fines, disgorgement of income, sanctions, damages and additional penalties or restrictions that could harm our business. See also "—*We have been, and expect to continue to be, subject to regulatory inquiries, examinations, audits, investigations and enforcement matters*."

***Our business is subject to the regulatory frameworks applicable to broker-dealers, security-based swap dealers, FCMs and investment firms in the United States and their respective foreign equivalents.***

The securities and derivatives industry is highly regulated, including under federal, state, international and other applicable statutes, rules and regulations. Our foreign subsidiaries include an FCA-authorized broker-dealer firm and an investment dealer registered with CIRO and the OSC. In the United States, we operate through broker-dealers that are registered with the SEC and are members of FINRA, security-based swap dealers registered with the SEC and a FCM that is registered with the CFTC and is a member of the NFA and CME. Our subsidiaries are also members of many other securities, options and derivatives exchanges, including NYSE, Nasdaq, Cboe Exchange ("Cboe"), CME, Eurex, Intercontinental Exchange ("ICE"), Nodal Exchange ("Nodal") and others. See "Business—Regulation and Compliance" for more information on the various memberships we hold. Among other things, we are subject to regulation with regard to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales practices, including our interaction with and solicitation of clients and our marketing activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• order handling, trading and market making;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• securities financing and other extensions of credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the custody, control and safeguarding of our clients' assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• account statements, recordkeeping and retention;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintaining specified minimum amounts of capital and limiting withdrawals of funds from our regulated operating
subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• making regular financial and other reports to regulators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• AML, CTF, suspicious activity reporting and sanctions compliance obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• licensing for our operating subsidiaries and our employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the conduct of our directors, officers, employees and affiliates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• supervision of our business.

The SEC, CFTC, CIRO, OSC, FCA, FINRA, NFA, other regulatory bodies and securities, options and derivatives exchanges have the authority to conduct periodic examinations of our subsidiaries and may also conduct other investigations or initiate enforcement proceedings. See "Business—

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Regulation and Compliance." These examinations or investigations may identify compliance exceptions or other violations that could result in censures, fines, penalties, undertakings or other sanctions. Additionally, material expansions of the broker-dealer businesses are subject to approval by FINRA. This could delay, or even prevent, our ability to expand our broker-dealer business in the future.

***We have been, and expect to continue to be, subject to regulatory inquiries, examinations, audits, investigations and enforcement matters.***

The financial services industry is subject to extensive regulation under federal, state and applicable international laws. We are subject to periodic regulatory examinations and inspections and from time to time we may receive or be subject to inquiries or investigations by state and federal regulatory or enforcement agencies and bodies such as the SEC, CFTC, state attorneys general, state financial regulatory agencies, other state or federal agencies and SROs such as FINRA, the NFA, the Municipal Securities Rulemaking Board, and securities, options or derivatives exchanges. For example, beginning in October 2024, we were subject to an examination by the SEC, pursuant to which the SEC identified certain deficiencies and weaknesses in our policies, procedures and controls related to credit risk management, reserve calculations and funding, margin computations and liquidity stress management. While we have responded to the SEC's findings and we believe we have remediated substantially all of the deficiencies and weaknesses, we cannot assure you that the SEC will not seek other corrective actions or penalties against us. We have in the past received, and may in the future receive, from time to time, additional examination reports citing violations of rules and regulations and inadequacies in existing compliance programs, and requiring us to enhance certain practices with respect to our compliance program, including due diligence, training, monitoring, reporting, and recordkeeping. If we fail to comply with these requirements, or do not adequately remediate certain findings, regulators could take a variety of actions that could impair our ability to conduct our business, including, but not limited to, delaying, denying, withdrawing, or conditioning approval of certain applications and services. In addition, regulators have broad enforcement powers to censure, fine, issue cease and desist orders, prohibit us from engaging in some of our business activities, or revoke our licenses, and we have in the past and may in the future be subject to adverse regulatory enforcement actions. We face significant intervention by regulatory authorities, including extensive examination and surveillance activities, and will continue to face the risk of significant intervention by regulatory authorities in the future. In the case of non-compliance or alleged non-compliance, we could be subject to investigations and proceedings that may result in substantial penalties or civil lawsuits, including by our clients, for damages which can be significant. Any of these outcomes would adversely affect our reputation and brand and our business, financial condition, results of operations and prospects.

We also may receive inquiries from state regulatory agencies regarding requirements to obtain licenses from or register with those states, including in states where we have determined that we are not required to obtain such a license or be registered with the state. In certain instances we may be subject to state money transmission laws (including functionally equivalent requirements relating to digital asset activities), which would impose licensing and registration requirements with obligations and restrictions regarding the transmission of client funds, reporting requirements, bonding requirements, minimum capital requirements, client disclosure requirements, and oversight and examination by state regulatory agencies concerning various aspects of our business. This could also require changes to the manner in which we conduct some aspects of our business and increase our compliance costs. Any such inquiries, audits, examinations and/or investigations may require substantial time and expense to analyze and respond to, divert management's attention and other resources from running our business, result in public enforcement actions or lawsuits and fines, penalties, injunctive relief and the need to obtain additional licenses that we do not currently possess, harm our brand and reputation and may even result in certain of our subsidiaries losing their regulatory licenses or ability to conduct business in some jurisdictions. Furthermore, if we are required to obtain a

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license, there can be no assurance that we will be able to obtain or maintain any such licenses, and, even if we were able to do so, there could be substantial costs and potential product changes involved in obtaining and maintaining such licenses, which could have an adverse effect on our business, financial condition, results of operations and prospects.

In addition, from time to time we have been threatened with or named as a defendant in lawsuits, arbitrations and administrative claims involving securities, consumer financial services and other matters. Compliance and trading problems that are reported to regulators such as the SEC, FINRA, the NFA, the CFTC or state regulators by dissatisfied clients or others are investigated by such regulators, and may, if pursued, result in formal claims being filed against us by clients or disciplinary action being taken against us or our employees by regulators or enforcement agencies. To resolve issues raised in examinations or other governmental actions, we may be required to take various corrective actions, including changing certain business practices, making refunds or taking other actions that could be financially or competitively detrimental to us. We expect to continue to incur costs to comply with regulations. Our involvement in any such matters, whether tangential or otherwise and even if the matters are ultimately determined in our favor, could also cause significant harm to our reputation, lead to additional claims, investigations and enforcement actions from other agencies or litigants and further divert management attention and resources from the operation of our business, and any such claims or disciplinary actions that are decided against us could have an adverse impact on our business, financial condition, results of operations and prospects.

***The regulatory environment we face is subject to change, particularly as we expand and evolve our offerings.***

Various governmental and regulatory bodies, including legislative and executive bodies in the markets in which we operate, or markets which we may enter into in the future, such as digital assets and prediction markets, may change existing laws and regulations or adopt new laws and regulations, or new interpretations of existing laws and regulations may be issued by such bodies or the judiciary. Specifically, any changes to licensing law regimes may result in increased disclosure requirements or increased fees or may impose other conditions to licensing that we may be unable to satisfy. Proposals to change the statutes and regulations affecting financial services companies are frequently introduced in the U.S. Congress ("Congress") and state legislatures that, if enacted, may affect our operating environment in substantial and unpredictable ways. For example, in December 2024, the SEC adopted amendments to the Customer Protection Rule to require certain broker-dealers to compute their customer and broker-dealer reserve deposit requirements, and to make any required deposits, daily rather than weekly. These amendments, which require broker-dealer compliance by June 30, 2026, will make it more difficult for us to comply with our obligations with regard to capital maintenance requirements. Further, in January 2024, the SEC adopted rule changes requiring that direct participants of covered clearing agencies, such as CS LLC, submit for clearance and settlement all eligible secondary market transactions in U.S. Treasury securities to which such direct participant is a counterparty, including repurchase and reverse repurchase transactions. These rule changes, which require broker-dealer compliance for eligible cash trades by December 31, 2026, and for eligible repurchase and reverse repurchase transaction by June 30, 2027, will require that direct participants of covered clearing agencies, along with certain customers and counterparties thereof, incur costs to allow the direct participant to submit eligible transactions to covered clearing agencies for clearing. Market participants may also incur additional costs related to the submission and management of margin related to such transactions. It is possible that market participants, including existing customers and counterparties of CS LLC, seek counterparties that are not direct participants of a covered clearing agency in order to avoid incurring these costs. In addition, numerous federal and state regulators have the authority to promulgate or change regulations that could have a similar effect on our operating environment, and the current federal administration in the United States may make significant changes to regulatory policy and the promulgation of new statutes and regulations. New statutes, regulations,

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policies or changes in enforcement of existing statutes or regulations applicable to our business, or reexamination of current practices, could adversely impact our profitability, limit our ability to continue existing or pursue new business activities, require us to change certain of our business practices, affect retention of key personnel, or expose us to additional costs (including increased compliance costs and/or client remediation). These changes also may require us to invest significant resources, and devote significant management attention, to make any necessary changes and could adversely affect our business.

Further, we intend to offer digital asset trading, including in stablecoins, to our clients, which will make us subject to a complex regulatory landscape and significant competition. Digital asset trading platforms are generally subject to state money transmission (and virtual currency) licensing requirements and have been subject to litigation and regulatory scrutiny, and the digital asset industry is dynamic and has been characterized by many rapid, significant and disruptive products and services in recent years. Entering this market and developing and incorporating new applications, asset classes and financial instruments into our business may require expenditures and take time, including diverting managements' attention, and ultimately may not be successful. We may be unable to conduct our operations as planned or compete effectively due to different competitive landscapes in these new areas. We expect new services and technologies to continue to emerge and evolve, which may be superior to, or render obsolete, the applications and services that we currently provide. See "—*Risks Related to Digital Assets*" for additional risks related to digital assets.

In addition, we intend to offer access to prediction markets to our clients, which are subject to a complex and changing regulatory landscape. Under current U.S. federal law, the typical event contracts listed on prediction markets are regulated as "swaps" by the CFTC, and prediction markets listing event contracts must be licensed as derivatives exchanges by the CFTC. As a result, access to prediction markets to our clients would be also subject to certain regulation and supervision by the CFTC and NFA. There are also several lawsuits ongoing in various U.S. states seeking to prohibit U.S. federally-licensed prediction markets from listing sports and certain other contracts under state laws, including state gaming laws. If the outcome of those lawsuits is adverse to prediction markets, we may not be able to offer to our clients access to prediction markets for some or all types of contracts. We also cannot predict future changes to laws, regulations, guidance and supervision of prediction markets, which could result in additional restrictions or costs that could have an adverse effect on our business or potentially prevent us from offering access to prediction markets.

As we continue to grow rapidly and add additional services, asset classes and financial instruments to our platform, as well as expand our operations to additional countries and jurisdictions, we will face increasing regulatory demands, and we may have difficulty complying with our regulatory obligations. Any changes to such regulations, implementation of new regulations or enforcement of regulations which we are subject to may require expenditure of significant time and resources on a one-off and ongoing basis and could have an adverse impact on our business, financial condition, results of operations and prospects. Failure to comply with any regulations may result in fines, negative publicity and reputational harm and restrictions on our activities, among other sanctions, which would have an adverse impact on our business, including financially and/or reputationally.

***If we do not maintain the capital levels required by regulations or clearing organizations, we may be subject to fines, suspension, revocation of registration or expulsion. If capital requirements change, we may be adversely affected.***

We are subject to stringent rules imposed by the SEC, FINRA, CIRO, FCA, CFTC, and NFA and various other regulatory agencies and clearing houses that prescribe minimum levels and types of capital we must maintain, as well as deposits we must post with clearing houses. These rules are designed to require general financial integrity and liquidity and require that at least a minimum part of assets be kept

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in relatively liquid form. If we fail to maintain the required capital level, we may be subject to suspension or revocation of registration by the SEC and/or CFTC and suspension or expulsion by FINRA and/or the NFA, which, if not cured, could ultimately lead to loss of our registration and liquidation of positions. Events relating to capital adequacy could give rise to regulatory actions that could limit business expansion or require business reduction. SEC, CFTC and SRO net capital rules prohibit payments of dividends, redemptions of stock, prepayments of subordinated indebtedness and the making of any unsecured advances or loans to a stockholder, employee or affiliate, in certain circumstances, including if such payment would reduce the subject firm's net capital below required levels.

In addition, our clearing and carrying broker-dealer and FCM are subject to cash deposit and collateral requirements under the rules of the clearing houses in which they participate (including the Depository Trust Company ("DTC"), NSCC, and OCC), which requirements fluctuate significantly from time to time based upon the nature and volume of clients' trading activity and volatility in the market or individual securities or futures contracts. See "—*Risks Related to Our Business and Industry—We are subject to risks, including potential losses, as a result of our clearing activities, particularly during periods of market volatility*."

Regulators and clearing organizations continue to review and recalibrate capital and margin requirement frameworks in light of evolving market conditions and trading activity. If these requirements are increased, we could be required to post additional capital to support our clearing and trading activities. Any such changes would reduce the capital we have available for other corporate purposes, including acquisitions, capital expenditures, and investments in technology, and could adversely affect our business, financial condition, results of operations and prospects. If the net capital rules are changed or expanded, if there is an unusually large charge against our net capital, or if we otherwise fail to meet minimum capital requirements, we may be subject to regulatory prohibitions against certain business practices, increased regulatory inquiries and reporting requirements, increased costs, fines and penalties or other sanctions, including suspension of our activities or expulsion by the various regulatory bodies whose rules we are subject to. Recent amendments to the Customer Protection Rule, which require certain broker-dealers to compute their customer and broker-dealer reserve deposit requirements, and to make any required deposits, daily rather than weekly, will increase the operational complexity and burden related to such calculations and funding. Further, in January 2024, the SEC adopted rule changes requiring that direct participants of covered clearing agencies, such as CS LLC, submit for clearance and settlement all eligible secondary market transactions in U.S. Treasury securities to which such direct participant is a counterparty, including repurchase and reverse repurchase transactions. These rule changes may require that CS LLC post additional margin to the covered clearing agency of which it is a member, including on behalf of CS LLC's counterparties, and may require that our other subsidiaries post margin when entering into secondary market transactions in U.S. Treasury securities where such margin is not currently required. While the SEC adopted amendments to the Customer Protection Rule to allow direct participants of covered clearing agencies to treat, in certain instances, such margin as debits when calculating reserve deposit requirements, the rule changes will increase the operational complexity and burden related to such calculations and funding and may result in CS LLC's current customers and counterparties seeking counterparties that are not direct participants of a covered clearing agency in order to avoid incurring these costs.

Further, there is currently no certainty on whether or how capital rules may apply to digital assets, including stablecoins, and our regulatory capital requirements could significantly increase in the future if we begin offering digital assets trading on our platform and the SEC, CFTC or any of our regulators determine that such rules do apply to digital assets or adopt specific capital requirements with respect to digital assets. In addition, our ability to withdraw capital from our subsidiaries could be restricted, which in turn could limit our ability to pay dividends, repay or repurchase any debt and purchase outstanding shares of our Class A common stock. A large operating loss or charge against net capital

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could impede our ability to expand or even maintain our present volume of business, which could have an adverse impact on our business, financial condition, results of operations and prospects.

***Failure to comply with AML, CTF, anti-bribery and corruption, economic and sanctions regulations, and similar laws could subject us to penalties and other adverse consequences.***

Various statutes, rules and regulations in the United States and abroad, such as the Bank Secrecy Act, the Dodd-Frank Act, the USA PATRIOT ACT of 2001 (the "BSA/USA PATRIOT Act"), the FCPA, the U.S. domestic bribery statute contained in 18 U.S.C. § 201, U.K. Bribery Act and FINRA Rule 3310, impose certain AML, CTF and anti-bribery and corruption requirements on companies that are financial institutions or that provide financial products and services. Under these statutes, rules and regulations, financial institutions are broadly defined to include, among other types of entities, broker-dealers, future commission merchants and money services businesses ("MSBs"), such as money transmitters. MSBs, like other financial institutions, are required to register with FinCEN. In 2013, the FinCEN bureau of the U.S. Department of the Treasury (the "Treasury Department") issued guidance regarding the applicability of the Bank Secrecy Act to administrators and exchangers of convertible virtual currency, clarifying FinCEN's view that businesses that receive, hold, transmit, exchange or issue virtual currencies are MSBs, and more specifically, money transmitters. The Bank Secrecy Act requires broker-dealers, future commission merchants and MSBs to develop and implement risk-based AML programs, report large cash transactions and suspicious activity, and maintain transaction records, among other requirements. In addition, our subsidiaries' contracts with financial institution partners and other third parties may contractually require them to maintain an AML program.

Our ability to comply with the AML, CTF and sanctions laws is predominantly dependent on our "Know Your Customer" ("KYC") screenings, transaction monitoring and screening and reporting capabilities. Although we have implemented policies, procedures and controls to promote compliance with sanctions, fraud, AML, CTF and anti-bribery and corruption laws, and implement KYC screenings of all clients, there is no guarantee that our controls will ensure compliance at all times and in all cases. There also can be no assurance that our employees or agents will not violate such laws and regulations and a failure by us or our employees or agents to comply with such laws and regulations and subsequent judgment or settlement against us under these laws could subject us to monetary penalties, damages and/or have a significant financial and reputational impact.

We are also subject to economic and trade sanctions programs administered by the Treasury Department's Office of Foreign Assets Control ("OFAC") and various international jurisdictions, which prohibit or restrict transactions to or from or dealings with specified countries, their governments, and in certain circumstances, their nationals, and with individuals and entities that are specially-designated nationals of those countries, narcotics traffickers, terrorists or terrorist organizations and other sanctioned persons and entities. Sanctions laws and regulations can change frequently and at short notice, and target new persons, sectors or countries. In the current geopolitical climate, there is a risk that sanctions laws will continue to evolve and further restrictions will be implemented, including in relation to jurisdictions such as Russia. Following Russia's invasion of Ukraine in February 2022, significant new sanctions laws and regulations were imposed by multiple jurisdictions on Russia and Belarus. Any deterioration in the current geopolitical climate could see further changes in sanctions laws and regulations, which could lead to increased operational costs or resourcing being required across the business to address such matters. While we have implemented policies, procedures and controls reasonably designed to promote compliance with applicable sanctions laws, changes to sanctions laws can be implemented with little to no notice, and we will be required to react quickly to any developments. This could include, for example, blocking accounts or halting trading in certain securities. In the event that we are required to take any such steps, it could lead to clients or other parties alleging they have suffered loss and seeking to assert claims against the business, which would negatively impact our financial condition.

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Our failure to comply with AML, CTF, anti-bribery and corruption, economic and trade sanctions statutes and regulations and similar laws could subject us to substantial civil and criminal penalties or result in the loss or restriction of our subsidiaries' FINRA, SEC, NFA and CFTC registrations, or subject our subsidiaries to liability under their contracts with third parties, all of which may significantly affect our ability to conduct some aspects of our business. Changes in this regulatory environment, including changing interpretations and the implementation of new or varying regulatory requirements by governmental entities, may significantly affect or change the manner in which we currently conduct some aspects of our business.

***Changes in tax laws and differences or uncertainties in the interpretation of tax laws may adversely affect our tax obligations and subject us to additional tax liabilities.***

We operate as a global business and are subject to tax statutes, laws and regulations of governments in the various jurisdictions in which we operate. These tax statutes, laws and regulations are complex and subject to varying or uncertain interpretations. Our interpretation and application of these statutes, laws and regulations and ultimate tax determinations require significant judgment and the use of assumptions and estimates. Although we believe our determinations are reasonable, the tax authorities may interpret these tax statutes, laws and regulations differently than we do and challenge tax positions that we have taken, are taking or will take. This may result in challenges asserted against us with respect to differences in the classification or treatment of revenues or deductions, availability of credits, differences in the timing of these items, and/or differences in the pricing of our intercompany transactions or the determination of the jurisdictions to which profits are attributed. These challenges, including through audits or similar proceedings, may result in payment of additional taxes, interest or penalties that could have an adverse effect on our business, financial condition, results of operations and prospects. Furthermore, recent and future changes to U.S. federal, state and local and non-U.S. tax statutes, laws and regulations could increase our tax obligations in jurisdictions where we have offices or do business or require us to change the manner in which we conduct some aspects of our business. For example, in July 2025, H.R. 1, the bill commonly referred to as the One Big Beautiful Bill Act (the "OBBBA") was enacted into law in the United States. The OBBBA resulted in significant changes to the U.S. tax laws, including changes to the taxation of businesses like ours. We continue to assess the potential impact of the OBBBA on our business.

Any changes in tax statutes, laws or regulations, or in the interpretation thereof by the relevant tax authorities, the outcome of any challenge by relevant tax authorities or of the potential tax impact from any expansion or modification of our platform, operations or corporate structure, could adversely affect our business, financial condition, results of operations and prospects.

***Proposed legislation that would impose taxes on certain financial transactions could have a material adverse effect on our business, financial condition and results of operations.***

From time to time, proposals are introduced in the Congress and state legislatures, as well as by foreign governments that, if enacted, could impose a tax on financial transactions. If enacted, such financial transaction taxes could increase the cost to clients of investing or trading on our platforms and reduce or adversely affect U.S. market conditions and liquidity, general levels of interest in investing, and the volume of trades and other transactions from which we derive revenues. Any financial transaction tax implemented in any jurisdiction in which we operate could adversely affect our business, financial condition, and results of operations, and because we offer retail brokerage services we could be impacted to a greater degree than other market participants.

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***We and the third parties with whom we work are subject to complex and evolving laws, regulations and industry requirements related to data privacy, data protection and cybersecurity across different markets where we conduct our business.***

In the normal course of business, we collect, store, use, disclose, transmit and otherwise process sensitive and confidential information, including personal information, regarding our employees, service providers, clients and, where applicable, their beneficial owners and control persons. Our data processing activities subject us to numerous data privacy, data protection and cybersecurity obligations, such as various laws, regulations, guidance, industry standards, external and internal privacy and security policies, contractual requirements, and other obligations relating to data privacy and security. For example, in the United States, federal, state, and local governments have enacted numerous data privacy, data protection and cybersecurity laws, including data breach notification laws, personal data privacy laws, consumer protection laws (e.g., Section 5 of the Federal Trade Commission Act), and other similar laws (e.g., wiretapping laws). Additionally, certain sector-specific regulations, including regarding the financial industry, require additional privacy and security-related obligations. For example, the Gramm Leach Bliley Act, as amended, imposes specific requirements relating to the privacy and security of certain "nonpublic personal information" processed by covered financial institutions.

Numerous U.S. states have significant comprehensive data privacy, data protection and cybersecurity laws and regulations may apply to our business, including the California Consumer Privacy Act (as amended by the California Privacy Rights Act), which gives California residents the right to access and request deletion of their personal information, opt out of the sale of personal information, and receive detailed information about how their personal information is processed, and provides a private right of action for certain data breaches involving the loss of personal information. Similar laws are being considered in several other states, as well as at the federal and local levels, and we expect more states to pass similar laws in the future. Further, laws in all 50 states require businesses to provide notice to consumers whose personal information has been disclosed as a result of a data breach.

State governments, Congress and state and federal agencies may consider and enact additional legislation or promulgate regulations governing data privacy, data protection, cybersecurity and data breach reporting requirements. We cannot predict whether such legislation or regulation will be enacted, or what impact, if any, such legislation or regulation may have on our business, financial condition, results of operations and prospects. Any violations of these statutes and regulations may require us to change our business practices or operational structure, including limiting our activities in certain states and/or jurisdictions, address legal claims, and sustain monetary penalties, reputational damage and/or other harms to our business.

Additionally, under various privacy laws and other obligations, we may be required to obtain certain consents to process personal data. For example, some of our data processing practices may be subject to challenges or lawsuits under data privacy and communications laws, including for example under wiretapping laws, if we share consumer information with third parties through various methods, including chatbot and session replay providers, or via third-party marketing pixels, as has occurred. These practices may be subject to increased challenges by class action plaintiffs. Our inability or failure to obtain consent for these practices could result in adverse consequences, including class action litigation and mass arbitration demands.

Additionally, our broker-dealers are subject to SEC Regulation S-P, which requires that businesses maintain policies and procedures addressing the protection of customer information and records. This includes protecting against any anticipated threats or hazards to the security or integrity of customer records and information and against unauthorized access to or use of customer records or information. Regulation S-P also requires businesses to provide initial and annual privacy notices to

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customers describing information-sharing policies and informing customers of their rights and imposes certain notification obligations businesses in the event of a data breach.

In addition, when we service clients outside of the United States, such as our clients in the European Economic Area ("EEA"), the United Kingdom, Canada, India, Singapore and other jurisdictions, certain other laws or regulations relating to data privacy, data protection and cybersecurity may also apply to our business. For example, in the EEA and the United Kingdom, we are subject to the European Union General Data Protection Regulation ("GDPR") and its equivalent in the United Kingdom (the "UK GDPR"), which comprehensively regulate our use of personal information, including cross-border transfers of personal information out of the EEA and the United Kingdom. The GDPR and UK GDPR impose stringent data privacy and data protection requirements and increase the risk of non-compliance and the costs of providing our platform and our services in a compliant manner. While the GDPR and the UK GDPR remain substantially similar for the time being, the government of the United Kingdom has adopted reforms to its data privacy, data protection and cybersecurity legal framework in its Data Use and Access Act 2025, which became law on June 19, 2025 (phasing in between June 2025 and June 2026) and will introduce significant changes from the GDPR. This may lead to additional compliance costs and could increase overall risk exposure as businesses may no longer be able to take a unified approach across the EEA and the United Kingdom, and such businesses may need to amend their processes and procedures to align with the new framework. Implementing mechanisms to endeavor to ensure compliance with the GDPR and the UK GDPR may be onerous and expose businesses to divergent parallel regimes that may be subject to potentially different interpretations and enforcement actions for certain violations and related uncertainty. Failure to comply with the GDPR or the UK GDPR can result in significant fines and other liability, including, under the GDPR, fines of up to EUR 20 million (or GBP 17.5 million under the UK GDPR) or four percent (4%) of annual global revenue, whichever is greater. European data privacy, data protection and cybersecurity authorities have already imposed fines for GDPR violations of up to, in some cases, hundreds of millions of Euros.

The GDPR and the UK GDPR prohibit transfers of personal information from the EEA or United Kingdom to countries not formally deemed adequate by the European Commission or the UK Information Commission Office, (or its successor), respectively, including the United States, unless a particular compliance mechanism (and, if necessary, certain safeguards) is implemented. The mechanisms that we and many other companies, including our clients, rely upon for European and UK data transfers (for example, Standard Contractual Clauses or the EU-US Data Privacy Framework and the UK extension thereto) are subject to legal challenge, regulatory interpretation and judicial decisions by the Court of Justice of the European Union. The suitability of Standard Contractual Clauses and the EU-US Data Privacy Framework for data transfer have been and may continue to be the subject of legal challenge, and we expect the legal complexity and uncertainty regarding international personal information transfers to continue. As the regulatory guidance and enforcement landscape in relation to data transfers continues to develop, we could suffer additional costs, complaints and regulatory investigations or fines; we may have to stop using certain tools and third-party providers and make other operational changes; we may have to implement alternative data transfer mechanisms under the GDPR and the UK GDPR and take additional compliance and operational measures; and the GDPR and the UK GDPR could otherwise affect the manner in which we provide our platform and adversely affect our business, operating results, financial condition and future prospects.

Additionally, the U.S. Department of Justice issued a rule entitled the Preventing Access to U.S. Sensitive Personal Data and Government-Related Data by Countries of Concern or Covered Persons, which places additional restriction on certain data transactions involving countries of concern (e.g., China, Russia, Iran) and covered individuals (i.e., individuals and entities located in or controlled by individuals or entities located in those jurisdictions) that may impact certain business activities such as vendor engagements, sale or sharing of data, employment of certain individuals, and investor agreements.

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Violations of the rule could lead to significant civil and criminal fines and penalties. The rule applies regardless of whether data is anonymized, key-coded, pseudonymized, de-identified or encrypted, which may impact our ability to engage in transactions or agreements with certain third parties in the future.

Moreover, while we strive to publish and prominently display privacy policies that are accurate, comprehensive, and compliant with applicable laws, rules, regulations, industry standards and other legal obligations, we cannot ensure that our privacy policies and other statements regarding our practices will be sufficient to protect us from claims, proceedings, liability or adverse publicity relating to data privacy, data protection and cybersecurity. Although we endeavor to comply with our privacy policies, we may at times fail to do so or be alleged to have failed to do so. If our public statements about our use, collection, disclosure and other processing of personal information, whether made through our privacy policies, information provided on our website, press statements or otherwise, are alleged to be deceptive, unfair or misrepresentative of our actual practices, we may be subject to potential government or legal investigation or action, including by the Federal Trade Commission or applicable state attorneys general.

We have implemented internal controls and procedures designed to comply with the data privacy, data protection and cybersecurity laws, rules, regulations, industry standards and other legal obligations to which we are subject, and other applicable standards, as well as contractual obligations related to data privacy, data protection and cybersecurity. However, data privacy, data protection and cybersecurity laws, rules, regulations, industry standards and other legal obligations are evolving and may be modified, replaced, interpreted and applied in an inconsistent manner from one jurisdiction to another, and may conflict with one another, other requirements or legal obligations. We cannot yet determine the impact that any new obligations or modifications of existing obligations may have on our business. As such, we cannot assure ongoing compliance with all such laws, rules, regulations, industry standards and other legal obligations, and our efforts to do so may cause us to incur significant costs or require changes to our business practices, which could adversely affect our business, results of operations, prospects and financial condition. Any failure or perceived failure by us or the third parties with whom we work to comply with applicable laws, rules, regulations, industry standards and other legal obligations, or to adequately address data privacy, data protection and cybersecurity concerns, even if unfounded, may result in governmental enforcement actions, private litigation (including class actions), fines and penalties or adverse publicity and could cause our clients to lose trust in us, which could have an adverse effect on our reputation, inhibit sales, business, results of operations, prospects and financial condition.

***Failure to comply with "best execution" requirements or changes to regulatory frameworks governing best execution practices could result in penalties or adversely affect our business.***

Our registered broker-dealers are subject to "best execution" requirements under SEC guidelines and FINRA rules, which requires us to obtain the best reasonably available terms for customers' orders or to take sufficient steps to obtain, when executing orders, the best possible results for customers. We may, for example, be required to use reasonable diligence so that the price to the customer is as favorable as possible under prevailing market conditions, taking into account, among other things, the character of the market for the security, the size and type of the transaction, the number of markets checked, accessibility of quotations and the terms and conditions of the order as communicated by the customer. In such cases, although we are not required to examine every customer's order individually for compliance, we must undertake regular and rigorous reviews of the quality of our customer order execution. We face the risk of investigations or penalties in the future related to our best execution practices. We might also be adversely affected in the future by regulatory changes related to our obligations with regard to best execution, and the existence of such an investigation, or any resulting penalty, settlement or fine, could cause us significant reputational harm. There is a risk that regulatory bodies may adopt additional regulation relating to best execution requirements as a result of heightened

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scrutiny or otherwise. Any such regulations could have an adverse impact on our business and one of our significant sources of revenue. We may be penalized if we fail to comply with these requirements and these requirements might be modified in the future in a way that could harm our business.

***We are or may be subject to potential liability in connection with pending or threatened legal proceedings and other matters.***

In addition to regulatory proceedings, we are also regularly involved in ongoing, pending or threatened litigation and other legal proceedings, and are or may be subject to potential liability in connection with them. Potential litigation matters include commercial litigation matters, securities litigation matters, data privacy, data protection and cybersecurity disputes, intellectual property disputes, contract disputes, consumer protection matters, and employment matters. This risk might be more pronounced during market downturns, during which the volume of legal claims and amount of damages sought in litigation and regulatory proceedings against financial services companies have historically increased.

Litigation matters brought against us have in the past and might in the future require substantial management attention and might result in settlements, awards, injunctions, fines, penalties, and other adverse results. The course and outcome of legal matters are highly unpredictable, especially when a matter is still in its early stages, the damages sought are indeterminate or unsupported, significant facts are unclear or disputed and novel questions of law or other meaningful legal uncertainties exist. We are often unable to determine how or when threatened or pending legal matters and other contingent exposures will be resolved and what losses may be incrementally and ultimately incurred. Actual losses may be higher or lower than any amounts accrued or estimated for those matters and other exposures, possibly to a significant degree. A substantial judgment, settlement, fine, penalty, or injunctive relief could be material to our results of operations or cash flows for a particular period or could cause us significant reputational harm. For more information about the legal proceedings in which we are currently involved, see "Business" herein, as well as Note 15 "Commitments and Contingencies" in the notes to our audited consolidated financial statements included elsewhere in this prospectus.

***We may pay fines or become subject to enforcement actions or litigation as a result of activity that pre-dated our ownership of a business that we have acquired.***

We may in the future acquire businesses subject to regulatory inquiries, actions or proceedings, or that may become subject to inquiries, actions or proceedings arising out of operations that pre-date our ownership of such businesses. Any fines, enforcement actions, censure or other determinations by regulators that relate to periods prior to the closing of acquisitions we make are likely to have an adverse impact on us and the acquired business even though the activity in question related to periods prior to our ownership. While we have attempted, and will continue to attempt in the future, to mitigate the financial impact of such events with indemnity reserves or other methods, the efficacy of such protective measures may be insufficient to cover our losses and reputational harm may still occur. Our business, financial condition, results of operations and prospects may be adversely affected by any such inquiries, actions or proceedings.

***Regulatory and legislative developments related to the use of AI could adversely affect our anticipated use and provision of AI-powered solutions in our applications, services and business.***

As the regulatory framework for AI and similar technologies, including machine learning technology, generative AI and automated decision making, evolves, our business, financial condition and results of operations may be adversely affected. The regulatory framework for AI and similar technologies, and automated decision making, is changing rapidly. It is possible that new laws, rules,

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regulations and industry standards will be adopted in the United States and in non-U.S. jurisdictions, or that existing laws, rules, regulations, industry standards and other legal obligations may be interpreted in ways that would affect our anticipated use and provision of AI-powered solutions in our applications, services and business. Several jurisdictions have already enacted, or are considering laws governing, the development and use of AI, such as the Regulation (EU) 2024/1689 (the "EU AI Act") and the Colorado Artificial Intelligence Act. The EU AI Act sets out a risk-based framework, subjecting certain AI technologies to numerous compliance obligations, including transparency, conformity and risk assessment, monitoring and human oversight requirements. Under the EU AI Act, non-compliant companies may be subject to administrative fines of up to 35 million Euros or 7% of a company's total worldwide annual revenues for the preceding financial year, whichever is the higher. Certain of our activities subject us to the EU AI Act and depending on how the EU AI Act is implemented and interpreted, we may have to adapt our business practices, contractual arrangements, and services to comply with such obligations. We expect other jurisdictions will adopt similar laws. We may not be able to adequately anticipate or respond to these evolving laws rules, regulations, industry standards and other legal obligations, and we may need to expend additional resources to adjust our anticipated offerings in certain jurisdictions if applicable legal frameworks and industry standards are inconsistent across jurisdictions. In addition, because these technologies are themselves highly complex and rapidly developing, it is not possible to predict all of the legal or regulatory risks that may arise relating to our anticipated use and provision of such technologies. Further, the cost to comply with such laws, rules, regulations, industry standards and other legal obligations could be significant and would increase our operating expenses, which could adversely affect our business, financial condition and results of operations.

**Risks Related to Digital Assets** 

***The future development and growth of digital assets are subject to a variety of factors that are difficult to predict and evaluate.***

Although we do not currently offer digital asset trading on our platform, we intend to introduce digital assets, including stablecoins, as a new asset class in the near future and will be exposed to many of the risks associated with facilitating digital asset trading by our clients. If we begin offering digital asset trading on our platform and digital assets decline or do not grow as we expect, whether in terms of value, volume, demand or any other key performance metric, we may not see the anticipated benefits from introducing this new asset class onto our platform.

The future growth and development of any digital assets, including stablecoins, and their underlying networks and other cryptographic and algorithmic protocols governing the creation, transfer and usage of digital assets represent a new and evolving paradigm that is subject to a variety of factors that are difficult to evaluate, including, among others, extreme price volatility or "black swan" events, regulatory changes and onerous regulations, difficulty in implementing software upgrades and changes to protocols, network forks, bugs, cybersecurity risks, risks related to the loss, destruction or unauthorized use or access of a private key, the vulnerability of the global supply chain to digital asset hardware disruption, difficulty in obtaining new hardware, software errors, lack of liquidity in digital asset markets, and failure to obtain banking services as a business that offers digital-asset-related services, and failure to obtain client adoption. Our introduction of digital assets on our platform may be delayed or impeded by industry-wide standards, regulatory scrutiny, legal restrictions, incompatible client expectations, demands, and preferences, or third-party intellectual property or other proprietary rights. We may encounter significant adverse developments in the completion and implementation, which may include time delays, cost overruns, loss of key personnel, technological problems, processing failures, distraction of management and other adverse developments.

In addition, acceptance and/or widespread use of digital assets is uncertain and the prices of digital assets can be extremely volatile. For example, since October 2024, the trading price of Bitcoin

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has fluctuated between a high of approximately $124,000 to a low of approximately $60,000. As a result, after we introduce digital assets onto our platform, the revenues we generate from digital asset trading on our platform may be impacted by the underlying trading prices of those digital assets and volume of digital asset transactions, which could adversely affect the success of our business, financial condition, results of operations and prospects. Moreover, the volatile nature of digital assets and the nature of the digital assets markets operating 24/7 may make it difficult for us to appropriately manage risks, which would put pressure on our internal systems and may adversely affect our business.

***Our failure to safeguard and adequately custody our clients' digital assets, or any failures in transacting with digital assets on our platform, could adversely impact our business, financial condition, results of operations and prospects.***

As our business expands and as we add digital assets as an application on our platform, we will need to safeguard and custody our clients' digital assets, which comes with risk. Although we may look to self-custody digital assets in the future, we will in the first instance rely on third-party providers to custody digital assets on our behalf. Although we believe that the third-party providers on which we intend to rely implement robust controls, no assurance can be given that these custody services will be fully secure and protected against incidents leading to asset losses across all jurisdictions. Any failure to safeguard our clients' digital assets, including due to such custodians failing to backup secret shares of private keys, allowing inappropriate access or theft of digital assets, or failing to maintain effective controls over the custody and other settlement services provided to us, could adversely affect us.

Supported digital assets, including stablecoins, are not insured or guaranteed by any government or government agency. Our success and the success of our platform's capabilities require significant public confidence in our and our partners' ability to properly manage clients' digital asset balances and handle large and growing transaction volumes and amounts of client assets. In addition, we will be dependent on our partners' operations and financial condition for the proper maintenance, use, and safekeeping of these client assets. In addition, the relative novelty of digital assets may pose operational challenges and risks. In particular, some digital assets have limited operating histories and may have vulnerabilities that could be abused by malicious users. Those features could lead to novel operational risks related to the settlement and validation of transactions, which could result in fraudulent misuse of digital assets. Any failure by us or our partners to maintain the necessary controls or to manage client digital assets and funds appropriately and in compliance with applicable regulatory requirements could result in reputational harm, significant financial losses, lead clients to discontinue or reduce their use of our and our partners' applications, and result in significant penalties and fines and additional restrictions, which could adversely impact our business, financial condition, results of operations and prospects.

Our security technology is designed to prevent, detect, and mitigate inappropriate access to our systems by internal or external threats and we believe that our partners implement similar security measures. However, it is nevertheless possible that hackers, employees or service providers acting contrary to our policies or agreements, or others, could circumvent these safeguards to improperly access our systems or documents, or the systems or documents of our business partners, agents, or service providers, and improperly access, obtain, and/or misuse client digital assets and funds.

Third-party custodians typically hold insurance policies that cover digital assets up to specific limits. However, these insurance policies come with certain limitations and insurance coverage is often shared among multiple clients on a first-loss basis, meaning the full value of any loss may not be indemnified if a loss event impacts multiple clients simultaneously. Any loss of client cash or digital assets could result in a subsequent lapse in insurance coverage, which could cause a substantial business disruption, adverse reputational impact, inability to compete with our competitors, and regulatory investigations, inquiries, or actions. Additionally, transactions undertaken through our websites or other electronic channels may create or be exposed to risks of fraud, hacking, unauthorized access or acquisition, or other deceptive practices.

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Any security incident resulting in a compromise of client assets could result in substantial costs to us and/or require us to notify impacted individuals, and in some cases regulators, of the possible or actual incident, expose us to regulatory inquiries, investigations and/or enforcement actions, potentially leading to substantial legal costs, regulatory fines, public reprimands and/or disciplinary actions, limit our ability to provide services, cause user discontinuation or reduction of use of services, cause the loss of clients or reduction in the use of our platform, and further subject us to litigation, significant financial losses, damage our reputation, and adversely affect our business, financial condition, results of operations, cash flows and the price of our Class A common stock.

Further, a number of errors can occur in the process of depositing or withdrawing digital assets into or from our clients' accounts, such as typographical errors, mistakes, or the failure to include the information required by the blockchain network. We may encounter such incidents as we implement digital assets onto our platform, which could result in client disputes, damage to our brand and reputation, legal claims against us, and financial liabilities, any of which could adversely affect our business, financial condition, results of operations and prospects.

***The legislative and regulatory environment governing digital assets is unclear, complex and changing rapidly, which may raise hurdles to our plans to introduce digital asset-related applications to our clients.***

We intend to offer clients the ability to trade certain digital assets on our platform in the near future. The legislative and regulatory environment governing digital assets is unclear, complex and changing rapidly, which may pose hurdles to these plans. Digital assets are novel and their legal and regulatory treatment continues to evolve. Regulators may interpret or apply existing laws and regulations in a manner that would require us to either register and/or obtain licenses or applicable charters in one of a number of capacities or otherwise forgo this business. These potential requirements include, but are not limited to, registration as an MSB under the Bank Secrecy Act and the regulations promulgated by the FinCEN thereunder, licensing under the so called BitLicense scheme adopted by the New York Department of Financial Services (23 N.Y.C.R.R. § 200 *et seq.*), the California Digital Financial Assets Law Cal. Fin. Code Div 1.25, and/or applicable current or future laws and regulations of other jurisdictions, which would require us to comply with regulatory, licensing, examination and supervision requirements.

In addition, there remains significant uncertainty as to which digital assets are securities, and which digital asset-related activities involve securities transactions, for purposes of U.S. federal and state securities laws. The classification of a digital asset as a security under applicable law has wide-ranging implications for the regulatory obligations that flow from the offer, sale, trading, and clearing of digital assets and digital asset related applications. These include whether secondary market intermediaries may be required to engage in their digital asset-related activities through registered brokers, dealers, exchanges, or clearing agencies, and if so, whether it is possible or practical for the laws and rules applicable to these entities to be complied with in connection with digital asset activities. In recent years, the SEC, and U.S. state securities regulators have alleged that certain digital assets are securities under U.S. federal and state securities laws. A number of enforcement actions, regulatory proceedings and private litigation were initiated against issuers and developers of digital assets, as well as against trading platforms that provide trading, exchange and clearing functions for digital assets. Many of the actions initiated by federal regulatory authorities have settled or have been withdrawn, but uncertainly in this area remains, and certain state regulators and private litigants continue to press claims based on these theories. If digital assets that we plan to offer services in relation to were deemed to be securities, it may inhibit or make our anticipated business impractical, or we could be subject to liability or other regulatory actions under applicable law.

The U.S. federal government, states and regulatory agencies may also enact new laws and regulations that could materially impact our ability to provide a digital asset offering or the

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consequences of doing so. For example, in July 2025, the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 became the first federal law specifically regulating the issuance of stablecoins and other stablecoin-related matters in the United States. There have also been several bills introduced in Congress that propose to establish additional regulation and oversight of the digital asset markets, including registration and regulation of digital asset brokers, dealers and exchanges. For example, the Digital Asset Market Clarity Act (the "CLARITY Act") was passed by the House of Representatives in July 2025 and the Senate Banking Committee released a draft of the Responsible Financial Innovation Act ("RFIA"). It is not possible to predict whether, or when, the CLARITY Act, RFIA or another similar bill to regulate digital asset markets and digital asset trading platforms may become law or what any such legislation, or any rules adopted thereunder, may entail that could pose challenges to our intended digital asset offering.

***Developments regarding the treatment and reporting of digital assets for U.S. and foreign tax purposes could adversely impact our business.***

Because of the new and evolving nature of digital assets and the lack of comprehensive legal and tax guidance regarding digital asset products and transactions, there is substantial uncertainty as to how digital asset transactions are currently subject to tax under U.S. and foreign tax law, and the taxation of digital asset transactions under U.S. and foreign tax law could change as new tax laws are adopted or new guidance is issued in the future. Our operations and dealings in, or in connection with, digital assets, as well as transactions in digital assets generally, could be subject to adverse tax consequences in the United States, including as a result of future changes and developments in U.S. and foreign tax laws, which in turn could have an adverse effect on the prices of digital assets and the development of trading markets for digital assets, which in turn could have an adverse effect on our business, financial condition, results of operations and prospects.

In 2014, the Internal Revenue Service (the "IRS") released Notice 2014-21, discussing certain aspects of "virtual currency" for U.S. federal income tax purposes and, in particular, stating that such virtual currency (i) is "property," (ii) is not "currency" for purposes of the rules relating to foreign currency gain or loss, and (iii) may be held as a capital asset. There can be no assurance that the IRS will not alter its position with respect to digital assets in the future, and there remains significant uncertainty with respect to the U.S. tax treatment of various digital asset transactions. In addition, the U.S. Infrastructure Investment and Jobs Act (the "IIJA") implements a set of comprehensive tax information reporting rules that will apply to persons, including digital asset trading platforms and custodians, that regularly effect transfers of digital assets on behalf of other persons. In particular, these rules will require digital asset trading platforms and custodians to report certain digital asset transactions (including sales, exchanges and other transfers) effected on behalf of other persons on an annual return, in a manner similar to the current reporting rules for brokers that effect stock and other securities transactions on behalf of customers. The IIJA also extends the reporting requirements for businesses that receive more than $10,000 in cash in a transaction (or related transactions) to transactions involving the receipt of digital assets with a fair market value of more than $10,000. However, such extension to transactions involving the receipt of digital assets has been postponed pending the issuance of regulations. In July 2024, the IRS and the U.S. Department of the Treasury released final regulations to implement certain of these reporting rules (the "July 2024 final regulations"). The July 2024 final regulations' definition of the term "broker" is broad and, in a number of respects, is unclear in scope, but generally requires custodial brokers and brokers acting as principals to perform information reporting and backup withholding functions. The July 2024 final regulations do not address all aspects of the IIJA information reporting regime and their application is uncertain in a number of respects, including with respect to the collection and reporting of cost basis information for digital assets and the scope of transactions subject to reporting. In December 2024, the IRS and the U.S. Department of the Treasury issued separate final regulations describing information reporting rules for non-custodial industry participants, but these

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regulations were repealed on April 10, 2025, under the Congressional Review Act. There can be no assurance that the same or similar regulations will not be authorized by future law.

The effects of the IIJA reporting regime and its application to us may depend in significant part on future Congressional action and further regulatory or other guidance from the IRS and could create significant compliance burdens and uncertainties for us and our clients, as could developments in the reporting regimes in other countries with respect to digital assets and digital asset transactions. These developments could also adversely affect the price of digital assets, which could have an adverse effect on our business, financial condition, results of operations and prospects.

**Risks Related to this Offering and Ownership of Our Class A Common Stock** 

***We will be a "controlled company" under Nasdaq listing rules and, as a result, our stockholders may not have certain corporate governance protections that are available to stockholders of companies that are not controlled companies.***

So long as more than 50% of the voting power for the election of directors is held by an individual, a group or another company, we will be a "controlled company" under Nasdaq listing rules. Following the completion of this offering, Global Corp., through its ownership of all of the outstanding shares of our Class B common stock, will hold approximately % of the voting power of our outstanding capital stock which voting power may increase over time as Global Corp. exercises or vest and settles equity awards (including in connection with the Global Corp. Grants and the RSUs granted pursuant to the Global Corp. RSU Agreement) outstanding at the time of the completion of this offering. If the Global Corp. Grants and the RSUs granted pursuant to the Global Corp. RSU Agreement had been exercised or had vested and been settled, as applicable, immediately following the completion of this offering, Global Corp. would hold approximately % of the voting power of our outstanding capital stock. The Global Corp. Grants and future issuances of equity awards to Global Corp. may further increase its voting power. As a result, we will be a "controlled company" under Nasdaq listing rules and will not be subject to the requirements that would otherwise require us to have: (i) a majority of "independent directors," as defined under Nasdaq listing rules, (ii) compensation of our executive officers determined by a majority of the independent directors or a compensation committee composed solely of independent directors, and (iii) director nominees selected, or recommended for selection by our Board of Directors, either by a majority of the independent directors or a nominating committee composed solely of independent directors. As long as we remain a "controlled company" under Nasdaq listing rules, we could elect to rely on our "controlled company" exception and choose to not follow one or more of these standards. Any such election to not follow one or more of these standards could eliminate protections that would otherwise be available to holders of our Class A common stock.

Accordingly, Global Corp. will have the ability to substantially control us, including the ability to control the election of members of our Board of Directors, the adoption of amendments to our certificate of incorporation and bylaws, the approval of any merger or sale of substantially all of our assets and any other action requiring the approval of our stockholders. Each of Uriel Cohen, our Executive Chairman, and Elli Ausubel, our Executive Vice Chairman, is an officer and member of the board of directors of Global Corp. In addition, Uriel Cohen and Elli Ausubel, together with certain trusts and other entities affiliated with them, own a majority of the economic interest in Global Corp. This concentration of economic and voting power may also delay, defer or prevent an acquisition by a third-party or other change of control of us, and may make some transactions more difficult or impossible without the support of Global Corp., even if such events are in the best interests of holders of our Class A common stock, which may have an adverse impact on the market price of our Class A common stock. Global Corp.'s interests may not be fully aligned with those of the holders of shares of our Class A common stock.

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***We will incur increased costs and become subject to additional regulations and requirements as a result of becoming a public company, which could have an adverse effect on business, financial condition, results of operations and prospects, and make it more difficult to run our business or divert management's attention from our business.***

As a public company, we will be required to commit significant resources and management time and attention to the requirements of being a public company, which will cause us to incur significant legal, accounting and other expenses that we have not incurred as a private company, including costs associated with public company reporting requirements. We also will incur costs associated with the Sarbanes-Oxley Act and related rules implemented by the SEC and Nasdaq listing rules, and compliance with these requirements will place significant demands on our legal, accounting and finance staff and on our accounting, financial and information systems. We might not be successful in implementing these requirements and may be subject to enforcement or other regulatory proceedings. In addition, certain members of our management team have limited experience managing a public company, interacting with public company investors and complying with the increasingly complex laws pertaining to public companies. As a result, they may not successfully or efficiently manage their new roles and responsibilities, our transition to being a public company subject to significant regulatory oversight, reporting obligations and the continuous scrutiny of securities analysts and investors.

Further, the expenses incurred by public companies generally for purposes of required reporting and corporate governance have been increasing. We expect these requirements to increase our legal and financial compliance costs and to make some activities more time consuming and costly, although we are currently unable to estimate these costs with any degree of certainty. These requirements also could make it more difficult or costly for us to obtain certain types of insurance, including director and officer liability insurance, and we may be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. These requirements could also make it more difficult for us to attract and retain qualified persons to serve on our Board of Directors, our board committees or as our executive officers. Furthermore, if we are unable to satisfy our obligations as a public company, we could be subject to delisting of our Class A common stock, fines, sanctions and other regulatory action and potentially civil litigation, any of which could have an adverse effect on our business, financial condition, results of operation and prospects.

***We will qualify as an "emerging growth company" as of the completion of this offering, and any decision on our part to comply only with certain reduced reporting or disclosure requirements applicable to emerging growth companies could make our Class A common stock less attractive to investors.***

As an "emerging growth company," as defined in the JOBS Act, we may choose to take advantage of exemptions available to us under the JOBS Act from certain of the reporting or disclosure requirements that are otherwise applicable to public companies in the United States, including not being required to obtain an assessment of the effectiveness of our internal controls over financial reporting from our independent registered public accounting firm pursuant to Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. In addition, the JOBS Act provides that an emerging growth company may take advantage of an extended transition period for complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of these accounting standards until they would otherwise apply to private companies. We have elected not to opt out of the extended transition period. This election is irrevocable. However, investors may find shares of our Class A common stock less attractive if we rely on any of the other exemptions available to emerging growth companies. If some investors find our Class A common stock less attractive as a result of any such choices made by us, there could be an adverse impact on the market price of our Class A common stock.

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We will remain as an emerging growth company until the earliest of (i) the end of the first fiscal year in which our annual gross revenues exceed $1.235 billion, (ii) the end of the fiscal year following the fifth anniversary of the completion of this offering, (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt, or (iv) the date on which we qualify as a "large accelerated filer" under the Exchange Act, which may take place if the aggregate worldwide market value of the outstanding shares of our Class A common stock that are held by non-affiliates of us is at least $700.0 million as of the last business day of our then most recently completed second fiscal quarter. If and after we cease to be an emerging growth company, we will not be entitled to the exemptions provided by the JOBS Act discussed above.

***In connection with the preparation of our audited consolidated financial statements included elsewhere in this prospectus, we identified two material weaknesses in our internal control over financial reporting. While remediation efforts are underway, these material weaknesses remain in place as of the date of this prospectus. If we are unable to remediate our material weaknesses, or if we identify additional material weaknesses in the future or otherwise fail to maintain effective internal control over financial reporting, we may not be able to accurately or timely report our financial condition or results of operations, which could affect the reliability of our financial statements and have other adverse consequences.***

We have been a private company since our inception and, as such, we have not had the same internal control over financial reporting requirements as a publicly traded company.

We previously identified material weaknesses in our internal control over financial reporting, which consisted of (i) a lack of properly designed controls with sufficient precision to tie out supporting financial documentation, and (ii) a lack of sufficient resources to appropriately address complex technical accounting considerations, each of which resulted in errors in the presentation of certain line items in historical consolidated financial statements which we subsequently corrected prior to the filing of the registration statement of which this prospectus forms a part.

We have initiated a remediation plan with respect to the identified material weaknesses, which includes the following remediation measures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We hired additional qualified accounting personnel to bolster our technical reporting capabilities. We implemented controls
to formalize roles and review responsibilities to align with our team's skills and experience and implemented formal controls over the required disclosures in the financial statements and the accounting of material matters. We evaluated our
resource needs and will continue to evaluate and hire additional resources as needed to support our growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We designed and implemented procedures and controls to identify and account for complex accounting transactions and other
technical accounting and financial reporting matters including accounting memoranda addressing these matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We also engaged and will continue to engage external consultants with appropriate expertise for more complex technical
accounting issues, specifically related to acquisitions, asset purchases and new accounting standards, which supplements our internal resources and allows us to scale our accounting processes to match growth and changes in our business and
operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We designed and implemented controls to, among other things, optimize automation to enhance our financial statement close
process, reduce the number of manual journal entries, enforce segregation of duties and facilitate the proper review of journal entries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We formalized accounting processes, policies and procedures supporting our financial close process, including creating
standard balance sheet reconciliation templates, and formalized procedures over the review of financial statements.

While we believe these efforts will improve our internal controls and address the underlying causes of the material weaknesses, such material weaknesses will not be remediated until our remediation plan has been fully implemented and we have concluded that our controls are operating effectively for a sufficient period of time. The measures we have implemented and the measures that we are continuing to implement may not be sufficient to remediate the material weaknesses on a timely basis, or at all. In addition, we or our independent registered public accounting firm may identify additional material weaknesses in the future. While we are working to remediate these material weaknesses as timely and efficiently as possible, at this time we cannot provide an estimate of costs expected to be incurred in connection with the implementation of this remediation plan, nor can we provide an estimate of the time it will take to complete this remediation plan.

Although we are still in the process of remediating the material weaknesses identified, the errors in our historical financial statements were corrected prior to the filing of the registration statement of which this prospectus forms a part, and as a result, our audited consolidated financial statements included elsewhere in this prospectus do not contain any uncorrected errors. While these errors have been corrected, there can be no assurance that we may not have similar or material errors in any future financial statements which may require restatements of our financial statements. Any such restatements could result in a loss of public confidence in the reliability of our financial statements and sanctions imposed on us by the SEC. We cannot predict or estimate the amount of additional costs we may incur or the timing of such costs. If we are unable to satisfy our obligations as a public company, we could be subject to delisting of our Class A common stock, fines, sanctions, and other regulatory action and potentially civil litigation.

Our independent registered public accounting firm is not required to report on the effectiveness of our internal control over financial reporting until after we are no longer an EGC as defined in the JOBS Act. At such time, our independent registered public accounting firm may issue a report that is adverse, which would occur in the event we have a material weakness in our internal control over financial reporting. If new material weaknesses are identified in our internal control over financial reporting, our ability to record, process and report financial information accurately, and to prepare financial statements within the time periods specified by the rules and forms of the SEC, could be adversely affected which, in turn, may adversely affect our reputation and business and the market price of our Class A common stock. In addition, any such failures could result in litigation or regulatory actions by the SEC or other regulatory authorities, loss of investor confidence, delisting of our securities and harm to our reputation and financial condition, or diversion of financial and management resources from the operation of our business.

***If our estimates or judgments relating to our critical accounting policies are based on assumptions that change or prove to be incorrect, our results of operations could fall below expectations of securities analysts and investors, resulting in a decline in the market price of our Class A common stock.***

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, as described in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations," the results of which form the basis for making judgments about the carrying values of assets, liabilities, equity, revenue and expenses that are not readily apparent from other sources. Significant

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assumptions and estimates used in preparing our consolidated financial statements include those related to internal-use software and equity-based compensation. If our assumptions change or if actual circumstances differ from those in our assumptions, our results of operations may be adversely affected and may fall below the expectations of securities analysts and investors, resulting in a decline in the market price of our Class A common stock.

***Our financial results may be negatively impacted by changes in generally accepted accounting principles in the United States.***

The accounting rules and regulations that we must comply with are complex and subject to interpretation by the Financial Accounting Standards Board (the "FASB"), the SEC, and various other bodies formed to promulgate and interpret appropriate accounting principles. A change in these principles or interpretations could have a significant effect on our reported financial results and may even affect the reporting of transactions completed before the announcement or effectiveness of a change. Recent actions and public comments from the FASB and the SEC have focused on the integrity of financial reporting and internal controls and many companies' accounting policies are being subjected to heightened scrutiny by regulators and the public. New accounting pronouncements and varying interpretations of accounting pronouncements have occurred in the past and may occur in the future. Changes to existing rules or the questioning of current practices may adversely affect our reported financial results or the way we conduct our business.

Further, there has been limited precedent for the financial accounting of digital assets and related valuation and revenue recognition. As we implement digital assets onto our platform, we will be subject to new and regularly changing principles that may be difficult to implement and timely and costly to comply with. For example, in December 2023, the FASB issued Accounting Standards Update No. 2023-08, Intangibles-Goodwill and Other-Crypto Assets (ASU 2023-08): Accounting for and Disclosure of Crypto Assets, which represents a significant change in how entities that hold digital assets will account for certain of those holdings. Previously, digital assets held were accounted for as intangible assets with indefinite useful lives, which required us to measure digital assets at cost less impairment. Additionally, on March 31, 2022, the staff of the SEC issued Staff Accounting Bulletin No. 121 ("SAB 121"), which represented a significant change regarding how a company safeguarding digital assets held for its platform users reports such digital assets on its balance sheet and required retrospective application as of January 1, 2022. In January 2025, the staff of the SEC issued SAB No. 122, which rescinds the previously issued interpretive guidance included within SAB 121. Such uncertainties in and changes to regulatory or financial accounting standards could result in the need to change our accounting methods and may retroactively affect previously reported results and impair our ability to provide timely and accurate financial information, which could adversely affect our financial statements, result in a loss of investor confidence, and more generally impact our business, financial condition and results of operations and prospects.

***The market price of our Class A common stock may be volatile and may decline regardless of our operating performance.***

The market price of our Class A common stock may fluctuate significantly in response to numerous factors, many of which are beyond our control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or anticipated fluctuations in our results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure of securities analysts to maintain coverage of us, changes in financial estimates or ratings by any securities
analysts who follow us or our results of operations failing to meet any of such estimates or the expectations of investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcements by our competitors of significant technical innovations, acquisitions, strategic partnerships, joint
ventures, results of operations or capital commitments;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in operating performance and stock market valuations of financial services companies generally, or those in the
clearing and brokerage industries in particular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• price and volume fluctuations in the overall stock market, including as a result of trends in the economy as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales of large blocks of our stock, as well as the anticipation of any lock-up releases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• departures of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation and government investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in statutes, rules or regulations applicable to our business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic and political conditions in the United States and the other countries in which we operate.

The stock market from time to time experiences extreme price and volume fluctuations. The market prices of securities of companies have experienced fluctuations that often have been unrelated or disproportionate to their operating results. In the past, stockholders have sometimes instituted securities class action litigation against companies following periods of volatility in the market price of their securities. Any similar litigation against us could result in substantial costs and divert management's attention and resources.

***An active trading market for our Class A common stock may not develop or, if it does develop, be sustained.***

Prior to this offering, there has been no public market for shares of our Class A common stock. Our Class A common stock is expected to be listed on under the symbol "CSIG" and to trade on that market and others. We cannot assure you that an active trading market for our Class A common stock will develop or, if it does develop, be sustained. Accordingly, we cannot assure you of the liquidity of any trading market, your ability to sell your shares of our Class A common stock when desired or the prices that you may obtain for your shares of our Class A common stock. The initial public offering price of shares of our Class A common stock is, or will be, determined by negotiation between us and the underwriters and may not be indicative of prices that will prevail following the completion of this offering. The market price of shares of our Class A common stock may decline below the initial public offering price, and you may not be able to resell your shares of our Class A common stock at or above the initial public offering price.

***Following this offering, all shares of our Series A preferred stock originally issued to investors will remain outstanding, and the holders of our Series A preferred stock will retain rights that could impact the value of our Class A common stock and impact our business, financial condition, and results of operations and prospects.***

Upon the completion of this offering, all shares of our Series A preferred stock will remain outstanding and will retain rights that could impact the value of our Class A common stock, our business and operations. For example, in the event of our voluntary or involuntary liquidation, dissolution, or winding up, the holders of our Series A preferred stock will be entitled to receive out of the net assets legally available for distribution to stockholders prior and in preference to any distribution of any assets to holders of our Class A common stock, and in the event of a deemed liquidation event (as defined in our New Charter), the holders of our Series A preferred stock will be entitled to be paid out of the consideration payable to stockholders in such deemed liquidation event or out of the available proceeds (as defined in our New Charter), on a *pari passu* basis, an amount per share equal to the sum of an amount per share of $25.00 for each then-outstanding share of Series A preferred stock, which is equal to $24.0 million as of the date of this prospectus, plus any accrued but unpaid

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dividends on such shares. Additionally, whenever dividends on any shares of Series A preferred stock are in arrears for six or more dividend periods, the size of our Board of Directors will increase by two directors, and the holders of our Series A preferred stock will have the right to elect two directors. No dividends are currently in arrears on our Series A preferred stock, and as such, the Series A preferred stock do not currently have the ability to nominate any members of our Board of Directors.

Holders of our Series A preferred stock will also be entitled to receive quarterly dividends payable in preference and priority to any payment of any dividend on common stock and no dividend may be paid on our Class A common stock unless all accrued and unpaid dividends as of such date have been declared and paid or declared and a sum sufficient for the payment thereof has been reserved. As of the date of this prospectus, holders of our Series A preferred stock are not entitled to any unpaid dividends that would be required to be paid prior to the completion of this offering. We do not currently have any intention to use the proceeds from this offering to redeem the outstanding Series A preferred stock, though we may in the future choose to do so. See "Description of Capital Stock—Preferred Stock—Series A Preferred Stock." The market price of our Class A common stock could be adversely affected by the preference rights of the Series A preferred stock.

***If you purchase shares of our Class A common stock in this offering, you will experience immediate and substantial dilution.***

An initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, is substantially higher than the pro forma as adjusted net tangible book value per share of $ per share of our common stock as of , 2025 (after giving effect to the Pre-IPO Transactions). Investors purchasing shares of our Class A common stock in this offering will pay a price per share that substantially exceeds the pro forma as adjusted net tangible book value per share of our common stock. Therefore, if you purchase shares of our Class A common stock in this offering, you will incur immediate and substantial dilution of $ per share. This dilution is due in large part to the fact that our earlier investors paid substantially less than the initial public offering price when they purchased shares prior to this offering. See "Dilution."

***The issuance by us of additional shares of any class of common stock or convertible securities may dilute your ownership and could adversely affect our stock price.***

As of , 2025, there are an aggregate of shares of Class A common stock issuable upon exercise of outstanding stock options at a weighted average exercise price of $ per share and shares of Class A common stock issuable upon the settlement of outstanding RSUs. The exercise or settlement of any of these options or RSUs into shares of our Class A common stock would result in additional dilution. From time to time in the future, we may also issue additional shares of our common stock or securities convertible into shares of our common stock. The issuance by us of additional shares of our common stock or securities convertible into our common stock would dilute your ownership of us and the sale of a significant amount of such shares in the public market could adversely affect prevailing market prices of our common stock.

***Future sales of shares by our existing stockholders could cause our stock price to decline.***

Sales of a substantial number of shares of our Class A common stock following the closing of this offering (and in particular sales by our directors, executive officers, and significant stockholders), or the perception that these sales might occur, could depress the market price of our Class A common stock and could impair our ability to raise capital through the sale of additional equity securities. We are unable to predict the effect that such sales may have on the prevailing market price of our Class A common stock. If existing holders of our Class A common stock sell or indicate an intention to sell in the public market substantial amounts of our Class A common stock, the market price of our Class A common stock could be adversely affected.

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Upon the completion of this offering, shares of Class A common stock (or shares of Class A common stock if the underwriters exercise their option to purchase additional shares of Class A common stock from us in full) will be outstanding, shares of Class B common stock will be outstanding and shares of our Series A preferred stock will be outstanding. All of the shares of Class A common stock sold in this offering will be freely transferable without restriction or registration under the Securities Act, except any shares held by our affiliates (as that term is defined in Rule 144 under the Securities Act). The remaining shares of Class A common stock outstanding upon the completion of this offering, and any shares of Class A common stock issued upon conversion of our Class B common stock, will be "restricted securities" as that term is defined in Rule 144 under the Securities Act and may be sold in the public market only if registered or pursuant to an exemption from registration, such as Rule 144 under the Securities Act.

We and all of our directors, executive officers and holders of substantially all of our capital stock are subject to lock-up agreements with the underwriters or certain market standoff agreements with us, in each case on the respective terms described in the section titled "Underwriting (Conflicts of Interest)," which would prohibit the sale of their shares of Class A common stock during the restricted period described therein, subject to certain exceptions. Upon the expiration of such restricted period, such stockholders will be able to sell our shares of Class A common stock in the public market. In addition, Goldman Sachs & Co. LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC and UBS Securities LLC may release the Class A common stock and other securities subject to the lock-up and market standoff agreements in whole or in part at any time. For more information about these lock-up and market standoff agreements, see the sections titled "Shares Eligible for Future Sale" and "Underwriting (Conflicts of Interest)."

In addition, as of September 30, 2025, there were an aggregate of shares of Class A common stock issuable upon exercise of vested stock options, and future issuance under our 2026 Plan will become eligible for sale in the public market in the future. We intend to register for public resale under the Securities Act all of the shares of Class A common stock issuable upon exercise of these options and any options or RSUs that may vest or other equity incentives we may grant in the future. See "Shares Eligible for Future Sale" for a more detailed description of sales that might occur in the future. Such shares of Class A common stock will become eligible for sale in the public market once the RSUs are settled and to the extent such options are exercised, subject to contractual limitations (including the market standoff and lock-up agreements described in "Underwriting (Conflicts of Interest)") and compliance with applicable securities laws.

Further, pursuant to our Amended and Restated Investors' Rights Agreement, dated as of December 18, 2025, by and among us and the investors party thereto (as amended from time to time, the "Investors' Rights Agreement"), holders of approximately shares of Class A common stock, or approximately % of our Class A common stock outstanding upon the completion of this offering, will have rights, subject to some conditions, to require us to file registration statements covering the sale of their shares or to include their shares in registration statements that we may file for ourselves or other stockholders.

Any sales, short sales, or hedging transactions involving our equity securities, whether before or after this offering and whether or not we believe them to be prohibited, or if it is perceived that any of our equity securities will be sold, could adversely affect the price of our Class A common stock.

***We have broad discretion in how we use the net proceeds from this offering, and we may not use them effectively.***

We cannot specify with any certainty the particular uses of the net proceeds that we will receive from this offering. Our management will have broad discretion in the application of the net proceeds from

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this offering, including for any of the purposes described in the section titled "Use of Proceeds," and you will not have the opportunity as part of your investment decision to assess whether the net proceeds are being used appropriately. Because of the number and variability of factors that will determine our use of the net proceeds from this offering, their ultimate use may vary substantially from their currently intended use. The failure by our management to apply these proceeds effectively could adversely affect our business, financial condition, and results of operations. Pending their use, we may invest our proceeds in a manner that does not produce income or that loses value. Our investments may not yield a favorable return to our investors and may negatively impact the price of our Class A common stock.

***If securities or industry analysts either do not publish research about us or publish inaccurate or unfavorable research about or affecting us, or if they downgrade their recommendations regarding our Class A common stock, the market price of our Class A common stock could be adversely affected.***

The trading market for our Class A common stock will be influenced in part by the research and reports that securities or industry analysts may publish about us, our business, our competitors, or the market for our platform and the services we offer in general. If one or more of the analysts initiate research with an unfavorable rating or downgrade our Class A common stock, provide a more favorable recommendation about our competitors, or publish unfavorable research about our business, the market price or trading volume of our Class A common stock could be adversely affected. In addition, we expect that securities research analysts will establish and publish their own periodic projections for our business. These projections may vary widely and may not align with the results that we expect, or accurately predict actual results, and the market price could be further adversely affected if actual results do not match the projections of these securities research analysts. While we expect research analyst coverage, if no analysts commence coverage of us, the market price and trading volume for shares of our Class A common stock could be adversely affected. If any analyst were to cease coverage of us or failed to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could have an adverse effect on the market price or trading volume of our Class A common stock.

***Delaware law and provisions in our New Charter and New Bylaws that will go into effect upon the completion of this offering could make a merger, tender offer, or proxy contest difficult, thereby negatively affecting the market price of our Class A common stock.***

Our amended and restated certificate of incorporation that will go into effect upon the completion of this offering includes provisions that could depress the market price of our Class A common stock by acting to discourage, delay, or prevent a change of control of us or changes in our management that our stockholders may deem advantageous. These provisions include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the right of our Board of Directors to establish the number of directors and fill any vacancies and newly created
directorships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• director removal solely for cause, other than at the end of a director's term (except that prior to the Trigger Date,
directors may be removed by our stockholders with or without cause);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• super-majority voting to amend certain provisions of our New Charter and any provision of our New Bylaws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the right of our Board of Directors to issue authorized but unissued shares of our Class A common stock and to
designate the terms of series, and issue shares, of "blank check" preferred stock of us without stockholder approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Board of Director's ability to use "blank check" preferred stock to, among other things, implement a
stockholder rights plan or otherwise deter attempts to take control of us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no ability of our stockholders to call special meetings of stockholders;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• right of our stockholders to act by majority written consent for so long as Global Corp. and its permitted transferees hold
more than 50% of voting power of the combined total of shares of our Class A common stock and Class B common stock outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limitations on the liability of, and the provision of indemnification to, our director and officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the right of our Board of Directors to add to, amend or repeal our bylaws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• advance notice requirements for nominations for election to our Board of Directors or for proposing matters that can be
acted upon by stockholders at annual meetings of stockholders.

In addition, we have elected not to be subject to Section 203 of the Delaware General Corporation Law (the "DGCL"), which prohibits a publicly held Delaware corporation from engaging in a business combination with an interested stockholder for a period of three years following the date such person becomes an interested stockholder, unless the business combination or the transaction in which such person becomes an interested stockholder is approved in a prescribed manner. Generally, a "business combination" includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. Generally, an "interested stockholder" is a person that, together with affiliates and associates, owns, or within three years prior to the determination of interested stockholder status did own, 15% or more of a corporation's voting stock. The existence of this provision may have an anti-takeover effect with respect to transactions not approved in advance by our Board of Directors and could discourage takeover attempts that might result in a premium over the market price for shares of our Class A common stock.

Any provision of our certificate of incorporation or bylaws, as in effect upon the completion of this offering or thereafter, that has the effect of delaying or deterring a change in control could limit the opportunity for our stockholders to receive a premium for their shares of our Class A common stock and could also affect the price that some investors are willing to pay for our Class A common stock.

***We are subject to various change-in-control or similar regimes, which may require investors or us to obtain certain regulatory approvals prior to completing changes in our shareholdings, control or corporate structure.***

Investors may be required to obtain various regulatory consents or permissions, or comply with additional requirements and procedures, before acquiring significant interest in, or control over, directly or indirectly, certain of our regulated subsidiaries, including Clear Street UK Limited. It is generally expected that any investor proposing to acquire more than 9.99% of our Class A common stock or voting power, directly or indirectly, or proposing to increase its existing holdings above certain specified thresholds, would likely be required, by virtue of us controlling a number of regulated entities, to obtain approval from multiple regulators in different jurisdictions, including from regulators that may not currently supervise us or any of our subsidiaries (as a result of, for example, changes in applicable laws and regulations, internal reorganization, our future expansion into additional geographies or offerings, or acquisitions of new regulated entities). For example, the Financial Services and Markets Act of 2000 generally provides that prior approval from the FCA must be obtained in connection with any transaction resulting in a person or an entity holding, directly or indirectly, 10% or more of the equity or voting power of a U.K. authorized person or the parent of a U.K. authorized person. Therefore, for so long as we remain the parent entity of Clear Street UK Limited, our U.K. authorized subsidiary subject to the FCA supervision, any person wanting to acquire 10% or more of our shares will need to first obtain authorization from the FCA. Any failure to do so could subject the acquirer to various penalties, including criminal sanctions. Similar restrictions and limitations also apply to us because we control a number of licensed entities in the United States that are subject to regulatory oversight and supervision by various regulatory agencies in such jurisdictions, and will apply to us once we obtain a license in the Netherlands, for which we have applied, among other jursidictions. For example, like the FCA, the Dutch Financial Supervision Act will require notification of De

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Nederlandsche Bank of certain acquisitions of our Class A common stock above 10% and certain other specified thresholds. The restrictions discussed above may limit our flexibility in managing our corporate structure, including with respect to disposition of our regulated subsidiaries, which could adversely affect our business, financial condition, results of operations and future prospects.

***Our future efforts to sell shares of our common stock, raise additional capital or be acquired by a third-party may be delayed or prohibited by regulations.***

As certain of our subsidiaries are members of FINRA and other SROs, we are subject to certain regulations regarding changes in ownership or control and material changes in operations. For example, FINRA Rule 1017 generally provides that FINRA approval must be obtained in connection with certain change of ownership or control transactions, such as a transaction that results in a single entity or person owning 25% or more our equity.

We may also be subject to similar restrictions in other jurisdictions in which we operate. These regulations could discourage potential takeover attempts and reduce the price that investors might be willing to pay for shares of our Class A common stock in the future, which could reduce the market price of our Class A common stock. Further, our future efforts to sell shares of our common stock or raise additional capital may be delayed or prohibited.

Our New Charter will provide that the Court of Chancery of the State of Delaware and the federal district courts of the United States of America will be the exclusive forums for substantially all disputes between us and our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.

Our New Charter, as will be in effect immediately prior to the completion of this offering, will provide that the Court of Chancery of the State of Delaware is the exclusive forum for the following types of actions or proceedings under Delaware statutory or common law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any derivative action or proceeding brought on our behalf;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a breach of fiduciary duty owed by our current or former director, officer or other employee or any of
our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action or proceeding asserting a claim against us or any current or former director, officer or other employee or any
of our stockholder arising under the DGCL, the New Charter or the New Bylaws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action or proceeding asserting a claim against us or any current or former director, officer or other employee or any
of our stockholders that is governed by the internal affairs doctrine.

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These exclusive forum provisions may limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers, or other employees, which may discourage lawsuits against us and our directors, officers, and other employees. If a court were to find either exclusive-forum provision in our amended and restated certificate of incorporation to be inapplicable or unenforceable in an action, we may incur further significant additional costs associated with resolving the dispute in other jurisdictions.

***Our New Charter that will go into effect upon the completion of this offering includes a provision renouncing any interest on our part in certain corporate opportunities offered to any of our non-employee directors, which may prevent us from receiving the benefit of certain corporate opportunities.***

A general principle of corporate law commonly referred to as the "corporate opportunity" doctrine provides that corporate fiduciaries, as part of their duty of loyalty to a corporation and its stockholders, may not take for themselves an opportunity that in fairness should belong to the corporation. However, Section 122(17) of the DGCL expressly permits a Delaware corporation to renounce in its certificate of incorporation any interest or expectancy of the corporation in, or in being offered an opportunity to participate in, specified business opportunities or specified classes or categories of business opportunities that are presented to the corporation or its officers, directors or stockholders. Our New Charter that will go into effect upon the completion of this offering will include a provision renouncing any interest on our part in any corporate opportunity offered to any of our directors or Global Corp. unless such opportunity is expressly offered to such person solely in his or her capacity as our director. It is possible that this provision could prevent us from being able to participate in future transactions which might have been beneficial to us and our stockholders, which could, in turn, have an adverse effect on our business, financial condition, results of operations and prospects.

***We are a holding company, and we are accordingly dependent upon distributions from our subsidiaries to pay dividends, if any, taxes and other expenses.***

We are a holding company and our principal asset is our ownership of our subsidiaries. We have no independent means of generating revenue and our ability to pay taxes and operating expenses or declare and pay dividends in the future, if any, will be dependent upon the results of operations and cash flows of our subsidiaries. Deterioration in the financial conditions, earnings or cash flow of our subsidiaries for any reason could limit or impair their ability to pay distributions to us. Additionally, to the extent that we need funds and our subsidiaries are restricted from making such distributions to us under applicable law or regulation, as a result of covenants in their debt agreements or otherwise, we may not be able to obtain such funds on terms acceptable to us, or at all, which could have an adverse effect on our liquidity and financial condition, including on our ability to pay dividends, if any, taxes and other expenses.

***We do not intend to pay dividends on our common stock for the foreseeable future.***

We expect that for the foreseeable future we will retain any earnings to finance the operation and expansion of our business, and while holders of our Series A preferred stock are entitled to quarterly dividends, we do not expect to declare or pay any dividends on our common stock. Any future determination to pay dividends will be at the discretion of our Board of Directors. Even if our Board of Directors declares a dividend on our common stock in the future, our New Charter, which will be in effect immediately prior to the completion of this offering, will provide that holders of our Series A preferred stock will be entitled to receive quarterly dividends payable in preference and priority to any payment of any dividend on common stock and that no dividend may be paid on our Class A common stock or Class B common stock unless all accrued and unpaid dividends as of such date have been declared and paid or declared and a sum sufficient for the payment thereof has been reserved.

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Moreover, the terms of any credit facilities entered into by us or any of our subsidiaries may restrict our ability to pay dividends. As a result, holders of shares of our Class A common stock will need to rely on sales of their shares after any price appreciation as the only way to realize any future gains on their investment.

***The dual class structure of our common stock will have the effect of concentrating voting power with Global Corp., and we cannot predict the impact our dual class structure may have on the market price of our Class A common stock.***

Each share of our Class B common stock is entitled to ten votes per share, while each share of our Class A common stock, which is the equity being offered by means of this prospectus, entitles its holder to one vote per share. Upon the completion of this offering, Global Corp. will hold all of our issued and outstanding Class B common stock. Accordingly, upon completion of this offering, Global Corp. will beneficially own approximately % of the voting power of our outstanding capital stock, which voting power may increase over time. Future transfers of Class B common stock will generally result in such shares automatically converting into shares of Class A common stock, except for certain permitted transfers described in our New Charter. All outstanding shares of Class B common stock will convert automatically into shares of our Class A common stock upon the Final Conversion Date. See also "—*We will be a "controlled company*" *under Nasdaq listing rules and, as a result, our stockholders may not have certain corporate governance protections that are available to stockholders of companies that are not controlled companies."*

As a result, Global Corp. will be able to significantly influence all matters submitted to our stockholders for approval, as well as our management and affairs, and it may have interests that differ from yours and may vote in a way with which you disagree and which may be adverse to your interests. This concentration of ownership control may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delay or prevent a change in control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• entrench our management and our Board of Directors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impede a merger, consolidation, takeover, or other business combination involving us that other stockholders may desire.

Any such actions could deprive our stockholders of an opportunity to receive a premium for their shares of Class A common stock as part of a sale of our company and might ultimately affect the market price of our Class A common stock. In addition, certain regulatory authorities provide that acquisition by any party of more than 9.99% of our outstanding shares of capital stock or voting power requires a license by such regulatory authorities or such ownership is otherwise approved. See also "—*We are subject to various change-in-control or similar regimes, which may require investors or us to obtain certain regulatory approvals prior to completing changes in our shareholdings, control or corporate structure."* Our New Charter and New Bylaws include provisions designed to help implement these requirements, which may impact shareholders' ability to vote or receive distributions with respect to any shares in excess of the foregoing limitation. For additional information about our dual class structure, including the regulatory limitations on ownership, see the section titled "Description of Capital Stock."

Further, we cannot predict whether our dual class structure will result in a lower or more volatile market price of our Class A common stock, adverse publicity or other adverse consequences. Certain index providers have announced restrictions on including companies with multiple class share structures in certain of their indices. For example, several stockholder advisory firms have announced their opposition to the use of multiple class structures and our multiple class structure may cause stockholders advisory firms to publish negative commentary about our corporate governance, in which case the market price and liquidity of our Class A common stock could be adversely affected. As a result, the market price of our Class A common stock could be adversely affected.

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**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS** 

This prospectus contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this prospectus are forward-looking statements. Forward-looking statements give our current expectations, estimates and projections relating to our industry, financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "will," "should," "can have," "likely" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. For example, all statements we make relating to our estimated and projected costs, expenditures, cash flows, growth rates and financial results, our plans and objectives for future operations, growth or initiatives, strategies or the expected outcome or impact of pending or threatened litigation are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to sustain profitability and manage our growth effectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to manage risk, including liquidity and credit risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory inquiries and investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to attract and retain key personnel and highly qualified personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to sustain the proper functioning of our platform;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to continue to innovate in a competitive space;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to comply with a complex and evolving regulatory landscape;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of negative publicity on our brand and reputation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to attract new clients and drive engagement with our platform;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• system failures, cyber security threats and other disruptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to AI, including dependence on third-party models, uncertainty in the regulatory landscape, potential harm
from inaccurate or biased outputs, and reputational or liability risks arising from misuse;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with the development of new services and applications and the introduction of new asset classes and
financial instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully enter new geographic markets, including expansion into international markets, and comply with
any applicable laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in general economic or political conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of accounting standards issued but not yet adopted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the increased expenses associated with being a public company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our intended use of proceeds from this offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other factors disclosed in the section entitled "Risk Factors" and elsewhere in the prospectus.

This list of factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this prospectus. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking

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statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur, and actual results could differ materially from those projected in the forward-looking statements. Moreover, we operate in a very competitive and evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we make.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements speak only as of the date of this prospectus and are based on information available to us as of the date of this prospectus. While we believe such information provides a reasonable basis for these statements, such information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.

The forward-looking statements made in this prospectus relate only to events as of the date on which the statements are made. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. You should read this prospectus and the documents that we have filed as exhibits to the registration statement, of which this prospectus forms a part, completely and with the understanding that our actual future results may be materially different from what we expect.

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**USE OF PROCEEDS** 

We estimate that the net proceeds of this offering will be approximately $ million, or approximately $ million if the underwriters' option to purchase additional shares of Class A common stock is exercised in full, assuming an initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, after deducting certain of the underwriting discounts and commissions and estimated offering expenses payable by us. We will receive all proceeds from sales of shares in this offering made to the public through CS LLC. See "Underwriting (Conflicts of Interest)."

The principal purpose of this offering is to increase our capitalization and financial flexibility. We intend to use the net proceeds of this offering for working capital, capital expenditures and general corporate purposes. We may also use a portion of our net proceeds to acquire or invest in complementary businesses, products, services or technologies. As of the date of this prospectus we do not have agreements or commitments for any acquisitions or investments. In addition, we do not currently have any intention to use the proceeds from this offering to redeem the outstanding Series A preferred stock, though we may in the future choose to do so.

Our expected use of the net proceeds of this offering represents our intentions based upon our existing plans and the current status of our business. We cannot predict with certainty all of the particular uses for the proceeds of this offering or the amounts that we will actually spend on the uses summarized above. Accordingly, our management will have broad discretion in the application of the net proceeds of this offering, and investors will be relying on the judgment of our management regarding our use of the net proceeds. While we expect to use the net proceeds for the purposes described above, the timing and amount of our actual expenditures will be based on many factors, including cash flows from operations, the anticipated growth of our business, any strategic acquisitions we may pursue, and the availability and terms of alternative financing sources to fund our growth.

Each $1.00 increase or decrease in the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, would increase or decrease the net proceeds to us from this offering by approximately $ million, assuming the number of shares offered, as set forth on the cover page of this prospectus, remains the same, and after deducting certain of the underwriting discounts and commissions and estimated offering expenses payable by us.

Each 1,000,000 increase or decrease in the number of shares offered would increase or decrease the net proceeds to us from this offering by approximately $ million, assuming that the initial public offering price per share for this offering remains at $, which is the midpoint of the price range set forth on the cover page of this prospectus, and after deducting certain of the underwriting discounts and commissions and estimated offering expenses payable by us.

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**DIVIDEND POLICY** 

We currently expect to retain all available funds and any future earnings to fund the development, operation and growth of our business and to potentially repay any indebtedness and, therefore, we do not anticipate paying any cash dividends in the foreseeable future on our common stock. Holders of the Series A preferred stock are entitled to receive quarterly dividends at a cumulative rate of 7.0% per annum up to, but excluding, the First Reset Date. From and after the First Reset Date, the holders of the Series A preferred stock are entitled to quarterly dividends at a cumulative rate equal to the sum of the five-year treasury date on the applicable Reset Date and 6.0%. The dividend rate on the Series A preferred stock resets on every Reset Date. 

Additionally, because we are a holding company, our ability to pay dividends on our common stock may be limited by restrictions on the ability of our subsidiaries to pay dividends or make distributions to us. Any future determination to pay dividends on our common stock will be at the discretion of our Board of Directors, subject to compliance with regulatory capital requirements at certain of our subsidiaries, as well as covenants in current and future agreements governing our and our subsidiaries' indebtedness, and will depend on our results of operations, financial condition, capital requirements and other factors that our Board of Directors may deem relevant. 

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**CAPITALIZATION** 

The following table sets forth our cash and cash equivalents, and capitalization as of September 30, 2025 on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an actual basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a pro forma basis giving effect to (i) the Pre-IPO Transactions, (ii) the issuance and sale of $78.5 million of 2030
Notes in January 2026, and (iii) the filing and effectiveness of our New Charter and the adoption and effectiveness of our New Bylaws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma as adjusted basis to give further effect to our issuance and sale of shares of our Class A common stock
in this offering at an assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, after deducting certain of the underwriting discounts and
commissions and estimated offering expenses payable by us, expenses related to the accelerated vesting of certain RSUs and stock options for which the time-based service condition has been met and for which the liquidity condition will be satisfied
upon the completion of this offering and the application of the net proceeds of this offering as set forth under "Use of Proceeds."

Our capitalization following the completion of this offering will be adjusted based on the actual public offering price and other terms of this offering determined at pricing. You should read this table together with our consolidated financial statements and the related notes appearing at the end of this prospectus and the sections of this prospectus titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Description of Capital Stock."

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| | | |
|:---|:---|:---|
|  | **As of September 30, 2025** | **As of September 30, 2025** |
| **(in thousands, except share and per share amounts)** | **Actual<sup>(1)</sup>** | **Pro Forma As**<br>**Adjusted<sup>(8)(9)</sup>** |
|  Cash and cash equivalents | $327392 | $— |
|  Indebtedness: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revolving Credit Agreement<sup>(2)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Uncommitted Credit Agreement<sup>(3)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revolving Credit Agreement—UK<sup>(4)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2025 Senior Unsecured Notes | 45000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 Senior Unsecured Notes<sup>(5)</sup> | 46500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2029 Senior Unsecured Notes<sup>(6)</sup> | 80000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2030 Senior Unsecured Notes<sup>(7)</sup> | 221500 |  |
|  Total indebtedness | 393000 |  |
|  Temporary equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series A preferred stock, $0.00001 par value; 1,400,000 shares authorized, 960,000 issued and outstanding, actual; shares authorized, shares issued and outstanding, pro forma; shares authorized, shares issued and outstanding, pro forma as adjusted | 23808 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series B preferred stock, $0.00001 par value; 97,873,350 shares authorized, 87,693,709 issued and outstanding, actual; no shares authorized, no shares issued and outstanding, pro forma; no shares authorized, no shares issued and outstanding, pro forma as adjusted | 732129 |  |
|  Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common stock, $0.00001 par value; 294,864,597 shares authorized, 30,339,673 issued and outstanding, |  |  |

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| | | | |
|:---|:---|:---|:---|
|  | **As of September 30, 2025** | **As of September 30, 2025** | **As of September 30, 2025** |
| **(in thousands, except share and per share amounts)** | **Actual<sup>(1)</sup>** | **Pro Forma** | **Pro Forma As**<br>**Adjusted<sup>(8)(9)</sup>** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; actual; shares authorized, shares issued and outstanding, pro forma; shares authorized, shares issued and outstanding, pro forma as adjusted |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class X common stock, no par value; 130,373,000 shares authorized, no shares issued and outstanding, actual; no shares authorized, issued and outstanding, pro forma and pro forma as adjusted |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class Z common stock, $0.00001 par value; 130,373,000 shares authorized, 112,605,223 issued and outstanding, actual; no shares authorized, issued and outstanding, pro forma and pro forma as adjusted | 1 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B common stock, $0.00001 par value; no shares authorized, issued and outstanding, actual; shares authorized, shares issued and outstanding, pro forma; shares authorized, shares issued and outstanding, pro forma and pro forma as adjusted |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock, $0.00001 par value; no shares authorized, issued and outstanding, actual; shares authorized, no shares issued and outstanding, pro forma; shares authorized, no shares issued and outstanding, pro forma as adjusted |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 31871 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings  | 151860 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustments | (481) |  |  |
|  Total stockholder's equity | 183251 |  |  |
|  Total capitalization | $1332188 | $| $|

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(1) The actual number of shares of Series A Preferred Stock, Series B Preferred Stock, Class A common Stock and
Class Z common stock do not give effect to the Stock Split to be effectuated after the effectiveness of the registration statement of which this prospectus forms a part and before the completion of this offering.

(2) Total available borrowings under the Revolving Credit Agreement are $515.0 million.

(3) Total available borrowings under the Uncommitted Credit Agreement are $200.0 million.

(4) Total available borrowings under the Revolving Credit Agreement—UK are $55.0 million.

(5) Excludes $1.4 million of deferred debt issuance costs.

(6) Excludes $1.3 million of deferred debt issuance costs.

(7) Excludes $4.7 million of deferred debt issuance costs. On January 13, 2026, CSH LLC completed an add-on issuance of
$78.5 million of its 2030 Notes, increasing the outstanding principal amount to $300.0 million. See Note 9 "Borrowings" in the notes to our unaudited condensed consolidated financial statements included elsewhere in this prospectus.

(8) Each $1.00 increase or decrease in the assumed initial public offering price of $ per share, which
is the midpoint of the price range set forth on the cover page of this prospectus, would increase or decrease the net proceeds to us from this offering by approximately $ million, assuming the number of shares offered, as
set forth on the cover page of this prospectus, remains the same, and after deducting certain of the underwriting discounts and commissions and estimated offering expenses payable by us. Each 1,000,000 share increase or decrease in the number of
shares of Class A common stock offered by us in this offering would increase or decrease each of cash and cash equivalents, additional paid-in capital, total stockholders' equity (deficit), and
total capitalization on a pro forma as adjusted basis by approximately $ million, assuming that the

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assumed initial public offering price remains the same, and after deducting certain of the underwriting discounts and commissions and estimated offering expenses payable by us.

(9) The pro forma as adjusted cash and cash equivalents includes all proceeds to us from sales of shares of our Class A
common stock in this offering made to the public through CS LLC.

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**DILUTION** 

If you invest in our Class A common stock in this offering, your interest will be diluted to the extent of the difference between the public offering price per share of our Class A common stock in this offering and the pro forma as adjusted net tangible book value per share of our Class A common stock immediately after the completion of this offering.

Net tangible book value represents the amount of our total consolidated tangible assets, minus the amount of our total consolidated liabilities. When we offer our Class A common stock at a price higher than our pro forma net tangible book value per share of our common stock, the amount of resulting dilution is determined by subtracting pro forma as adjusted net tangible book value per share of our common stock from the public offering price per share of our Class A common stock. Our net tangible book value as of September 30, 2025 was approximately $ million, or $ per share of our common stock.

Our pro forma net tangible book value as of September 30, 2025 was $ million, or $ per share of our common stock. Pro forma net tangible book value per share represents the amount of our total consolidated tangible assets less our total consolidated liabilities, divided by the number of shares of our common stock outstanding as of September 30, 2025, after giving effect to the Pre-IPO Transactions.

After giving effect to the issuance and sale of shares of our Class A common stock in this offering, at an assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, after deducting certain of the underwriting discounts and estimated offering expenses payable by us and the application of the net proceeds of this offering as set forth under "Use of Proceeds" at an assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover of this prospectus, our pro forma as adjusted net tangible book value as of September 30, 2025 would have been approximately $ million, or approximately $ per share of our common stock. This represents an immediate increase in pro forma as adjusted net tangible book value of $ per share to our existing stockholders and an immediate dilution in pro forma as adjusted net tangible book value of $ per share to investors participating in this offering at the assumed initial public offering price.

The following table illustrates this per share dilution:

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| | |
|:---|:---|
|  Assumed initial public offering price per share | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Historical net tangible book value per share as of September 30, 2025 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma increase in net tangible book value per share as of September 30, 2025 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma net tangible book value per share as of September 30, 2025 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in pro forma net tangible book value per share attributable to the investors in this offering |  |
|  Pro forma as adjusted net tangible book value per share after giving effect to this offering |  |
|  Dilution in pro forma as adjusted net tangible book value per share to the investors in this offering | $|

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The dilution information discussed above is illustrative only and will change based on the actual public offering price and other terms of this offering determined at pricing. Each $1.00 increase or decrease in the assumed initial public offering price of $ per share, which is the midpoint of the

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price range set forth on the cover page of this prospectus, would increase or decrease our pro forma as adjusted net tangible book value per share after the completion of this offering by $, and would increase or decrease the dilution per share to the investors in this offering by , assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting certain of the underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, each 1,000,000 increase or decrease in the number of shares of our Class A common stock offered by us in this offering would increase or decrease our pro forma as adjusted net tangible book value per share after the completion of this offering by $ and would increase or decrease dilution per share to investors in this offering by $, assuming the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, remains the same and after deducting certain of the underwriting discounts and commissions and estimated offering expenses payable by us.

If the underwriters exercise their option to purchase additional shares in full, the pro forma as adjusted net tangible book value per share upon the completion of this offering would be $, and the dilution in pro forma as adjusted net tangible book value per share to new investors in this offering would be $.

The following table presents, on a pro forma as adjusted basis as of September 30, 2025 giving effect to (i) the Pre-IPO Transactions, (ii) the filing and effectiveness of our New Charter and the adoption and effectiveness of our New Bylaws, and (iii) the issuance of shares of our Class A common stock in this offering, the differences between our existing stockholders and the investors purchasing shares of our Class A common stock in this offering, with respect to the number of shares purchased, the total consideration paid to us, and the average price per share paid by our existing stockholders or to be paid to us by investors purchasing shares in this offering at an assumed offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, before deducting certain of the underwriting discounts and estimated offering expenses payable by us and assuming no exercise of the underwriters' option to purchase additional shares.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | **Price per Share** |
|  | **Number** | **Percentage** | **Percentage** | **Percentage** | **Price per Share** |
|  Existing stockholders% |  |  | $— |  | $|
|  New investors |  |  |  |  |  |
|  Total |  | 100% | $— | 100% | $|

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A $1.00 increase or decrease in the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, would increase or decrease the total consideration paid by new investors by approximately $ million, or the percent of total consideration paid by new investors by approximately %, assuming that the number of shares offered by us as set forth on the cover page of this prospectus remains the same, before deducting certain of the underwriting discounts and commissions and estimated offering expenses payable by us. Each 1,000,000 increase or decrease in the number of shares of our Class A common stock offered by us in this offering would increase or decrease the total consideration paid by new investors by approximately $ million, or the percent of total consideration by new investors by approximately %, assuming the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, remains the same and after deducting certain of the underwriting discounts and commissions and estimated offering expenses payable by us.

Except as otherwise indicated, the above discussion and tables assume no exercise of the underwriters' option to purchase additional shares. After giving effect to sales of shares in this offering,

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assuming the underwriters' option to purchase additional shares is exercised in full, our existing stockholders would own % and our new investors would own % of the total number of shares of our Class A common stock outstanding after the completion of this offering.

To the extent that we issue additional shares of Class A common stock or Class B common stock in the future, including if RSUs are settled, options are exercised or new awards are issued under the 2026 Plan (in each case with an exercise or purchase price that is less than the price per share paid by new investors in this offering), new investors in this offering will experience further dilution.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated interim financial statements and notes thereto for the nine months ended September 30, 2025 and 2024 and our consolidated financial statements for the years ended December 31, 2024 and 2023 and related notes that appear elsewhere in this prospectus. In addition to historical consolidated financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described under "Risk Factors" and elsewhere in this prospectus. Our actual results may differ materially from those contained in or implied by any forward-looking statements. See "Special Note Regarding Forward-Looking Statements" included elsewhere in this prospectus. We assume no obligation to update any of these forward-looking statements. The information in this section does not give effect to the Stock Split.* 

**Overview** 

Clear Street's mission is to give every sophisticated investor access to every asset, in every market, through a unified platform built for speed, transparency and scale. We give our clients the technology, tools, and service once reserved for the largest institutions, rebuilt with modern infrastructure. Our single, cloud-native, end-to-end capital markets platform powers investor growth today and is transforming how they can interact with markets tomorrow.

We began by launching applications for transactions and financing, the two most fundamental functions of capital markets, and then adding supporting applications around these capabilities. Clients can trade by utilizing our EMS application and can clear and custody assets through our Clearing and Custody applications. They can manage their capital requirements on our Risk and Margin applications and automate post-trade events such as option exercises on our Lifecycle Management application. They can then finance positions, optimize collateral, facilitate shorts and generate yield on our Financing and Stock Loan applications. Studio, the client interface of our platform, unifies access to these applications—providing a single environment through which clients interact with our infrastructure via a Clear Street web interface or through Clear Street APIs. Applications form the functional layers of our platform by transforming client activity into value, and clients have the optionality of utilizing the entire suite of applications, or selecting specific ones based on their needs. All applications draw from the same real-time dataset and connect directly to counterparties, exchanges, and clearing houses globally turning trading, risk, and financing into one unified platform.

Catalysts are value-added services that accelerate growth on the platform. Some, such as investment banking and equity research, generate direct revenue. Others, such as corporate access and capital introduction, create value for clients by connecting them to opportunities and counterparties rather than generating revenue directly. In both cases, they bring increased financing and transaction flows into the platform. Most of our activities are on an agency basis, and we do not have material credit or market risk.

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We generate revenue primarily across two categories: net financing and transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net financing revenues include (i) net financing generated from customer margin debit, credit and short balances
associated with equities, options, futures, and fixed income positions, as well as net financing generated from security-based swaps in equities (together, "customer margin financing") and (ii) a combination of collateralized
financing, financing trades, and other financing, each as defined under "— Components of Results of Operations-Revenue" and in Note 2 "Significant Accounting Policies" in the notes to our consolidated
financial statements included elsewhere in this prospectus, which we use to fund the customer margin financing business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transaction revenues include (i) commissions, clearing fees, and locate service fees (together, "transactional
fees"), (ii) investment banking income, and (iii) client-pass-through fees. Commission and clearing income represent fees earned, on a per share or per contract basis, for providing trading and clearing services to clients. Locate service
fees represent fees earned for providing clients with access to securities available to borrow, typically in connection with short sale activity. Investment banking income includes underwriting revenues from capital-raising activities as well as
advisory fees earned in connection with merger and acquisition transactions. Client pass-through fees represent reimbursable expenses primarily related to transaction and market access costs, net, that we charge to our clients.

Please see "—Key Performance Metrics," "— Components of Results of Operations" and "— Results of Operations" below for additional quantitative and qualitative information.

For the month of September 2025, our platform supported more than $31.3 billion in daily trading activity. As of September 30, 2025, our platform supported more than $17.2 billion in interest-bearing client balances across equities, options, futures, security-based swaps, foreign exchange, and fixed income. Within U.S. equities, as of September 30, 2025 activity on our platform represented approximately 3.8% of total clearing market volume based on quantity traded for the current fiscal year. Our clients are domiciled in over 66 countries as of September 30, 2025 and we primarily provide them with access to the capital markets in the United States. Our infrastructure is live in the United States, Canada, and the United Kingdom, while our licensing efforts in the European Union and Asia are ongoing. We believe this foundation positions us well to develop new applications, add new clients, increase client engagement with our platform and expand across asset classes and financial instruments and geographies, all while maintaining attractive profitability.

We operate as a single operating segment and single reportable segment, which reflects the manner in which our chief operating decision maker reviews and assesses the performance of the business. The significant segment expenses are consistent with the expenses presented on our consolidated statement of comprehensive income (loss). Our accounting policies are described in Note 2 "Significant Accounting Policies" in the notes to our audited consolidated financial statements and Note 2 "Significant Accounting Policies" in the notes to our unaudited condensed consolidated financial statements included elsewhere in this prospectus. The period-to-period comparisons below of financial results are not necessarily indicative of future results.

**Key Factors Driving Our Performance** 

The following factors, among others described herein, have been important to our business, and we believe they will impact our results of operations and financial condition in future periods:

***Further expand footprint within current client personas and reach other market participants:*** Our infrastructure supports a broad spectrum of client personas — Individuals,

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Institutions, Intermediaries, and Corporates — yet penetration within these client personas remains low relative to the overall opportunity. In addition, other market participants, such as wealth managers and corporate treasuries, represent attractive new opportunities to expand our reach. Most market participants, including the current makeup of our client base, continue to rely on legacy providers that maintain systems fragmented by asset class, financial instrument or geography. We believe further adoption by these market participants, as well as potential adjacent categories, represents a meaningful opportunity to grow our revenue. Because these potential clients require the same underlying workflows — transactions, financing, and risk management — we believe we can serve them on the same infrastructure without duplicating systems, reinforcing the adoption cycle and expanding our addressable market.

***Deepen utilization by existing clients:*** There is significant opportunity to grow existing clients as they deepen activity on our platform. Many begin with a single workflow (e.g., clearing or financing) and then expand systematically into financing, risk management, or other applications over time without duplicating systems. As clients grow within our platform, they are able to consolidate transactions, balances, and collateral onto a unified infrastructure anchored by a single ledger. This consolidation expands the dataset, deepens reliance on our platform, and creates durable revenue streams. For example, our dataset has expanded more than sixty-fold since the start of 2023, growing from approximately 3 terabytes to over 275 terabytes by September 30, 2025. This growth reflects both new client adoption and the continued consolidation of flows from existing clients onto our infrastructure. In addition, we continue to invest in new applications that can be launched directly on our unified dataset at low incremental cost. Studio, our client-facing user interface, embeds these applications directly into daily client workflows, further reinforcing adoption of our platform. While these initiatives may increase our professional fees and technology-related expenses in the near term, we expect these costs to be outweighed by revenue growth as adoption deepens and application use compounds.

***Applications as growth drivers:*** Our infrastructure is designed to support new applications that launch directly on our unified ledger. Each application monetizes flows at low incremental cost, strengthens the dataset, and demonstrates our platform's extensibility across asset classes, financial instruments and geographies. Because applications are launched natively on the ledger, the opportunity is not static. The same architecture that supports trading and financing also enables new use cases to be added over time, some already visible today, such as managed stock loans, a type of fully paid lending, and others that can emerge as client needs evolve. The pace of application adoption will continue to affect our business, revenues, operating expenses, and margins.

***Operating leverage from unified infrastructure:*** Our unified infrastructure scales revenues with client activity while reducing marginal costs as adoption grows. Because transactions, balances, and collateral all run on the same infrastructure, more client activities can be conducted across our unified platform, improving yield and capital efficiency. This structure creates operating leverage that expands margins without proportional increases in expenses. For example, during market volatility in April 2025, client volumes doubled from one day to the next, and our infrastructure elastically scaled to handle the load efficiently and without an incremental build. As adoption deepens and clients consolidate additional workflows onto our platform, we expect incremental revenues to continue outpacing incremental costs. The degree to which clients consolidate balances and activity on our platform will therefore remain an important factor in our continued profitability and results of operations.

***Acquisitions accelerate expansion:*** We pursue acquisitions selectively to accelerate adoption of our unified infrastructure and expand the dataset that powers our platform and client workflows. Each acquisition is evaluated for its ability to embed new workflows, meet regulatory requirements, and expand client transactions or financing. For example, in 2023, we purchased BASIS, a proprietary cloud-native futures clearing platform ("BASIS"), and integrated it into our infrastructure in months rather than the years that legacy providers typically require. This demonstrates that our architecture

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can absorb complex, capital-intensive workflows rapidly and at scale. Further, in 2024, we acquired Fox River's technology, which brought additional electronic order flow and market data directly onto our platform. In November 2025, we acquired Pulse Prime Technologies Inc. ("Pulse"), an execution management system providing exchange connectivity and algorithms for trading in digital assets. By embedding these acquired capabilities into our ledger, we expanded the dataset available for financing and risk models and accelerated client adoption across the United States and Canada. Similarly, we anticipate that each new future acquisition will be integrated directly, strengthen our infrastructure, compounds the dataset, and prove that new applications can be launched faster and more efficiently. The degree to which we can continue to integrate such acquisitions efficiently in a way that improves our platform will affect our business, revenues, operating expenses and margins.

***Evolving regulatory environment:*** Our business operates in highly regulated markets, and changes to settlement cycles, capital requirements, and transparency standards directly affect demand for modern infrastructure. Legacy providers often require multi-year projects and manual workarounds to adapt, while our unified infrastructure is designed to absorb changes efficiently. For example, when U.S. equity markets transitioned from T+2 to T+1 settlement in May 2024, our infrastructure handled the shift effectively, while we believe many incumbents required extended projects and manual processes. Our ability to adapt quickly to regulatory changes reduces operational risk for clients and reinforces the advantages of a single, cloud-native ledger. Looking ahead, regulatory developments — including potential further reductions in settlement cycles, increased capital requirements, extended trading hours, and global transparency rules — will continue to influence adoption, expenses, and our overall results of operations.

***Market activity and volatility:*** Our revenues are activity-based and scale with client activity. Financing balances and collateral movements, in particular, provide durable revenues that persist across market cycles and are structurally more durable than transaction volumes alone. Periods of heightened volatility may increase trading volumes and collateral movements, while periods of lower volatility may reduce them. These fluctuations are expected, but the durability of financing flows and our expanding dataset provide resilience across cycles. Along with our ability to efficiently launch new applications, expand across asset classes and financial instruments and expand into new geographies, the adoption of our unified infrastructure therefore creates a foundation for more predictable and compounding revenues over time.

**Key Performance Metrics** 

We monitor the following key performance and financial metrics to help us evaluate our business, measure our performance, identify trends affecting our business, and make strategic decisions.

***Interest-Bearing Client Balances***

We measure the total interest-bearing client balances as the average daily balances held in client accounts that generate net financing revenues, including margin, cash and securities balances, during the period. We believe average daily interest-bearing client balances provide a critical indicator of platform engagement and our ability to generate net financing revenues.

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|:---|:---|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **(in thousands)** | **2025** | **2024** | **2024** | **2023** |
|  Interest-bearing client balances | $12997529 | $7013391 | $7814722 | $2577375 |

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Our interest-bearing client balances increased by $6.0 billion, or 85%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Our interest-bearing

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client balances increased by $5.2 billion, or 203%, for 2024 compared to 2023. The increase in interest-bearing client balances was driven by (i) client growth and extension of our applications to new asset classes and financial instruments, which led to an increase in client margin financing activity in security-based swaps, which was launched in March 2023, from $4.0 billion for the nine months ended September 30, 2024 to $7.4 billion for the nine months ended September 30, 2025, and futures, which was launched in May 2024, from $0.1 billion for the nine months ended September 30, 2024 to $1.2 billion for the nine months ended September 30, 2025, as well as (ii) deeper penetration of existing applications, such as equities which increased from $2.8 billion for the nine months ended September 30, 2024 to $4.5 billion for the nine months ended September 30, 2025. From 2023 to 2024, interest-bearing client balances in security-based swaps, futures, and equities, increased from $0.2 billion to $4.5 billion, from nil to $0.3 billion, and from $2.4 billion to $3.0 billion, respectively. We believe this increase highlights the scalability of our business model and the diversification of revenue sources beyond transaction revenues.

***Transaction Volume***

We measure transaction volume using two related indicators: (i) ADT, which represents the average number of trades cleared and/or executed by us per day during the period, and (ii) ADV, which represents the average number of shares or contracts cleared and/or executed by us per day during the period. We generally earn transaction revenues on a per-share or per-contract basis, making ADV a more direct indicator of revenue generation than ADT. However, together, these metrics highlight both the operational capacity of our platform and the revenue opportunity from increased client trading activity, and we believe these metrics provide insight into platform activity and our ability to generate transaction revenues.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2024** | **2023** |
|  Average daily trades | 4018448 | 2110283 | 2392812 | 1825763 |
|  Average daily volume | 588635994 | 313846794 | 347253091 | 252510644 |

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ADT increased by 1.9 million, or 90%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. ADT increased by 0.6 million, or 31%, for 2024 compared to 2023. The increases in ADT for the nine months ended September 30, 2025 and December 31, 2024 demonstrate the scalability of our cloud-native architecture and our ability to process a growing number of transactions across asset classes and financial instruments. In addition, ADV increased by 274.8 million, or 88%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. ADV increased by 94.7 million, or 38%, for 2024 compared to 2023. While ADV was relatively flat throughout 2023, ADV started picking up significantly in 2024 when it rose from 328.1 million in January 2024 to 539.4 million in December 2024, driven by client growth and an uptick in activity by existing clients, along with our acquisition of the Fox River technology, which brought additional electronic order flow to our platform. In April 2025, when volatility spiked in the capital markets, ADV experienced a 21% increase as compared to the prior month, allowing us to capture additional market share which was sustained when volatility normalized. This, along with the launch of clearing for market makers in 2025, continued client growth and more activity by existing clients contributed to the increase in ADV for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. While ADV continues to be primarily driven by equities, which have been responsible for approximately 85% of total ADV during the periods presented, other asset classes and financial instruments have expanded at the same pace, such as ADV in options, which has increased by 294% from January 2023 to September 2025.

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**Components of Results of Operations** 

***Revenues***

We generate revenues through net financing revenues, transaction revenues, and other revenues from client activity on our platform.

***Net financing revenues*** include (i) net financing generated from client margin debit, credit and short balances, associated with security-based swaps in equities, options, futures, and fixed income positions, and realized and unrealized gains or losses on security-based swaps in equities along with the realized and unrealized gains or losses generated from equities that hedge these security-based swaps (together, "client margin financing"), (ii) net interest earned from cash deposits held at clearing organizations, brokers and banks, net of interest paid on operational lines of credit (together "other financing"), and (iii) net interest earned from collateralized financing transactions, including securities resale and repurchase agreements and stock borrow and loan agreements (together "collateralized financing"). In direct support of our financing business, we may buy or sell financial instruments which are measured at fair value (together, "financing trades").

***Transaction revenues*** consist primarily of (i) commission and clearing income, (ii) investment banking income, and (iii) Commission and clearing income represent fees earned, on a per share or per contract basis, for providing trading and clearing services to clients. Investment banking fees include underwriting revenues from capital-raising activities as well as advisory fees earned in connection with merger and acquisition transactions. Other fee income is derived primarily from fees earned for providing clients with access to securities available to borrow, typically in connection with short sale activity ("securities locate services"), and reimbursable expenses primarily related to transaction and market access costs, net, that we charge to our clients ("client pass-through fees").

***Other revenues*** consist primarily of subscription fees earned from clients for access to our proprietary platform and related services.

***Expenses***

Our expenses are comprised of the following components:

***Compensation and benefits*** primarily include salaries, bonuses, payroll tax, severance and equity-based compensation expense. Reported compensation expense excludes compensation expense included in capitalized internal use software as we continue to invest into the development of our cloud-native architecture.

***Transaction and market access costs, net*** include fees paid to clearing houses, brokerages, exchanges and other trading venues in connection with the routing and settlement of trades, net of rebates. Rebates consist of volume discounts or payments we receive from these venues in connection with orders that add or remove liquidity.

***Technology and market data*** includes costs associated with building and maintaining our technology infrastructure and accessing market data. Technology-related costs primarily relate to our cloud infrastructure, software, and connectivity to trading venues. Market data expenses include costs related to market data and reference data feeds.

***Professional Fees, marketing, and other* **primarily includes costs associated with professional fees, marketing, occupancy, travel and related expenses. These are primarily discretionary and fluctuate with growth initiatives, such as regulatory support, platform expansion, and branding.

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***Amortization expense*** primarily relates to internally developed software and acquired intangibles, such as technology and client relationships.

***Depreciation expense*** primarily relates to equipment. These are non-cash charges reflecting past investments in building our platform.

***Interest expense on borrowings*** primarily includes costs associated with our outstanding Senior Unsecured Notes.

***Gain on termination of lease*** consists of a gain recognized in fiscal year 2023 from the termination of a lease. This item was non-recurring and unrelated to ongoing platform operations.

***Loss from change in fair value of warrant liability*** consists of the non-cash loss related to the change in fair value of a warrant granted to one of our stockholders to purchase 9.0 million additional shares of Series B-1 Preferred Stock at $8.35 per share (the "VC Right to Purchase"). During October 2025, the stockholder exercised the remainder of the VC Right to Purchase in full. See Note 5 "Fair Value Measurement," Note 10 "Temporary Equity, Shareholders' Equity and Earnings Per Share" and Note 19 "Subsequent Events" in the notes to our unaudited condensed consolidated financial statements included elsewhere in this prospectus for additional information.

***Income tax expense*** In the United States, we are subject to federal, state and local taxes on our taxable income, which includes of the taxable income from CSH LLC, which is treated as disregarded as separate from us for U.S. tax purposes. For the years ended December 31, 2024 and 2023, CSH LLC was treated as a partnership for U.S. tax purposes and, accordingly, the partnership's income or loss was passed through to, and included in the taxable income of, the members of CSH LLC, including us. Our subsidiaries outside of the United States are taxed in their local jurisdictions in which they operate. See Note 2 "Significant Accounting Policies" and Note 13 "Income Taxes" in the notes to our audited consolidated financial statements and Note 2 "Significant Accounting Policies" and Note 13 "Income Taxes" in the notes to our unaudited condensed consolidated financial statements included elsewhere in this prospectus for additional information.

***Net income from discontinued operations*** includes the results of our proprietary trading business, which we divested, along with related technology and equipment, effective March 31, 2024. See Note 18 "Discontinued Operations" in the notes to our audited consolidated financial statements and Note 17 "Discontinued Operations" in notes to our unaudited condensed consolidated financial statements included elsewhere in this prospectus for additional information.

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**Results of Operations** 

***Comparison of the Nine Months Ended September 30, 2025 and 2024***

For the nine months ended September 30, 2025 and 2024, our results of operations were as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Change**<br>**2025 vs. 2024** |
| *(****$ in thousands****)* | **2025** | **2024** | **%** |
|  **Revenues** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net financing revenues | $515711 | $210558 | 145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction revenues | 267130 | 90333 | 196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other revenues | 866 | 990 | (13) |
|  **Net revenues** | **783707** | **301881** | **160** |
|  **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensation and benefits | $239235 | $124768 | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction and market access costs, net | 82747 | 46853 | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and market data | 49726 | 28780 | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees, marketing and other | 50714 | 28427 | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization and depreciation | 25664 | 20404 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense on borrowings | 11043 | 6558 | 68 |
|  **Total operating expenses** | **459129** | **255790** | **79** |
|  **Operating income (loss)** | **324578** | **46091** | **604** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss from change in fair value of warrant liability | (87186) |  | n/m |
|  **Income (loss) from continuing operations before income tax expense** | **237392** | **46091** | **415** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | 80196 | 5386 | n/m |
|  **Income from continuing operations** | **157196** | **40705** | **286** |
|  **Discontinued operations:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income from discontinued operations |  | 8042 | (100) |
|  **Net income (loss)** | **157196** | **48747** | **222** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) attributable to noncontrolling interests |  | 24991 | (100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to redeemable noncontrolling interests |  | 3076 | (100) |
|  **Net income (loss) attributable to Clear Street Group Inc.** | $**157196** | $**20680** | **660** |

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*n/m is defined as "not meaningful."* 

**Revenues** 

Revenues increased $481.8 million, or 160%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Net financing revenues*** increased $305.2 million, or 145%, for the nine months ended September 30, 2025
compared to nine months ended September 30, 2024. Growth was primarily driven by the continued increase in interest-bearing client balances in equities and equity derivatives on the platform from new and existing clients, as well as the ramp up of
the futures business which we launched in 2024. The increase in equities and equity derivatives

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was primarily driven by security-based swaps, which along with futures, are applications that generate a higher return on our platform, leading to an increase in overall returns. See below for a breakdown of net financing revenues categorized by type of asset class and financial instrument:

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|:---|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Change** <br>**2025 vs. 2024** |
| ***($ in thousands)*** | **2025** | **2024** | **%** |
|  **Net Financing Revenues** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities and equity derivatives<sup>(1)</sup> | 483728 | 193450 | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed income | 13146 | 14326 | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures | 18782 | 2782 | 575 |
|  **Total Net Financing Revenues** | $**515656** | $**210558** | **145** |

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(1) Equity derivatives include security-based swaps and options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Transaction revenues*** increased $176.8 million, or 196%, for the nine months ended September 30, 2025
compared to nine months ended September 30, 2024. Approximately $73.4 million of the increase was attributable to higher transactional fees and client pass-through fees resulting from increased client activity
on our platform. The increase was driven by a $31.5 million increase in commissions, a $19.8 million increase in client pass-through fees and a $12.7 million increase in locate service fees. Commissions benefited from the successful integration of
the Fox River technology into our electronic trade execution offering which overall increased revenues by $20.9 million year-over-year. In addition, clearing income increased by $7.7 million, including $4.0 million in futures, a business we launched
in 2024, and $1.3 million from market makers, a business we launched in 2025. Locate service fees increased primarily due to elevated short interest by the Individuals client persona. The remaining $103.4 million was attributable to higher
investment banking revenues, primarily from an increase in equity capital markets transactions during the period. See below for a breakdown of transaction revenues by service:

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|:---|:---|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Change**<br>**2025 vs. 2024** | **Change**<br>**2025 vs. 2024** |
| ***($ in thousands)*** | **2025** | **2024** | $**%** | **%** |
|  **Transaction Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transactional fees | 98596 | 45028 |  | 119 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment banking | 116002 | 12546 |  | 825 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pass-through fees | 52564 | 32759 |  | 60 |
|  **Total Transaction Revenues** | $**267162** | $**90333** |  | **196** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Other revenues*** decreased by $0.1 million, or 13%, for the nine months ended September 30,
2025 compared to nine months ended September 30, 2024, however the absolute amount remained immaterial relative to total revenues.

**Expenses** 

Total operating expenses increased $203.3 million, or 79%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Compensation and benefits*** increased $114.5 million, or 92%, for the nine months ended September 30,
2025 compared to the nine months ended September 30, 2024, reflecting continued business growth and increased profitability. Personnel costs rose by $142.8 million due to an increase in headcount, primarily driven by our global expansion, our
continued

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investment in engineering resources to build capacity and functionality, and an increase in bonuses as a result of the business' year-to-date performance in 2025, partially offset by a $28.2 million increase in capitalized internal-use software, which reduced reported compensation expense. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Transaction and market access costs, net*** increased by $35.9 million, or 77%, for the nine months ended
September 30, 2025 compared to the nine months ended September 30, 2024, reflecting higher client activity and volumes. Notwithstanding this increase, transaction and market access costs increased at a slower rate than transaction revenues,
reflecting operating leverage from higher volumes and ongoing optimization of execution venues and more efficient routing, resulting in improved unit economics.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Technology and market data*** increased $20.9 million, or 73%, for the nine months ended September 30,
2025 compared to the nine months ended September 30, 2024, reflecting continued investments in our cloud-native architecture to support growth, product and geographical expansion, and scalability, as well as increased adoption of third-party systems
supporting corporate and operational functions. These investments enhance automation, reporting capabilities, and governance as the organization scales. The increase included $9.1 million in software and subscriptions, $5.6 million in cloud and
connectivity costs, and $5.1 million in market data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Professional fees, marketing and other*** increased $22.3 million, or 78%, for the nine months ended
September 30, 2025 compared to the nine months ended September 30, 2024. Professional fees increased by $7.5 million, reflecting continued investment in our growth and global expansion, including regulatory and licensing-related advisory services
for new registrations and client onboarding in multiple jurisdictions, as well as incremental audit and consulting support associated with IPO readiness. Occupancy costs increased by $3.9 million, regulatory fees rose by $2.9 million, and marketing
expenses increased by $1.4 million as we continued to scale our operations. Other expenses relate to insurance, bank service fees and non-income taxes which all increased as well.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Amortization and depreciation*** increased $5.3 million, or 26%, for the nine months ended September 30,
2025 compared to the nine months ended September 30, 2024. Of this, $3.5 million related to higher amortization of capitalized internal-use software reflecting ongoing platform development. The remainder was primarily attributable to
amortization of intangibles recognized in acquisitions and asset purchases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Interest expense on borrowings*** increased $4.5 million, or 68%, for the nine months ended September 30,
2025 compared to the nine months ended September 30, 2024, primarily due to additional interest paid on the 2029 Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Loss from change in fair value of warrant liability*** was $87.2 million for the nine months ended
September 30, 2025 compared to no corresponding loss in the nine months ended September 30, 2024. The warrant liability relates to one of our stockholders' right to purchase additional shares of Series B-1 Preferred Stock at $8.35 per share.
During October 2025, the stockholder exercised all of the warrants that had been unexercised at September 30, 2025. See Note 5 "Fair Value Measurement," Note 10 "Temporary Equity, Shareholders' Equity and Earnings Per
Share" and Note 19 "Subsequent Events" in the notes to our unaudited condensed consolidated financial statements included elsewhere in this prospectus for more information on the warrant liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Income tax expense*** increased $74.8 million for the nine months ended September 30, 2025 compared to
the nine months ended September 30, 2024, primarily driven by improved operating results during the period. The effective tax rate of 33.9% for the nine months ended September 30, 2025 was higher than the U.S. federal statutory rate of 21.0%
primarily due to a

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permanent difference for the change in fair value of warrant liability, state and local taxes and a change in the valuation allowance against net operating losses. The effective tax rate of 11.7% for the nine months ended September 30, 2024 was lower than the U.S. federal statutory rate of 21.0% primarily due to the effect of non-controlling interest partially offset by state and local taxes. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Net income from discontinued operations*** decreased $8.0 million, or 100%, for the nine months ended
September 30, 2025 compared to the nine months ended September 30, 2024. The 2024 results were generated through March 31, 2024, the effective date of the divestiture of our legacy proprietary trading business, Consequently, there were no
discontinued operations in 2025.

***Comparison of the Years Ended December 31, 2024 and 2023***

For the years ended December 31, 2024 and 2023, our results of operations were as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Change 2024 vs. 2023** |
| ***($ in thousands)*** | **2024** | **2023** | **%** |
|  **Revenues** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net financing revenues | $325704 | $100935 | 223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction revenues | 136698 | 93719 | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other revenues | 1207 | 1137 | 6 |
|  **Net revenues** | **463609** | **195791** | **137** |
|  **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensation and benefits | 170002 | 87976 | 93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction and market access costs, net | 72965 | 48919 | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and market data | 42617 | 30238 | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees, marketing and other | 47046 | 27432 | 72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization and depreciation | 29236 | 19491 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense on borrowings | 10039 | 8150 | 23 |
|  **Total operating expenses** | **371905** | **222206** | **67** |
|  **Operating income (loss)** | **91704** | **(26415)** | **n/m** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on the termination of lease |  | 1835 | n/m |
|  **Income (loss) from continuing operations before income tax expense** | **91704** | **(24580)** | **n/m** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | 10618 | (714) | n/m |
|  **Income (loss) from continuing operations** | **81086** | **(23866)** | **n/m** |
|  **Discontinued operations:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income from discontinued operations | 8042 | 6032 | 33 |
|  **Net income (loss)** | **89128** | **(17834)** | **n/m** |
|  Net income (loss) attributable to noncontrolling interests | 46257 | (20388) | n/m |
|  Net income attributable to redeemable noncontrolling interests | 3493 | 7578 | (54) |
|  **Net income (loss) attributable to Clear Street Group Inc.** | $**39378** | $**(5024)** | **n/m** |

---

*n/m is defined as "not meaningful."* 

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**Revenues** 

Revenues increased $267.8 million, or 137%, for 2024 compared to 2023, led by adoption-driven financing flows, increased transaction activity, and new platform catalysts that are additive to the base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Net financing revenues*** increased $224.8 million, or 223%, for 2024
compared to 2023. Growth was primarily driven by an increase in net financing earned on equities and equity derivatives as a result of higher interest-bearing client balances on the platform from new clients and existing clients adding more to their
balances. We also generated a larger portion of revenue from applications that generate a higher return on our platform, such as equity derivatives and to a lesser extent futures, compared to the prior period, leading to an increase in overall
returns. See below for a breakdown of net financing revenues by asset class and financial instrument:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** | **Change**<br>**2024 vs. 2023** | **Change**<br>**2024 vs. 2023** |
|  | **2024** | **2023** | $**%** | **%** |
| ***($ in thousands)*** |  |  |  |  |
|  **Net Financing Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities and equity derivatives<sup>(1)</sup> | 299415 | 92421 |  | 224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed income | 19398 | 8514 |  | 128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures | 6891 |  |  | n/m |
|  **Total Net Financing Revenues** | $**325704** | $**100935** |  | **223** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Equity derivatives include security-based swaps and options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Transaction revenues*** increased **  $43.0 million, or 46%, for 2024 compared to 2023.
Approximately $28.5 million in the increase was due to higher client activity on the platform, which resulted in an $11.8 million increase in transactional fees and a $16.7 million increase in client pass-through fees. The increase in
transactional fees was driven by a $6.2 million increase in commissions and a $3.7 million increase in clearing fees - both primarily in equities. In addition to new clients onboarding to the existing platform, we also generated $2.6 million in
additional commissions from Fox River's technology which we acquired as of September 30, 2024, and brought additional electronic order flow to our platform. The remaining $14.6 million resulted from the successful launch of investment
banking, a catalyst which both generated its own transaction revenues and introduced new client flows into other applications on our platform. See below for a breakdown of transaction revenues by service:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** | **Change**<br>**2024 vs. 2023** | **Change**<br>**2024 vs. 2023** |
|  | **2024** | **2023** | $**%** | **%** |
| ***($ in thousands)*** |  |  |  |  |
|  **Transaction Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transactional fees | 67871 | 56113 |  | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment banking | 15516 | 952 |  | 1530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pass-through fees | 53311 | 36654 |  | 45 |
|  **Total Transaction Revenues** | $**136698** | $**93719** |  | **46** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Other revenues*** increased by $0.1 million, or 6%, for 2024 compared to 2023, however the absolute
amount remained immaterial relative to total revenues.

**Expenses** 

Total operating expenses increased $149.7 million, or 67%, in 2024 compared to 2023, well below our revenue growth rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Compensation and benefits*** increased $82.0 million, or 93%, for 2024 compared to 2023, reflecting
business growth and profitability. Personnel costs rose $96.3 million due to an

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increase in headcount, primarily driven by demand for engineering resources to build capacity and functionality, and an increase in bonuses as a result of the business' performance in 2024, partially offset by a $14.2 million increase in capitalized internal-use software, which reduced reported compensation expense. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Transaction and market access costs , net*** increased by $24.0 million, or 49% for 2024
compared to 2023, primarily due to a $25.0 million increase in SEC transaction fees, which we are required to remit in connection with client trading activity, and are fully passed through to clients. Our other transaction and market access
costs, net declined year-over-year despite higher transaction volumes. The decline was primarily driven by a more favorable product and venue mix, as a larger share of trades settled in lower-cost venues. Enhancements to our smart order routing and
internal netting further improved efficiency, reducing reliance on fragmented external processes, which in turn reduced costs. These investments expand the capacity and resilience of our unified dataset and once in place, they support higher volumes
and more workflows without a proportional growth in cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Technology and market data*** increased $12.4 million, or 41%, for 2024 compared to 2023, reflecting
investments in our cloud-native architecture. The increase included $4.8 million in cloud and connectivity costs, $5.2 million in software subscriptions, and $1.7 million in market data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Professional fees, marketing and other*** increased $19.6 million, or 72%, for 2024 compared to 2023.
Professional fees rose by $7.8 million, primarily from specialized consultants engaged to support platform expansion alongside our growth initiatives. Marketing expenses increased by $2.6 million, occupancy costs rose by $1.7 million,
and regulatory fees increased by $0.8 million as we scaled our operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Amortization and depreciation*** increased $9.7 million, or 50%, for 2024 compared to 2023. Of this,
$8.0 million related to higher amortization of capitalized internal-use software, reflecting ongoing platform development. The remainder was primarily attributable to amortization of intangibles
recognized in acquisitions and asset purchases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Interest expense on borrowings*** increased $1.9 million, or 23%, for 2024 compared to 2023,
primarily due to term borrowings issued in 2024 in the form of 2029 Notes, which contributed $1.7 million of incremental interest paid to holders of our 2029 Notes. **  

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Gain on the termination of lease*** decreased $1.8 million, or 100%, for 2024 compared to 2023,
reflecting a gain recognized in 2023 when a lease was terminated and renegotiated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Income tax expense (benefit)*** increased $11.3 million for 2024 compared to 2023. The effective tax
rate rose to 11.6% in 2024 from 3.0% in 2023, driven by higher state and local taxes, a larger valuation allowance against foreign net operating losses, and a reduction in the return-to-provision tax benefit reflected in 2023. **  

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Net income from discontinued operations*** increased $2.0 million, or 33% for 2024 compared to 2023.
The 2024 results were generated through March 31, 2024, the effective date of the divestiture of our legacy proprietary trading business, and were comparable to a full prior year.

**Non-GAAP Financial Measures** 

To supplement our consolidated financial statements, prepared in accordance with GAAP, we present the non-GAAP financial measures described below. These measures are not presented in accordance with GAAP and should not be viewed as an alternative to net income (loss) from continuing operations, or any other GAAP performance measure. Accordingly, they should be considered together with, and not as a substitute for, our consolidated GAAP financial statements.

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We present Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net income (loss) because we view them as important supplemental measures of operating performance. We believe these non-GAAP financial measures are useful to securities analysts, investors, and other interested parties in evaluating our results. Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net income (loss) allow for an assessment of ongoing platform performance without the effect of (cash and non-cash) charges that do not relate to the core operations of our business.

***Adjusted EBITDA and Adjusted EBITDA Margin***

Adjusted EBITDA is defined as net income (loss) adjusted for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Interest expense on borrowings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Amortization and depreciation expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Income tax expense (benefit);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Share-based compensation expense; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loss from change in fair value of warrant liability.

Adjusted EBITDA margin is defined as Adjusted EBITDA divided by Net revenues for the same period.

These charges do not relate to the core operations of our business. We believe Adjusted EBITDA and Adjusted EBITDA margin highlight trends in our core operating performance that are not apparent from GAAP results alone. These measures help illustrate how revenues from client activity scale against our largely fixed cost base, demonstrating operating leverage.

Adjusted EBITDA and Adjusted EBITDA margin have limitations as financial measures, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Some of these limitations are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Although amortization and depreciation expenses are non-cash charges, the assets
being amortized and depreciated may have to be replaced in the future, and Adjusted EBITDA and Adjusted EBITDA margin do not reflect capital expenditure requirements for such replacements or for new capital expenditures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA and Adjusted EBITDA margin do not reflect share-based compensation expense and related taxes. Share-based
compensation expense has been, and will continue to be for the foreseeable future, a recurring expense in our business and an important part of our compensation strategy and significantly influenced by factors outside of our control, such as market
volatility and the timing, size, and terms of equity awards granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA and Adjusted EBITDA margin do not reflect changes in our cash requirements for our working capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA and Adjusted EBITDA margin may exclude one-time non-routine items; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other companies, including companies in our industry, may calculate Adjusted EBITDA and Adjusted EBITDA margin differently,
which reduces its usefulness as a comparative measure.

Because of these limitations, you should consider Adjusted EBITDA and Adjusted EBITDA margin alongside other financial performance measures, including net income (loss), net income (loss) margin and our other GAAP results.

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The following table shows a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to the most comparable GAAP measure, net income (loss) and net income (loss) margin, respectively, for the periods presented:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Years Ended December 31,** | **Years Ended December 31,** |
| **(*$ in thousands*)** | **2025** | **2024** | **2024** | **2023** |
|  **Net income (loss)** | $**157196** | $**48747** | $**89128** | $**(17834)** |
|  **Net income (loss) margin** | **20.1%** | **16.1%** | **19.2%** | **(9.1)%** |
|  Non-GAAP adjustments: |  |  |  |  |
|  Interest expense on borrowings | 11043 | 6558 | 10039 | 8150 |
|  Amortization and depreciation | 25664 | 20404 | 29236 | 19491 |
|  Income tax expense (benefit) | 80196 | 5386 | 10618 | (714) |
|  Share-based compensation expense<sup>(1)</sup> | 1532 | 2964 | 3890 | (214) |
|  Loss from change in fair value of warrant liability<sup>(2)</sup> | 87186 |  |  |  |
|  **Adjusted EBITDA** | $**362817** | $**84059** | $**142911** | $**8879** |
|  Net revenues | 783707 | 301881 | 463609 | 195791 |
|  **Adjusted EBITDA margin** | **46.3%** | **27.8%** | **30.8%** | **4.5%** |

---

(1) Share-based compensation expense consists primarily of costs associated with equity awards granted to employees.

(2) Represents the loss from the change in fair value of the VC Right to Purchase warrant liability.

For the nine months ended September 30, 2025, Adjusted EBITDA increased $278.8 million compared to 2024, reflecting revenue growth. Revenues increased 160% nine months over nine months, while costs, across all categories, scaled more slowly due to efficiencies of our unified dataset.

For the year ended December 31, 2024, Adjusted EBITDA increased $134.0 million compared to 2023, reflecting both rapid revenue growth and the early effects of operating leverage. Revenues increased 137% year over year, while many costs, particularly transaction costs and technology, scaled more slowly due to efficiencies of our unified dataset.

This expansion of Adjusted EBITDA underscores the economics of the platform: activity-linked revenues compounding with adoption, supported by a cost base that does not grow in line with volumes. We believe adjusted EBITDA as presented provides a meaningful understanding of our consolidated historical operating results as a representation of our future structure when all earnings are attributable to common shareholders.

***Adjusted Net Income (Loss)***

Adjusted net income (loss) is defined as net income (loss) adjusted for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Share-based compensation expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Amortization related to acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loss from change in fair value of warrant liability; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Tax impact of non-GAAP adjustments to net income (loss)

Because these charges do not relate to the core operations of our business, we believe Adjusted net income (loss) therefore provides a more meaningful comparison of past, present, and future operating results of our platform, as well as a more useful financial comparison to our peers.

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Adjusted net income (loss) has limitations as a financial measure, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Although amortization related to acquisitions are non-cash charges, the assets
being amortized may have to be replaced in the future, and Adjusted net income (loss) does not reflect capital expenditure requirements for such replacements or for new capital expenditures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted net income (loss) does not reflect share-based compensation expense and related taxes. Share-based compensation
expense has been, and will continue to be for the foreseeable future, a recurring expense in our business and an important part of our compensation strategy and significantly influenced by factors outside of our control, such as market volatility
and the timing, size and terms of equity awards granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted net income (loss) may exclude one-time non-routine items; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other companies, including companies in our industry, may calculate Adjusted net income (loss) differently, which reduces
its usefulness as a comparative measure.

The following table shows a reconciliation of Adjusted net income (loss) to the most comparable GAAP measure, net income (loss), for the periods presented:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Years Ended December 31,** | **Years Ended December 31,** |
| ***($ in thousands)*** | **2025** | **2024** | **2024** | **2023** |
|  **Net income (loss)** | $**157196** | $**48747** | $**89128** | $**(17834)** |
|  Non-GAAP adjustments: |  |  |  |  |
|  Share-based compensation expense<sup>(1)</sup> | 1532 | 2964 | 3890 | (214) |
|  Amortization related to acquisitions<sup>(2)</sup> | 7155 | 5760 | 8180 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6498 |
|  Loss from change in fair value of warrant liability<sup>(3)</sup> | 87186 |  |  |  |
|  Tax impact of non-GAAP adjustments to net income (loss) | (2030) | (6985) | (13165) | 1986 |
|  **Adjusted net income (loss)<sup>(4)</sup>** | $**251039** | $**50486** | $**88033** | $**(9564)** |

---

(1) Share-based compensation expense consists primarily of costs associated with equity awards granted to employees.

(2) Represents amortization expense related to intangible assets recognized in connection with acquisitions, including client
relationships, developed technology, and trade names.

(3) Represents the loss from the change in fair value of the VC Right to Purchase warrant liability.

(4) For purposes of calculating Adjusted net income (loss), we have presented our results as if all member units of CSH LLC
were converted into Class A common stock (as if the termination of the Up-C structure was enacted on January 1, 2023) and the adjusted results would be subject to U.S. federal corporate income tax.

For the nine months ended September 30, 2025, Adjusted net income (loss) increased $200.5 million compared to 2024 for the reasons discussed above with respect to Adjusted EBITDA.

For the year ended December 31, 2024, Adjusted net income (loss) increased $97.6 million compared to 2023 for the reasons discussed above with respect to Adjusted EBITDA.

**Quarterly Results of Operations and Other Financial Data** 

The following tables set forth our historical unaudited quarterly consolidated statements of comprehensive income (loss) of the quarters indicated. The information for each quarter has been

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prepared on the same basis as our audited consolidated financial statements included elsewhere in this prospectus and, in our opinion, includes all normal recurring adjustments necessary for the fair statement of the financial information contained in those statements.

Our historical results are not necessarily indicative of future operating results, and our interim results are not necessarily indicative of the results to be expected for the full year or any other period. The quarterly financial dataset forth below should be read together with our consolidated financial statements and related notes included elsewhere in this prospectus.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| ***(in thousands)*** | **September 30,<br>2025** | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** | **March 31,<br>2024** |
|  **Revenues** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net financing revenues | $208339 | $171781 | $135591 | $115146 | $109409 | $59285 | $41864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction revenues | 128252 | 83004 | 55906 | 46365 | 40648 | 29612 | 20073 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other revenues | 309 | 292 | 233 | 217 | 225 | 564 | 201 |
|  **Net revenues** | **336900** | **255077** | **191730** | **161728** | **150282** | **89461** | **62138** |
|  **Expenses** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensation and benefits | 110594 | 78548 | 50093 | 45234 | 60933 | 36578 | 27257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction and market access costs, net | 21505 | 26984 | 34258 | 26112 | 22114 | 13815 | 10924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and market data | 17860 | 17710 | 14156 | 13837 | 10424 | 9844 | 8512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees, marketing and other | 21315 | 16181 | 13218 | 18619 | 9591 | 10244 | 8592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization and depreciation | 9601 | 8395 | 7668 | 8832 | 6746 | 7133 | 6525 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense on borrowings | 4107 | 3549 | 3387 | 3481 | 2186 | 2186 | 2186 |
|  **Total operating expenses** | **184982** | **151367** | **122780** | **116115** | **111994** | **79800** | **63996** |
|  Operating income (loss) | 151918 | 103710 | 68950 | 45613 | 38288 | 9661 | (1858) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain from change in fair value of warrant liability | (18875) | (25485) | (42826) |  |  |  |  |
|  **Income (loss) from continuing operations before income tax expense** | **133043** | **78225** | **26124** | **45613** | **38288** | **9661** | **(1858)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | 37169 | 25360 | 17667 | 5232 | 4137 | 1171 | 78 |
|  **Income (loss) from continuing operations** | **95874** | **52865** | **8457** | **40381** | **34151** | **8490** | **(1936)** |
|  **Discontinued operations:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income from discontinued operations |  |  |  |  |  |  | 8042 |
|  **Net income (loss)** | **95874** | **52865** | **8457** | **40381** | **34151** | **8490** | **6106** |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| **(in thousands)** | **September 30,<br>2025** | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** | **March 31,<br>2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income / (loss) attributable to noncontrolling interests |  |  |  | 21266 | 18982 | 3415 | 2594 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income / (loss) attributable to redeemable noncontrolling interests |  |  |  | 417 | 976 | 984 | 1116 |
|  **Net income (loss) attributable to Clear Street Group Inc.** | $**95874** | $**52865** | $**8457** | $**18698** | $**14193** | $**4091** | $**2396** |

---

***Other Financial Data***

The following tables set forth our key performance metrics for the quarters indicated. Our historical results are not necessarily indicative of future operating results, and our quarterly metrics are not necessarily indicative of the metrics to be expected for the full year or any other period. The quarterly metrics forth below should be read together with our annual metrics included elsewhere in this prospectus.

Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net income (loss) are non-GAAP financial measures. We believe that the key performance metrics and non-GAAP financial measures, together with GAAP financial measures, such as net income (loss), are useful to securities analysts, investors, and other interest parties in evaluating our results, and are helpful in assessing our ongoing platform performance without the effect of (cash and non-cash) charges that do not relate to the core operations of our business.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **September 30,<br>2025** | **June 30,**<br>**2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,**<br>**2024** | **March 31,<br>2024** |
|  Interest-bearing client balances (in thousands) | 15554581 | 12500764 | 10885939 | 10201293 | 9002826 | 7401872 | 4613614 |
|  Average daily trades | 4237821 | 4088597 | 3719274 | 3222740 | 2221135 | 2018569 | 2088700 |
|  Average daily volume | 658302881 | 589253720 | 516008563 | 445384091 | 305259898 | 330985558 | 305155305 |

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The following table shows a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to the most comparable GAAP measures, net income (loss) and net income (loss) margin, respectively, for the periods presented:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| ***($ in thousands)*** | **September 30,<br>2025** | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** | **March 31,<br>2024** |
|  **Net income (loss)** | $**95874** | $**52865** | $**8457** | $**40381** | $**34151** | $**8490** | $**6106** |
|  **Net income (loss) margin** | **28.5%** | **20.7%** | **4.4%** | **25.0%** | **22.7%** | **9.5%** | **9.8%** |
|  Non-GAAP adjustments: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense on borrowings | 4107 | 3549 | 3387 | 3481 | 2186 | 2186 | 2186 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization and depreciation | 9601 | 8395 | 7668 | 8832 | 6746 | 7133 | 6525 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | 37169 | 24317 | 18710 | 5232 | 4137 | 1171 | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense<sup>(1)</sup> | 484 | 524 | 524 | 926 | 1730 | 1174 | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss from change in fair value of warrant liability<sup>(2)</sup> | 18875 | 25485 | 42826 |  |  |  |  |
|  **Adjusted EBITDA** | $**166110** | $**115135** | **81572** | $**58852** | $**48950** | $**20154** | $**14955** |
|  **Net revenues** | **336900** | **255077** | **191730** | **161728** | **150282** | **89461** | **62138** |
|  **Adjusted EBITDA margin** | **49.3%** | **45.1%** | **42.5%** | **36.4%** | **32.6%** | **22.5%** | **24.1%** |

---

(1) Share-based compensation expense consists primarily of costs associated with equity awards granted to employees.

(2) Represents the loss from the change in fair value of the VC Right to Purchase warrant liability.

The following table shows a reconciliation of Adjusted net income (loss) to the most comparable GAAP measure, net income (loss), for the periods presented:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| ***($ in thousands)*** | **September 30,<br>2025** | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** | **March 31,<br>2024** |
|  **Net income (loss)** | $**95874** | $**52865** | $**8457** | $**40381** | $**34151** | $**8490** | $**6106** |
|  Non-GAAP adjustments: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense<sup>(1)</sup> | 484 | 524 | 524 | 926 | 1730 | 1174 | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization related to acquisitions<sup>(2)</sup> | 2385 | 2385 | 2385 | 2420 | 1946 | 1946 | 1867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain from change in fair value of warrant liability<sup>(3)</sup> | 18875 | 25485 | 42826 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax impact of non-GAAP adjustments to net income (loss) | (671) | (680) | (680) | (6180) | (5316) | (1566) | (104) |
|  **Adjusted net income (loss)<sup>(4)</sup>** | $**116947** | $**80579** | $**53512** | $**37547** | $**32511** | $**10044** | $**7929** |

---

(1) Share-based compensation expense consists primarily of costs associated with equity awards granted to employees.

(2) Represents amortization expense related to intangible assets recognized in connection with acquisitions, including client
relationships, developed technology, and trade names.

(3) Represents the loss from the change in fair value of the VC Right to Purchase warrant liability.

(4) For purposes of calculating Adjusted net income (loss), we have presented our results as if all member units of CSH LLC
were converted into Class A common stock (as if the termination of the Up-C structure was enacted on January 1, 2023) and the adjusted results would be subject to U.S. federal corporate income tax.

**Liquidity and Capital Resources** 

As of September 30, 2025, total assets were $72.7 billion, of which approximately 99.6% were considered liquid. As of December 31, 2024, total assets were $55.6 billion, of which approximately 99.7% were considered liquid. Our assets consist primarily of cash, financial instruments owned, at fair

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value, collateralized agreements, receivables from broker-dealers and clearing organizations, and receivables from clients.

Our principal sources of liquidity are our cash and cash equivalents, including cash from operations, and investments in other highly liquid assets. Our primary uses of funds arise from fluctuations in our working capital requirements, acquisitions, debt service obligations and capital expenditures.

As of September 30, 2025, we had $515.0 million in available committed borrowing capacity under the Revolving Credit Agreement (as defined below), $200.0 million in uncommitted borrowing capacity under the Uncommitted Credit Agreement (as defined below), and $55.0 million in available committed borrowing capacity under the UK Facility (as defined below), available cash of $327.4 million and cash segregated under federal and other regulations of $532.4 million.

As of December 31, 2024, we had $515.0 million in available committed borrowing capacity under the Revolving Credit Agreement (as defined below) and $200.0 million in uncommitted borrowing capacity under the Uncommitted Credit Agreement (as defined below), available cash of $273.9 million and cash segregated under federal and other regulations of $183.1 million.

We maintain formal liquidity risk policies and procedures covering capital planning, liquidity management, contingency funding, cash management, and financial operations across Clear Street Group Inc. and its subsidiaries. Oversight rests with the Asset and Liability Committee ("ALCO"), which is comprised of senior management and supported by our Treasury and Risk functions. Together, these groups manage the use of capital, funding sources, and liquidity exposures, set tolerances and limits, and facilitate timely responses to changes in the macroeconomic environment or liquidity conditions.

Capital allocation decisions are guided by our risk management principles, anticipated requirements for current and future activities, regulatory capital requirements, and projected profitability. Liquidity needs and collateral levels are monitored daily to ensure an appropriate liquidity cushion is maintained in the form of cash and unencumbered high-quality liquid assets. We actively manage excess liquidity and maintain borrowing capacity through secured financing markets, and credit facilities with banking partners.

Our liquidity risk management framework includes periodic stress testing, designed to evaluate resilience under both market-wide and idiosyncratic stress scenarios. In addition, we maintain a Contingency Funding Plan ("CFP") that sets early warning indicators, escalation protocols, and tiered funding sources to support the firm during stress periods. The CFP is reviewed and approved annually by the ALCO and the Risk Committee.

Our capital resources consist primarily of equity capital, retained earnings, holding company debt and secured and unsecured funding arrangements. In addition to supporting operations and future expansion, we believe capital strength enhances confidence among clients, counterparties, and regulators.

Based on our current level of operations, available liquidity, and borrowing capacity, we believe our cash flows from operations, cash and cash equivalents, and available borrowings under our Revolving Credit Agreement and term borrowings will be adequate to meet future liquidity needs for the next twelve months. If additional expenditures arise, we may seek incremental equity or debt financing. The sale of additional equity would result in dilution to our stockholders. The incurrence of debt financing would result in debt service obligations and the instruments governing such debt could provide for covenants that would restrict our operations. In the event that additional financing is

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required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital when desired, our business, operating results, and financial condition could be adversely affected. Our future capital requirements and the adequacy of available funds will depend on factors discussed under "Risk Factors."

**Debt Facilities** 

***Revolving Credit Agreements***

On December 4, 2020, CS LLC entered into a revolving credit agreement (as amended and restated from time to time, the "Revolving Credit Agreement") with a consortium of banks, one of which is BMO Bank which arranged the facility, which provides for a revolving credit facility (the "Committed Facility") of up to $515.0 million, which was extended through November 6, 2026 with an amended limit of up to $980.0 million on November 7, 2025. The Committed Facility consists of five borrowing bases: (i) Borrowing Base A, which is available to finance the purchase and settlement of securities, (ii) Borrowing Base B, which is available to fund margin deposits with the NSCC, (iii) Borrowing Base C, which is available to fund, under certain circumstances, client withdrawals, (iv) Borrowing Base D, which is available to cover FICC mortgage-backed securities blackout periods, and (v) Borrowing Base E, which is available to fund margin at domestic futures/options clearing houses (collectively, the "Committed Facility Borrowing Bases"). Each borrowing base is calculated in accordance with criteria specified in the Committed Credit Agreement and certain components of each Committed Facility Borrowing Base are subject to certain reserves. There was $315.0 million available under the Committed Facility as of December 31, 2023, and $515.0 million available as of December 31, 2024 and September 30, 2025. The Revolving Credit Agreement requires us to maintain a minimum tangible net worth of $487.5 million and excess net capital of $300.0 million, and total assets to total equity ratio of 13.0 to 1.0. Effective February 5, 2025, the required total assets to total equity ratio was amended to a maximum ratio of 9.0 to 1.0. Effective November 7, 2025, the minimum tangible net worth requirement was amended to $600.0 million and the minimum excess net capital requirement was amended to $350.0 million.

The limits and interest rates for each of the Committed Facility as of September 30, 2025 and December 31, 2024 is shown below:

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| | | |
|:---|:---|:---|
|  | **Current Limit** | **Interest Rate** |
|  | **(in thousands)** |  |
|  Borrowing Base A | $515000 | Overnight Base + 1.5% |
|  Borrowing Base B | 386250 | Overnight Base + 2.5% |
|  Borrowing Base C | 386250 | Overnight Base + 2.5% |
|  Borrowing Base D | 386250 | Base + 2.0% |
|  Borrowing Base E | 386250 | Base + 2.0% |

---

Effective November 7, 2025, the limit of Borrowing Base A was increased to $980.0 million and the limits to Borrowing Bases B, C, D and E to $784.0 million. The interest rates for Borrowing Bases D and E were amended from Base Rate plus 2.0% to Overnight Base Rate plus 4.0%.

CS LLC also entered into an uncommitted credit agreement (the "Uncommitted Credit Agreement") with BMO Bank, which provides for a revolving credit facility (the "Uncommitted Facility") of up to $200.0 million. The Uncommitted Credit Agreement consists of three borrowing bases: (i) Borrowing Base A for margin loans, which is available to finance the purchase and settlement of securities and for general working capital purposes at 1.5% plus the bank's overnight base rate, (ii) Borrowing Base B, which is available to fund up to $10.0 million of unsecured overnight loans at the bank's prime commercial rate as in effect on such day, and (iii) Borrowing Base C, which together with

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any amount incurred pursuant to Borrowing Base B, is available to fund up to $150.0 million of clearinghouse margin loans used to finance NSCC deposit requirements and OCC excess margin deposits, at the bank's prime commercial rate as in effect on such day (collectively, the "Uncommitted Borrowing Bases"). Loans made under the Uncommitted Facility are repayable on demand. Each Uncommitted Borrowing Base is calculated in accordance with criteria specified in the Uncommitted Credit Agreement and certain components of the borrowing base are subject to certain reserves. There was $200.0 million available under the Uncommitted Facility as of December 31, 2023 and December 31, 2024.

On October 24, 2025, CS LLC entered into a Revolving Note and Cash Subordination Agreement (the "2025 Revolving Credit Agreement" and, collectively with the Revolving Credit Agreement and the Uncommitted Credit Agreement, the "Credit Agreements") with a consortium of banks, led by Byline Bank (collectively, the "Lenders") which provides for a revolving credit facility (the "2025 Revolving Credit Facility"). Under the 2025 Revolving Credit Agreement, the Lenders have committed to provide CS LLC with a revolving credit facility of up to $75.0 million during a credit period ending October 24, 2027. Amounts borrowed under the facility will bear interest at the SOFR plus 4.75% (but not less than 5.75%) paid monthly. The borrowings under the 2025 Revolving Credit Agreement will mature on October 24, 2028, unless accelerated in accordance with the 2025 Revolving Credit Agreement. The 2025 Revolving Credit Agreement requires us to maintain a minimum tangible net worth of $450.0 million and excess net capital of $300.0 million, and total debt under the Revolving Credit Agreement to total net capital of 0.2 to 1.0.

The obligations under each of the Committed Facility, the Uncommitted Facility and the 2025 Revolving Credit Facility are secured by a first lien security interest in our client accounts and substantially all assets transferrable upon the sale, exchange, collection, reclassification, conversion, merger or consolidation of CS LLC.

On September 23, 2025, Clear Street UK Ltd ("CS UK") entered into a Credit Agreement (the "UK Credit Agreement, and, collectively with the Revolving Credit Agreement, the Uncommitted Credit Agreement and the 2025 Revolving Credit Agreement, the "Credit Agreements") with a consortium of banks (collectively the "UK Lenders") which provides for a Revolving Credit Facility (the "UK Facility" and, collectively with the Committed Facility, the Uncommitted Facility and the 2025 Revolving Credit Facility, the "Credit Facilities"). Under the UK Facility, the UK Lenders have committed to provide CS UK with a revolving credit facility of up to $55.0 million during a credit period ending September 22, 2026. Amounts borrowed under the UK Facility bear interest at BMO Bank N.A.'s commercial prime rate, which was 7.25% as of September 23, 2025, paid monthly. The UK Facility contains customary affirmative and negative covenants, including requirements that CS UK maintain Own Funds in excess of specified regulatory capital levels and not less than $33.0 million, and have at least one zero-loan day during any 30-day period.

The Credit Facilities each include unused commitment fees of 0.50%, 0.125%, 0.50% and 0.50% per annum, respectively, on the average daily unused portion of these Credit Facility which are payable quarterly in arrears.

The Credit Agreements contain customary conditions on our, or, as applicable, our subsidiary's borrowing, including affirmative and negative financial and operating covenants, such as restrictions on our and our subsidiaries' ability to incur indebtedness, grant liens, make investments, dispose of certain property via mergers or consolidations, assign share of capital stock or other equity interests in subsidiaries, make dividend distributions and other restricted payments, engage in transactions with our affiliates, change the fiscal year or nature of the business, and use proceeds for certain purposes. The Credit Agreements also contain customary events of default.

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The foregoing summaries and descriptions of certain provisions of the Credit Agreements do not purport to be complete and are qualified in their entirety by reference to the full text of each Credit Agreement, copies of which are filed as exhibits to the registration statement of which this prospectus forms a part.

***Senior Unsecured Notes***

***2024 Senior Unsecured Notes***

On December 20, 2019, CSH LLC issued $25.0 million in aggregate principal amount of senior unsecured notes due 2024 (the "2024 Notes"). The 2024 Notes matured on December 30, 2024 and had a fixed annual interest rate of 6.5% per annum.

***2025 Senior Unsecured Notes***

On October 8, 2020, Clear Street Capital LLC ("Clear Street Capital") issued $50.0 million in aggregate principal amount of senior unsecured notes (the "2025 Notes") pursuant to a Note Purchase Agreement (the "2025 Note Purchase Agreement") among Clear Street Capital and the purchasers of the 2025 Notes party thereto. Effective December 31, 2020, CSH LLC assumed the 2025 Notes from Clear Street Capital in conjunction with Clear Street Capital's merger with and into CSH LLC. The 2025 Notes matured on October 15, 2025, and had a fixed annual interest rate of 6.0% per annum.

***2026 Senior Unsecured Notes***

On May 6, 2021, CSH LLC issued $60.0 million in aggregate principal amount of senior unsecured notes due 2026 (the "2026 Notes") pursuant to a Note Purchase Agreement (the "2026 Note Purchase Agreement") among CSH LLC and the purchasers of the 2026 Notes party thereto. The 2026 Notes mature on May 15, 2026 and have a fixed annual interest rate of 5.875% per annum. The interest rate is dependent on us maintaining a credit rating above a specified minimum threshold. In addition, the 2026 Notes contain certain affirmative and negative covenants, including but not limited to restrictions on our and our subsidiaries' ability to engage in transactions with our affiliates, engage in mergers or consolidations, dispose of assets, change our line of business, create, incur, assume or permit to exist any liens, make dividend distributions and other related party transactions, and engage in any dealings or transactions with persons that would cause any holder or affiliate of such holder to violate or become subject to sanctions.

The 2026 Notes may be redeemed at any time, and from time to time, in whole or in part, at 100% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date.

The foregoing summaries and descriptions of certain provisions of the 2026 Note Purchase Agreement does not purport to be complete and are qualified in their entirety by reference to the full text of the 2026 Note Purchase Agreement, a copy of which is filed as an exhibit to the registration statement of which this prospectus forms a part.

***2029 Senior Unsecured Notes***

On October 23, 2024, CSH LLC issued an $80.0 million in aggregate amount of senior unsecured notes due 2029 (the "2029 Notes") pursuant to a Note Purchase Agreement (the "2029 Note Purchase Agreement") among CSH LLC and the purchasers of the 2029 Notes party thereto. The 2029 Notes mature on October 30, 2029 and have a fixed annual interest rate of 8.25% per annum. The interest rate is dependent on us maintaining a credit rating above a specified minimum threshold. CSH LLC may at its option redeem at any time all or part of the Notes, for the outstanding principal and a make-

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whole premium, as specified in the agreement. Upon a change in control, as defined in the 2029 Note Purchase Agreement, all holders of the 2029 Notes have the right to require CSH LLC to repurchase all their holdings for 101% of the principal amount, plus accrued and unpaid interest. In addition, the 2029 Notes contain certain affirmative and negative covenants, including but not limited to restrictions on our and our subsidiaries' ability to engage in transactions with our affiliates, engage in mergers or consolidations, dispose of assets, change our line of business, create, incur, assume or permit to exist any liens, make dividend distributions and other related party transactions, and engage in any dealings or transactions with persons that would cause any holder or affiliate of such holder to violate or become subject to sanctions.

Until October 30, 2026, the 2029 Notes may be redeemed for a make-whole payment equal to 104.125% of the outstanding principal being redeemed, plus any excess remaining scheduled payments with respect to the redeemed amount as discontinued in accordance with accepted financial practice and as calculated in accordance with the terms of the 2029 Note Purchase Agreement.

On or after October 30, 2026, the 2029 Notes may be redeemed in whole or in part at the following redemption prices: (i) 104.125% of the outstanding principal being redeemed, plus accrued but unpaid interest, if such notes are redeemed on or prior to October 29, 2027; (ii) 102.0625% or the outstanding principal being redeemed, plus accrued but unpaid interest, if such notes are redeemed after October 29, 2027 and on or prior to October 29, 2028; and (iii) at par, plus accrued but unpaid interest, thereafter.

The foregoing summaries and descriptions of certain provisions of the 2029 Note Purchase Agreement does not purport to be complete and are qualified in their entirety by reference to the full text of the 2029 Note Purchase Agreement, a copy of which is filed as an exhibit to the registration statement of which this prospectus forms a part.

As of September 30, 2025 and December 31, 2024, we were in compliance with all relevant covenants contained in the Credit Agreements and the Note Purchase Agreements.

***2030 Senior Unsecured Notes***

On September 17, 2025, CSH LLC issued an additional $221.5 million in aggregate amount of senior unsecured notes due 2030 (the "2030 Notes" and, collectively with the 2025 Notes, the 2026 Notes and the 2029 Notes, the "Senior Unsecured Notes") pursuant to a Note Purchase Agreement (the "2030 Note Purchase Agreement") among CSH LLC and the purchasers of the 2030 Notes party thereto. On January 13, 2026, CSH LLC issued an additional $78.5 million of its 2030 Notes pursuant to the 2030 Note Purchase Agreement, bringing the total amount outstanding under the 2030 Notes to $300.0 million.

The 2030 Notes mature on September 30, 2030, and have a fixed annual interest rate of 8.00% per annum. The interest rate is dependent on us maintaining a specified minimum threshold. Upon a change in control, as defined in the 2030 Note Purchase Agreement, CSH LLC is required to offer to prepay the entire unpaid principal amount of the 2030 Notes held by all holders at 101% of the principal amount, plus accrued and unpaid interest. In addition, the 2030 Notes contain certain affirmative and negative covenants, including but not limited to restrictions on our and our subsidiaries' ability to engage in transactions with our affiliates, engage in mergers or consolidations, dispose of assets, change our lines of business, create, incur, assume or permit to exist any liens, make dividend distributions and other related party transactions, and engage in any dealings or transactions with persons that would cause any holder or affiliate of such holder to violate or become subject to sanctions.

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CSH LLC may, at its option, prepay all or part of the 2030 Notes at any time, subject to the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Until September 30, 2027, the 2030 Notes may be prepaid at 100% of the principal amount, plus the excess remaining
scheduled payments with respect to the prepaid amount, discounted in accordance with accepted financial practice and calculated in accordance with the terms of the 2030 Note Purchase Agreement, plus accrued but unpaid interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On or after September 30, 2027, the 2030 Notes may be prepaid in whole or in part at the following prepayment prices:
(i) 104% of the principal amount, plus accrued but unpaid interest, if such notes are prepaid on or after September 30, 2027, and prior to September 30, 2028; (ii) 102% of the principal amount, plus accrued but unpaid interest, if such
notes are prepaid on or after September 30, 2028, and prior to September 30, 2029; and (iii) at par, plus accrued but unpaid interest, if prepaid thereafter.

The foregoing summaries and descriptions of certain provisions of the 2030 Note Purchase Agreement do not purport to be complete and are qualified in their entirety by reference to the full text of the 2030 Note Purchase Agreement, a copy of which is filed as an exhibit to the registration statement of which this prospectus forms a part.

In conjunction with the issuance of the 2030 Notes, we repurchased $5.0 million in aggregate principal amount of the 2025 Notes at par plus accrued interest, and $13.5 million in aggregate principal amount of the 2026 Notes at a discount to par plus accrued interest.

***Covenant Compliance***

We were in compliance with all relevant covenants contained in the Credit Agreements, term borrowings and the Senior Unsecured Notes as of September 30, 2025, and as of December 31, 2024.

**Cash Flows** 

The following table summarizes our cash flows for the periods presented:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Year Ended December 31,** | **Year Ended December 31,** |
| ***(in thousands)*** | **2025** | **2024** | **2024** | **2023** |
|  Net cash flows (used in) provided by operating activities | $280140 | $100962 | $165541 | $(351321) |
|  Net cash flows used in investing activities | (50360) | (69972) | (84563) | (31912) |
|  Net cash flows provided by (used in) financing activities | 192785 | (54026) | (40331) | 454054 |
|  Effect of exchange rate changes on cash, cash equivalents and Cash segregated under federal and other regulations | 239 |  | (2419) |  |
|  Net increase (decrease) in Cash and cash equivalents, and Cash segregated under federal and other regulations | $422804 | $(23036) | $38228 | $70821 |

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***Operating Activities***

Cash provided by operating activities for the nine months ended September 30, 2025 was $280.1 million as compared to $101.0 million for the nine months ended September 30, 2024, an increase of

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$179.2 million. The increase was primarily driven by higher net income of $107.4 million, a $25.1 million increase in accounts payable and accrued liabilities, and a $87.2 million non-cash adjustment related to the change in fair value of the warrant liability to reconcile net income to cash provided by operating activities.

Cash provided by operating activities for the year ended December 31, 2024 was $165.5 million as compared to cash used by operating activities of $351.3 million for the year ended December 31, 2023, an increase of $516.9 million. The increase was primarily driven by higher net income of $107.0 million and a $58.3 million increase in accounts payable and accrued liabilities.

Operating cash flows also reflect daily changes in interest-bearing client balances, collateralized financing balances, receivables from and payables to broker dealers and clearing organization, and positions in financial instruments owned and sold, not yet purchased. These balances move with client and market activity and can create significant variances in reported operating cash flows between periods. This volatility generally reflects the fluctuations in client activity rather than the underlying performance of our business. For the nine months ended September 30, 2025, cash used by these operating activities increased by $41.9 million compared to the nine months ended September 30, 2024. Cash provided by these operating activities increased by $329.6 million in 2024 compared to 2023.

***Investing Activities***

Cash used in investing activities for the nine months ended September 30, 2025 was $50.4 million as compared to cash used in investing activities of $70.0 million for the nine months ended September 30, 2024, a decrease of $19.6 million. The decrease was primarily driven by timing of the acquisitions of businesses, intangible assets and exchange memberships, partially offset by a higher investment in internally developed software, resulting in an increase of $17.0 in capitalized software cost.

Cash used in investing activities for the year ended December 31, 2024 was $84.6 million as compared to cash used in investing activities of $31.9 million for the year ended December 31, 2023, an increase of $52.7 million. The increase was primarily driven by the $28.8 million acquisition of Fox River, a $10.9 million increase in purchases of intangible assets and exchange memberships, and a $12.9 million increase in capitalized internal-use software as we continued to invest in our cloud-native architecture. These investments expand capacity and resilience, enabling higher volumes and new workflows without proportional cost growth.

***Financing Activities***

Cash flows from financing activities shifted to a net inflow of $192.8 million for the nine months ended September 30, 2025, compared to a net outflow of $54.0 million for the nine months ended September 30, 2024, a change of $246.8 million. The change was primarily due to the $216.8 million in net proceeds from the issuance of the 2030 Senior Unsecured Notes in the nine months ended September 30, 2025 and a $30.2 million decrease in distributions to noncontrolling interest holders in the nine months ended September 30, 2024.

Cash flows from financing activities shifted to a net outflow of $40.3 million for 2024, compared to a net inflow of $454.1 million for 2023, a change of $494.4 million. The decrease was primarily due to lower proceeds from capital raises: $19.5 million in net proceeds from the issuance of Series B-1 Preferred Stock in 2024, compared to $516.5 million from the issuance of Series B-1 Preferred Stock in 2023. This was partially offset by $78.4 million in net proceeds from the issuance of 2029 Senior Unsecured Notes in 2024. Additional drivers included $25.0 million in term debt repayments and a $25.2 million increase in distributions to noncontrolling interest holders.

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**Regulatory Net Capital Requirements** 

As of September 30, 2025, and as of December 31, 2024, we were in compliance with all applicable regulatory net capital requirements. For additional information, see "Business—Regulation and Compliance," Note 20 "Net Capital Requirements" and Note 15 "Commitments and Contingencies" in the notes to our audited consolidated financial statements and Note 14 "Commitments and Contingencies" in the notes to our unaudited condensed consolidated financial statements included elsewhere in this prospectus for additional information.

**Comparison of Financial Condition as of September 30, 2025 and December 31, 2024** 

*Total assets* increased by $17.1 billion, or 31%, to $72.7 billion for the nine months ended September 30, 2025, compared to $55.6 billion for the year ended December 31, 2024. This increase was primarily due to an increase of $10.3 billion in financial instruments owned at fair value due to the continued growth of client balances in equities and equity derivatives, a $2.7 billion increase in securities borrowed due to the growth in clients' short balances, a $1.4 billion increase in receivable from customers due to the growth in clients' margin debt balances, and a $2.0 billion increase in securities purchased under repurchase agreements due to an increase of our fixed income conduit book which provides liquidity.

*Cash and cash equivalents* increased by $53.5 million, or 20%, to $327.4 million for the nine months ended September 30, 2025 compared to $273.9 million for the year ended December 31, 2024. The increase in cash and cash equivalents reflects a continuing improvement in our liquidity position. Cash segregated under federal and other regulations, which is required by the SEC and CFTC, increased by $349.3 million, or 191%, to $532.4 million for the nine months ended September 30, 2025, compared to $183.1 million for the year ended December 31, 2024. The increase was primarily driven by the continued growth of client balances and related activity, primarily driven by the launch of futures, which resulted in larger amounts required to be maintained in segregated accounts to satisfy customer reserve requirements. See Note 3 "Cash Segregated Under Federal or Other Regulations" in the notes to our audited and unaudited consolidated financial statements included elsewhere in this prospectus for additional information.

*Total liabilities* increased by $17.0 billion, or 31%, to $71.8 billion for the nine months ended September 30, 2025, compared to $54.8 billion for the year ended December 31, 2024. This increase was primarily due to an increase of $7.0 billion in financial instruments sold, not yet purchased, at fair value due to the continued growth of client balances in equities and equity derivatives, and an increase of securities loaned by $6.9 billion due to the increased funding requirements driven by the growth in interest-bearing client balances, and a $1.6 billion increase in payable to customers due to the growth in clients' short and credit balances.

**Comparison of Financial Condition as of December 31, 2024 and December 31, 2023** 

*Total assets* increased by $17.2 billion, or 45%, to $55.6 billion for the year ended December 31, 2024, compared to $38.4 billion for the year ended December 31, 2023. This increase was primarily due to an increase of $13.0 billion in financial instruments owned at fair value due to the growth of client balances in equities and equity derivatives, and a $4.4 billion increase in securities purchased under repurchase agreements increase in securities purchased under repurchase agreements due to an increase of our fixed income conduit book, partially offset by a $779.9 million decrease in assets of discontinued operations due to the divestiture of our legacy proprietary trading business which was effective March 31, 2024.

*Cash and cash equivalents* decreased by $22.2 million, or 7%, to $273.9 million for the year ended December 31, 2024, compared to $296.1 million for the year ended December 31, 2023. Cash

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segregated under federal and other regulations, which is required by the SEC and CFTC, increased by $60.9 million, or 50%, to $183.1 million for the year ended December 31, 2024 compared to $122.2 million for the year ended December 31, 2023. The increase was primarily driven by higher client balances and related activity, which resulted in larger amounts required to be maintained in segregated accounts to satisfy customer reserve requirements.

*Total liabilities* increased by $17.3 billion, or 46%, to $54.8 billion for the year ended December 31, 2024, compared to $37.5 billion for the year ended December 31, 2023. This increase was primarily due to an increase of $10.1 billion in financial instruments sold, not yet purchased, at fair value due to growth of client balances in equities and equity derivatives, and an increase of securities sold under repurchase agreements by $5.5 billion due to an increase of our fixed income conduit book. This increase is consistent with the expansion of client activity and balances, and associated funding requirements.

**Off-Balance Sheet Arrangements** 

In the ordinary course of business, we enter into various types of off-balance sheet arrangements. We may be exposed to a risk of loss not reflected in our consolidated financial statements when we extend credit to our clients that is collateralized by cash and securities in client accounts, which may expose us to significant off-balance sheet risk in the event margin requirements are insufficient to fully cover losses that clients may incur and those clients fail to satisfy their obligations. Additionally, in the ordinary course of business, we purchase and sell securities and derivative financial instruments. If a party to a transaction fails to fulfill its contractual obligations, we may incur a loss if the market value of the security is different from the contract amount of the transaction. The majority of our transactions with off-balance sheet risk are short-term in duration. See "Quantitative and Qualitative Disclosures about Market Risk" included elsewhere in this prospectus for additional information about the nature and business purpose of any off-balance-sheet arrangements.

**Cash Requirements** 

As of September 30, 2025, we have had cash requirements for long-term debt payments, including revolving credit agreements and term borrowings, as well as for leases and other liabilities. For debt related information, see Note 9 "Borrowings" in the notes to our unaudited condensed consolidated financial statements included elsewhere in this prospectus for additional information. For lease-related information, and commitment and contingency-related information, see Note 16 "Leases" and Note 15 "Commitment and Contingencies," respectively, in the notes to our unaudited condensed consolidated financial statements included elsewhere in this prospectus.

As of December 31, 2024, we had the following obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Term borrowings of $190.0 million are expected to be paid out as follows: $50.0 million in 2025,
$60.0 million in 2026 and $80.0 million in 2029.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating lease payments for leases with non-cancelable lease terms of
$21.9 million are to be paid annually as follows: $3.7 million in 2025, $3.8 million in 2026, $3.8 million in 2027, $3.5 million in 2028 and $7.1 million in 2029 and thereafter.

As of December 31, 2024, there were no unasserted claims or assessments that we are aware of or that legal counsel has advised are probable of assertion and require disclosure.

There have been no material changes to these obligations since December 31, 2024, except with respect to the 2030 Note Purchase Agreement, as discussed above. For debt related information, see Note 9 "Borrowings" in the notes to our unaudited condensed consolidated financial statements included in this prospectus for additional information.

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As of September 30, 2025, we had the following obligations related to term borrowings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Term borrowings of $393.0 million are expected to be paid out as follows: $45.0 million in 2025, $46.5 million in 2026,
$80.0 million in 2029, and $221.5 million in 2030.

**Critical Accounting Estimates** 

We prepare our consolidated financial statements in conformity with GAAP, which requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, the disclosure of contingencies, and the reported amounts of revenues and expenses during each reporting period. We evaluate these estimates on an ongoing basis, drawing on historical experience, management judgment, and third-party input available at the time. Actual outcomes may differ from these estimates, and such differences could impact our consolidated financial statements.

The accounting policies we consider critical to the preparation of our consolidated financial statements are described below. For a discussion of our other significant accounting policies, see Note 2 "Significant Accounting Policies" in the notes to our audited consolidated annual financial statements and Note 2 "Significant Accounting Policies" in the notes to our unaudited condensed consolidated financial statements included elsewhere in this prospectus.

***Goodwill***

Goodwill represents the excess of consideration transferred over the fair value of the identifiable net assets of businesses acquired. We test goodwill for impairment annually, or more frequently if indicators of impairment arise. In 2024, we voluntarily changed our annual goodwill impairment testing date from December 31 to October 1, a change in accounting principle applied prospectively from October 1, 2024.

When a quantitative impairment test is required, we compare the carrying value of each reporting unit with its estimated fair value. Fair value is determined using an income approach model that discounts expected future cash flows at a risk-adjusted rate. The discount rate reflects a market participant's view of fair value given current market conditions, expected rate of return, capital structure, debt costs, and peer comparisons. Cash flows beyond the explicit forecast period are estimated using a terminal value approach, where operating cash flows net of capital expenditures and working capital changes are discounted to present value. The terminal value is included in the fair value estimate.

Goodwill was tested for impairment at the reporting unit level and no impairment was recognized for the years ended December 31, 2024 and 2023.

***Internal-Use Software***

We capitalize certain costs incurred in developing our cloud-native internal-use software (platform) in accordance with ASC 350-40. Judgment is required in distinguishing between preliminary project and application development stages. Costs related to conceptual formulation and design are expensed as incurred. Capitalization begins once the preliminary stage is complete and it is probable the project will be completed and placed into service.

Application development costs include configuration, coding, installation, and testing of software. The amount of capitalized cost is based on estimates of time spent by internal developers and consultants on qualifying projects. Judgment is required in allocating time to projects in the application stage. Capitalization ends once substantial testing is complete.

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Post-implementation maintenance costs are expensed as incurred. Amortization of capitalized internal-use software begins when the software is placed in service and is based on its estimated useful life. We review the useful lives annually and test for impairment when events or circumstances indicate potential non-recoverability.

***Fair Value of Financial Instruments***

Fair value is defined as the price that would be received to sell an asset or would be paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. Fair value measurements are not adjusted for transaction costs. The recognition of discounts for large holdings ("block discounts") of unrestricted financial instruments where quoted prices are readily and regularly available in an active market is prohibited. See Note 2 "Significant Accounting Policies" in the notes to our audited consolidated financial statements and Note 2 "Significant Accounting Policies" in the notes to our unaudited condensed consolidated financial statements included elsewhere in this prospectus for additional information.

We categorize our financial instruments into a three-level hierarchy, which prioritizes observable inputs to valuation techniques used to measure fair value. The hierarchy level assigned to each measurement is based on the assessment of the transparency and reliability of the inputs used in the valuation, based on the lowest level of input that is significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). Financial instruments measured and reported at fair value are classified and disclosed in one of the following categories based on inputs:

Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;

Level 2 — Quoted prices in markets that are not active and financial instruments for which all significant inputs are observable, either directly or indirectly; or

Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. When there is more than one input at different levels within the hierarchy, the fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Assessment of the significance of a particular input, to the fair value measurement in its entirety, requires substantial judgment and consideration of factors specific to the asset or liability. Level 3 inputs are inherently difficult to estimate. Changes to these inputs can have a significant impact on fair value measurements. Assets and liabilities measured at fair value using Level 3 inputs are based on one or more of the following valuation techniques: market approach, income approach, or cost approach.

Transfers in or out of levels are recognized based on the beginning fair value of the period in which the transfers occurred. For the years ended December 31, 2024 and 2023, there were no transfers into or out of level 3.

***Common Stock Valuations***

As there has been no public market for our equity until the completion of this offering, the estimated fair value of our common stock underlying our equity-based compensation awards has been

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determined by our Board of Directors, with input from management, based on valuations prepared by an independent third-party valuation firm. These third-party valuations were performed using generally accepted valuation approaches for determining the equity value, specifically income and market approaches. The income approach utilizes the discounted cash flow method. The market approach was the guideline public company analysis. These approaches require the use of assumptions regarding, among other factors, appropriate peer group selection, revenue and earnings projections, market multiples, and discount rates. The discount rate represents the weighted average cost of capital, which is reflective of the market participant's view of fair value given current market conditions, expected rate of return, capital structure, debt costs, and peer company comparisons. Because these inputs involve inherently uncertain estimates of future performance and market conditions, changes in these assumptions could materially affect the resulting enterprise fair value.

The resulting estimated enterprise fair value of our business is then allocated to each class of stock using the Option Pricing Method ("OPM"), Current Value Method, or a hybrid of the Probability Weighted Expected Return Method ("PWERM"), and OPM. In valuing our common stock, we utilized a hybrid of the OPM and the PWERM. Using the PWERM, a probability-weighted analysis of values for our common stock was estimated assuming possible future events for our Company, including a scenario assuming we become a publicly traded company and a scenario assuming we continue as a privately held company. A discount for lack of marketability was applied to the resulting per share value to arrive at the fair value of our common stock on a non-marketable basis.

These approaches involve the use of estimates, judgment, and assumptions that are highly complex and subjective, including, but not limited to, the expected term of the awards, the stock price volatility over the term of the awards, risk-free interest rate, dividend yield, the timing of events, the probability of possible future events, and assumptions around the discount for the lack of marketability. Changes in any or all of these estimates and assumptions, or the relationship between those assumptions, impact our valuations as of each valuation date and may have a material impact on the valuation of our common stock.

In accordance with the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation, our Board of Directors exercised reasonable judgment and considered numerous objective and subjective factors to determine the best estimate of the fair value of our common stock. These factors included, but were not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our results of operations and financial position, including our levels of available capital resources,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our business conditions and revenue and cost projections including growth rates,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The lack of marketability of our common stock,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The valuation, operational and financial performance of comparable publicly traded guideline companies,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The likelihood of achieving a liquidity event, such as an initial public offering or sale of our Company, given prevailing
market conditions, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Trends, developments and conditions in our industry.

Following this offering, it will not be necessary to estimate the fair value of our common stock, as our shares of common stock will be traded in the public market.

***Equity-Based Compensation***

Our RSUs and stock options time-vest in tranches over certain time periods (most commonly four years), as dictated in the RSU and Stock Option Agreements between us and each Participant (as

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defined in the 2021 Plan). In addition to the time-vesting condition, certain of our RSUs and stock options also contain a performance-vesting condition, which requires a liquidity event to occur in order for the RSU and stock options to fully vest. The performance condition was not deemed probable at any point from inception of the 2021 Plan. Accordingly, no compensation expense was recognized for these awards for the nine months ended September 30, 2025 and 2024. No compensation expense will be recognized until a liquidity event is probable, at which time we will recognize a cumulative catch up of share-based compensation expense equal to the portion of RSUs and stock options that have fully time-vested. For awards that do not contain a performance condition, we measure and recognize the cost of equity-based compensation, based on the grant date fair value of the award and recognize the expense on a straight-line basis over the vesting period. For awards that contain performance conditions, we will recognize the compensation cost using the graded vesting method once fully vested. The majority of our equity awards have a performance-vesting condition. We have elected to recognize forfeitures as they occur.

As discussed above, we estimate the fair value of the RSUs using generally accepted valuation methodologies that involve the use of estimates, judgment, and assumptions that are highly complex and subjective. We estimate the fair value of stock options on the grant dates using the Black-Scholes option-pricing model. The determination of the fair value using these option-pricing models is affected by a number of complex and subjective assumptions. These assumptions include, but are not limited to, the fair value of total equity or common stock, the expected term of the awards, the expected stock price volatility over the term of the awards, risk-free interest rate, and dividend yield.

See Note 11 "Equity-Based Compensation" in the notes to our audited consolidated financial statements and Note 11 "Equity-Based Compensation" in the notes to our unaudited condensed consolidated financial statements included elsewhere in this prospectus for additional information on assumptions used.

**Recent Accounting Standards** 

See Note 2 "Significant Accounting Policies" in the notes to our audited consolidated financial statements and Note 2 "Significant Accounting Policies" in the notes to our unaudited condensed consolidated financial statements included elsewhere in this prospectus for a description of recently adopted and recently issued accounting standards.

**Emerging Growth Company Status** 

The JOBS Act permits an "emerging growth company" such as us to delay the adoption of new or revised accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of some or all of these reduced disclosure requirements, and in the future, we may take advantage of any or all of these exemptions for so long as we remain an emerging growth company. We will remain an emerging growth company until the earliest of (i) the end of the fiscal year during which we have total annual gross revenue of $1.235 billion (as adjusted for inflation pursuant to SEC rules from time to time) or more, (ii) the end of the fiscal year following the fifth anniversary of the completion of this offering, (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt, or (iv) the date on which we are deemed to be a "large accelerated filer" under the Exchange Act, which would occur if the market value of our common stock held by non-affiliates exceeded $700.0 million as of the last business day of the second fiscal quarter of such year.

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**QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK** 

Market risk represents the risk of loss that may impact our financial position because of adverse changes in financial market prices and rates. Our market risk exposure is primarily through our broker-dealer trading operations. We manage market risks through various mitigating controls, and our approach to risk management generally is both prudent and adaptive. We may use certain derivative financial instruments as a risk management tool and not for speculative or trading purposes. We believe we are not subject to any material interest rate risk, equity price risk, credit risk or other market risk.

We operate an integrated, firm-wide risk management framework designed to identify, assess, and control risk at every stage of the trade lifecycle. Our platform integrates risk management directly into its cloud-native architecture, enabling unified measurement and consistent controls across all business lines. Our approach is guided by three core principles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Real-time monitoring: Our proprietary systems monitor counterparty, market, credit, and liquidity risk intraday and in
real time,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Automation and scalability: We leverage automated credit models, quantitative stress testing, and scalable risk services
that allow us to process millions of data points per minute and adapt to volatility across markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transparency and accountability: We embed risk oversight into client onboarding, product launches, and daily trading,
ensuring that governance and controls keep pace with the expansion of our platform.

Our proprietary risk management stack combines modern financial engineering with deep expertise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Credit assessment: Internal counterparty ratings are generally analyzed using counterparty financials systematically.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Unified risk metrics: Integrated credit and market risk models provide a consistent view of exposures across businesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Intraday stress testing: Our risk management system detects trading activity outside of our preset limits where hundreds
of scenarios run every minute across positions and platforms and will notify risk management personnel and management with risk alerts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Margin framework: Real-time portfolio margin across clients and drill-down tools enable risk managers as well as our end
clients to efficiently understand and manage requirements transparently.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Liquidity Preparedness: Continuous monitoring of client collateral, concentration risks, and funding exposures are
supported by protocols for orderly liquidation in stressed environments.

Financial markets are vulnerable to significant disruptions, often marked by sharp declines in asset values and reduced asset liquidity. In such extreme scenarios, hedging and other risk management strategies may not effectively mitigate trading losses compared to their effectiveness in more stable market conditions. Additionally, during these turbulent times, market participants face heightened exposure due to the widespread and large-scale trading strategies employed by many, which can increase individual counterparty risk for our businesses. While our risk management and monitoring processes aim to quantify and reduce exposure to extreme market fluctuations, predicting severe market events remains challenging, and substantial losses could occur if such events were to take place.

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We may enter into underwriting commitments and, as a result, be subject to market risk on any committed but unsold shares issued in the offerings. We control this risk exposure by limiting our participation, limiting the transaction size or through a syndication process.

Our ability to obtain additional capital, if and when required, will depend on our business plans, investor demand, our operating performance, market conditions, our credit rating and other factors, and we may not be able to raise needed cash on terms acceptable to us or at all. Failure to secure any necessary financing in a timely manner and on favorable terms could have a material adverse effect on our growth strategy.

***Credit Risk***

Clients are evaluated and approved for margin lending pursuant to our comprehensive onboarding and risk assessment framework. This process includes a portfolio risk assessment, credit risk assessment, legal review, anti-money laundering and compliance review, and treasury review. Margin lending eligibility is granted only after all applicable reviews have been satisfactorily completed.

Margin loan amounts and margin requirements are determined based on the risk profile of each client's portfolio. We offer both strategy-based and portfolio risk-based margining methodologies, each incorporating defined leverage limits and margin parameters designed to manage market, liquidity, and concentration risks. Margin requirements are calculated and monitored on an ongoing basis and may be adjusted in response to changes in portfolio composition, market conditions, or the client's risk profile.

We seek to control risks associated with client activities by requiring clients to maintain margin collateral in compliance with applicable regulatory, exchange, and internal guidelines. Required margin levels are monitored daily, and clients may be required to deposit additional collateral or reduce positions when necessary. Eligible collateral includes cash and securities, with applicable margin requirements and coverage levels varying based on the type, liquidity, volatility, and concentration of the collateral provided. Collateral eligibility criteria and valuation haircuts are applied to reflect the risk characteristics of the collateral and to help ensure sufficient coverage under stressed market conditions.

***Interest Rate Risk***

Our exposure to changes in interest rates primarily relates to net financing revenues earned on our interest-bearing client and counterparty balances. While net financing revenues are affected by various factors such as the distribution and composition of interest-bearing balances, our net financing revenues are primarily generated from the spread we earn on financing transactions rather than the absolute level of interest rates. Because both the rates we charge clients or counterparties and the rates at which we fund client or counterparty balances are generally indexed to the same reference rate, such as the Overnight Bank Funding Rate, rapid and substantial increases or decreases in interest rates would not proportionally increase or decrease our net financing revenues. Based on total interest-bearing client and counterparty balances of $56.1 billion as of September 30, 2025, an unexpected change in short-term interest rates of 100 basis points would result in an increase or decrease in income before income taxes of approximately $13.7 million on an annual basis. Based on total interest-bearing client and counterparty balances of $47.0 billion as of December 31, 2024, an unexpected change in short-term interest rates of 100 basis points would result in an increase or decrease in income before income taxes of approximately $5.1 million on an annual basis. Actual impacts may vary depending on interest rate levels and the significance of change.

We also have exposure to changes in interest rates related to our variable-rate credit facilities. However, as there were no outstanding borrowings under our Facilities as of September 30, 2025 and

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2024, we did not have any financial exposure associated with changes in interest rates as of such dates, under our Facilities. Our borrowings under our senior unsecured notes are subject to an upwards interest rate adjustment in the event of a downgrade in our credit rating below a specified minimum threshold. As of September 30, 2025 and 2024, our credit rating remained above the specified threshold.

***Security-Based Swaps***

Our policy is to mitigate our market risk exposure on security-based swaps through the purchase or sale of the corresponding underlying securities. As a result, we are not exposed to material market risk on our security-based swaps, other than due to potential operational or trading errors that may occur. We monitor our exposures daily to ensure that open positions remain appropriately hedged. For the nine months ended September 30, 2025 and 2024, we recognized a net trading gain (loss) of $(0.1) million and $(0.2) million, respectively, related to our net exposure to security-based swaps. For the years ended December 31, 2024 and 2023, we recognized a net trading gain (loss) of less than $(0.1) million and less than $0.1 million, respectively, related to our net exposure to security-based swaps.

In connection with our security-based swap dealer activities, we enter into transactions in a variety of securities and derivative financial instruments, including exchange-traded equity options and other instruments used for funding or additional hedges to mitigate the risk related to extreme adverse market moves. Options held provide us with the opportunity to deliver or take delivery of specified financial instruments at a contractual price. Options written obligate us to deliver or take delivery of specified financial instruments at a contractual price in the event the option is exercised by the holder.

***Futures Contract Transactions***

In the normal course of business, we also engage in transactions involving futures and options on futures contracts, both on behalf of our clients and for our own account. Proprietary trading activity is constrained and segregated from client activity. In margin transactions, we extend credit to our clients, subject to various regulatory and internal margin requirements, collateralized by cash and securities in the clients' accounts. Such transactions may expose us to significant off-balance-sheet risk in the event margin deposits are not sufficient to fully cover losses that clients may incur. In the event margin deposits are not sufficient to satisfy its obligations, we may be required to purchase or sell financial instruments at prevailing market prices to fulfill the client's obligation.

The purchase and sale of futures contracts requires margin deposits with an FCM. The Commodity Exchange Act requires an FCM to segregate all client transactions and assets from the FCM's proprietary activities. A client's cash and other equity deposited with an FCM are considered commingled with all other client funds subject to the FCM's segregation requirements. In the event of an FCM's insolvency, recovery may be limited to our pro rata share of segregated client funds available. It is possible that the recovery amount could be less than the total cash and other equity deposited.

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**BUSINESS** 

**Our Mission** 

***Clear Street's mission is to give every sophisticated investor access to every asset, in every market, through a unified platform built for speed, transparency and scale.***

We give our clients the technology, tools, and service once reserved for the largest institutions, rebuilt with modern infrastructure. Our single, cloud-native, end-to-end capital markets platform powers investor growth today and is transforming how they can interact with markets tomorrow.

**Business Overview** 

Capital markets are the greatest engine of wealth creation in the world, with trillions of dollars and billions of trades moving through them every day.

Today, all but the largest investors are constrained by legacy capital markets infrastructure built decades ago. We believe that the vast majority of sophisticated investors are caught in between, too complex for retail and self-directed platforms, but not prioritized by global incumbents. As a result, these sophisticated investors typically hold excess capital and devote significant time and resources to managing fragmented workflows, from funding and risk management, to reconciliation and reporting – leaving capital trapped instead of invested for growth.

Because every activity runs on one platform rather than across multiple systems, we have observed that adoption compounds naturally. Clients benefit from faster onboarding, more efficient financing, and deeper integration. In addition, our single real-time ledger captures a record of all client activity on the platform, which forms a differentiated dataset that provides deep insights into market activity and risk levels. As client activity scales and is captured by our ledger, our dataset is further enriched, which sharpens our risk models and supports more efficient uses in capital. This in turn creates a self-reinforcing cycle of growth and defensibility that makes the platform increasingly difficult for competitors to replicate.

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Our infrastructure underpins every client interaction and allows us to expand functionality without rebuilding or duplicating systems. Our cloud-native platform enables clients to trade, manage risk, and finance activity across asset classes, financial instruments and geographies through a modular, connected suite of proprietary applications. Studio, the client interface of our platform, unifies access to these applications—providing a single environment through which clients interact with our infrastructure via a Clear Street web interface or through Clear Street APIs. Applications form the functional layers of our platform by transforming client activity into value. All applications draw from the same real-time dataset and connect directly to counterparties, exchanges, and clearing houses globally turning trading, risk, and financing into one unified platform. Together, they span the full lifecycle of a trade:

![LOGO](g39893g59h53.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Trading and Execution.** Clients can trade by utilizing our **EMS application** or by connecting directly to
our infrastructure through the Financial Information Exchange connectivity protocol ("FIX") or our APIs. These enable clients to send electronic trade orders directly to executing brokers, trading algorithms, exchange or trading
venues. Clients may also choose to engage our high-touch trading desk, where experienced market professionals provide tailored trading strategies, source liquidity across venues, and advise on complex or sensitive trades. This service enables
clients to leverage our market expertise and relationships to optimize outcomes that may not be achievable through fully electronic trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Clearing and Custody applications** handle settlement, recordkeeping, and safekeeping of client assets, ensuring
trades are processed accurately, positions and collateral are reconciled, and assets remain protected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Risk and Margin applications** then calculate exposure and capital requirements in real time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Portfolio Management and Analytics applications** provide a single view of performance and positions across
accounts, asset classes and financial instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Lifecycle Management applications** automate post-trade events such as option exercises, option expiry, assignments,
and other corporate actions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Financing and Stock Loan applications** handle funding and securities lending, helping clients finance positions,
optimize collateral, facilitate shorts, and generate yield.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other **Operational Workflow and Compliance applications** facilitate the entire end-to-end trade lifecycle, including
regulatory reporting, reconciliation, trade surveillance, account onboarding, account master, security master, and pricing.

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Clients have the optionality of utilizing the entire suite of applications, or selecting specific capabilities based on their needs. These applications also support various asset classes and financial instruments, including equities, options, futures, security-based swaps, foreign exchange, fixed income, and a select number of digital assets. We also build specialized applications on the same infrastructure to support new markets and client needs, extending the platform without duplicating technology stacks. For example, clients can leverage our algorithmic trading models to reduce trading costs.

Our dataset is continuously updated based on activity occurring on the platform and feeds of activity across markets. This includes trade activity on asset classes and financial instruments, security and pricing data across venues and counterparties, corporate actions, options exercise instructions, clearing transactions, payment flows, news feeds, volatility surfaces, balance movements, onboarding activity and more. This data provides our clients and us intelligence to optimize risk and collateral management and identify opportunities for new trade and product ideas.

Today our platform serves Individuals, Institutions, Intermediaries, and Corporates. All of these market participants are impacted by legacy infrastructure's costly and fragmented processes. Because every one of our clients runs on our single platform, regardless of which applications they choose to use, we believe we can serve a broader range of clients, more profitably, than our competitors.

We generate revenue primarily across two categories: net financing and transactions. Net financing revenues are primarily generated by our financing, stock loan and custody applications and include (i) net financing generated from customer margin debit, credit and short balances associated with equities, options, futures, and fixed income positions, as well as net financing generated from security-based swaps in equities. Transaction revenues are primarily generated by our trading, execution, and clearing applications and include (i) commissions, clearing fees and locate service fees, (ii) investment banking income, and (iii) client pass-through fees. See also "Management's Discussion and Analysis of Financial Condition and Results of Operations" for more information. For the month of September 2025, our platform supported more than $31.3 billion in daily trading activity. As of September 30, 2025, our platform supported more than $17.2 billion in interest-bearing client balances, clearing approximately 3.8% of the U.S. equity market based on quantity traded. For the nine months ended September 30, 2025, we generated $783.7 million in revenue, representing 160% year-over-year growth, and $157.2 million in net income. For the year ended December 31, 2024, we generated $463.6 million in revenue, representing 137% year-over-year growth, and $89.1 million in net income. In total, our clients traded more than $4 trillion across equities and other asset classes and financial instruments through our platform in 2024, averaging 50 million transactions per month. For the nine months ended September 30, 2025, our clients traded more than $5 trillion across equities and other asset classes and financial instruments through our platform, with approximately 90 million transactions in September 2025. We estimate a $128 billion market opportunity with the platform we have in the market today, and a $182 billion market opportunity across asset classes, financial instruments, applications, geographies and new client personas on our roadmap.

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Clear Street's platform gives us three core competitive advantages:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Client-driven.** A single view of each client allows us to anticipate needs, provide high quality tailored
service and empower growth opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Speed.** We launch new asset classes, financial instruments and applications in months rather than years,
without duplicating technology stacks or requiring capital-intensive builds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Scale and Reliability.** Our cloud-native platform expands dynamically with market activity, is designed to
power any market in real time. For example, we architected our platform to be able to clear the full U.S. equity-market volume, the largest and most liquid market globally.

Since our architecture is designed to extend quickly into new asset classes, financial instruments, applications, geographies, and client personas, our infrastructure is the foundation for continued expansion and growth.

Other industries have already shifted to cloud-based, data-centric platforms that operate in real or near real-time. Cloud computing providers such as AWS have transformed how companies deploy technology by offering flexible, scalable resources on demand. Snowflake has demonstrated how a unified data architecture can eliminate silos and enable secure data collaboration across organizations in near real-time. Stripe has shown how payments can be simplified through modern APIs that abstract away legacy complexity while creating compounding network effects as adoption grows.

By contrast, capital markets infrastructure has not undergone the same transformation. As a result, capital markets remain one of the last major industries not yet rebuilt around modern, real-time platforms.

We believe we will define the next era of global capital markets. We see a future where global capital markets run in real time on unified infrastructure, data replaces legacy manual processes, access replaces hierarchy, and efficiency compounds for every participant. That future is Clear Street.

**The Challenge of Legacy Infrastructure** 

Capital markets power global economic growth worldwide. Yet they still operate on infrastructure that was built decades ago. Every trade passes through multiple intermediaries, including brokers, ATSs, exchanges, clearing houses, and custodians, each maintaining its own record and often relying on additional third-party systems. The result is staggering operational complexity, leaving investor capital locked in processes instead of capturing opportunity. These inefficiencies stem from decades-old architecture that was never designed to meet modern market demands and creates structural delays. With legacy code bases supported by a small and declining pool of specialized engineers, there are significant challenges for long-term maintenance and upgrades. Providers often struggle to see their risk exposure in real time, and this lack of visibility has historically contributed to large-scale counterparty losses across the industry. For sophisticated market participants, exposures and balances are not visible in real time. As a result, firms must post excess collateral and maintain higher minimum balances to manage risk.

**Industry Trends are Expanding Market Scale and Complexity** 

The scale and complexity of market activity has continued to expand across hundreds of thousands of instruments, multiple currencies, and global regions, making it even harder for legacy systems to adapt. Banks and service providers face complex regulatory capital requirements, competing internal priorities, and reliance on third-party vendors that slow the pace of upgrades. Post-crisis reforms such as Basel III and Dodd-Frank continue to require financial institutions to raise capital buffers, which often led them to scale back technology investment.

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***Rising Volume, 24/7 Markets, and Capital Inefficiencies***

The OCC reported 12.2 billion options contracts cleared in 2024, representing greater than 10% growth over the prior year. EquiLend recorded $9.6 billion in global securities-lending revenues in 2024, with $1.2 billion generated in a single month in 2025, marking a 47% increase year-over-year.

Liquidity is increasingly continuous: Blue Ocean and other alternate trading systems venues already support overnight trading, with approvals pending at major exchanges. As investors demand access to trade at all times, manual, after-hours reconciliation becomes even more of a detriment. Infrastructure will need to evolve to meet increasing uptime.

At the same time, financing costs are rising. In June 2025, FINRA reported that U.S. margin debt now exceeded $1 trillion, amplifying systemic risk. Because risk and exposure data are not visible in real time, firms over-allocate collateral as a safeguard — draining liquidity, depressing returns and raising opportunity costs.

***Emerging Asset Classes, Financial Instruments and Flows From New Investors***

The growth of new asset classes and financial instruments, such as digital assets, creates new opportunities for capital markets participants. CoinMarketCap reported the global digital market reached over $4.1 trillion in market capitalization with $197.0 billion in trading volume in September 2025, representing 113% growth in market capitalization year over year and approximately 356% growth in trading volume. While institutional demand for these new asset classes and financial instruments is growing, legacy systems currently cannot support capabilities for 24/7 trading and near-instant settlement. To fill the gap, institutions have turned to small companies with point solutions serving digital asset markets. Traditional capital markets firms still depend on slow, end-of-day processing, while newer digital asset firms can offer flexible technology but often lack the scale, safeguards, and regulatory standards that large investors require. In addition to the emergence of new asset classes, generational wealth transfer is also reshaping global asset allocation. Cerulli Associates estimates approximately $84 trillion of wealth will transfer in the United States through 2045. Much of this capital is expected to flow into the capital markets, where younger generations are using new technologies to access the capital markets and allocate across a broader spectrum of asset classes, financial instruments and investment strategies.

Finally, capital markets are becoming more globalized, as foreign investors increasingly invest in the United States. As of June 2024, the U.S. Treasury reported that foreign investors held 33% of U.S. Treasuries, 27% of corporate debt, and 18% of U.S. equities. In addition, the allocation of U.S. securities in foreign investors' portfolios has increased from 23% in 2009 to 55% in 2024.

The rise of new asset classes, financial instruments, the generational transfer of wealth, and the globalization of capital flows are transforming the scale, diversity, and velocity of market activity. A new generation of investors is allocating across borders, strategies, and instruments that legacy systems were never built to support, while global investors expect real-time access and transparency. Together, we believe these shifts make clear the need for modern, unified infrastructure that can support the next era of global market participation.

***Shifts in Portfolio Construction and Investment Decisioning***

Portfolio management practices are shifting away from static allocations toward more dynamic, continuous rebalancing, as leading investors increasingly adjust exposures in real time, integrate risk views across geographies, and account for tax and capital requirements. PricewaterhouseCoopers reports that 73% of asset and wealth managers expect AI to be the most transformational force in

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portfolio management over the next three years. Deloitte reports that by 2030, the global revenue generated by alternative-data providers across all industries expect to compound annually at a growth rate of 53%, reaching $137 billion as new datasets are integrated into investment strategies. These shifts in portfolio construction and investment decisioning require access to clean, normalized and real-time data to be effective.

Together, these trends show the expanding breadth and depth of global capital markets, which we believe create increased demand for modern infrastructure embedded with sophisticated applications that can support all asset classes, financial instruments and geographies.

**The Structural Divide in Capital Markets** 

The combined effect of outdated infrastructure, rising scale and complexity, and shifting market dynamics creates structural flaws in the system that do not fall evenly across participants. They concentrate advantages at one end of the spectrum and offer simplified access at the other. Clear Street was founded to serve a significant segment caught in between—the sophisticated investors outside the largest clients of the global incumbents. Their needs are too complex for retail platforms and self-directed platforms, but they are not large enough to receive priority from global institutions or to insource modern technology solutions.

***The Access Gap in Capital Markets***

For large incumbents, serving a broad set of sophisticated investors would require significant technology and service resources that are uneconomic to extend beyond their largest accounts. This leads to them concentrating their resources on their biggest, most profitable clients, giving this group of investors structural advantages that make it both easier and cheaper to compete. These investors borrow at lower cost and post less collateral, benefiting from favorable margin treatment. They gain reach across asset classes, financial instruments and geographies, with the ability to trade equities, options, futures, security-based swaps, foreign exchange and fixed income on a global basis. Their capital is deployed more efficiently, since collateral posted in one asset class or financial instrument can be used to support positions in another. These large clients are also prioritized in capital markets transactions, securing allocations in initial public offerings, secondary offerings, and other deals ahead of smaller firms. In addition, they benefit from proprietary technology platforms specifically developed to support their trading and risk management needs.

***Self-Directed Professional Platforms***

Between large institutions and retail platforms are providers designed for self-directed sophisticated traders. These firms offer broader access than retail accounts and have attracted millions of active traders and funds, validating the size and importance of this community. However, their reliance on legacy infrastructure and self-service models leaves significant gaps. Older technology stacks limit real-time visibility and scalability. Minimal client support forces clients into self-directed troubleshooting. Functionality is broad but shallow, covering multiple asset classes, and financial instruments without providing the financing, capital efficiency, or institutional-grade risk tools required to scale.

***Mass Retail Platforms***

At the other end of the spectrum, retail-focused platforms have proven the strong demand for broad access. Their growth demonstrates that technology can lower barriers, yet their systems are designed for simplicity and scale rather than complexity. These platforms rely on standardized, account-based models that allow millions of users to participate but offer little flexibility for complex

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fund structures or tailored financing. Service is primarily automated and low touch. This may be adequate for individuals but does not meet the needs of firms that require responsive engagement. Financing and leverage tools are expensive and restricted, often capped at basic margin levels, limiting sophisticated strategies that depend on capital efficiency.

These limitations show that the sophisticated investor community is both commercially meaningful and underserved, with needs that remain unresolved by existing providers. The sophisticated investors who are underserved illustrates the challenge most clearly, but the opportunity extends further. High-net-worth individuals, emerging hedge funds, large multi-manager platforms, ETF issuers, broker-dealers, market makers, and corporates all face the same limitations when operating on outdated infrastructure.

***Market Inflection***

Market structure is reaching an inflection point. Technology and service resources are expensive to implement and maintain, self-directed platforms provide limited functionality, retail-focused platforms do not offer dedicated client support, and shorter settlement cycles and new transparency requirements are all exposing the limits of legacy systems. Firms that adopt modern infrastructure have an opportunity to pull ahead of those still constrained by older infrastructure.

**Market Opportunity** 

We believe our long-term opportunity is to support any sophisticated investor that needs to access global capital markets, across all asset classes, financial instruments and geographies. Today, we have only begun to serve the market, and we believe we are well positioned to capture a greater share of it.

We estimate our SAM at approximately $128 billion in annual revenues. This estimate is based on the client personas we can serve with the current applications, asset classes and financial instruments that our platform supports today in the geographies we can currently service. We estimate our TAM at approximately $310 billion in annual revenues. The estimated incremental $182 billion opportunity reflects additional pools of revenue that we believe we can access based on our current growth roadmap as we expand into additional applications, asset classes and financial instruments, client personas and geographies. Compared to our revenue of $783.7 million and net income of $157.2 million in the nine months ended September 30, 2025 and our revenue of $463.6 million and net income of $89.1 million in the year ended December 31, 2024, we believe that there is significant untapped opportunity to grow within both our SAM and our TAM.

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![LOGO](g39893g00x77.jpg)

1 SAM is based on publicly available trading volumes across serviced assets and client personas multiplied by applicable fees.

2 TAM is based on publicly available trading volumes across addressable assets and client personas multiplied by applicable fees. For markets and asset classes not currently served by Clear Street, we relied on industry research and management estimates.

To estimate the size of our addressable markets, we analyzed global capital markets activity across the asset classes, financial instruments and applications we serve today and those we intend to support through applications currently in development, along with the investment banking fees earned on equity and debt issuances and advisory. We considered trading volumes, financing balances across these asset classes and financial instruments. We then evaluated this activity across our four client personas—Individuals, Institutions, Intermediaries, and Corporates—and applied estimated pricing in basis points to calculate estimated annual revenues for the markets we currently serve. The pricing applied was derived from Clear Street's actual pricing and representative industry benchmarks. For markets not currently served by Clear Street, we relied on industry research and management estimates. Together, these analyses produced our SAM and TAM estimates.

We estimate our SAM to be approximately $128 billion in annual revenues. This reflects the potential revenue opportunity for Clear Street's platform. It spans the applications we provide today, such as trading and execution, the asset classes and financial instruments we serve today, including equities, options, futures, securities-based swaps, foreign exchange, fixed income, and the client personas we currently serve, including Individuals, Institutions, Intermediaries, and Corporates. Our SAM encompasses activities across such applications, asset classes and financial instruments and client personas in the geographies we currently operate in, which is primarily the United States, as well as, to a lesser extent, Canada, Israel and the United Kingdom.

We estimate that our SAM consists of approximately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $26 billion annual revenue opportunity with Individuals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $60 billion annual revenue opportunity with Institutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $20 billion annual revenue opportunity with Intermediaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $22 billion annual revenue opportunity with Corporates.

We believe there are significant opportunities for growth across all of these client personas, as we continue to win clients from competitors and as our technology enables new participants to access the capital markets.

We estimate our TAM to be approximately $310 billion in annual revenues. This consists of our $128 billion SAM plus $182 billion in adjacent opportunities. These adjacent opportunities include, among other opportunities, the expansion of our client personas, such as wealth managers, an estimated $27 billion opportunity if we were to deploy our current capabilities to wealth managers today; the expansion of our applications into subscription-based revenue models, an estimated $25 billion opportunity if we were to launch subscription-based revenue models to current and future client personas; and the expansion of our asset classes and financial instruments to include digital assets, an estimated $18 billion global opportunity based on our current client base. By geography, if we were to launch our existing capabilities, asset classes and financial instruments in new jurisdictions to current client personas, our total adjacent opportunities are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Continuing growth in North America, an estimated $47 billion opportunity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expanding into South America, an estimated $13 billion opportunity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expanding into Europe, the Middle East, and Africa, an estimated $66 billion opportunity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expanding into Asia-Pacific markets, an estimated $56 billion opportunity.

We are in the early stages of growth within these adjacent markets. We believe they represent highly attractive opportunities for Clear Street over the long term.

**Built With Differentiated Technology** 

Our platform is the result of years of engineering effort, regulatory approvals, and rigorous testing. Since 2023, we have added more than 200 engineers and have assembled more than 350 engineers as of September 30, 2025 across software, hardware and infrastructure disciplines from leading technology and financial firms, representing over 40% of our total employees. This wealth of talent gives us the speed of a technology company, combined with the discipline of a financial institution.

We believe our technology approach gives us a structural advantage over competitors, predicated on major architectural decisions that align with our core competitive advantages:

**Client-Driven.** Existing providers typically maintain multiple ledgers across different business lines that must be reconciled, imposing a significant operational burden on their clients. This architecture makes real-time visibility difficult and induces latency that can extend to days or weeks. By contrast, Clear Street operates on a single real-time ledger with a unified view of positions, balances, and risk. This provides clients immediacy and accuracy, allowing them to use capital more efficiently and enabling us to serve them with greater precision.

**Speed.** With over 350 members of our team in engineering, we can design, test and launch new applications in months or weeks, compared to years for incumbents. Our modern platform also enables faster onboarding and allows us to respond quickly to changes in market conditions. Because our platform is cloud-native, we need far fewer infrastructure engineers than traditional firms and can focus on building value-creating applications.

**Scale and Reliability.** Our cloud-native architecture was designed to scale with client demand. Legacy providers often rely on fixed-capacity data centers, associated with large up front capital

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expenditure, and can face bandwidth constraints during periods of high activity. In contrast, we run on elastic compute through AWS, allowing us to dynamically expand capacity as markets evolve. Serving a two-person hedge fund requires the same infrastructure as serving a large multi-strategy manager, and our platform is engineered to directly scale for both. This design enables us to serve clients of all sizes with equivalent resilience and efficiency.

![LOGO](g39893g00x79.jpg)

Note: Figures as of September 30, 2025.

Our single-ledger architecture also normalizes data in real-time across trading, financing, and risk. This allows traders, portfolio managers, risk managers, and finance teams to operate from a single source of truth. This eliminates manual reconciliations, strengthens risk controls, and produces clean datasets for regulatory reporting and advanced analytics. We believe these advantages cannot be easily replicated by larger incumbents, as they are constrained by approval processes, inflexible architectures, and fragmented data systems that cannot be addressed by capital investment alone.

***Designed for Always-On Markets***

We process millions of transactions daily and are able to calculate margin and client portfolio profit and loss with full revaluations in seconds. Margin calculations run continuously on our platform, updating as client positions change. This gives clients immediate visibility into exposures and allows them to optimize capital more efficiently than on legacy platforms.

Continuous availability is essential for digital assets, which can be traded 24/7 and, once traded, settle almost instantly. Our infrastructure has been architected to support traditional asset classes and financial instruments and new asset classes and financial instruments, like digital asset classes, within the same unified system. We have already integrated digital asset functionality into our core technology, enabling financing, margin, and risk management across asset classes and financial instruments within a single margin pool. We have already extended our platform to support initial digital assets, such as Bitcoin, Ethereum and Solana internally, confirming our ability to expand beyond traditional assets classes and financial instruments. This integration demonstrates the versatility and extensibility of our platform in meeting evolving industry trends.

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***Reliability at Scale***

Our technology stack has delivered reliably across market cycles. For example, when the SEC mandated that U.S. financial markets transition to T+1 settlement in 2024, legacy providers were required to perform multi-year projects and manual workarounds to avoid disruption to their businesses. By contrast, our engineering team implemented the necessary adjustments to our technology within only a few weeks and effectively handled the increased activity resulting from T+1 settlement.

Our high uptime, measured as the percentage of time that our platform was operational and available to our clients, ensures that clients can access capital markets effectively throughout the entire day and during periods of market volatility, when real-time access to data matters most. For the three months ended September 30, 2025, we maintained 99.92% uptime across our platform. Continuous deployment of upgrades and new feature functionality ensures all of our clients can benefit from improvements as soon as they are released. For the nine months ended September 30, 2025, we deployed an average of 910 production releases per month, reaching a peak of 1,114 production releases in the month of May 2025, and daily release cycles. Because core functions are unified, almost all transactions on our platform are automated, which reduces operational risk and lowers costs. For the three months ended September 30, 2025, more than 99.93% of transactions on our platform were processed straight-through with no human-to-human interaction, representing the percentage of automated transactions to total transactions over that period.

Elasticity, which is the ability of our platform to automatically and dynamically adjust computing resources such as CPU and memory, is a foundational element of our platform enabling us to expand our services seamlessly as clients onboard and volume increases. As of September 30, 2025, we had approximately 840 services running in production and 1.8 Petabytes of data. The number of machine hosts, CPU cores and memory used increases and decreases based on activity as needed. As of September 2025, machine hosts scaled up and down between 300 – 2,300, CPU cores scaled between 7,000 and 47,000, and memory scaled between 26 Terabytes and 170 Terabytes. During the heightened market volatility in March and April 2025, daily volumes on our infrastructure doubled overnight while throughput expanded in parallel. Elastic compute, which we run through AWS, and a unified risk architecture scale automatically, maintaining continuity of service across all clients, including some of the world's largest market makers. During this period of heightened market activity, we expanded our share of U.S. equity clearing volume from approximately 3% to over 5%, demonstrating our agility compared to legacy providers.

Legacy providers face structural constraints that require re-engineering to achieve these advantages. Clear Street has already created an infrastructure foundation designed to support the evolving demands of global markets.

***Built for Artificial Intelligence***

We believe our cloud-based infrastructure and single-ledger architecture position Clear Street to support AI at scale and benefit from ongoing advances across the AI industry. We continuously refresh our dataset using real-time activity from the platform and across the broader market, including trading, security and pricing data, corporate actions, options exercise instructions, clearing and settlement events, payment flows, volatility surfaces, balances, onboarding, and other client activity. This creates a reliable, consistent, and up-to-date foundation for AI models, which we believe enables better risk and collateral management, faster insight generation, and new trade and product opportunities as we continually refresh our dataset. Through our tools we believe AI will transform the way investors discover opportunities, enable them to access more complex products, and provide a more efficient and delightful user experience.

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***Clear Street Studio***

Studio is the interface of our infrastructure. Studio enables clients to use their real-time data to power workflows throughout the investment lifecycle. These include order management, trade allocation, portfolio and risk management, reporting, and corporate actions, all surfaced through a single interface and integrating with other aspects of the Clear Street platform. Administrative tasks such as expiries and transfers are handled natively, reducing manual processes and giving clients real-time transparency.

Our clients can utilize Studio through either our proprietary user interface or our APIs. Our APIs allow clients to programmatically connect securely into our infrastructure from their own applications. By consolidating workflows into one environment, Studio is designed to unify the client experience, optimize financing, and increase balances on the platform.

***Awards and Recognition***

Clear Street has been recognized by both the financial services industry and independent evaluators. Select awards that we have earned include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In 2025, Clear Street was named by CNBC in The World's Top FinTech Companies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In 2025, Clear Street was ranked in the IDC FinTech Top 50

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In 2025, Clear Street won Trading & Execution Solution of the Year, and shortlisted for Risk Management Solution
of the Year by FOW International

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In 2024, Clear Street was named the Most Innovative Technology Firm at the HFM US Services Awards

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In 2024, Clear Street was named by CNBC in The World's Top 250 FinTech Companies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In 2024, Clear Street was named by IDC in FinTech Rankings Top 100 Emerging FinTech

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In 2024, Clear Street was named Best New Service—Fixed Income—by Traders Magazine

**Our Platform** 

Our architecture empowers us to support new asset classes and financial instruments and build proprietary applications that power the lifecycle of trading and financing.

***Applications***

Applications convert platform activity into value. Some generate direct revenue through transactions and financing, while others, including risk, treasury, operations, and reporting, do not currently monetize but enhance efficiency and deepen client adoption and retention. Together, they demonstrate how our architecture translates client activity into revenue, data and defensibility.

We proved this architecture in U.S. equities by launching applications for transactions and financing, the two most fundamental functions of capital markets, and then adding supporting applications around these capabilities.

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![LOGO](g39893g82a82.jpg)

***Trading and Execution.*** Clients trade by utilizing our EMS application or by connecting directly to our infrastructure through FIX or our APIs. These enable clients to send electronic trade orders directly to executing brokers, trading algorithms, exchange or trading venues. Clients may also choose to engage our high-touch trading desk, where experienced market professionals provide tailored trading strategies, source liquidity across venues, and advise on complex or sensitive trades. This service enables clients to leverage our market expertise and relationships to optimize outcomes that may not be achievable through fully electronic trading.

***Clearing and Custody.*** Clearing and Custody applications handle settlement, recordkeeping, and safekeeping of client assets, ensuring trades are processed accurately, positions and collateral are reconciled, and assets remain protected. Their direct integration into our infrastructure reduces third-party dependency and gives clients continuous visibility into holdings, liquidity, and risk.

***Risk and Margin.*** Risk and Margin applications calculate exposure and capital requirements continuously. Real-time visibility allows clients to optimize their risk exposure and manage their capital and collateral efficiently, while the data generated improves our own risk models and margin efficiency.

***Portfolio Management and Analytics.*** Portfolio Management and Analytics applications provide a unified view of performance and positions across accounts, asset classes, and financial instruments. By consolidating this data, clients can manage portfolios dynamically and act on insights instantly.

***Lifecycle Management.*** Lifecycle Management applications automate post-trade events such as option exercises, assignments, expiries, and corporate actions. Automation minimizes operational risk and reduces manual processing.

***Financing and Stock Loan.*** Financing and Stock Loan applications manage funding and securities lending, enabling clients to finance positions, optimize collateral, facilitate shorts, and generate yield.

***Operational Workflow and Compliance.*** These applications facilitate the end-to-end trade lifecycle, enhancing operational efficiency and ensuring regulatory compliance, including client reporting, regulatory reporting, reconciliation, trade surveillance, account onboarding, account master, security master, and pricing. These functions deepen adoption and retention by embedding efficiency, compliance, and reporting directly into the same platform.

Where appropriate, we integrate third-party applications to accelerate market entry or complement non-core functions, rebuilding those capabilities within our own platforms as they become strategic.

Today, these applications support various asset classes and financial instruments, including equities, options, futures, security-based swaps, foreign exchange, fixed income, and a select number

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of digital assets. Each new asset class or financial instrument requires applications tailored to its market structure, but all are built on the same infrastructure. This repeatable, modular approach enables rapid expansion into new markets, with every addition designed to compound adoption and strengthen the value of the platform.

***Platform Catalysts***

Catalysts are value-added services that accelerate growth on the platform. Some, such as investment banking and equity research, generate direct revenue. Others, such as corporate access and capital introduction, create value for clients by connecting them to opportunities and counterparties rather than generating revenue directly. In both cases, they bring increased financing and transaction flows into the platform.

Our investment banking business illustrates this effect. To participate in equity capital markets transactions such as initial public offerings and at-the-market ("ATM") offerings, investors must first create accounts with Clear Street. Once onboarded, investors can expand their relationships by adding balances and trading activity. We also built ATM automated issuance application to support issuers conducting continuous equity offerings. This application provides real-time visibility into proceeds and balances, replacing the static, end-of-day reporting offered by legacy providers. By giving issuers a live, data-driven view of capital raised and outstanding shares throughout an offering, the ATM application enhances our investment-banking technology-first capabilities. It demonstrates how we can build new applications that strengthen catalyst value to the market and in turn, designed to drive more transaction and financing activity onto the platform.

***Extensibility***

Our platform supports new client personas, applications, and workflows without rebuilding core technology. Each addition, from clearing and financing to security-based swaps and futures, runs on the same real-time ledger and operational framework. This allows us to expand rapidly into new markets, build around client needs, deepen engagement across the platform, and generate new revenue streams with each extension.

Beyond the initial applications of equity transactions and financing, our infrastructure was designed to extend to support more applications, asset classes, financial instruments and client personas:

***Security-Based Swaps:*** In the fourth quarter of 2023, we extended our platform to security-based equity swaps. Swaps have grown rapidly since, as clients seek exposure to equities without directly holding the underlying securities. We serve a broad base of Institutional clients, including ETF sponsors, leveraged ETF providers, hedge funds, family offices, and international firms. We built applications that facilitate our clients desired exposure flows, while we remain market risk neutral. Trades, balances, and collateral are managed in real time on the ledger.

***Futures:*** In March 2024 we extended into the futures asset class, rapidly leveraging our infrastructure and building new applications where needed. Within a span of nine months, we were connected to 15 venues, reaching 23 by September 30, 2025, with client segregated balances of approximately $1.7 billion. In the past, it has taken incumbents five or more years to build comparable coverage.

***Market Makers:*** In 2024, we extended our platform to clear for market makers, a client persona that requires speed, reliability, and capacity to handle high trading volumes. This demonstrated our ability to bring new client personas onto our platform with different needs and proved the scalability and performance of our platform. Market makers have traditionally been underserved, and our technology now allows them to clear and finance large volumes efficiently through Clear Street.

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Each new application, asset class, financial instrument and client persona we integrate onto our platform demonstrates the repeatability and speed or our model compared to incumbents. We build the applications clients need to scale, and in doing so create incremental revenue streams while strengthening the platform.

***Our Economic Model***

We generate activity-based revenues from financing and transactions. Unlike legacy providers that serve only portions of the investment lifecycle, our end-to-end platform allows us to capture value across a broader set of client activities. Each activity carries an economic impact. Specifically, our Trading and Execution applications directly generate transactional revenue through execution fees. Our Clearing and Custody applications directly generate transactional revenue through clearing and custody fees. Our Risk and Margin applications directly generate financing revenue through services like margin lending. Financing and Stock Loan applications directly generate financing revenue through locate fees and financing spreads. Portfolio Management and Analytics, Lifecycle Management and Operational Workflow and Compliance applications do not generate direct revenue. However, they are an integral part of managing the trading lifecycle and as a result, they enhance our platform and we believe generate revenue indirectly by driving demand for our platform. We also license our futures application to a small number of clients as a standalone software solution.

Our economic model primarily consists of net financing revenues and transaction revenues. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Components of Results of Operations" for a description of our sources of revenue.

*Net financing revenues*: Our net financing revenues include client margin financing, collateralized financing, securities lending, and structured financing trades that provide synthetic exposure. These revenues are predominantly spread-based, creating a predictable source of income across market and rates environments. As clients consolidate balances on Clear Street, we are capturing a larger financing base, which drives scalable growth.

*Transaction revenues*: Every transaction on our platform is a monetizable flow of client activity. Transaction revenues include commission and clearing income, as well as advisory and underwriting fees from investment banking and other catalyst activities.

Beyond generating financing and transaction revenues, our model delivers operating leverage. Because all client activity runs on the same infrastructure, we can scale by adding more clients, balances, and daily volume with limited incremental cost. As a result, we increased profitability while continuing to grow. For the nine months ended September 30, 2025 and 2024, we generated net income of $157.2 million and $48.7 million, respectively, Adjusted EBITDA of $362.8 million and $84.1 million, respectively, and an Adjusted EBITDA margin of 46.3% and 27.8%, respectively. For the years ended December 31, 2024 and 2023, we generated net income of $89.1 million and a net loss of $17.8 million, respectively, Adjusted EBITDA of $142.9 million and $8.9 million, respectively, and an Adjusted EBITDA margin of 30.8% and 4.5%, respectively, as we continued to invest in expansion initiatives. For additional information regarding Adjusted EBITDA and Adjusted EBITDA margin and a reconciliation to the most comparable GAAP measures for each period presented, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures."

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***Our Economic Flywheel***

Our economic model creates a self-reinforcing flywheel as client adoption grows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As balances increase, clients trade more, driving greater financing and transaction revenues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As client positions grow and diversify, netting opportunities expand, allowing offsetting positions to reduce our funding
needs. This efficiency empowers Clear Street to deliver improved financing solutions to clients

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Enhanced financing drives higher client balances and attracts new clients, boosts activity, and strengthens risk
management, allowing us to finance more, which in turn promotes platform adoption and deeper integration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• These dynamics compound revenues and profitability over time, with the dataset generated by client activity further
enhancing our models.

This cycle has already translated into measurable results. For the nine months ended September 30, 2025, our average daily interest-bearing client balances grew 85% to approximately $13.0 billion, our ADV grew 88% to approximately 588.6 million shares and contracts processed, and our net revenue grew 160% to approximately $783.7 million. For the year ended December 31, 2024, our average daily interest-bearing client balances grew 203% to approximately $7.8 billion, our ADV grew 38% to approximately 347.3 million shares and contracts processed, and our net revenue grew 137% to approximately $463.6 million. We believe these results demonstrate our ability to broaden reach and enhance profitability per client as adoption compounds.

**Our Clients, Go-to-Market Strategy and Client Success** 

***Our Clients***

We launched Clear Street to solve the pain points of investors underserved by large incumbents, self-directed platforms, and retail platforms. By combining a unified platform with tailored client support,

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we believe we deliver faster onboarding, deeper integration, and lower service costs than comparable incumbents. From this foundation, adoption has expanded naturally to Institutions, Intermediaries, and Corporates.

The following examples illustrate how different client personas are served by Clear Street:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Individuals**: High-net-worth and sophisticated traders consolidate multi-asset portfolios through a single account on our platform. By transacting and financing on our platform, they gain access to institutional grade leverage as well as real-time visibility into positions and
collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Case study*: One Individual scaled their equities and futures activity from $27 million at the start of
2023 to over $98 million as of September 2025 with Clear Street. With high-turnover strategies, they used the platform to manage exposures and collateral in real time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Institutions**: Institutions, such as emerging hedge funds, large multi-manager platforms, financial technology
providers, foreign financial institutions, and ETF issuers, engage in transactions, financing, and risk management directly on our platform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Case study*: In 2023, an emerging manager of private funds, regulated mutual funds and ETFs expanded on to
Clear Street's infrastructure to support growth through managed accounts. They used Studio's trade automation and portfolio-management tools to streamline reporting and operations and avoid duplicating infrastructure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Intermediaries**: Intermediaries, such as institutional and retail broker-dealers and market makers, use our
platform to process high volumes reliably through cycles of volatility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Case study*: In 2025, one global Intermediary doubled daily trading volumes overnight from an average of
44 million shares throughout March 2025 to 98 million shares on April 9, 2025 during a period of increased market activity. While legacy providers imposed limits, Clear Street's elastic infrastructure absorbed the surge in real time.
This enabled the client to maintain continuous trading and risk management without manual intervention and deploy capital more efficiently.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Corporates**: Corporates are entities seeking investment banking services and research coverage. They access
Clear Street for capital markets activities such as equity and debt issuances and financing and can expand into advisory transactions once onboarded. Over 300 new investors have created accounts on the platform since the launch of the investment
banking catalyst in 2023 to participate in investment banking transactions. This provides for the opportunity to broaden adoption across asset classes, financial instruments and applications, expanding transaction and net financing revenues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Case study*: In 2025, a media and technology company raised more than $2.0 billion in connection with the
establishment of a digital asset treasury strategy. Our investment banking function connected the investors in such media and technology company with the Clear Street platform and leveraged unified technology to streamline the investment process.

***Client Success***

Clear Street's strategic goal is to lead the industry in front-to-back client experience: onboarding, trading, financing, reporting, and support delivered as one integrated system. Traditional providers fall into two models: platforms that deliver broad access but low-touch, self-directed service, and large institutions that reserve their highest-touch service for only their largest clients. We strive to combine the best of both.

Our approach starts with client requirements, which inform how we design and evolve our platform. Because every trade, balance, and collateral movement is processed through a single system

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of record, clients gain real-time access, accuracy, and risk visibility. These same qualities strengthen our service organization, allowing us to anticipate issues, resolve them at first contact, and apply feedback directly into product and engineering. We maintain open and frequent dialogue with clients, which helps us identify new ways to serve them and continually add value to the platform.

Client success drives deeper adoption and durable relationships. Among Institutions and Intermediaries, we began 2024 with 144 active clients. Of those clients, we retained 143 by the end of the year, resulting in a client retention rate of approximately 99.3% for clients active at the beginning of the period, with revenues from retained clients representing virtually 100% of prior-year levels. Attrition during these periods was minimal and largely the result of our deliberate focus on maintaining a high-quality, profitable client base aligned with our strategic priorities. Our strategy for retention is providing the highest quality customer service and experience and responding to their ongoing and changing needs as well as continuously expanding the applications, asset classes, financial instruments, products and geographies that we service.

The Clear Street brand is built on the conviction that service is infrastructure. Our ambition is to redefine what client experience means in capital markets: not just "good enough," but materially better—an experience that fuels retention, expansion, referrals, and defendability.

***Go-to-Market Strategy***

Historically, the majority of our go-to-market strategy was driven by direct selling and word-of-mouth. Marketing costs represented less than 1% of our net revenue for the nine months ended September 30, 2025 and for the year ended December 31, 2024, which is a comparably low cost as a percent of revenue compared to our peers. Our current go-to-market strategy utilizes technology to drive our prospecting, branding and marketing so that we bolster lead generation and go-to-market efforts across the firm. We utilize a mix of channels to drive prospecting, lead generation, brand recognition and sales engagement. These channels include digital, industry engagement, partnership marketing and thought leadership. Our growth is also reinforced by referrals and client expansion, as clients consolidate more activity on our platform.

**Our Growth Strategies** 

Our market opportunity spans all sophisticated investors in the global capital markets. Any client that transacts or finances on our infrastructure benefits from the same unified ledger. We believe this positions Clear Street to capture a large addressable market that remains constrained by legacy platforms. We intend to be disciplined with our growth strategy, leveraging our adoption flywheel and track record of innovation to pursue opportunities. Select areas of our growth strategy include:

***Deepening Wallet Share With Existing Clients***

We intend to expand wallet share with existing clients. When clients consolidate balances and trading activity on our platform, they are able to adopt applications such as our execution, risk, and portfolio management systems. They then can expand into additional asset classes and financial instruments, including equities, options futures, security-based swaps, foreign exchange, fixed income, and in the near term, digital assets, and applications, including risk management, without the need for duplicative systems. In addition, clients are able to experience financial benefits from portfolio margin and cross-margin as they bring more balances to our platform, further encouraging adoption.

In September 2025, we launched a platform sales initiative. This initiative created a single enterprise-wide sales team able to engage with every client persona. By unifying sales coverage, we increase efficiency, broaden client acquisition, and create cross-selling opportunities across the platform.

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As balances and transaction volumes per client increase, so does Clear Street's activity-based revenues. As of September 30, 2025, the number of Institutional clients engaged in three or more activities has grown 81% since 2023, from 48 to 87, measured by transactions in asset classes, financial instruments and financing activities on our platform. This growth reflects both continued onboarding of new Institutional clients and deepening engagement from existing ones. As clients deepen their reliance on our infrastructure, we believe we can expand wallet-share with existing clients.

***Increasing Client Acquisition***

We intend to increase client acquisition across all of our client personas. We have established a repeatable playbook for acquiring clients from incumbents and expanding their use of our platform: Our sales and marketing process is a multi-channel strategy that blends new client outreach with scalable digital marketing initiatives. Institutional and Intermediary sales are long-cycle and consultative, while individual sales are short-cycle and marketing-led. Direct selling, data-informed targeted origination, digital presence and targeting digital channels, thought leadership at industry events, referrals, partnerships, and the Clear Street technology-first reputation serve as accelerators across all client personas.

For Individuals, growth is primarily through referrals, direct selling, industry events and digital marketing. Frictionless digital experiences through the sales and marketing funnel will be critical to our success in rapidly scaling revenues from Individuals. As we continue to invest in our platform, we anticipate digital marketing to form a larger part of our client acquisition strategy. Our client base has continued to expand, increasing from 1,141 Individuals as of December 31, 2023 to 1,291 as of September 30, 2025. Interest-bearing client balances for Individuals grew from approximately $250.0 million to approximately $1.1 billion during the same period, and revenues earned from Individuals represented approximately 10% of our net revenues for the nine months ended September 30, 2025.

For Institutions, we are an extension of their operations. Once these clients consolidate balances and trading activity and further utilize our platform, we believe they experience efficiencies across their business. In addition to direct client acquisition, we are also pursuing marketing and business development partnerships in business-to-business-to-consumer ("B2B2C") channels that allow large-scale account onboarding through intermediaries and financial institutions. Each B2B2C partner can bring hundreds, thousands or millions of downstream accounts, amplified by social and professional networks that lower costs and broaden reach. We have seen continued momentum in revenue-generating Institutional clients as this client persona has grown from 287 Institutions as of December 31, 2023 to 674 Institutions as of September 30, 2025. These clients' interest-bearing client balances grew from approximately $2.3 billion to approximately $15.5 billion during the same period.

For Intermediaries, growth primarily comes through direct relationships and referrals, as clients seek broader capabilities including greater scale and capacity than their existing providers can offer. The number of Intermediaries on our platform has grown from 11 Intermediaries as of December 31, 2023 to 23 Intermediaries as of September 30, 2025. These clients' interest-bearing client balances grew from approximately $12.2 million to approximately $647.5 million during the same period.

For Corporates, we are a trusted advisor, allowing them to raise capital or pursue strategic activity to accelerate their growth. Since launching our investment-banking catalyst in late 2023, corporate engagement has scaled quickly. We believe that we have strong thought leadership in the disruptive technology space and are bringing technology-enabled advisory to the investment banking industry. We have generated approximately $451 million in aggregate gross proceeds in U.S. equity offerings for the year ended December 31, 2024, ranking as the 36th highest-grossing provider and fourth in SPAC offerings. In the nine months ended September 30, 2025, we acted as underwriter, placement agent or financial advisor on 18 transactions, generating approximately $2.21 billion in

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aggregate gross proceeds for clients. This activity positions us among the top 19 U.S. equity underwriters and top three in SPAC offerings according to Bloomberg.

***Application-Led Growth***

We intend to innovate by launching new applications in response to client needs and broader market opportunities, which can help us grow wallet share with existing clients and win new clients. Our application development pipeline is robust, and we are pursuing multiple new applications to bring new balances, transactions and clients to our platform.

One current focus is on deepening our platform value for active traders. These traders differ from mass-market retail because they typically have higher-balance accounts (generally $50,000 or greater), require continuous market access, desire more control over order routing and execution, and invest in more complex strategies. We are building an application that is intended to provide institutional-grade capital markets access, all from a single account view. We believe this application will enable us to acquire thousands of sophisticated accounts in a cost-effective manner, without the same manual labor or onboarding costs faced by our competitors.

Other new applications in our pipeline include trading systems and risk engines that operate continuously on real-time portfolio data, issuance workflows for tokenized assets that are integrated into financing and risk workflows, benchmark indices, and AI-enabled analytics. Because data is generated natively at the infrastructure layer, it is clean, normalized, and extensible across applications. We believe this allows new applications to be delivered at minimal incremental cost. Over time, we believe new applications may create the potential for recurring revenue streams on top of our existing activity-based revenues.

***New Asset Classes and Financial Instruments***

We intend to serve new asset classes and financial instruments on our platform, attracting further balances and trading volumes. Our infrastructure is built to be asset and instrument-agnostic. For example, the same ledger that powers traditional asset classes can integrate digital assets within a single risk and capital framework, without the need for redesign. We have already extended our platform to support initial digital assets, such as Bitcoin, Ether and Solana, confirming our ability to extend our platform beyond traditional capital markets. Additional digital asset applications are in development. The introduction of security-based swaps to support growth in the leveraged ETF market showcases similar capabilities with respect to new financial instruments. Longer term, we intend to explore other asset classes and financial instruments, such as prediction markets, that could further demonstrate the adaptability of our infrastructure.

***Global Expansion***

Our clients are domiciled in over 66 countries as of September 2025 and we primarily allow them to access capital markets in the United States. We have a track record of entering and then expanding within new geographies subject to any necessary adjustments for different regulatory environments.

For example, we have already entered Canada in 2023 with U.S. equities, U.S. options, Canadian equity, stock loan, and foreign exchange, and entered the United Kingdom in 2024 with securities finance, U.K. equity, and E.U. equity. We currently have a license application pending with the Authority for the Financial Markets ("AFM") in the Netherlands, which, if granted, would allow us to provide financing and trading capabilities throughout the European Union.

Following these market entries, we have begun to scale our business in both Canada and the U.K. While our presence in these geographies currently represents a small portion of our overall net

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revenue (1.2% of net revenue from outside the United States for the nine months ended September 30, 2025), we believe geographic expansion is repeatable and, over the long term, represents a significant growth opportunity.

We are also considering certain countries in Asia Pacific as opportunities for further geographic expansion.

***Serving Additional Client Personas***

Our platform allows us to be nimble and expand quickly into new client personas, leveraging the same infrastructure to serve adjacent markets. We intend to broaden our reach beyond our current institutional and intermediary client base to include new personas where the same structural advantages apply. For example, we see wealth managers and fund administrators as natural extensions of our platform. Both personas face many of the same operational, capital inefficiencies and legacy and fragmented systems challenges as Institutional clients. Our unified ledger and integrated financing capabilities can streamline portfolio management, enhance risk visibility, and improve capital efficiency for these firms and their underlying clients.

By serving additional client personas in the future, including wealth managers and fund administrators, we can capture activity across a larger share of client balances and investment flows, deepen relationships across the financial ecosystem, and bring new volume, collateral, and margin opportunities onto our platform. Over time, we believe we can extend our reach from institutional markets into the broader wealth, fund administration, and advisory space, further compounding our growth and reinforcing our role as the infrastructure layer connecting every segment of modern capital markets.

***Corporate Development and Acquisitions***

We intend to evaluate mergers and acquisitions ("M&A") opportunities on a case-by-case basis and pursue them if we believe them to be additive to our platform. Our approach to acquisitions and partnerships is guided by discipline and consistency with our infrastructure-first model. Select acquisitions that we have conducted include:

In 2019, we acquired Centerpoint Securities ("Centerpoint"), an introducing broker that serviced individual traders. Prior to its relationship with us, Centerpoint facilitated its clients across five different clearing firms, multiple platforms and a patchwork of routing and front-end partners. According to Centerpoint, it was constrained by bureaucracy, infrastructural limits, and by its own ability to develop software solutions. Once onboarded to Clear Street's platform, we were able to eliminate the clearing firms and provide Centerpoint a platform to scale their business. By 2021, earnings increased approximately 164% from $15.4 million in 2019 to $40.7 million for the year ended December 31, 2021, even without accounting for the net income/earnings generated from our synergies.

In 2023, we acquired BASIS, which advanced the rollout of our global futures application. Because BASIS connectivity was integrated directly into our infrastructure, we were able to deliver futures without building duplicative systems, monetizing flows across our existing client base.

In 2024, we acquired Fox River, adding both a client base and algorithmic strategies across 30 electronic communications networks/dark pools and single-dealer platforms. Internalizing these flows increased capture and reduced external costs, further reinforcing the efficiency of our infrastructure.

In 2025, we acquired Pulse, an execution management system providing exchange connectivity and algorithms for trading in digital assets.

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**Competitive Landscape** 

Global capital markets are served today by banks and custodians, financial technology and retail brokers, and point solution technology and data vendors, each built for narrow pools of activity and constrained by legacy infrastructure.

***Large Incumbents.*** These banks and custodians provide balance-sheet depth and client relationships but are bound by capital requirements and legacy systems. Adapting to change requires prolonged projects and duplicative infrastructure. In contrast, our platform has extended quickly to support new asset classes and financial instruments, such as global futures and easily supported market changes like T+1 Settlement and 24/6 trading.

***Financial Technology and Retail Brokers.*** These relatively new market entrants excel at consumer acquisition and user interfaces but typically depend on outsourced vendors and fragmented systems for execution, clearing and custody. Their models are generally optimized for retail activity, not suitable for professional markets.

***Self-Directed Professional Platforms.*** Firms in this category provide multi-asset access and serve both retail and Institutional clients through connected networks. They typically rely on legacy infrastructure or third-party systems for clearing, financing, and risk management. While they offer broad connectivity, their underlying architectures remain fragmented.

***Point Solution Technology and Data Vendors.*** Firms in this category include independent providers and business units of broader financial technology companies that monetize software and information but rely on fragmented inputs and cannot generate unified, real-time transaction datasets.

Clear Street captures data natively at the infrastructure layer, providing us with a single source of truth throughout the investment lifecycle that are designed to compound with adoption. We believe that we compete with these market participants through our infrastructure-first approach: we have built a unified platform that currently supports 24/6 trading across a variety of market venues and is able to service a broad range of clients with modern technology that captures data natively at the infrastructure layer. In addition, we believe we are insulated from new competitors as a result of high barriers to entry, which include steep, up-front capital investment, scarce qualified talent, heavy regulatory and licensing requirements, a quickly evolving capital markets landscape and the costs of fostering deep, established client relationships and distribution networks.

**Risk and Liquidity** 

Market risk, credit risk and liquidity management are core to our platform. Every trade strengthens our ledger: each data point sharpens our models, improves capital efficiency, and builds client confidence. More activity improves controls, and stronger controls support more activity. Risk and liquidity are not just protection; they are the foundation of our ability to scale.

Our infrastructure combines automation with deep industry experience. Models process vast amounts of data in real time, leveraging the integration of trading, risk, and financing on our unified platform. These models adapt instantly to volatility, while oversight comes from engineers and market veterans with over 400 years of combined experience across credit, market and operational quantitative risk and who managed risk through the 2008 global financial crisis and COVID-19 pandemic. This combination allows us to test and refine under stress, scale balances confidently, operate consistently through volatile conditions and gives us strong control of aggregate exposure. Our risk models combine state-of-the art, proprietary multi-factor stress-testing capabilities across different asset types to safeguard us and give our clients a consolidated view of risk across their portfolio. This

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perspective supports a virtuous cycle of growth for us and our clients. As clients expand their portfolios, we can improve our clients' economics through a broader integrated risk perspective.

For incumbents, risk and liquidity remain constrained: banks are limited by capital rules and batch systems, and financial technology brokers are constrained by rented infrastructure. Clear Street was built differently. By integrating risk and liquidity natively into our infrastructure, we turn them into growth drivers, the foundation of scale.

**Regulation and Compliance** 

Our securities and derivatives businesses are extensively regulated by U.S. federal and state regulators, foreign regulatory agencies, and numerous exchanges and SROs of which our subsidiaries are members. Clear Street has subsidiaries licensed to conduct securities and derivatives business in the United States, Canada, and the U.K., with license applications pending in the European Union and Singapore. Securing and maintaining these licenses requires sustained engagement and capital, creating barriers to entry and reinforcing our competitive position. For Institutional clients, regulatory credibility is a prerequisite for initiating and maintaining a client relationship, and enables us to expand efficiently into new markets

We have devoted significant resources to our risk management and compliance infrastructure, with approximately 7.5% of our employees dedicated risk or control specialists, ensuring deep subject-matter expertise throughout the organization. We leverage advanced tools to proactively identify and mitigate compliance and regulatory risks, providing a robust and dynamic framework designed to manage risk effectively. We have established compliance, supervisory, and risk management policies and procedures designed to comply with regulatory requirements in each relevant jurisdiction and maintain enterprise-wide policies that apply across all our regulated and unregulated entities. Our compliance program includes written supervisory procedures, training programs for employees, automated surveillance systems, internal testing and monitoring, and an escalation process for the identification and remediation of issues.

***Registrations and Licenses***

We operate two registered broker-dealers in the United States: CS LLC and CS Enhanced Lending LLC ("CS Lending"), In addition, we operate two registered security-based swap dealers ("SBS dealers") in the United States, CS LLC and Clear Street Derivatives LLC ("CS Derivatives") and one registered FCM, CS LLC.

Internationally, we operate Clear Street Canada Inc. ("CS Canada"), an investment dealer registered in Canada, and CS UK, a broker-dealer authorized in the United Kingdom. CS LLC also utilizes the international dealer exemption in Canada to provide services to Canadian permitted clients.

**U.S. Subsidiaries** 

CS LLC is registered as a broker-dealer and SBS dealer with the SEC and as a FCM with the CFTC and is a member of FINRA and the NFA. CS LLC is registered in all 50 U.S. states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.

CS LLC is a member of the following national securities exchanges: BOX Exchange, Cboe BYX Exchange, Cboe BZX Exchange, Cboe C2 Exchange, Cboe EDGA Exchange, Cboe EDGX Exchange, Cboe Exchange, Investors' Exchange, Long-Term Stock Exchange, MEMX, MIAX Emerald, MIAX PEARL, MIAX Sapphire, Miami International Securities Exchange, NYSE American, NYSE Arca, NYSE National, NYSE Texas, Nasdaq BX, Nasdaq GEMX, Nasdaq ISE, Nasdaq MRX, Nasdaq PHLX, Nasdaq and NYSE. CS LLC is a member of the following futures exchanges: Cboe Futures Exchange,

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CME, Chicago Board of Trade, Commodity Exchange Inc., Coinbase Derivatives, Eurex, European Energy Exchange, AG, Gulf Mercantile Exchange, ICE Futures Abu Dhabi, ICE Endex, ICE Futures Europe, ICE Futures US, MIAX Futures Exchange, New York Mercantile Exchange and Nodal. CS LLC is a member of the following clearing organizations: the OCC, DTC, FICC and NSCC for securities and CME, European Committee Clearing AG, Eurex Clearing AG, ICE, Nodal and OCC for futures.

CS Lending is registered as broker-dealer with the SEC and is a member of FINRA and is registered in New York. CS LLC is not registered in any other domestic or foreign jurisdiction and is not a member of any national securities exchange or clearing organization. CS Derivatives is registered as a SBS dealer with the SEC.

**International Subsidiaries** 

CS Canada is registered as an investment dealer with the OSC and is a member of CIRO. CS UK is authorized as an investment firm with the FCA. We are also in the process of obtaining licenses in the Netherlands and Singapore, whereby we will be regulated by the Netherlands AFM and the Monetary Authority of Singapore.

***Scope of Regulation—United States***

The financial services industry in which we operate is subject to extensive regulation. In the United States, this includes regulatory regimes administered by the SEC and CFTC. The SEC is the federal agency primarily responsible for the administration of federal securities laws, including the Exchange Act. The CFTC is the federal agency primarily responsible for the administration of federal commodity derivatives laws, including the Commodity Exchange Act. In addition, FINRA and NFA are SROs that are actively involved in the regulation of our financial services businesses (securities in the case of FINRA and commodity derivatives in the case of the NFA). Broker-dealers that conduct securities activities involving municipal securities are also subject to regulation by the Municipal Securities Rulemaking Board. In addition to federal regulation, we are subject to state securities regulations in each state and U.S. territory in which we conduct securities activities and to regulation by other SROs, including securities exchanges and clearing houses.

The SEC, FINRA, CFTC, NFA, other SROs and state securities regulators conduct periodic examinations of broker-dealers, FCMs, and SBS dealers, consistent with the jurisdiction of each. The designated examining authority under the Exchange Act for CS LLC and CS Lending is FINRA for their broker-dealer business, and the designated SRO under the CEA for CS LLC is the NFA for its commodity futures business. The SEC is the authority that conducts examinations of CS LLC's and CS Derivatives' activities as an SEC-registered SBS dealer.

The regulations cover all aspects of our U.S. broker-dealer, SBS dealer, and FCM businesses and operations, including, among other things, sales and trading practices and reporting requirements, client onboarding, advertising and marketing, publication or distribution of research, margin lending, uses and safekeeping of clients' funds and securities, capital adequacy, recordkeeping, reporting, fee arrangements, disclosures to clients, suitability, customer privacy, data protection, information security and cybersecurity, the safeguarding and sharing of customer information, best execution of customer orders, customer qualifications for certain transactions, registration of personnel, business continuity planning, transactions with affiliates, conflicts, and the conduct of directors, officers and employees.

In addition, the businesses that we may conduct are limited by our arrangements with and our oversight by regulators. Participation in new business lines, including trading of new products or participation on new exchanges or in new countries often requires regulatory and/or exchange approvals, which may take significant time and resources.

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As certain of our subsidiaries are members of FINRA, we are subject to certain regulations regarding changes in control or ownership and material changes to our business. FINRA Rule 1017 generally provides that FINRA approval must be obtained in connection with any transaction resulting in a change in control of a member firm. FINRA defines control as a new owner of 25% or more of the firm's equity by a single entity or person and would include a change in control of a parent company. As a result of these regulations, our future efforts to sell shares or raise additional capital may be delayed or prohibited by FINRA. Further, FINRA approval under Rule 1017 may be required for material changes to our FINRA member subsidiaries' business activities.

***Scope of Regulation—International***

We are an active participant in the international markets, primarily in Canada and United Kingdom. CS Canada is regulated and subject to examination by the Ontario Securities Commission and CIRO. CS UK is regulated and subject to examination by the UK FCA. We have also recently obtained a general permit from the Israeli Securities Authority, which allows CS LLC to service investors in Israel. Our international subsidiaries are subject to extensive regulations proposed, promulgated and enforced by these regulatory authorities. Every country in which we do business imposes upon us laws, rules and regulations similar to those in the United States, including with respect to some form of capital adequacy rules, customer protection rules, data protection regulations, AML and anti-bribery rules, and compliance with other applicable trading regulations.

***Regulatory Schemes***

***Net Capital***

CS LLC is a registered broker-dealer, SBS dealer, and FCM and is required to maintain net capital in excess of the greater of the SEC or CFTC minimum financial requirements. CS Lending is subject to the SEC's minimum financial requirements. As broker-dealers and, with respect to CS LLC as a SBS dealer, CS LLC and CS Lending are subject to the SEC's Uniform Net Capital Rule 15c3-1, which specifies the minimum level of net capital a broker-dealer must maintain and also requires that a significant part of a broker-dealer's assets be kept in relatively liquid form. Generally, a broker-dealer's capital is its net worth plus qualified subordinated debt less deductions for certain types of assets. The SEC and various SROs impose rules that require notification when net capital falls below certain predefined criteria, limit the ratio of subordinated debt to equity in the regulatory capital composition of a broker-dealer and constrain the ability of a broker-dealer to expand its business under certain circumstances. In addition, CS LLC, as an FCM, is required to maintain adjusted net capital of $1,000,000 or some greater amount as determined under CFTC Regulation 1.17, which includes the FCM's risk-based capital requirement based on "risk margin" required for customer and noncustomer (e.g., affiliated entities) accounts. At December 31, 2024, CS LLC had net capital of $551.6 million which was $497.1 million in excess of its required net capital of $54.5 million. Because CS Lending was approved as a broker-dealer in February 2025, it did not have any net capital requirement at December 31, 2024. At September 30, 2025, CS LLC had net capital of $889.0 million, which was $763.9 million in excess of its required net capital of $125.1 million.

Because CS Lending was approved as a broker-dealer in February 2025, it did not have any net capital requirement at December 31, 2024. At September 30, 2025, CS Lending had net capital of $5.0 million, which was $4.7 million in excess of its required net capital of $0.3 million

At December 31, 2024, CS Derivatives had net capital of $125.7 million which was $99.8 million in excess of its required net capital of $25.9 million. At September 30, 2025, CS Derivatives had net capital of $27.1 million, which was $7.1 million in excess of its required net capital of $20.0 million.

Rules 15c3-1 and 18a-1 also prohibit a broker-dealer or SBS dealer, under certain circumstances, from paying cash dividends, making loans to its parent, affiliates or employees, or

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otherwise entering into transactions. Moreover, broker-dealers and SBS dealers are required to notify the SEC prior to paying cash dividends, making loans to its parent, affiliates or employees, or otherwise entering into transactions, which, if executed, would result in certain reductions its excess net capital. The SEC has the ability to prohibit or restrict such transactions if the result is detrimental to the integrity of the broker-dealer or SBS dealer.

Abroad, CS Canada is subject to the CIRO risk adjusted capital requirement. CS UK is subject to the Prudential Sourcebook for MiFID Investment Firms ("MIFIDPRU") which is part of the FCA's Handbook. For the purposes of MIFIDPRU, CS UK is a Non-Small Non-Interconnected investment firm ("Non-SNI") with a permanent minimum capital requirement of GBP 750,000. Non-SNI firms such as CS UK are larger and more complex compared to other investment firms and are therefore subject to additional regulatory obligations. MIFIDPRU sets out various requirements with which CS UK must comply on an ongoing basis, including in relation to risk management, governance, own funds, remuneration, and disclosure.

***Client Protection and Segregation Requirements***

To conduct client activities, CS LLC and CS Derivatives are obligated under SEC and CFTC rules, as applicable, to segregate cash and qualified securities belonging to clients. In accordance with the rules under the Exchange Act, CS LLC and CS Derivatives are required to maintain separate bank accounts for the exclusive benefit of clients. CS LLC and CS Derivatives are also required to maintain possession and control of certain client securities. In accordance with the rules under the CEA, CS LLC is required to segregate all monies, securities and property received from clients in specially designated accounts. CS Canada and CS UK are subject to similar requirements in their respective jurisdictions.

***Margin Requirements***

CS LLC's and CS Lending's securities credit transactions are subject to limitations imposed by the rules and regulations of the Board of Governors of the Federal Reserve and FINRA. In general, these margin rules and regulations provide for initial and maintenance margin requirements and that, in the event of a significant decline in the value of securities collateral, broker-dealers are required to obtain additional collateral from the borrower or liquidate the borrower's positions. Likewise, CS LLC and CS Derivatives are generally required under SEC rules to collect initial and mark-to-market margin from security-based swap counterparties. CS LLC is also required under CFTC rules to restrict the withdrawal of customer account balances if the withdrawal would lead to a margin deficiency. CS LLC, CS Derivatives, and CS Lending may also impose more stringent requirements on positions that, in their sole discretion, involve higher levels of risk, at any time and without notice.

***Anti-Money Laundering, Counterterrorism Financing, Anti-Bribery and Corruption and Sanctions Regulations***

We are subject to several AML, CTF, anti-bribery and corruption and economic and sanctions regulations, such Bank Secrecy Act, the Dodd-Frank Act, the BSA/USA PATRIOT Act, the FCPA, the U.S. domestic bribery statute contained in 18 U.S.C. § 201, U.K. Bribery Act and FINRA Rule 3310 and sanctions regulations imposed by OFAC and other jurisdictions. Our regulated entities in the U.S. and abroad are subject to these and similar regulatory schemes. These regulations require CS LLC to develop AML programs to assist in the prevention and detection of money laundering and combating terrorism. The AML program includes policies and procedures, employee training, customer identity requirements, the designation of a compliance officer and periodic independent audits. To comply with these rules, we have an AML department that is responsible for developing and implementing our enterprise-wide programs for compliance with the various AML, counter-terrorist financing and

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sanctions laws and regulations, including through KYC screenings, transaction monitoring and other policies, procedures and controls to promote compliance with sanctions, fraud, AML, CTF and anti-bribery and corruption laws.

**Security** 

The infrastructure of our proprietary platform is designed with a cybersecurity-forward approach. Built on Zero Trust principles, our cybersecurity systems are regularly monitored, penetration-tested, and validated by independent third parties. Dedicated teams track emerging cybersecurity threats in real time, while automation further enforces cybersecurity controls across different applications.

By embedding cybersecurity at the infrastructure layer, protection scales naturally with the growth of activity on our platform. Our infrastructure design seeks to ensure that clients' assets and data remain secure as they consolidate operations onto our proprietary platform, while Clear Street reduces operational risk without adding layers of vendor systems. See also "Risk Factors—Risks Related to Our Intellectual Property, Technology, Data Privacy, Data Protection and Cybersecurity—Applications on our platform, including Studio, and services we offer rely on software and systems that are highly technical and have been, and may in the future be, subject to interruption, instability, and other potential flaws due to software errors, design defects, and other processing, operational, and technological failures, whether internal or external."

**Trademarks and Brand** 

The protection of our intellectual property and other proprietary rights is an important aspect of our business. We rely primarily on trade secret, trademark, contract and copyright laws to protect our proprietary technology.

As of September 30, 2025, we held 5 registered U.S. trademarks, 17 registered foreign trademarks, no pending U.S. trademark applications and 5 pending foreign trademark applications. We also hold registered and unregistered trademarks and service marks protecting the "Clear Street" and the "Clear Street Studio<sup>TM</sup> brand and related trade names, logos, and marks, and also maintain a portfolio of registered internet domain names and defensively registered names associated with our business to support global branding and marketing initiatives.

**Enforcement and Limitations** 

Despite our efforts to protect our intellectual property and other proprietary rights, there can be no assurance that the steps we take will be sufficient to protect against others offering applications or technologies that are substantially similar to ours and that compete with our business. In addition, intellectual property laws in certain jurisdictions do not protect proprietary rights to the same degree as the laws of the United States, and we may be unable to protect our intellectual property or other proprietary rights to the same extent globally. We may be subject to claims alleging infringement, misappropriation, or other violations of third-party intellectual property or other proprietary rights, which, regardless of merit, could result in costly litigation and the diversion of management resources and the attention of management, which may harm our business, operating results, financial condition and prospects. We rely on confidentiality, non-disclosure, and invention assignment agreements with our employees, and independent contractors, as well as license and confidentiality agreements with third parties, to protect sensitive know-how and trade secrets. Access to our proprietary systems and data is restricted to personnel and counterparties on a need-to-know basis.

For more information, see "Risk Factors—Risks Related to Our Intellectual Property, Technology, Data Privacy, Data Protection and Cybersecurity—We may not be able to adequately establish,

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maintain, protect and enforce our intellectual property and other proprietary rights or may be prevented from using intellectual property necessary for our business."

**Open Source Software and Third-Party Technology** 

Like many financial technology firms, we incorporate open source software components into our proprietary platform. We monitor our use of open source software in an effort to ensure compliance with applicable license terms. We also license certain third-party technologies and data feeds, and our use of such licensed rights may be subject to claims of infringement, misappropriation or other violation by third parties. For more information, see "Risk Factors—Risks Related to Our Intellectual Property, Technology, Data Privacy, Data Protection and Cybersecurity—We use open source software, and any failure to comply with the terms of one or more of the related open source licenses could negatively affect our business."

**Human Resources and Culture** 

As of September 30, 2025, we had 823 employees across our offices in the United States and abroad, with employees working remotely in certain areas where we do not have physical offices. We also had 109 independent contractors. Our employees span engineering, operations, compliance, product development, risk management, and leadership, reflecting the multidisciplinary expertise required to operate and expand a technology-enabled, global financial platform. We believe that our people are one of our most important assets. Our human capital strategy is designed to support growth, operational resilience, and innovation while maintaining a strong cultural foundation. We are focused on attracting and retaining top performers, investing in professional development, and reinforcing a values-driven culture that aligns with our mission to modernize the global brokerage ecosystem.

The Clear Street brand has built its success on a culture of exceptional service. Our clients have high expectations, and when they need to interact with a service representative, they expect prompt and well-trained personnel. Clear Street's strategic goal is to lead the industry in front-to-back client experience, elevating the standard for our sector. We firmly believe that a positive client experience is a key driver of revenue growth and market share expansion.

A successful client experience strategy begins with proactive engagement from the outset. We work backwards from our clients' needs to develop solutions that genuinely resonate and delight them. This approach fosters a strong bond between us and our clients, leading to loyalty and stickiness.

To achieve this service model, we establish clear service expectations with our clients, aiming to meet or exceed them. We systematically log and record client issues and feedback, using this information to continuously improve our offerings.

Our strong client service culture is rooted in a philosophy of working backwards from the client, data-driven decision-making, a robust digital experience, a dedicated client service organization, and a right-time-first philosophy.

We have been certified as a Great Place to Work for three consecutive years and recognized on Fortune's Best Workplaces in New York list.

**Facilities** 

Our principal executive offices are located at 4 World Trade Center, 150 Greenwich Street, 45th Floor, New York, NY 10007, where we occupy approximately 90,000 square feet under a long-term lease. This location houses our primary executive, technology, operations, trading, and administrative functions and serves as the corporate headquarters of the Company.

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In addition to our New York headquarters, we maintain a network of offices across the United States and internationally to support our growing workforce and client base. These facilities allow us to access key financial and technology talent pools, provide continuity of service, and position our teams closer to clients and regulators in important markets. Our current leased office locations include U.S. offices in New York, NY (Headquarters), Del Mar, CA, Stamford, CT, Chicago, IL, Lisle, IL, Tampa, FL, West Palm Beach, FL, Boston, MA, and Birmingham, MI. Our international offices are located in Toronto, Canada, London, UK, Umeå, Sweden, Amsterdam, Netherlands, Singapore, Bangalore, India, and Mumbai, India.

We believe our existing facilities are suitable and adequate to meet our current operational needs. As we continue to expand our global platform, including through regulatory applications currently underway in the Netherlands and Singapore, we expect to open additional offices in key international financial centers. We believe additional space will be available on commercially reasonable terms as required to support our growth.

**Data Privacy** 

Our business collects, stores, shares, uses, discloses, transmits and otherwise processes sensitive and confidential information, including the personal information of individuals in many jurisdictions, including across the United States. For example, we may collect and process personal information related to our website visitors, clients, potential clients, employees, contractors, business partners, vendors and other third parties with whom we do business, such as names, addresses, demographic data, government-issued identification documents, online identifiers, and financial information, and with respect to employees, health information and demographic data for purposes of workplace accommodations, regulatory reporting and other similar employment-related requirements. We may also obtain personal information from third-party sources, such as lead generation campaigns. As a result, compliance with state, federal and international data privacy, data protection and cybersecurity laws, rules, regulations and industry standards and other legal obligations regulating the collection, storage, sharing, disclosure, transmission and other processing of personal information is integral to the creation of trust in our platform. We are also legally obligated to provide and comply with our privacy policies.

We strive to perform data privacy and cybersecurity-related operations according to the applicable laws, rules, regulations, industry standards and other legal obligations. Our privacy program references the entire lifecycle of personal information from the point of collection to the point of disposal, and is designed to comply with all applicable data privacy, data protection and cybersecurity laws, rules, regulations, industry standards and other legal obligations. For more information, see "Risk Factors—Risks Related to Our Intellectual Property, Technology, Data Privacy, Data Protection and Cybersecurity—We are subject to complex and evolving laws, regulations and industry requirements related to data privacy, data protection and cybersecurity across different markets where we conduct our business."

**Legal Proceedings** 

We are subject to various legal and regulatory proceedings, claims and actions. Although the outcome of these proceedings, claims and actions cannot be predicted with certainty, we do not believe that the outcome of any such proceedings, claims and actions that we are currently subject to would, in our management's judgment, have a material adverse effect on our financial condition or results of operation, nor are we aware of any material legal and regulatory proceedings, claims and actions threatened against us. Regardless of the outcome, litigation has the potential to have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors. See "Risk Factors—Risks Related to Regulatory and Legal Matters—We are or may be subject to potential liability in connection with pending or threatened legal proceedings and other matters."

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**MANAGEMENT** 

**Our Executive Officers and Directors** 

Set forth is certain biographical and other information regarding our directors and executive officers.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
|  ***Directors*** |  |  |
|  Uriel Cohen | 46 | Executive Chairman of our Board of Directors |
|  Elli Ausubel | 41 | Executive Vice Chairman of our Board of Directors |
|  Jay Park | 54 | Director |
|  Christopher Pento | 59 | Director |
|  Matthew Roberts | 39 | Director |
|  ***Executive Officers***  |  |  |
|  Edward T. Tilly | 62 | Chief Executive Officer and Director |
|  Steven Bisgay | 58 | Chief Financial Officer |
|  Jonathan Daplyn | 51 | Chief Operating Officer |
|  John Levene | 58 | Chief Experience Officer |

---

***Directors***

***Uriel Cohen*** co-founded Clear Street in 2018, served as our Co-Chief Executive Officer from January 1, 2025 through January 19, 2026, and has served as our Executive Chairman of our Board of Directors since 2019. Mr. Cohen co-founded Alpine Global Management LLC in 2010, an investment firm specializing in event-driven and relative-value strategies across global markets. Since 2012, Mr. Cohen has served as Chairman of The White Bay Group, a multi-asset investment firm focused on financial services, capital markets technology and trading ventures technology. Mr. Cohen holds a Bachelor of Science in Finance from Yeshiva University. We believe Mr. Cohen is qualified to serve on our Board of Directors because of his strategic, operational and financial expertise.

***Elli Ausubel*** has served as a member of our Board of Directors since March 2019 and as our Executive Vice Chairman since January 19, 2026. Since January 2014, Mr. Ausubel has served as Head of Strategy at Alpine Global Management LLC, an investment firm specializing in event-driven and relative-value strategies across global markets. In this role, he is responsible for firm-wide strategic initiatives and business development. He has also served as a Senior Partner and Director of The White Bay Group since 2015, a multi-asset investment firm focused on financial services, capital markets technology and trading ventures technology. Mr. Ausubel holds a Bachelor of Arts and a Master of Arts from Yeshiva University. We believe Mr. Ausubel is qualified to serve on our Board of Directors because of his strategic, operational and financial expertise.

***Christopher Pento*** has served as a member of our Board of Directors since March 2019. Mr. Pento is one of our co-founders and served as our Chief Executive Officer from our inception in 2018 until 2024. Mr. Pento is currently an Operating Partner for the White Bay Group, a multi-asset investment firm focused on financial services, and an Advisor to Belvedere Strategic Capital. Prior to co-founding Clear Street, Mr. Pento was the Head of Global Operations at Exos Financial from 2017 through 2018, Chief Operating Officer at Engineers Gate Market Technologies LLC from 2016 through 2017 and Chief Operating Officer at Arxis Capital Group LLC from 2014 through 2016. Mr. Pento also previously served as a Managing Director at Knight Capital Group from 2002 through 2014. Mr. Pento holds a Bachelor of Science in Economics and Finance from Rutgers University. We believe Mr. Pento is qualified to serve on our Board of Directors because of his strategic, operational and financial expertise.

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***Jay Park*** has served as a member of our Board of Directors since April 2022. Mr. Park co-founded Prysm Capital in 2019 and has served as Managing Partner since its inception. Prior to Prysm, Mr. Park spent eighteen years with BlackRock Private Equity Partners where he served on the Management and Investment Committees, helping to lead investing activities across the United States and Asia. Prior to his time at BlackRock, Mr. Park was a principal investment officer with Merrill Lynch Global Private Equity focused on investing in the emerging markets, after starting his career in Merrill Lynch's Mergers and Acquisitions department. Mr. Park currently sits on the board of directors for Summit Securities Holdings LLC, a position he has held since 2024. He holds a Bachelor of Science in Applied Mathematics and Economics from Brown University, and a Master of Business Administration, with honors, from Columbia University. We believe Mr. Park is qualified to serve on our Board of Directors because of his strategic, operational and financial expertise and his experience in senior leadership roles at other financial services companies.

***Matthew Roberts*** has served as a member of our Board of Directors since April 2022. Mr. Roberts co-founded Prysm Capital in 2019 and has served as a Partner since its inception. Prior to Prysm, Mr. Roberts spent nine years at BlackRock Private Equity Partners where he invested in market leading companies across the United States and Asia and was a founding member of the team's Hong Kong and San Francisco offices. Prior to BlackRock, Mr. Roberts was part of the Leveraged Finance group at Bank of America Merrill Lynch, where he partnered with middle market companies to structure credit facilities. Mr. Roberts currently sits on the board of directors for Summit Securities Holdings LLC, a position he has held since 2024. Mr. Roberts holds a Bachelor of Science in Business Administration from the University of North Carolina's Kenan-Flagler Business School. We believe Mr. Roberts is qualified to serve on our Board of Directors because of his strategic, operational and financial expertise.

***Executive Officers***

***Edward T. Tilly*** has served as our President since July 8, 2024, Co-Chief Executive Officer since January 2025, and Chief Executive Officer and a member of our Board of Directors since January 2026. Prior to joining Clear Street, Mr. Tilly served as Chairman and Chief Executive Officer of Cboe Global Markets from 2017 until 2023. From November 2011 until 2017, he served as Cboe's President and Chief Operating Officer, and from August 2006 until November 2011, he served as Executive Vice Chairman. Mr. Tilly was a member of the Chicago Board Options Exchange from 1989 until 2006, serving as Member Vice Chairman from 2004 through July 2006. He holds a Bachelor of Arts degree in Economics from Northwestern University. We believe Mr. Tilly is qualified to serve on our Board of Directors because of his strategic, operational and financial expertise and his experience in senior leadership roles at other financial services companies.

***Steven Bisgay*** has served as our Chief Financial Officer since August 2023. Prior to joining Clear Street, Mr. Bisgay served as Cantor Fitzgerald LLC's Chief Financial Officer from 2015 until 2023. From 2020 until 2022, Mr. Bisgay also served as BGC Partners' Chief Financial Officer. Prior to joining Cantor Fitzgerald, Mr. Bisgay served as Chief Financial Officer for KCG Holdings, Inc. from 2013 through 2014 and held various roles, including Chief Financial Officer and Chief Operating Officer at Knight Capital Group from 2007 through 2013. Mr. Bisgay holds a Bachelor of Science in Accounting from the Binghamton University School of Management and a Master of Business Administration from Columbia University. Mr. Bisgay is also a Certified Public Accountant.

***Jonathan Daplyn*** has served as our Chief Operating Officer since 2025. He joined Clear Street in 2023 as our Chief Information Officer. Prior to joining Clear Street, Mr. Daplyn worked at Morgan Stanley for 27 years, serving as Head of Prime Brokerage Technology from 2016 through 2023 and prior to that as Head of Derivatives Clearing Technology from 2012 through 2016. He holds a Bachelor of Science in Economics and Statistics, with honors, from University College London.

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***John Levene*** has served as our Chief Experience Officer since April 2025. Prior to joining Clear Street, Mr. Levene worked at Goldman Sachs for 27 years, 14 of which he was a Partner. Mr. Levene was head of Global Banking and Markets Client Experience from 2021 until 2025 and Co-Head of Prime Finance Client Experience from 2018 until 2021. He holds a Bachelor of Arts degree in Economics with honors from the University of Manchester, England.

**Family Relationships** 

Uriel Cohen, the Executive Chairman of our Board of Directors, and Elli Ausubel, our Executive Vice Chairman and a member of our Board of Directors, are brothers-in-law. There are no other family relationships among any of our directors and/or executive officers.

**Controlled Company Exemption** 

Upon completion of this offering, Global Corp., will beneficially own approximately % of the voting power of our outstanding capital stock (or approximately % of the voting power of our outstanding capital stock if the underwriters exercise their option to purchase additional shares of our Class A common stock in full) and we will be a "controlled company" within the meaning of the Nasdaq listing rules.

For so long as Global Corp. and its permitted transferees hold more than 50% of the voting power of our company, we will be a "controlled company" as defined under the corporate governance standards of the and may elect not to comply with certain corporate governance standards under Nasdaq listing rules including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement that a majority of our Board of Directors consists of independent directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement that we have a compensation committee that is composed entirely of independent directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement that our nominating and governance committee be composed entirely of independent directors or otherwise
have director nominees selected by vote of a majority of the independent directors.

For at least some period following this offering, we intend to utilize these exemptions. Consistent with these exemptions, upon completion of this offering, we will not have a majority of independent directors, and we will not have a wholly independent Compensation Committee or independent Nominating and Governance Committee. Accordingly, you may not have the same protections afforded to stockholders of companies that are subject to all of the corporate governance requirements. Although we will be a "controlled company," we are required to comply with the rules of the SEC and Nasdaq relating to the membership, qualifications and operations of the Audit Committee. Upon the completion of this offering, we will have at least one fully independent Audit Committee member, within 90 days of the date of this prospectus the majority of the members of the Audit Committee will be independent and within one year of the date of this prospectus the Audit Committee will be composed of all independent members. Additionally, we intend to adopt charters for our Audit Committee, Risk Committee, Compensation Committee and Nominating and Governance Committee prior to the completion of this offering and intend to conduct annual performance evaluations of these committees.

Accordingly, although we may transition to fully independent compensation and nominating and governance committees prior to the time we cease to be a "controlled company," for such period of time you will not have the same protections afforded to stockholders of companies that are subject to all of these corporate governance requirements. In the event that we cease to be a "controlled

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company" and our shares continue to be listed on the Nasdaq, we will be required to comply with these provisions within the applicable transition periods.

**Board Composition and Director Independence** 

Upon completion of this offering, our Board of Directors will consist of directors, and the number of directors may be changed only by a resolution of our Board of Directors; *provided, however*, that prior to the date in which either (i) Global Corp. and its permitted transferees no longer hold more than 50% of the combined voting power of our outstanding common stock entitled to vote generally in the election of directors or (ii) we fail to qualify as a "controlled company" (or similar) under the applicable stock exchange rules (the "Trigger Date"), our stockholders may also fix the number of directors. Initially, our Board of Directors will consist of a single class of directors each serving one-year terms. After the Trigger Date, our Board of Directors will be divided into three classes of directors, with each class as nearly equal in number as possible, serving staggered three-year terms (other than directors which may be elected by holders of preferred stock, if any). This classification of our Board of Directors could have the effect of increasing the length of time necessary to change the composition of a majority of our Board of Directors because, in general, at least two annual meetings of stockholders would be necessary for stockholders to effect a change in a majority of the members of our Board of Directors.

Our Board of Directors has determined that is independent under the applicable rules of Nasdaq. Our Board of Directors will have discretion to determine the size of our Board of Directors.

**Board Committees** 

Upon completion of this offering, we will have an Audit Committee, a Risk Committee, a Compensation Committee and a Nominating and Governance Committee. The composition, duties and responsibilities of these committees are as set forth below. In the future, our Board of Directors may establish other committees, as it deems appropriate, to assist it with its responsibilities.

***Audit Committee***

The members of our Audit Committee are , and . is the chairperson of our Audit Committee. Our Board of Directors has determined that members are independent under Nasdaq listing rules and SEC rules and regulations. In addition, our Board of Directors has determined that meets the criteria of an audit committee financial expert as set forth in the applicable SEC rules and for financial sophistication set forth in the Nasdaq listing rules.

The responsibilities of our Audit Committee will include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• appointing and overseeing an independent registered public accounting firm to audit our consolidated financial statements,
including determining the engagement, compensation and retention of the independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluating the independent registered public accounting firm's qualifications, independence and performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and discussing the scope and results of the audit with the independent registered public accounting firm, and
reviewing, with management and the independent registered public accounting firm, our interim and year-end results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approving or pre-approving all audit and all permissible non-audit services to be performed by the independent registered public accounting firm;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing and monitoring the design, implementation, adequacy and effectiveness of internal control over financial
reporting with management and the independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving related party transactions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishing procedures for the receipt, retention and treatment of any complaints received by us regarding accounting,
internal accounting controls or auditing matters.

***Risk Committee***

The members of our Risk Committee are , , and . is the chairperson of our Risk Committee. The primary purpose of the Risk Committee will be to assist our Board of Directors in fulfilling its oversight of management's responsibilities with respect to financial and capital matters, including strategies that bear upon our long-term financial sustainability. In addition, the Risk Committee will oversee the governance of significant risks throughout the Company and the establishment and ongoing monitoring of our risk profile, risk capacity and risk appetite.

***Compensation Committee***

The members of our Compensation Committee are , and . is the chairperson of our Compensation Committee. Our Board of Directors has determined that is independent under Nasdaq listing rules and SEC rules and regulations.

The responsibilities of the Compensation Committee will include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving the compensation of the Chief Executive Officer, other executive officers and directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• administering our equity incentive plans and other benefit programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing, adopting, amending and terminating incentive compensation and equity plans, severance agreements, profit sharing
plans, bonus plans, change-of-control protections and any other compensatory arrangements for executive officers and other senior management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and establishing general policies relating to compensation and benefits of employees.

***Nominating and Governance Committee***

The members of our Nominating and Governance Committee are , and . is the chairperson of our Nominating and Governance Committee.

The responsibilities of the Nominating and Governance Committee will include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identifying and recommending candidates for membership on our Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and recommending our corporate governance guidelines and policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing proposed waivers of the code of conduct for directors and executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing the process of evaluating the performance of our Board of Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assisting our Board of Directors on corporate governance matters.

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**Compensation Committee Interlocks and Insider Participation** 

None of our executive officers has served as a member of a compensation committee (or if no committee performs that function, our Board of Directors) of any other entity that has an executive officer serving as a member of our Board of Directors. To the extent any members of our Compensation Committee and their affiliates have participated in transactions with us, a description of those transactions is described in "Certain Relationships and Related Party Transactions."

**Code of Business Conduct and Ethics** 

In connection with this offering, our Board of Directors will adopt a Code of Business Conduct and Ethics (the "Code of Conduct"), applicable to all of our employees, executive officers, and directors. The Code of Conduct will be available on our website at https://www.clearstreet.io/. Information contained on or accessible through our website is not a part of this prospectus, and the inclusion of our website address in this prospectus is an inactive textual reference only. We expect that any amendments to the Code of Conduct, or any waivers of its requirements, that are required to be disclosed pursuant to Nasdaq listing rules or SEC rules and regulations will be disclosed on our website.

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**EXECUTIVE AND DIRECTOR COMPENSATION** 

We are an EGC under applicable federal securities laws and are therefore permitted to take advantage of certain reduced public company reporting requirements. As an EGC, we provide in this filing the scaled disclosure permitted under the JOBS Act.

The following table sets forth information concerning the compensation paid to our Co-Chief Executive Officers and our two other most highly compensated executive officers during our fiscal year ended December 31, 2025 (collectively referred to as our "named executive officers" or "NEOs").

The information set forth in this section does not give effect to the Stock Split.

**Summary Compensation Table** 

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and**<br> **Principal Position<sup>(1)</sup>** | **Year** | **Salary ($)** | **Bonus ($)<sup>(2)</sup>** | **Stock<br>Awards<br>($)<sup>(3)</sup>** | **Option<br>Awards($)<sup>(4)</sup>** | **All Other<br>Compensation<br>($)** | **Total ($)** |
| &nbsp;&nbsp;&nbsp;&nbsp; Edward Tilly<br> *Co-Chief Executive Officer* | 2025 | $500018 | $2250000 |  |  | $9737<sup>(5)</sup> | $2759755 |
|  | 2024 | $155556 | $750000 | $16060884 | $8958175 | $16843<sup>(6)</sup> | $25941458 |
| &nbsp;&nbsp;&nbsp;&nbsp; Uriel Cohen <br> *Co-Chief Executive Officer* | 2025 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; John Levene<br> *Chief Experience Officer* | 2025 | $275908 | $1450000 | $21133950 | $5310000 | $3231<sup>(7)</sup> | $28173089 |
| &nbsp;&nbsp;&nbsp;&nbsp; Jonathan Daplyn<br> *Chief Operating Officer* | 2025 | $491686 | $1850000 |  |  | $10093<sup>(8)</sup> | $2351779 |

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(1) Reflects each NEO's title as in effect during the 2025 fiscal year. Mr. Tilly became our Co-Chief Executive
Officer in January 2025. Mr. Cohen served as Co-Chief Executive Officer from January 2025 through January 19, 2026. Mr. Cohen did not receive any compensation for his services as co-CEO. Instead, he received his compensation from the Company in
his capacity as our Executive Chairman. This compensation is disclosed in the Section "2025 Director Compensation Table." Mr. Levene commenced his employment with us in April 2025.

(2) Represents discretionary bonuses earned by our NEOs based on our achievement of specified individual and corporate
performance goals for fiscal years 2024 and 2025, as applicable. In the case of Mr. Levene, this amount includes a $750,000 commencement bonus paid following his commencement date, pursuant to the terms of his employment agreement. In addition,
Mr. Levene's bonus was guaranteed to be $600,000 for fiscal year 2025; going forward, Mr. Levene's bonuses will be discretionary with a target similar to $600,000.

(3) The amounts reported represent the aggregate grant date fair value of the restricted stock unit awards granted to the NEOs
calculated in accordance with FASB ASC Topic 718. Such grant date fair values do not take into account any estimated forfeitures. The assumptions used in calculating the grant date fair value of the restricted stock unit awards reported in this
column are set forth in Note 11 "Equity-Based Compensation" in the notes to our audited consolidated annual financial statements included elsewhere in this prospectus. The amounts reported in this column reflect the accounting cost
for these restricted stock unit awards and do not correspond to the actual economic value that may be received by our NEOs upon the vesting and settlement of the restricted stock unit awards or any sale of the underlying shares of our Class A
common stock following settlement.

(4) The amounts reported represent the aggregate grant date fair value of the option awards granted to the NEOs, calculated in
accordance with FASB ASC Topic 718. Such grant date fair values do not take into account any estimated forfeitures. The assumptions used in calculating the grant date fair value of the option awards reported in this column are set forth in
Note 11 "Equity-Based Compensation" in the notes to our audited consolidated annual financial statements included elsewhere in this prospectus. The amounts reported in this column reflect the accounting cost for these option awards
and do not correspond to the actual economic value that may be received by our NEOs upon the exercise of the option awards or any sale of the underlying shares of our Class A common stock.

(5) Consists of $2,083 in 401(k) plan matching contributions, $1,584 in life insurance premiums, and $6,070 in professional
club memberships.

(6) Consists of $1,750 in 401(k) plan matching contributions, $783 in life insurance premiums, $9,840 in professional club
memberships and $4,470 in legal fees incurred in connection with the negotiation of his employment agreement.

(7) Consists of $2,500 in 401(k) plan matching contributions and $731 in life insurance premiums.

(8) Consists of $9,541 in 401(k) plan matching contributions and $552 in life insurance premiums.

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**Narrative Disclosure to the Summary Compensation Table** 

***Base Salaries***

Each of the NEOs, other than Mr. Cohen, is paid a base salary commensurate with his skill set, experience, performance, role and responsibilities. For fiscal year 2025, the annual base salaries for Edward Tilly, John Levene and Jonathan Daplyn were $500,000, $400,000 and $500,000, respectively.

***Bonuses***

Our NEOs, other than Mr. Cohen, are eligible to receive discretionary, cash-based annual performance bonuses based on a qualitative evaluation of individual and Company performance following the applicable performance year in recognition of their prior year performance. We believe that this approach provides an opportunity to balance our annual financial and operational achievements with qualitative judgments regarding how individual performance goals were achieved and ensures appropriate and balanced outcomes once all relevant facts are known following the end of a fiscal year. Annual cash bonuses are generally payable in the year following the performance year to which the bonus relates, subject to the NEO's continued employment with us through the payment date.

***Equity Incentive Compensation***

We grant equity awards to our NEOs in the form of stock options and RSUs. Information regarding equity awards held by our NEOs as of the December 31, 2025 are described in more detail in the "Outstanding Equity Awards at Fiscal 2025 Year-End" table.

***Other Benefits***

***Health and Welfare Benefits***

Our NEOs, other than Mr. Cohen, are eligible to receive the same employee benefits that are generally available to all our full-time employees, subject to the satisfaction of certain eligibility requirements. These benefits include our medical, dental and vision insurance and life and disability insurance plans. In structuring these benefit plans, we seek to provide an aggregate level of benefits that are comparable to those provided by similar companies.

***401(k) Plan***

We maintain a tax-qualified 401(k) retirement plan for eligible U.S. employees, including our NEOs, other than Mr. Cohen. Under our 401(k) plan, employees may elect to defer a portion of their annual compensation on a pre-tax basis, subject to applicable annual Internal Revenue Code limits. In addition, we make matching contributions of 5% of a participant's deferrals up to $10,000 of the participant's salary.

**Employment Arrangements with NEOs** 

We have entered into employment agreements with each of our NEOs, other than Mr. Cohen. The employment agreements generally set forth the NEO's annual base salary, target annual bonus and eligibility to participate in our equity incentive plan and our benefit plans generally. The material terms of the applicable employment agreements with Edward Tilly, John Levene and Jonathan Daplyn are described below.

Under their respective employment agreements, our NEOs are generally not entitled to severance or other termination-related benefits in connection with a termination of employment, other

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than certain noncompete payments as described in more detail below. However, under his employment agreement, Mr. Tilly is eligible to receive certain payments and benefits upon a termination of services, as described below.

In connection with Mr. Tilly's promotion to Co-Chief Executive Officer in January 2025, we entered into an amended and restated employment agreement with Mr. Tilly. The terms of such agreement are substantially consistent with his prior employment agreement, except that (i) his annual base salary was set at $500,000; (ii) his target annual bonus for 2025 was set at $1,500,000; and (iii) if Mr. Tilly's employment is terminated by us without cause, then subject to his continued compliance with his restrictive covenant obligations and his timely execution and nonrevocation of a release of claims, Mr. Tilly will be eligible to receive a prorated target bonus for the year in which such termination occurs, to be paid in a cash lump sum at such time as we pay our regular year-end bonuses for such fiscal year. In addition, if Mr. Tilly's employment is terminated by us without cause in the six-month period immediately following a change in control, then, subject to his continued compliance with his restrictive covenant obligations and his timely execution and nonrevocation of a release of claims, Mr. Tilly will be eligible to receive an amount equal to two times the sum of his then-current annual cash base salary and annual cash bonus paid to him with respect to the immediately preceding complete fiscal year. Mr. Tilly's amended and restated employment agreement also provides for an RSU award and an option award, the terms of which, including the acceleration terms, are set forth in the Outstanding Equity Awards at Fiscal 2025 Year-End" table.

In connection with Mr. Levene's hiring, on February 12, 2025, we entered into an employment agreement with him. Mr. Levene is entitled to (i) an annual base salary of $400,000; (ii) a target annual bonus of around $600,000, with his annual bonus for 2025 to be guaranteed at $600,000; (iii) a commencement bonus of $750,000, which is subject to pro-rata repayment if Mr. Levene resigns for any reason or is terminated for "cause" prior to the 12-month anniversary of his receipt of the commencement bonus; (iv) a grant of RSUs representing 1,000,000 shares of our Class A common stock, which, subject to the satisfaction of a liquidity event (which will be satisfied by this offering following the lockup period), service vest 25% on the first anniversary of the grant date and monthly in equal installments for 36 months thereafter; (v) a grant of RSUs representing 224,623 shares of our Class A common stock, which, subject to the satisfaction of a liquidity event, service vest in varying tranches through January 31, 2028; and (vi) a grant of options representing 500,000 shares of Class A common stock, which, subject to the satisfaction of a liquidity event (which will be satisfied by this offering following the lockup period), service vest 25% on the first anniversary of the grant date and monthly in equal installments for 36 months thereafter.

In connection with Mr. Daplyn's hiring, on July 3, 2023, we entered into an employment agreement with him. Mr. Daplyn is entitled to (i) an annual base salary of $400,000; (ii) a discretionary annual bonus; (iii) a grant of RSUs representing 970,060 shares of our Class A common stock, which, subject to the satisfaction of a liquidity event (which will be satisfied by this offering following the lockup period), service vest one-third on each of the one year, two year and three year anniversaries of the grant date; (iv) a grant of RSUs representing 120,974 shares of the Company's common stock, which, subject to the satisfaction of the liquidity event, will have fully vested as to service as of January 27, 2026; and (v) a grant of options representing 479,075 shares of Class A common stock, which, subject to the satisfaction of a liquidity event (which will be satisfied by this offering following the lockup period), service vest 25% on the first anniversary of the grant date and monthly in equal installments for the 36 months thereafter.

In connection with their employment agreements, our NEOs, other than Mr. Cohen, are subject to our standard proprietary information, assignment of inventions, noncompetition, nonsolicitation and nondisparagement agreement (the "Restrictive Covenant Agreements"), which provides for restrictions on noncompetition (during employment and for nine months or, in the case of Mr. Tilly, two years, post-

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termination), employee and customer nonsolicitation (during employment and for two years post-termination), confidentiality (perpetual), assignment of intellectual property rights and nondisparagement. Pursuant to the Restrictive Covenant Agreements, in the event we choose to enforce the noncompete and the applicable NEO is unemployed as a result of the covenant not to compete, our NEOs will be entitled to receive payments on a semi-monthly basis equal to the applicable executive's base salary for the duration of the noncompete period.

**Equity Compensation Plans and Arrangements** 

***Clear Street Group Inc. Amended and Restated 2021 Stock Incentive Plan***

The 2021 Plan was adopted on March 18, 2021. The 2021 Plan allows for the grant of awards, consisting of stock options, stock awards and RSUs to employees, nonemployee directors of the Company (or any parent or subsidiary) and consultants and independent advisors who provide services to the Company (or any parent or subsidiary).

*Administration*. Our Board of Directors is responsible for the administration of the 2021 Plan and may delegate any or all administrative functions to a committee of one or more board members. Subject to compliance with applicable law, our Board of Directors may delegate the administrative authority to an officer of the Company, with respect to awards to employees who are not officers. The administrator has the authority to determine the eligible persons to receive awards, the times to make the awards, the number of shares to be covered by the awards, the exercise and/or vesting schedule, the exercise price or purchase price to be paid, the status of options as incentive option or non-qualified stock option and the maximum term for the option. The administrator has the authority, subject to the provisions of the 2021 Plan, to establish rules and regulations for proper administration of the 2021 Plan, and to make determinations under and issue interpretations of the 2021 Plan.

*Shares Subject to the 2021 Plan.* Subject to adjustment for certain circumstances as described in the 2021 Plan, the maximum aggregate number of shares that may be subject to awards and sold under the 2021 Plan is 59,116,975 shares. The shares may be authorized but unissued, or reacquired common stock of the Company. The following shares of common stock will become available again for issuance under the 2021 Plan: (i) any shares subject to awards that expire, terminate or are cancelled prior to the issuance of the underlying shares, and (ii) unvested shares issued under the 2021 Plan and forfeited to or repurchased by the Company at a price per share not greater than the exercise or purchase price paid.

In the event of any stock split, stock dividend, spin-off, extraordinary distribution, recapitalization, combination, repurchase, exchange of shares or other similar transaction affecting the Company's common stock without the Company's receipt of consideration, or in the event of a substantial reduction to the value of the shares of the Company's common stock by reason of spin-off or extraordinary distribution or in the event of any merger, consolidation, reincorporation or other reorganization, the administrator will adjust (i) the maximum number and/or class of shares issuable under the 2021 Plan, (ii) the number and/or class, and exercise or purchase price of shares covered by each outstanding award, (iii) the number and/or class of shares subject to forfeiture or our repurchase rights, and the repurchase price payable, and (iv) the maximum number and/or class of shares issuable pursuant to incentive stock options.

*Options*. The administrator may grant options to purchase shares of common stock that are either "qualified," meaning they are intended to satisfy the requirements of Section 422 of the Code for "incentive stock options," or "nonqualified," meaning they are not intended to satisfy the requirements of Section 422 of the Code. The maximum number of shares of common stock which may be issued under the 2021 Plan pursuant to incentive stock options may not exceed, subject to adjustment as

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described above. The aggregate fair market value of the shares of Class A common stock for which one or more options granted to any employee may for the first time become exercisable as incentive stock options during any one calendar year shall not exceed $100,000. The exercise price per share will be no less than the fair market value (or 110% of the fair market value in the case of incentive stock options granted to a 10% stockholder) of the share on date of grant. The maximum term of an option granted under the 2021 Plan will be 10 years from the date of grant (or five years in the case of incentive stock options granted to a 10% stockholder). Each option is evidenced by an award agreement, provided that such agreement complies with the terms and conditions of the 2021 Plan, including type of options, exercise price, exercise and term, effect of termination of service, unvested shares, stockholder rights, limits on incentive stock options and repricing.

*Stock Awards*. The administrator may issue shares of common stock under the 2021 Plan. Each such stock issuance will be evidenced by an award agreement, provided that such agreement complies with the terms and conditions of the 2021 Plan, including consideration, vesting provisions and stockholder rights.

*RSUs*. The administrator may grant RSUs under the 2021 Plan. Each award of RSUs will be evidenced by one or more award agreements, provided that such agreements comply with the terms and conditions of the 2021 Plan, including vesting provisions and stockholder rights.

*Effect of Change in Control on Awards*. In the event of a "change in control" (as defined in the 2021 Plan), each outstanding award, as determined at the administrator's sole discretion, may be (i) assumed by the successor corporation (or its parent), (ii) canceled and substituted with an award granted by the successor corporation (or its parent), (iii) otherwise continued in full force and effect pursuant to the terms of the change in control transaction, or (iv) replaced with our or any successor corporation's cash retention program which preserves the spread existing on the unvested shares subject to the award at the time of the change in control and provides for payout of that spread in accordance with the same applicable exercise/vesting schedule, provided that such replacement cash program would not result in the treatment of the award as deferred compensation subject to Code Section 409A. If an outstanding award is not assumed, substituted, continued or replaced, such award will automatically vest in full immediately prior to the change in control, unless subject to other limitations imposed at the time of grant.

*Amendment and Termination*. Our Board of Directors has the exclusive power to amend the 2021 Plan, provided that no such amendment shall adversely affect the rights and obligations with respect to outstanding awards, unless the participant consents to such amendment. The 2021 Plan terminates upon the earliest of (i) 10 years from the date the 2021 Plan was adopted, (ii) the date on which all shares available have been issued as vested shares, or (iii) termination of all outstanding awards in connection with a Change in Control.

***Clear Street Group Inc. 2026 Omnibus Incentive Plan***

In connection with this offering, we expect to adopt, subject to stockholder approval, the 2026 Plan, which will be effective in connection with the completion of this offering. Awards under the 2026 Plan include options (including options intended to qualify as incentive stock options under Section 422 of the Code as well as nonqualified stock options), stock appreciation rights ("SARs"), restricted stock, RSUs, performance awards, other cash-based awards and other stock-based awards. Our employees or consultants (or employees or consultants of our affiliates or subsidiaries) and our non-employee directors are eligible to receive an award under the 2026 Plan. The following summary describes the material terms of the 2026 Plan.

*Administration*. The 2026 Plan will be administered by the Compensation Committee, which may delegate some or all of its authority to one or more of our officers or to one or more committees of our

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Board of Directors. In addition, our Board of Directors may, in its sole discretion, administer or grant awards under the 2026 Plan. The Compensation Committee will have broad authority to administer the 2026 Plan, such as to (i) designate participants, (ii) determine the types of awards to be granted, (iii) determine the number of shares to be covered by awards, (iv) determine the terms and conditions of any award and prescribe the form of each award agreement, (v) amend the terms or conditions of outstanding awards, (vi) interpret and administer the 2026 Plan or any instrument or agreement relating to, or award made under, the 2026 Plan and (vii) make any other determination and take any other action that the Compensation Committee deems necessary or desirable for the administration and compliance of the 2026 Plan.

*Shares Subject to the 2026 Plan*. The maximum number of shares of our Class A common stock available for issuance under the 2026 Plan will not exceed shares; provided that the total number of shares available for issuance under the 2026 Plan will be increased on each January 1 following the effective date of the 2026 Plan up to and including January 1, 2036 in an amount equal to the lesser of (i) 5% of outstanding shares of our Class A common stock and Class B common stock outstanding (on a fully diluted basis) on the last day of the immediately preceding fiscal year and (ii) such number of shares as determined by the Compensation Committee in its discretion (together, the "Share Pool"). The maximum number of shares of our Class A common stock available for issuance with respect to incentive stock options under the 2026 Plan is .

*Options*. The exercise price of an option may not be less than the fair market value of a share of our Class A common stock on the grant date (other than in the case of Substitute Awards (as defined in the 2026 Plan)). The term of each option shall be fixed by the Compensation Committee but shall not exceed 10 years from the date of grant. Any grant of incentive stock options must be in compliance with Section 422 of the Code, and may only be granted to our employees or the employees of our parent or subsidiary corporation.

*Stock Appreciation Rights*. The exercise or hurdle price of a SAR may not be less than the fair market value of a share of our Class A common stock on the grant date (other than in the case of substitute awards). The term of each SAR shall be fixed by the Compensation Committee but shall not exceed 10 years from the date of grant.

*Restricted Stock*. Restricted stock is an award of shares that is subject to certain restrictions and forfeiture conditions as determined by the Compensation Committee. The participant will generally have the rights and privileges of a stockholder with respect to awards of restricted stock, including the right to vote and the right to receive dividends.

*RSUs*. An RSU is an award that represents a right to receive the value of one share of our Class A common stock (or a percentage of such value). RSUs may be paid in cash, shares, other awards, other property or any combination thereof. Awards of RSUs may include the right to receive dividend equivalents. The participant does not have the rights and privileges of a stockholder with respect to shares of our Class A common stock underlying an RSU.

*Performance Awards*. Performance awards are awards that may be earned upon achievement or satisfaction of performance conditions specified by the Compensation Committee. Performance awards may be denominated as a cash amount, number of shares of our Class A common stock or units or a combination thereof.

*Other Cash-Based and Other Stock-Based Awards*. The Compensation Committee is authorized to grant other cash-based awards and other stock-based awards. For awards in the nature of a purchase right, the purchase price shall not be less than the fair market value of such shares of our Class A common stock on the grant date.

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*Director Compensation Limitations*. Any participant who is a non-employee director may not receive compensation from us for any calendar year in excess of $750,000 (or $1,000,000 in the case of Chairman of our Board of Directors) in the aggregate, including cash payments and awards.

*Changes in Capitalization*. If the Compensation Committee determines that, as a result of any dividend or other distribution (other than an ordinary dividend or distribution), recapitalization, stock split, reverse stock split, reorganization, merger, amalgamation, consolidation, separation, rights offering, split-up, spin-off, combination, repurchase or exchange of shares of our Class A common stock or our other securities, issuance of warrants or other rights to acquire shares of our Class A common stock or our other securities, issuance of shares of our Class A common stock pursuant to the anti-dilution provisions of our securities, or other similar corporate transaction or event affecting the shares of our Class A common stock, or of changes in applicable laws, regulations or accounting principles, an adjustment is necessary in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the 2026 Plan, then the Compensation Committee shall adjust equitably so as to ensure no undue enrichment or harm (including by payment of cash), any or all of (i) the number and type of shares of our Class A common stock (or other securities) which thereafter may be made the subject of awards, including the amount of the Share Pool and the number of shares available for incentive stock options, (ii) the number or amount and type of shares of our Class A common stock (or other securities) subject to outstanding awards, (iii) the grant, acquisition, exercise or hurdle price with respect to any award or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding award and (iv) the terms and conditions of any outstanding awards, including the performance criteria of any performance awards.

*Effect of Termination of Service or a Change of Control Transaction*. The Compensation Committee may provide that an award may be exercised, settled, vested, paid or forfeited in the event of a participant's termination of service prior to the end of a performance period or vesting, exercise or settlement of such award.

In the event of a change of control transaction (as defined in the 2026 Plan), the Compensation Committee may take any one or more of the following actions with respect to any outstanding award, (i) continuation or assumption of such award by us (if we are the surviving corporation) or by the successor or surviving entity or our parent, (ii) substitution or replacement of such award with substantially the same terms and value as such award, (iii) acceleration of the vesting and the lapse of any restrictions either immediately prior to or as of the change of control transaction, or upon voluntary termination of service without cause or for good reason and/or due to death or disability, or upon the failure of the successor or surviving entity (or its parent) to continue or assume such award, (iv) in the case of a performance award, determination of the level of attainment of the applicable performance condition(s) and (v) cancellation of such award in consideration of a payment with the form, amount and timing determined by the Compensation Committee subject to certain requirements in the 2026 Plan.

*Repricing*. The Compensation Committee may, without stockholder approval, seek to effect any repricing of any previously granted "underwater" option, SAR or similar award.

*Clawback*. Any awards (including any amounts or benefits arising from such awards) will be subject to any clawback or recoupment arrangements or policies we have in place from time to time, and the Compensation Committee may, to the extent permitted by applicable law and stock exchange rules or by any applicable Company policy or arrangement, and will, to the extent required, cancel or require reimbursement of any awards granted or any shares of our Class A common stock issued or cash received upon vesting, exercise or settlement of any such awards or sale of shares of our Class A common stock underlying such awards.

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*Term*. The 2026 Plan will become effective on the date on which the closing of this offering occurs. No award may be granted under the 2026 Plan after the tenth anniversary of the earlier of (i) the date the 2026 Plan is adopted by our Board of Directors and (ii) the date the 2026 Plan is approved by our stockholders. No awards will be granted under the 2026 Plan after the earlier to occur of (i) the maximum number of shares of our Class A common stock available for issuance have been issued and (ii) our Board of Directors terminates the 2026 Plan. However, unless otherwise expressly provided in the 2026 Plan or in an applicable award agreement, any award granted under the 2026 Plan may extend beyond such date, and the authority of the Compensation Committee to amend, alter, adjust, suspend, discontinue or terminate any such award, or to waive any conditions or rights under any such award, and the authority of our Board of Directors to amend the 2026 Plan, shall extend beyond such date.

*Amendment and Termination*. Except to the extent prohibited by applicable law and unless otherwise expressly provided in an award agreement or in the 2026 Plan, our Board of Directors may amend, alter, suspend, discontinue or terminate the 2026 Plan or any portion thereof at any time; provided that no such amendment, alternation, suspension, discontinuation or termination shall be made without (i) stockholder approval if such approval is required by applicable law or the rules of the stock market or exchange on which the shares of our Class A common stock are principally quoted or traded or (ii) subject to certain limitations, the consent of the affected participant of the 2026 Plan if such action would materially adversely affect the rights of such participant under any outstanding award.

***Clear Street Group Inc. 2026 Employee Stock Purchase Plan***

In connection with this offering, we expect to adopt, subject to stockholder approval, the ESPP, which will be effective in connection with the completion of this offering. The ESPP consists of two components: the Section 423 component, intended to qualify as an "employee stock purchase plan" under Section 423(b) of the Code (the "423 Component") and the non-Section 423 component (the "Non-423 Component"), which authorizes the grant of rights which need not qualify under Section 423 of the Code. With respect to the 423 Component, an employee of the Company (or its affiliates or Participating Subsidiaries (as defined in the ESPP)) may participate subject to the exclusions the administrator may apply under the ESPP. With respect to the Non-423 Component, employee eligibility is determined by the Compensation Committee. The following summary describes the material terms of the ESPP.

*Administration*. The ESPP will be administered by the Compensation Committee, which may delegate some or all of its authority to one or more of our officers or to one or more committees of our Board of Directors. The Compensation Committee will have broad authority to administer the ESPP, such as to change the duration, frequency, start and end dates of any offering period, the minimum and maximum amounts of compensation for payroll deductions, the frequency with which a participant may elect to change his or her rate of payroll deductions, the dates by which a participant is required to submit an enrollment form, the effective date of a participant's withdrawal due to termination or transfer of employment or change in status, and the withholding procedures. With respect to the Non-423 Component, the rules set forth in the applicable sub-plans may take precedence over other provisions of the ESPP, but unless otherwise superseded by the terms of such sub-plan, the provisions of the ESPP will govern the operation of such sub-plan.

*Shares Subject to the ESPP*. The maximum number of shares of our Class A common stock available for issuance under the ESPP will not exceed in the aggregate shares (the "ESPP Share Pool") and will be increased on the first day of each Company fiscal year following the effective date of the ESPP for a period of up to 10 years in an amount equal to the least of (i) 1.0% of the total number of shares of our Class A common stock and Class B common stock outstanding as of the last

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completed fiscal year, (ii) such number of shares as determined by our Board of Directors in its discretion and (iii) shares. The number of shares of our Class A common stock available at any time under the ESPP will be subject to adjustment in the event of a dividend or other distribution (other than an ordinary dividend or distribution and whether in the form of cash, shares of our Class A common stock, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, amalgamation, consolidation, split-up, spin-off, combination, repurchase or exchange of shares of our Class A common stock or our other securities, or other change in our structure affecting the shares of our Class A common stock occurs. The number of shares of our Class A common stock which a participant may purchase in an offering under the ESPP may be reduced if the offering is over-subscribed.

*Offering Periods*. The ESPP will be implemented by a series of offering periods, each of which will be approximately six months in duration, with new offering periods commencing on the first trading day on or after January 1 and July 1 of each year, unless otherwise determined by the Compensation Committee. The Compensation Committee will have the authority to change the duration, frequency, start and end dates of offering periods.

*Options*. On the first trading day of each offering period, each participant in the applicable offering period will be granted an option to purchase, on the purchase date, a number of shares determined by dividing the participant's accumulated payroll deductions by the applicable Purchase Price (as defined below). In connection with each offering, the Compensation Committee may specify (i) a maximum number of shares that may be purchased by any participant on any purchase date in such offering, (ii) a maximum aggregate number of shares of our Class A common stock that may be purchased by all participants in such offering and (iii) if such offering contains more than one purchase date, a maximum aggregate number of shares of our Class A common stock that may be purchased by all participants on any purchase date in such offering; provided, however, that in no event shall any participant purchase more than shares during an offering period.

*Purchase of Shares*. A participant's option to purchase shares will be exercised automatically on the purchase date of each offering period. The participant's accumulated payroll deductions will be used to purchase the maximum number of whole shares of our Class A common stock that can be purchased with the amounts in the participant's notional account.

*Participation*. An eligible employee may elect to participate in the ESPP by completing an enrollment form. By submitting an enrollment form, the employee authorizes payroll deductions in an amount equal to at least 1%, but not more than 15% of the employee's compensation on each pay day occurring during an offering period (or such other maximum percentage as the Compensation Committee from time to time may establish), with an annual maximum aggregate limit of $25,000. The purchase price of the shares of our Class A common stock will be no less than the lesser of (i) 85% (or such greater percentage as designated by the Compensation Committee) of the fair market value of a share of our Class A common stock on the first trading day of the applicable offering period or (ii) 85% (or such greater percentage as designated by the Compensation Committee) of the fair market value of a share of our Class A common stock on the purchase date; provided that the purchase price per share will in no event be less than the par value of the shares of our Class A common stock (the "Purchase Price").

*Withdrawal*. A participant may withdraw from an offering by timely submitting to us a revised enrollment form indicating his or her election to withdraw. The accumulated payroll deductions held on behalf of a participant in his or her notional account (that have not been used to purchase shares) will be paid to the participant promptly and the participant's option will be automatically terminated.

*Effect of Termination of Employment or a Change of Control Transaction*. Upon termination of a participant's employment for any reason that occurs at least 15 calendar days before the purchase

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date, the participant will be deemed to have withdrawn from the ESPP and the payroll deductions in the participant's notional account (that have not been used to purchase shares) will be returned to the participant, and the participant's option shall be automatically terminated. If the participant's termination of employment occurs within 15 calendar days before a purchase date, the accumulated payroll deductions will be used to purchase shares on the purchase date.

In the event of a change of control transaction of us (as defined in the ESPP), the Compensation Committee will have full discretion to (i) accelerate the purchase date to a date prior to the change of control transaction, (ii) cancel outstanding options and refund payroll deductions or (iii) provide for assumption or substitution of options by the successor entity. If the successor entity refuses to assume or substitute the options, the purchase date shall be accelerated as described in clause (i).

*Term*. The ESPP will remain in effect for 10 years following the effective date of the ESPP unless terminated earlier.

*Amendment and Termination*. The Compensation Committee may, in its sole discretion, amend, suspend or terminate the ESPP at any time and for any reason. If the ESPP is terminated, the Compensation Committee may elect to terminate all outstanding offering periods either immediately or once shares of our Class A common stock have been purchased on the next purchase date (which may, in the discretion of the Compensation Committee, be accelerated) or permit offering periods to expire in accordance with their terms. If any offering period is terminated before its scheduled expiration, all amounts that have not been used to purchase shares will be returned to participants (without interest, except as otherwise required by law) as soon as administratively practicable.

**Outstanding Equity Awards at Fiscal Year-End** 

The following table sets forth information concerning outstanding equity awards for our named executive officers as of the end of our fiscal year ended December 31, 2025. The following table and associated footnotes do not give effect to the Stock Split.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Option Awards<sup>(1)</sup>** | **Option Awards<sup>(1)</sup>** | **Option Awards<sup>(1)</sup>** | **Option Awards<sup>(1)</sup>** | **Option Awards<sup>(1)</sup>** | **Stock Awards<sup>(1)</sup>** | **Stock Awards<sup>(1)</sup>** | **Stock Awards<sup>(1)</sup>** | **Stock Awards<sup>(1)</sup>** |
| **Name**<br>| **Number of<br>Securities<br>Underlying<br>Unexercised<br>Options (#)<br>Exercisable** | **Number of<br>Securities<br>Underlying<br>Unexercised<br>Options (#)<br>Unexercisable** | **Equity<br>Incentive Plan<br>Awards:<br>Number of<br>Securities<br>Underlying<br>Unexercised<br>Unearned<br>Options (#)** | **Option<br>Exercise<br>Price ($)** | **Option<br>Expiration<br>Date** | **Number of<br>Shares or<br>Units of<br>Stock That<br>Have Not<br>Vested (#)** | **Market<br>Value of<br>Shares or<br>Units of<br>Stock That<br>Have Not<br>Vested ($)** | **Equity<br>Incentive Plan<br>Awards:<br>Number of<br>Unearned<br>Shares, Units<br>or Other<br>Rights That<br>Have Not<br>Vested (#)** | **Equity<br>Incentive<br>Plan Awards:<br>Market or<br>Payout Value<br>of Unearned<br>Shares,<br>Units or<br>Other Rights<br>That Have<br>Not Vested<br>($)<sup>(2)</sup>** |
|  Edward Tilly |  |  | 3000000<sup>(3)</sup> | $8.35 | 9/29/2034 |  |  | 2000000<sup>(4)</sup> | $71440000 |
|  Uriel Cohen |  |  |  |  |  |  |  |  |  |
|  John Levene |  |  | 500000<sup>(5)</sup> | $11.15 | 5/15/2035 |  |  | 1000000<sup>(6)</sup> | $35720000 |
|  |  |  |  |  |  |  |  | 224623<sup>(7)</sup> | $8023534 |
|  Jonathan Daplyn |  |  | 479075<sup>(8)</sup> | $8.35 | 9/6/2033 |  |  | 120974<sup>(9)</sup> | $4321191 |
|  |  |  |  |  |  |  |  | 970060<sup>(10)</sup> | $34650543 |

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(1) All awards described here were granted pursuant to the 2021 Equity Incentive Plan and vest based on the satisfaction of
both a service based vesting condition and a liquidity event vesting condition. We anticipate that the liquidity event vesting condition will be satisfied following the expiration of the lock-up in connection
with this offering. The service-based vesting conditions are described in the footnotes that follow.

(2) Amounts are calculated by multiplying the number of RSUs shown in the table by the fair market value of our common stock
as of December 31, 2025. As there was no public market for our common stock on December 31, 2025, we have assumed that the fair market value on such date was $35.72 per share.

(3) The vesting commencement date is 7/22/24 and the service-based vesting condition vests as to 1/48th of the options on each
monthly anniversary of the vesting commencement date over 48 months. In the event that we consummate a change

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in control and the buyer either does not assume the option or terminates Mr. Tilly's employment with us (other than for cause) within six months following such change of control, the service-vesting of this option will accelerate in full.

(4) The vesting commencement date is 7/22/24 and the service-based vesting condition vests as to 1/48th of the RSUs on each
monthly anniversary of the vesting commencement date over 48 months. In the event that we consummate a change in control and the buyer either does not assume the RSUs or terminates Mr. Tilly's employment with us (other than for cause)
within six months following such change of control, the service-vesting of these RSUs will accelerate in full.

(5) The vesting commencement date is 5/15/25 and the service-based vesting condition vests as to 1/4th of the options on the
first anniversary of the vesting commencement date and as to 1/48th of the total options on each monthly anniversary of the vesting commencement date after the first anniversary through the fourth anniversary of the vesting commencement date.

(6) The vesting commencement date is 5/15/25 and the service-based vesting condition vests as to 1/4th of the RSUs on the
first anniversary of the vesting commencement date and as to 1/48th of the total RSUs on each monthly anniversary of the vesting commencement date after the first anniversary through the fourth anniversary of the vesting commencement date.

(7) The vesting commencement date is 5/15/25 and the service-based vesting condition vests as to 23,952 of the RSUs on
12/31/25, as to 103,299 of the RSUs on 1/31/26, as to 11,976 of the RSUs on 12/31/26, as to 61,886 of the RSUs on 1/31/27 and as to 23,510 of the RSUs on 1/31/28.

(8) The vesting commencement date is 9/6/23 and the service-based vesting condition vests as to 1/4th of the options on the
first anniversary of the vesting commencement date and as to 1/48th of the total options on each monthly anniversary of the vesting commencement date after the first anniversary through the fourth anniversary of the vesting commencement date.

(9) The vesting commencement date is 9/6/23 and the service-based vesting condition vests as to 43,518 of the RSUs on 1/27/24,
as to 42,885 of the RSUs on 1/27/25 and as to 34,571 of the RSUs on 1/27/26.

(10) The vesting commencement date is 9/6/23 and the service-based vesting condition vests as to 1/3rd of the RSUs on each
yearly anniversary of the vesting commencement date.

**2025 Director Compensation Table** 

The following table sets forth information concerning the compensation earned by each of our nonemployee directors during the fiscal year ended December 31, 2025.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Fees<br>Earned<br>or Paid<br>in Cash** | **Stock<br>Awards<br>($)** | **Option<br>Awards<br>($)** | **All Other<br>Compensation** | **Total<br>($)** |
|  Uriel Cohen | $60000 | – |  | – $| 60000 |
|  Elli Ausubel |  | – |  | – $|  |
|  Chris Pento |  | – |  | – $|  |
|  Matthew Roberts |  | – |  | – $|  |
|  Jay Park |  | – |  | – $|  |

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**Narrative Disclosure to the Director Compensation Table** 

With the exception of Mr. Cohen, who served as the Executive Chairman of our Board of Directors during 2025, none of our non-employee directors received compensation for services on our Board of Directors in 2025. Mr. Cohen was entitled to receive an annual cash retainer of $60,000 for his service as our Executive Chairman.

***Non-Employee Director Compensation Policy***

In connection with this offering, we expect that our Board of Directors will adopt a non-employee director compensation policy. This policy will be applicable to all of our non-employee directors and will provide that each such non-employee director will receive the following compensation for service on our Board of Directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an annual cash retainer of $100,000 (paid quarterly);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an equity retainer of $150,000 in RSUs, which will vest in full on the earlier of (i) the one-year anniversary of the grant date, (ii) the director's separation from service due to death or disability and (iii) a change of control transaction (as defined in our 2026 Plan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an additional annual cash retainer of $12,500 for service as a member of the Audit Committee ($25,000 for the
chairperson), $10,000 for service as a member of the Compensation

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Committee ($25,000 for the chairperson) and $10,000 for service as a member of the Nominating and Governance Committee ($20,000 for the chairperson); <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an additional annual cash retainer of $60,000 for service as the Lead Independent Director (if applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the non-employee director may elect to receive any portion of the cash retainer as
RSUs, which will vest in full on the one-year anniversary of the grant date.

The vesting of each non-employee director's RSU award will be subject to such director's continuous service with us through the applicable vesting date.

***Grants to Clear Street Global Corporation***

On January 19, 2026, disinterested members of our Board of Directors approved grants of equity awards to Global Corp., subject to the approval of our stockholders and to this offering, effective upon, and contingent on, the effectiveness of the registration statement of which this prospectus forms a part. Global Corp. has provided and will continue to provide operational, managerial, strategic, consulting and other support services to us pursuant to a Support and Services and Equity Award Agreement (the "Global Corp. Agreement"). Pursuant to the terms of the Global Corp. Agreement, Global Corp. will receive grants of equity awards (the "Global Corp. Grants") representing a total maximum aggregate number of shares of our Class A common stock equal to shares, subject to the achievement of specified share price milestones and a five-year service condition. The Global Corp. Grants will be in the form of options. Uriel Cohen and Elli Ausubel, among others, provide services to, and would receive benefits with respect to the equity awards granted to, Global Corp.

Each option is subject to both service-based vesting conditions and Share Price Milestones. Options will vest with respect to service as follows:

1. If the applicable Share Price Milestone is satisfied on or prior to the 5-year anniversary of the grant date, the options
will vest with respect to service ratably on a monthly basis from the date the Share Price Milestone is satisfied to the 5-year anniversary of the grant date, subject to Global Corp. continuing to provide services through the applicable monthly
anniversary; in the event Global Corp.'s services are terminated, except as set forth in the Global Corp. Agreement (and as described below), any subsequent monthly vesting date will be forfeited for no consideration; and

2. If the applicable Share Price Milestone is satisfied following the 5-year anniversary of the grant date, if Global Corp.
continues to provide services to us through such date, the options will vest with respect to service on the date that the Share Price Milestone is satisfied.

With respect to the Share Price Milestones, the options will satisfy the Share Price Milestone if, based on the volume weighted average closing price per share of our Class A common stock for a period of 90 trading days, the share price meets or exceeds the following thresholds (which do not give effect to the Stock Split):

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| | | |
|:---|:---|:---|
| Tranche | Share Price<br> Milestone | Number of Options<br>Earned if Share<br>Price Milestone Is<br>Met |
|  Tranche 1 | 135% of the initial public offering price | 8341397 |
|  Tranche 2 | 135% of the price set forth in the row above | 8341397 |
| Tranche 3 | 135% of the price set forth in the row above | 8341397 |
| Tranche 4 | 140% of the price set forth in the row above | 4170698 |
| Tranche 5 | 140% of the price set forth in the row above | 4170698 |

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The Global Corp. Grants will have an exercise price equal to our initial public offering price. All share price milestones must be achieved on or prior to the ten-year anniversary of the Global Corp. Agreement, or, if earlier, upon a "change of control transaction" (as defined in the Global Corp. Agreement, with such definition being substantially similar to the same terms in the 2026 Plan). Upon a "change of control transaction," the share price milestone will be determined based on the share price received by our stockholders in connection with the "change of control transaction"; unvested awards will be forfeited. If the Company terminates the Global Corp. Agreement without "cause," the service condition will be deemed satisfied and any options outstanding and unvested as of the termination date will remain outstanding and eligible to vest through the last day of the performance period; any vested options must be exercised within 90 calendar days following the termination date of the Global Corp. Agreement (or, if the options vest following the termination date, within 90 days of the vesting of the options). If the Global Corp. Agreement is terminated for any other reason including for "cause," all unvested options will be forfeited for no consideration, and any vested options must be exercised within 90 calendar days following such termination.

In addition, on January 19, 2026, the disinterested members of our Board of Directors and a majority of our disinterested stockholders approved a grant of 8,500,000 RSUs, pursuant to the Global Corp. Restricted Stock Unit Issuance Agreement ("Global Corp. RSU Agreement") with Global Corp. The RSUs will vest on the six month anniversary of the grant date (July 19, 2026), subject to Global Corp.'s continued service through such date and the completion of this offering.

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**PRINCIPAL STOCKHOLDERS** 

The following table sets forth information about the beneficial ownership of our common stock as of December 31, 2025 for

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person or group known to us who beneficially owns or will own as of immediately prior to the completion of this
offering more than 5% of any class of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our directors and each of our named executive officers, individually; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all of our directors and executive officers as a group.

Under SEC rules, a person is deemed to be a "beneficial" owner of a security if that person has or shares voting power or investment power over such security, which includes the power to dispose of or to direct the disposition of such security. Accordingly, more than one person may be deemed to be a beneficial owner of securities, and a person may be deemed to be a beneficial owner of securities as to which such person has no economic interest.

A person is also deemed to be a beneficial owner of any securities of which that person has a right to acquire beneficial ownership within 60 days. Securities that can be so acquired are deemed to be outstanding and to be beneficially owned by such person for the purposes of computing the ownership and percentage ownership of such person but are not deemed to be outstanding for purposes of computing the ownership or percentage ownership of any other person, except with respect to the ownership and percentage ownership of all executive officers and directors as a group. We have based the percentage ownership of our common stock before this offering on (i) shares of our Class A common stock outstanding as of December 31, 2025, (ii) shares of our Class B common stock outstanding as of December 31, 2025, and (iii) shares of our Series A preferred stock outstanding as of , 2025. The following table gives effect to the Pre-IPO Transactions and the filing and effectiveness of our New Charter and the adoption and effectiveness of our New Bylaws, which will be in effect immediately prior to the completion of this offering. Percentage ownership of our common stock after this offering assumes our sale of shares of Class A common stock in this offering, assuming no exercise by the underwriters of their option to purchase additional shares of our Class A common stock from us.

Unless otherwise indicated in the footnotes to the following table, the address of each of our directors, named executive officers and principal stockholders listed below is 150 Greenwich Street, 45<sup>th</sup> Floor, New York, NY 10007.

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Shares Beneficially<br>Owned Before this Offering** | **Shares Beneficially<br>Owned Before this Offering** | **Shares Beneficially<br>Owned Before this Offering** | **Shares Beneficially<br>Owned Before this Offering** | **% of Total<br>Voting Power<br>Before this<br>Offering** | **Shares Beneficially<br>Owned After this Offering** | **Shares Beneficially<br>Owned After this Offering** | **Shares Beneficially<br>Owned After this Offering** | **Shares Beneficially<br>Owned After this Offering** | **% of Total<br>Voting Power<br>After this<br>Offering** |
|  | **Class A<br>common<br>stock** | **Class A<br>common<br>stock** | **Class B<br>common<br>stock** | **Class B<br>common<br>stock** | **% of Total<br>Voting Power<br>Before this<br>Offering** | **Class A<br>common<br>stock** | **Class A<br>common<br>stock** | **Class B<br>common<br>stock** | **Class B<br>common<br>stock** | **% of Total<br>Voting Power<br>After this<br>Offering** |
|  | **Number** | **%** | **Number** | **%** | **% of Total<br>Voting Power<br>Before this<br>Offering** | **Number** | **%** | **Number** | **%** | **% of Total<br>Voting Power<br>After this<br>Offering** |
|  **Directors and Executive Officers:** |  |  |  |  |  |  |  |  |  |  |
|  Uriel Cohen |  |  |  |  |  |  |  |  |  |  |
|  Elli Ausubel |  |  |  |  |  |  |  |  |  |  |
|  Christopher Pento<sup>(1)</sup> |  |  |  |  |  |  |  |  |  |  |
|  Jay Park |  |  |  |  |  |  |  |  |  |  |
|  Matthew Roberts |  |  |  |  |  |  |  |  |  |  |
|  Edward T. Tilly |  |  |  |  |  |  |  |  |  |  |
|  Steven Bisgay |  |  |  |  |  |  |  |  |  |  |
|  Jonathan Daplyn |  |  |  |  |  |  |  |  |  |  |
|  John Levene |  |  |  |  |  |  |  |  |  |  |

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Shares Beneficially<br>Owned Before this Offering** | **Shares Beneficially<br>Owned Before this Offering** | **Shares Beneficially<br>Owned Before this Offering** | **Shares Beneficially<br>Owned Before this Offering** | **% of Total<br>Voting Power<br>Before this<br>Offering** | **Shares Beneficially<br>Owned After this<br>Offering** | **Shares Beneficially<br>Owned After this<br>Offering** | **Shares Beneficially<br>Owned After this<br>Offering** | **Shares Beneficially<br>Owned After this<br>Offering** | **% of Total<br>Voting Power<br>After this<br>Offering** |
|  | **Class A<br>common<br>stock** | **Class A<br>common<br>stock** | **Class B<br>common<br>stock** | **Class B<br>common<br>stock** | **% of Total<br>Voting Power<br>Before this<br>Offering** | **Class A<br>common<br>stock** | **Class A<br>common<br>stock** | **Class B<br>common<br>stock** | **Class B<br>common<br>stock** | **% of Total<br>Voting Power<br>After this<br>Offering** |
|  | **Number** | **%** | **Number** | **%** | **% of Total<br>Voting Power<br>Before this<br>Offering** | **Number** | **%** | **Number** | **%** | **% of Total<br>Voting Power<br>After this<br>Offering** |
|  All directors and executive officers as a group (9 persons) |  |  |  |  |  |  |  |  |  |  |
|  **Principal Stockholders:** |  |  |  |  |  |  |  |  |  |  |
|  Clear Street Global Corp.<sup>(2)</sup> |  |  |  |  |  |  |  |  |  |  |
|  Entities affiliated with Prysm<sup>(3)</sup> |  |  |  |  |  |  |  |  |  |  |

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\* Denotes less than 1.0% of beneficial ownership. 

† Percentage of total voting power represents voting power with respect to all shares of our Class A common stock,
Class B common stock and Series A preferred stock, as a single class. Shares of our Class A common stock entitle the holder to one vote per share, shares of our Class B common stock entitle the holder to ten votes per share and shares
of our Series A preferred stock entitle the holder to one vote per share. Shares of our Series A preferred stock are not convertible into Class A common stock.

(1) Represents (i)    shares of our Class A common stock held by Christopher Pento,
(ii)    shares of our Class A common stock held by Christopher Pento's spouse, Gina Pento, (iii)    shares of our Class A common stock held by The Asset Planning Master Trust / Series
Pento 2025 Trust, (iv)    shares of our Class A common stock held by The Gina Pento 2025 Descendants Trust, (v)    shares of our Class A common stock held by The Gina Pento 2025 Non-Grantor
Descendants Trust, (vi)    shares of our Class A common stock held by The Christopher and Gina Pento 2025 Dynasty Trust, (vii)    shares of our Class A common stock held by The Christopher
Pento 2025 Family Trust, and (viii)      shares of our Class A common stock held by The Christopher Pento 2025 Non-Grantor Family Trust. Christopher and/or Gina Pento may be deemed to have beneficial ownership with
respect to the shares held by The Asset Planning Master Trust / Series Pento 2025 Trust, The Gina Pento 2025 Descendants Trust, The Gina Pento 2025 Non-Grantor Descendants Trust, The Christopher and Gina Pento 2025 Dynasty Trust, The Christopher
Pento 2025 Family Trust and The Christopher Pento 2025 Non-Grantor Family Trust by virtue of his power to replace each of the foregoing trusts' trustees.

(2) Represents (i)      shares of our Class B common stock held by Global Corp.,
(ii)      shares of our Class A common stock held by TC Cypress HoldCo 1 LLC ("TC Cypress"), (iii)      shares of our Class A common stock held by CS Vos LLC
("CS Vos") and (iv)      shares of our Class A common stock held by Trading Opportunities V, LLC (together with CS Vos, the "Global Corp. SPVs"). The board of directors of Global Corp.
approves Global Corp.'s investment and voting decisions by a majority vote, and no individual member of the board of directors of Global Corp. has the sole control or voting power over our Class B common stock held by Global Corp. The
board of directors of Global Corp. consists of five individuals. Under the so-called "rule of three," if voting and dispositive decisions regarding securities of an issuer such as us that are held
by an entity such as Global Corp. are made by three or more individuals, and a voting and dispositive decision requires the approval of a majority of those individuals, then none of the individuals is deemed a beneficial owner of the issuer's
securities held by that entity. Accordingly, no member of the board of directors of Global Corp. will be deemed to have or share beneficial ownership of the shares of our Class B common stock held by Global Corp. For the avoidance of doubt,
each of them expressly disclaims any such beneficial ownership, except to the extent of any direct or indirect pecuniary interest any of them may have therein. TC Cypress is a special purpose vehicle and its managers are Global Corp., Christopher
Pento and Sachin Kumar, who each holding Class B interests in the entity and exercise investment decisions over shares held

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by TC Cypress. Global Corp. may be deemed to have beneficial ownership with respect to the shares held by the TC Cypress by virtue of Global Corp.'s influence over Christopher Pento and Sachin Kumar. Global Corp. makes investing decisions on behalf of each of the Global Corp. SPVs such that Global Corp. may be deemed to have beneficial ownership with respect to the shares held by each of the Global Corp. SPVs. The address of each of the foregoing entities is 5150 Norre Gade, Charlotte Amalie, St Thomas 00802.

(3) Represents (i) shares of Class A common stock held by Cheetah Aggregator, LLC,
(ii)    shares of Class A common stock held by Prysm Capital Fund I, L.P., (iii)   shares of Class A common stock held by Cheetah Investment Holdings-A LLC,
and (iv)    shares of Class A common stock held by Prysm Pine Investment Opportunities II, L.P. (collectively, the "Prysm Vehicles"). Cheetah Aggregator, LLC is governed by a board of managers. The
general partners or managing members of Prysm Capital Fund I, L.P., Cheetah Investment Holdings-A LLC, and Prysm Pine Investment Opportunities II, L.P. are Prysm Capital Partners I, L.P., Cheetah Investment
Manager LLC, and Prysm Pine Investment Manager II, LLC, respectively. Each Prysm Vehicle delegates investment policy authority to Prysm's registered investment adviser, and voting and investment decisions are made by that adviser's
investment committee, consisting of Jay Park, Matthew Roberts, and Muhammad Mian. For the avoidance of doubt, each of them expressly disclaims any such beneficial ownership, except to the extent of any direct or indirect pecuniary interest any of
them may have in the Prysm Vehicles. The address for all of the foregoing entities and persons is 300 Witherspoon Street, Suite 202 Princeton, NJ 08542.

Our Series A preferred stock is held by the following holders: (i) The Cincinnati Insurance Company holds shares of Series A preferred stock, representing 50% of the shares of Series A preferred stock outstanding, % of the total voting power of our capital stock before this offering and % of the voting power of our capital stock after this offering, (ii) CRC Bond Opportunity Trading Fund LP holds shares of Series A preferred stock, representing 20.8% of the shares of Series A preferred stock outstanding, % of the total voting power of our capital stock before this offering and % of the voting power of our capital stock after this offering, (iii) Federated Mutual Insurance Company holds shares of Series A preferred stock, representing 12.5% of the shares of Series A preferred stock outstanding, % of the total voting power of our capital stock before this offering and % of the total voting power of our capital stock after this offering, (iv) Federated Life Insurance Company holds 80,000 shares of Series A preferred stock, representing 8.3% of the shares of Series A preferred stock outstanding, % of the total voting power of our capital stock before this offering and % of the total voting power of our capital stock after this offering, (v) the Ohio State Life Insurance Company holds shares of Series A preferred stock, representing 6.3% of the shares of Series A preferred stock outstanding, % of the total voting power of our capital stock before this offering and % of the total voting power of our capital stock after this offering, and (vi) Western Catholic Union holds shares of Series A preferred stock, representing 2.1% of the shares of Series A preferred stock, % of the total voting power of our capital stock before this offering and % of the total voting power of our capital stock after this offering.

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**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS** 

We describe below transactions since January 1, 2023 in which we are a participant, were a participant or will be a participant, and in which:**** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amounts involved exceeded or will exceed $120,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any of our directors, executive officers, or holders of more than 5% of any class of our capital stock, or any member of
the immediate family of, or person sharing the household with, the foregoing persons, had or will have a direct or indirect material interest.

**Pulse Acquisition** 

On November 24, 2025, we acquired all of the outstanding stock of Pulse Prime Technologies Inc. (the "Pulse Acquisition") pursuant to a stock purchase agreement (the "Pulse Acquisition Agreement") for aggregate consideration of $19.4 million of common stock and $0.6 million of cash. Global Corp., one of Pulse's principal stockholders and a holder of more than 5% of a class of our capital stock, received 780,731 shares of Class A common stock, for aggregate consideration of approximately $15.0 million in the transaction. The Pulse Acquisition Agreement also provided for two earnout payments tied to certain qualifying revenue achievements. The first earnout payment, which ends on June 30, 2027, would issue to Global Corp. shares of our Class A common stock equal to $14.7 million, and the second earnout payment, which ends on June 30, 2028, would issue to Global Corp. shares of our Class A common stock equal to $29.0 million. Each of Uriel Cohen, our Executive Chairman, and Elli Ausubel, our Executive Vice Chairman, is an officer and member of the board of directors of Global Corp. In addition, Uriel Cohen and Elli Ausubel, together with certain trusts and other entities affiliated with them, own a majority of the economic interest in Global Corp.

**Series B-1 Preferred Stock Issuance** 

Since January 1, 2023, we have issued and sold an aggregate of 64,825,875 shares of Series B-1 Preferred Stock, in multiple closings at a purchase price of $8.35 per share for an aggregate amount of $541.3 million, certain of which shares were issued to a holder of more than 5% of a class of our capital stock in the amounts set forth in the table below:

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| | | |
|:---|:---|:---|
| **Stockholder** | **Shares of<br>Series B-1<br>Preferred<br>Stock** | **Total<br>Purchase<br>Price** |
|  | **($ in thousands)** | **($ in thousands)** |
|  Cheetah Aggregator, LLC | 64670659 | $540000.00 |

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On September 30, 2025, October 10, 2025, and October 14, 2025, in connection with the Warrant Exercise by Prysm Capital Fund I, L.P. (together with its affiliated entities, "Prysm"), we issued an aggregate of 9,580,838 shares of Series B-1 Preferred Stock to Prysm Capital Fund I, L.P. Cheetah Investment Holdings-A LLC and Prysm Pine Investment Opportunities II, L.P., each of which are entities affiliated with Prysm and which collectively with Cheetah Aggregator, LLC, a Prysm affiliate, hold more than 5% of a class of our capital stock, for aggregate gross proceeds of approximately $80.0 million. Jay Park and Matthew Roberts, members of our Board of Directors, each have indirect equity interests in Prysm Capital Fund I, L.P. through their direct equity interests in its General Partner, Prysm Capital Partners I, L.P., and indirect equity interests in Cheetah Investment Holdings-A LLC through their direct equity interests in Cheetah Investment Manager LLC. See also "Principal Stockholders."

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**2024 Distribution** 

Effective as of March 31, 2024, we distributed certain subsidiaries and transferred certain technology utilized by these subsidiaries (the "2024 Distribution Entities") into a standalone business focused on proprietary trading (the "Distribution"). In connection with the Distribution, CSH LLC transferred all of its membership interests in the 2024 Distribution Entities to Global Corp., in exchange for the forfeiture and cancellation of 17,718,795 shares of Class X common stock by Global Corp. Following the Distribution, Global Corp. transferred interest in the 2024 Distribution Entities to certain of our other equity holders, including Cheetah Aggregator, LLC and to Triangle Investment Opportunities, L.P., affiliates of Prysm and holders, collectively, of more than 5% of a class of our capital stock, which at the time of the Distribution was a significant holder, in exchange for shares of our Series B-1 Preferred Stock held by such entities. The total assets carrying value of the 2024 Distribution Entities totaled $67.3 million, with Global Corp. receiving 67.11%, Cheetah Aggregator, LLC receiving 8.34% and Triangle Investment Opportunities, L.P receiving 24.54%. In connection with the Distribution, certain transition services are being provided by and for the 2024 Distribution Entities, Clear Street Management LLC and Clear Street Technologies LLC, two of our subsidiaries, for no consideration. Jay Park and Matthew Roberts, members of our Board of Directors, each have indirect equity interests in Triangle Investment Opportunities, L.P. through their direct interests in Triangle Investment Manager LLC, the general partner of Triangle Investment Opportunities, L.P.

**Tender Offer** 

On June 24, 2024, we conducted a tender offer to repurchase shares of our outstanding Class A common stock from all holders of our Class A common stock, including our employees, advisors, and directors at a purchase price of $6.20 per share (the "2024 Tender Offer"). In connection with the 2024 Tender Offer, we repurchased 483,871 shares of our Class A common stock from Christopher Pento, a member of our Board of Directors, for aggregate consideration of $3.0 million.

**Client Accounts** 

Certain of our executive officers, directors, and holders of more than 5% of any class of our capital stock, and immediate family members of, or persons sharing households with, such individuals, have accounts on our platform and use our platform and services in the ordinary course. In addition, certain of our executive officers, directors, and holders of more than 5% of any class of our capital stock may have direct or indirect interest in entities which have accounts on our platform and use our platform and services in the ordinary course. Similar to other clients, these individuals and entities pay us transaction and other fees related to such use consistent with the fees we charge third-party clients. Additionally, Summit Securities Group LLC, a subsidiary of Global Corp. and Cheetah Aggregator, LLC each have a most-favored-nation provision that any fees they will be charged shall be aligned with the lowest fees other clients pay us in connection with our services and use of our platform.

**Notes Financings** 

On May 6, 2021, CSH LLC entered into a Note Purchase Agreement with Pillar Life Insurance Company ("Pillar"), as amended on April 1, 2022, pursuant to which CSH LLC issued to Pillar $5.0 million aggregate principal amount of the 2026 Notes, all of which remains outstanding. Uriel Cohen and Elli Ausubel each serve as members of Pillar's board of directors. The interest rate on the 2026 Note is 5.875% per annum. The 2026 Note originally purchased by Pillar was sold to WBI LP ("WBI") on June 25, 2024. Elli Ausubel directly holds interest in Pillar through his Class A member equity interest in Pillar's holding company, Pillar Capital Holdings LLC ("Pillar Capital") and indirectly holds interest in Pillar and WBI through his ownership of White Bay Global, Inc. ("White Bay"), the general partner of WBI. Uriel Cohen holds indirect interest in Pillar and WBI through his ownership of White Bay.

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On October 23, 2024, CSH LLC entered into a Note Purchase Agreement with Wichita National Life Insurance Company ("Wichita Life"), pursuant to which CSH LLC issued to Wichita Life $5.0 million aggregate principal amount of the 2029 Notes, all of which remains outstanding. The interest rate on the 2029 Note is 8.25% per annum. On September 17, 2025, CSH LLC entered into a Note Purchase Agreement with Wichita Life, pursuant to which CSH LLC issued to Wichita Life $4.0 million aggregate principal amount of the 2030 Notes, all of which remains outstanding. The interest rate on the 2030 Note is 8% per annum. Elli Ausubel owns interests in Wichita Life through his direct ownership of Pillar and indirectly through his ownership in White Bay, which indirectly owns the majority of the equity interests in Wichita Life. Uriel Cohen indirectly owns interest in Wichita life through his ownership in White Bay.

For further descriptions of the 2026 Notes, the 2029 Notes and the 2030 Notes, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources."

**Loan Agreements** 

On May 29, 2025, CSH LLC made a loan to WBI in the principal amount of $15.0 million (the "WBI Loan"). The WBI Loan bore interest at a rate of 8.5% per annum. WBI repaid the WBI Loan in full on June 3, 2025.

In the calendar year of 2023, CS LLC drew down an aggregate amount of $125.0 million pursuant to a revolving line of credit agreement between CS LLC and WBI. The revolving loans issued pursuant to such revolving line of credit agreement bore interest at a rate of 2.5% per annum. In the calendar year of 2023, CSH LLC paid interest to WBI totaling less than $0.1 million. CSH LLC repaid the amounts to WBI in full in installments, with the final payment made on January 13, 2023.

On June 14, 2025, CSH LLC made a loan to Prism Funding Co., LP ("Prism Funding") in the principal amount of $5.0 million (the "Prism Funding Loan"). The Prism Funding Loan bore interest at a rate of 1.39% per annum. On June 16, 2025, Prism Funding repaid the entirety of the Prism Funding Loan and paid interest to CSH LLC of less than $0.01 million. Uriel Cohen and Elli Ausubel, directly or indirectly, own interests in Prism Funding through their indirect ownership in WBI, a limited partner of Prism Funding.

As of the date of this prospectus, there are no loan arrangements outstanding between us and any of our executive officers, directors or holders of more than 5% of any class of our capital stock.

**Other Payments** 

Between January 1, 2023 and September 30, 2025, Clear Street Management LLC, one of our subsidiaries, paid Lovango Analytics Ltd. ("Lovango") a total of approximately $3.1 million for certain professional services provided by Lovango employees. Lovango is an indirect subsidiary of White Bay, of which Uriel Cohen and Elli Ausubel own direct equity interests.

**Membership Interest Redemption** 

CSH LLC's operating agreement, entered into between CSH LLC and its members, including WBI and Global Corp. provides that WBI's interest in CSH LLC would be redeemed over a period of time. Between January 1, 2023 and December 16, 2024, we redeemed the preferred interest WBI held in CSH LLC from WBI valuing $131,633,642. WBI no longer holds any shares of our subsidiaries' capital stock or membership interests.

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**Tax Distributions** 

On December 13, 2024 and February 19, 2025, CSH LLC made tax distributions to Global Corp. in the amount of $9,000,000 and $7,757,778, respectively. These tax distributions were in connection with tax obligations due to our prior Up-C structure.

**Certain Agreements with Stockholders** 

***Voting Agreement***

We are party to an Amended and Restated Voting Agreement, dated as of December 18, 2025 (as amended from time to time, the "Voting Agreement"), with certain of our existing stockholders, including certain of our directors and executive officers and beneficial owners of more than 5% of any class of our capital stock. Pursuant to the Voting Agreement, prior to the completion of this offering, certain of our stockholders had the right to designate individuals satisfying certain criteria (including, in certain cases, the condition that such individuals have expertise in a field of value to us) to serve on our Board of Directors. Certain of our directors were designated to serve on our Board of Directors pursuant to these rights. Jay Park and Matthew Roberts were both designated to serve on our Board of Directors by Prysm, which, through its affiliate, Cheetah Aggregator, LLC, is a beneficial owner of more than 5% of any class of our capital stock. Upon the completion of this offering, the Voting Agreement will terminate.

***Investors' Rights Agreement***

We are party to an Investors' Rights Agreement with certain of our stockholders, including our directors and executive officers, entities affiliated with our directors and executive officers and Prysm, which is a beneficial owner of more than 5% of any class of our capital stock. See "Principal Stockholders." The Investors' Rights Agreement grants to holders customary stockholder rights including information rights and preemptive rights. These rights will terminate automatically upon or immediately prior to the completion of this offering. The Investors' Rights Agreement also provides certain of our stockholders, including certain of our beneficial owners of more than 5% of any class of our capital stock, with certain rights with respect to the registration of their shares of Class A common stock. Prior to the completion of this offering, we intend to terminate these rights and enter into a new agreement that provides similar registration rights to these stockholders. For a description of these registration rights, see "Shares Eligible for Future Sale—Registration Rights."

***Support and Services and Equity Award Agreement***

In connection with this offering, we are entering into a Support and Services and Equity Award Agreement with Global Corp., subject to the approval of our stockholders and to this offering, effective upon, and contingent on, the effectiveness of the registration statement of which this prospectus forms a part. Pursuant to the terms of this agreement, Global Corp. will continue to provide operational, manegerial, strategic, consulting and other support services to us and will receive grants of equity awards (in the form of options and RSUs) representing a total maximum aggregate number of shares of the our Class A common stock equal to shares, subject to the achievement of specified share price milestones. See "Executive and Director Compensation—Narrative Disclosure to the Director Compensation Table."

***Right of First Refusal***

We are party to an Amended and Restated Right of First Refusal and Co-Sale Agreement, dated as of December 18, 2025 (as amended from time to time, the "ROFR Agreement") with certain of our existing stockholders, including certain of our directors and executive officers and beneficial owners of more than 5% of any class of our capital stock. The ROFR Agreement will terminate upon the

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completion of this offering. Pursuant to the ROFR Agreement and other agreements between us and certain holders of our capital stock, we have a right to purchase shares of our capital stock which certain holders of our capital stock propose to sell to third parties. From time to time since January 1, 2022, we have waived our right of first refusal with respect to transactions in which our directors, executive officers or beneficial owners of more than 5% of any class of our capital stock were the holders proposing to sell and/or the third parties proposing to purchase. Immediately prior to the completion of this offering, the ROFR Agreement will terminate.

**Directed Share Program** 

At our request, the underwriters have reserved up to shares of our Class A common stock, or 5% of the shares being offered pursuant to this prospectus, for sale at the initial public offering price to certain individuals and entities as determined by certain of our officers through a directed share program. The directed share program will not limit the ability of our directors, officers and their family members, or holders of more than 5% of any class of our capital stock, to purchase more than $120,000 in value of our Class A common stock. We do not currently know the extent to which these related parties will participate in our directed share program, if at all, or the extent to which they will purchase more than $120,000 in value of our Class A common stock.

**Indemnification Agreements** 

Our New Charter and New Bylaws will provide that we will indemnify our directors and executive officers to the fullest extent permitted by law. In addition, in connection with the effectiveness of the registration statement of which this prospectus forms a part, we expect to enter into indemnification agreements with all of our directors and executive officers. See "Description of Capital Stock—Limitations on Liability and Indemnification of Officers and Directors."

**Policies and Procedures for Related Party Transactions** 

Prior to the completion of this offering, our Board of Directors will adopt a written policy for the review of any transaction, arrangement or relationship in which we are a participant, the amount involved exceeds $120,000 and one of our executive officers, directors, director nominees or beneficial holders of more than 5% of any class of our capital stock (or their immediate family members or affiliates) is implicated, each of whom we refer to as a "related party," or has a direct or indirect material interest.

If a related party proposes to enter into such a transaction, arrangement or relationship, which we refer to as a "related party transaction," the related party must report the proposed related party transaction to our legal team. The policy calls for the proposed related party transaction to be reviewed and, if deemed appropriate, approved by the Audit Committee. In approving or rejecting such proposed transactions, the Audit Committee will be required to consider the relevant facts and circumstances available and deemed relevant to the Audit Committee, including the material terms of the transaction, risks, benefits, costs, availability of other comparable services or applications and, if applicable, the impact on a director's independence. Our Audit Committee will approve only those transactions that, in light of known circumstances, are in, or are not inconsistent with, our best interests, as our Audit Committee determines in the good faith in the exercise of its discretion. In the event that any member of our Audit Committee is not a disinterested person with respect to the related party transaction under review, that member will be excluded from the review and approval or rejection of such related party transaction and another director may be designated to join the committee for purposes of such review. Whenever practicable, the reporting, review and approval will occur prior to entering into the transaction. If advance review and approval is not practicable, the Audit Committee will review and may, in its discretion, ratify the related party transaction retroactively.

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**DESCRIPTION OF CAPITAL STOCK** 

**General** 

Upon completion of this offering, our authorized capital stock will consist of shares of our Class A common stock, par value $0.00001 per share; shares of our Class B common stock, par value $0.00001 per share, and shares of preferred stock, par value $0.00001 per share, of which shares have been designated as Series A preferred stock, and of which shares are undesignated. The following description of our capital stock is intended as a summary only and is qualified in its entirety by reference to our New Charter and New Bylaws to be in effect immediately prior to the completion of this offering, which are filed as exhibits to the registration statement of which this prospectus forms a part, and to the applicable provisions of the DGCL.

After giving effect to the Pre-IPO Transactions, as of , 2026, there were shares of our Class A common stock outstanding held by stockholders of record, shares of our Class B common stock outstanding held by one stockholder of record and shares of our Series A preferred stock outstanding held by stockholders of record. Pursuant to our New Charter, our Board of Directors will have the authority, without stockholder approval, to issue additional shares of our capital stock.

**Common Stock** 

We have two classes of common stock, Class A common stock and Class B common stock. All issued and outstanding shares of our Class A common stock and Class B common stock will be duly authorized, validly issued, fully paid, and non-assessable. The rights of our Class A common stock and Class B common stock are identical, except with respect to voting, conversion, and transfer rights.

***Class A Common Stock***

*Voting Rights*. Holders of shares of our Class A common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders.

*Dividend and Distribution Rights.* Holders of shares of our Class A common stock are entitled to receive dividends or other distributions ratably with holders of shares of our Class B common stock when, as and if declared by our Board of Directors out of funds legally available therefor, subject to any statutory or contractual restrictions on the payment of dividends or other distributions and to any restrictions on the payment of dividends or other distributions imposed by the terms of any outstanding preferred stock.

*Liquidation Rights.* Upon our voluntary or involuntary liquidation, dissolution or winding up, the assets legally available for distribution to our stockholders will be distributable ratably among the holders of our Class A common stock and Class B common stock, subject to prior satisfaction of all outstanding debts and other liabilities and the payment of liquidation preferences, if any, on any outstanding preferred stock, including the Series A preferred stock.

*Other Matters.* Except as specified above, holders of our Class A common stock have no preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to the Class A common stock.

***Class B Common Stock***

*Voting Rights.* Holders of shares of our Class B common stock are entitled to ten votes for each share held of record on all matters submitted to a vote of stockholders.

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*Dividend and Distribution Rights.* Holders of shares of our Class B common stock are entitled to receive dividends or other distributions ratably with holders of shares of our Class A common stock when, as and if declared by our Board of Directors out of funds legally available therefor, subject to any statutory or contractual restrictions on the payment of dividends or other distributions and to any restrictions on the payment of dividends or other distributions imposed by the terms of any outstanding preferred stock.

*Liquidation Rights.* Upon our voluntary or involuntary liquidation, dissolution or winding up, the assets legally available for distribution to our stockholders will be distributable ratably among the holders of our Class A common stock and Class B common stock, subject to prior satisfaction of all outstanding debts and other liabilities and the payment of liquidation preferences, if any, on any outstanding preferred stock.

*Conversion.* Shares of our Class B common stock may be exchanged at any time, at the option of the holder, for newly issued shares of our Class A common stock, on a one-for-one basis (in which case shares of our Class B common stock will be canceled on a one-for-one basis upon any such conversion and issuance) and subject to adjustment for any stock split, stock dividend, recapitalization, reorganization, merger, amendment of our charter, scheme, or arrangement affecting Class A common stock. Each share of our Class B common stock will convert automatically into one share of our Class A common stock upon any transfer (as defined in our New Charter), whether or not for value, except for certain permitted transfers (as described below). In addition, a transfer shall also be deemed to have occurred with respect to a share of Class B common stock (i) beneficially owned by a Permitted Transferee (as defined below) on the date that such Permitted Transferee ceases to meet the qualifications to be a Permitted Transferee or (ii) when the existing stockholders of Global Corp. (determined as of the effectiveness of our New Charter) no longer retain 50% or more of voting power of Global Corp. (which, for the avoidance of doubt, would be deemed a transfer other than a permitted transfer). All shares of our Class B common stock will convert automatically into shares of Class A common stock on the earliest to occur of (a) the date fixed by the Board of Directors that is no less than 61 days and no more than 180 days following the date that the outstanding shares of Class B common stock represent less than thirty percent (30%) of the outstanding shares of Class B common stock outstanding upon the filing of our New Charter (*provided*, for the avoidance of doubt, that if no such date is fixed by the Board, then the Final Conversion Date for purposes of this clause shall be the 180th day following such trigger date) or (b) at such date and time, or the occurrence of an event, specified by the affirmative vote of the holders of a majority of the then-outstanding shares of Class B common stock, voting as a separate class.

Global Corp. and any existing stockholder of Global Corp as of the filing of our New Charter (the "Qualified Stockholders") shall be permitted to transfer their shares of Class B common stock without such shares automatically converting to Class A common stock in certain cases, including: (a) by a Qualified Stockholder to a Permitted Transferee, (b) by a Permitted Transferee to such Qualified Stockholder or (c) by a Permitted Transferee to any other Permitted Transferee of such Qualified Stockholder. Permitted Transferees include any Qualified Stockholder, certain trusts or other estate planning vehicles, certain Individual Retirement Accounts, certain corporations, limited liability companies or other entities directly owned or managed by Qualified Stockholders and/or Permitted Transferees, certain charitable organizations, and other entities approved by our Board of Directors in each case subject to certain limitations.

*Protective Provisions.* Pursuant to our New Charter, without the prior written approval of the holders of a majority of Class B common stock then-outstanding, we may not, directly or indirectly, whether by amendment, or through merger, recapitalization, consolidation or otherwise: (i) amend, alter or repeal any provision of our New Charter or New Bylaws in a way that modifies the voting, conversion, transfer or other powers, preferences, or other special rights or privileges, or restrictions of

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the Class B common stock; (ii) authorize or create (by reclassification or otherwise) or issue any series of common stock with rights as to dividends or liquidation payments that are senior to those of the Class B common stock; (iii) authorize, or issue any shares of, any class or series of capital stock other than Class B common stock having the right to more than one (1) vote for each share thereof; (iv) issue any shares of Class B common stock; or (v) increase or decrease the number of authorized shares of Class B common stock.

*Other Matters.* Except as specified above, holders of our Class B common stock have no preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to the Class B common stock.

**Preferred Stock** 

Upon the completion of this offering, all outstanding shares of our Series B-1 Preferred Stock, Series B-2 Preferred Stock and Series C Preferred Stock will be converted into shares of our Class A common stock on a one-for-one basis.

***Series A Preferred Stock***

*Voting Rights.* Holders of shares of our Series A preferred stock have no voting rights other than (i) each holder of our Series A preferred stock are entitled to one vote for each share held of record on all matters on which stockholders generally are entitled to vote or holders of Series A preferred stock as a separate class are entitled to vote, including the election or removal of directors, although holders of our Series A preferred stock do not have a right to nominate any directors to our Board of Directors; (ii) so long as any shares of the Series A preferred stock remain outstanding, the affirmative vote of the holders of at least two-thirds of all of the shares of Series A preferred stock at the time outstanding, voting separately as a class, is required to amend, alter, or repeal the provisions of our New Charter, whether by merger, consolidation, or otherwise, so as to materially and adversely affect the powers, preferences, privileges or rights of the Series A preferred stock. The foregoing voting provision will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required is effected, all outstanding shares of Series A preferred stock have been redeemed or called for redemption upon proper notice and sufficient funds have been set aside by us for the benefit of the holders of Series A preferred stock to effect such redemption. Holders of shares of our Series A preferred stock may vote as a separate class with respect to amendments of our New Charter that would adversely affect the rights of the holders of the Series A preferred stock and the right to elect two directors of the Company whenever dividends on the Series A preferred stock are in arrears for six or more dividend payment dates.

*Dividend and Distribution Rights.* Holders of shares of our Series A preferred stock are entitled to receive quarterly dividends at a rate of 7.0% per annum up to, but excluding the First Reset Date. From and after the First Reset Date, holders of our Series A preferred stock will be entitled to quarterly dividends at a rate equal to the sum of the five-year treasury date on the applicable Reset Date and 6.0%. As of the date of this prospectus, holders of our Series A preferred stock are not entitled to any unpaid dividends that would be required to be paid prior to the completion of this offering.

*Liquidation Rights*. Upon any voluntary or involuntary liquidation, dissolution or winding up, the holders of our Series A preferred stock will be entitled to receive out of the net assets legally available for distribution to stockholders, and in the event of a deemed liquidation event (as defined in our New Charter), the holders of our Series A preferred stock will be entitled to be paid out of the consideration payable to stockholders in such deemed liquidation event or out of the available proceeds (as defined in our New Charter), on a *pari passu* basis, an amount per share equal to the sum of $25.00 per share for each then-outstanding share of Series A preferred stock, which is equal to $24 million in the aggregate as of the date of this prospectus, plus accrued and unpaid dividends on such shares.

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*Redemption.* Shares of our Series A preferred stock may be redeemed by us, in whole or in part, on any dividend payment date on or after the First Reset Date for $25.00 per share of Series A preferred stock, plus accrued and unpaid dividends. Additionally, in the event of a change in control of the Company or CSH LLC prior to the First Reset Date, we will have the right to redeem the Series A Preferred Stock at a price of $25.50 per share plus accrued and unpaid dividends. This offering will not constitute a change in control of the Company or CSH LLC pursuant to the terms of the Series A Preferred Stock.

*Other Matters.* Except as specified above, the holders of our Series A preferred stock have no preemptive or other subscription rights. There are no conversion or sinking fund provisions applicable to the Series A preferred stock. We expect all of the Series A preferred stock to remain outstanding following the completion of this offering.

***Blank Check Preferred Stock***

Following the completion of this offering, our Board of Directors will be authorized, subject to limitations prescribed by Delaware law, to issue preferred stock in one or more series, to establish from time to time the number of shares to be included in each series, and to fix the designation, powers, preferences, and rights of the shares of each series and any of its qualifications, limitations, or restrictions, in each case without further vote or action by our stockholders. Our Board of Directors can also increase or decrease the number of shares of any series of preferred stock, but not below the number of shares of that series then-outstanding, without any further vote or action by our stockholders. Our Board of Directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of our common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring, or preventing a change in control of our company and might adversely affect the price of our common stock and the voting and other rights of the holders of our common stock. We have no current plans to issue any shares of preferred stock.

**Certain Charter, Bylaws and Statutory Provisions** 

Our New Charter and New Bylaws will contain certain provisions that are intended to enhance the likelihood of continuity and stability in the composition of our Board of Directors and that may have the effect of delaying, deferring or preventing a future takeover or change in control of our company unless such takeover or change in control is approved by our Board of Directors. These provisions include:

***Anti-Takeover Effects of Our New Charter and Our New Bylaws***

*No cumulative voting*. Under Delaware law, the right to vote cumulatively does not exist unless the certificate of incorporation specifically authorizes cumulative voting. Our New Charter will not authorize cumulative voting. Therefore, stockholders holding a majority in voting power of the shares of our common stock entitled to vote generally in the election of directors will be able to elect all our directors.

*Removal of directors.* Our New Charter and New Bylaws will provide that prior to the Trigger Date, directors may be removed with or without cause by an affirmative vote of a majority of the combined voting power of our common stock. After the Trigger Date, directors may be removed for cause only and by the affirmative vote of holders of 66 2/3% of the total voting power of our outstanding shares of common stock, voting together as a single class. This requirement of a super-majority vote to remove directors could enable a minority of our stockholders to exercise veto power over any such removal.

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*Action by written consent; special meetings of stockholders.* Our New Charter will provide that prior to the Trigger Date, stockholder actions may be taken by written consent in lieu of a meeting. After the Trigger Date, stockholder action can be taken only at an annual or special meeting of stockholders and cannot be taken by written consent in lieu of a meeting. Our New Charter will also provide that, subject to any special rights of the holders as required by law, special meetings of the stockholders can only be called by the chairperson of our Board of Directors, the chief executive officer of the company or at the request of holders of a majority of the total voting power of our outstanding shares of common stock, voting together as a single class. Except as described above, stockholders are not permitted to call a special meeting or to require our Board of Directors to call a special meeting.

*Advance notice procedures.* Our New Bylaws will establish an advance notice procedure for stockholder proposals to be brought before an annual meeting of our stockholders, including proposed nominations of persons for election to our Board of Directors. Stockholders at an annual meeting will only be able to consider proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of our Board of Directors or by a stockholder who was a stockholder of record on the record date for the meeting, who is entitled to vote at the meeting and who has given our Secretary timely written notice, in proper form, of the stockholder's intention to bring that business before the meeting. Although the bylaws will not give our Board of Directors the power to approve or disapprove stockholder nominations of candidates or proposals regarding other business to be conducted at a special or annual meeting, the bylaws may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed or may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect its own slate of directors or otherwise attempting to obtain control of our company.

*Super-majority approval requirements.* The DGCL generally provides that the affirmative vote of the holders of a majority of the total voting power of the shares entitled to vote on any matter is required to amend a corporation's certificate of incorporation or bylaws, unless either a corporation's certificate of incorporation or bylaws require a greater percentage. Our New Charter and New Bylaws will provide that prior to the Trigger Date, an affirmative vote of a majority of the combined voting power of our common stock, voting together as a single class, will be required to amend, alter, change or repeal specified provisions, including those relating to actions by written consent of stockholders, calling of special meetings of stockholders, election and removal of directors, business combinations and amendment of our New Charter and New Bylaws. After the Trigger Date, the affirmative vote of holders of 66 2/3% of the total voting power of our outstanding common stock eligible to vote in the election of directors, voting together as a single class, will be required for such amendments. This requirement of a super-majority vote to approve amendments to our New Charter and New Bylaws could enable a minority of our stockholders to exercise veto power over any such amendments.

*Authorized but unissued shares.* The authorized but unissued shares of common stock and preferred stock are available for future issuance without stockholder approval, subject to any limitations imposed by Nasdaq listing rules. The existence of authorized but unissued and unreserved common stock and preferred stock could make more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise.

*Business combinations with interested stockholders.* In general, Section 203 of the DGCL prohibits a publicly held Delaware corporation from engaging in a business combination, such as a merger, with a person or group owning 15% or more of the corporation's voting stock for a period of three years following the date the person became an interested stockholder, unless (with certain exceptions) the business combination or the transaction in which the person became an interested stockholder is approved in a prescribed manner. We will expressly elect not to be governed by the "business combination" provisions of Section 203 of the DGCL until the earlier of (i) such time as our Class B common stock represents less than 15% of our total voting power of our outstanding common

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stock and (ii) our Board of Directors has determined that we will be subject to Section 203 of the DGCL and has given certain written notice to Global Corp.

***Exclusive Forum***

**Limitations on Liability and Indemnification of Officers and Directors** 

Our New Charter and New Bylaws will include provisions that require us to indemnify, to the fullest extent allowable under the laws of the State of Delaware, any person who is or was a director or officer of our company. Our New Charter and New Bylaws will also provide that we must indemnify and advance reasonable expenses to such persons, subject to our receipt of an undertaking from the indemnified party to repay all amounts advanced if it is determined ultimately that the indemnified party is not entitled to be indemnified. We will also be expressly authorized to carry directors' and officers' insurance to protect us and our directors and officers for some liabilities.

The limitation of liability and indemnification provisions in our New Charter and New Bylaws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duties. These provisions may also have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. However, these provisions do not limit or eliminate our rights, or those of any stockholder, to seek non-monetary relief such as an injunction or rescission if a director breaches his or her fiduciary duties. Moreover, the provisions do not alter the liability of directors under the federal securities laws. In addition, your investment may be adversely affected to the extent that, in a class action or direct suit, we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions.

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**Corporate Opportunity** 

Delaware law permits corporations to adopt provisions renouncing any expectancy in or right to be offered an opportunity to participate in certain transactions or matters that may be investment, corporate or business opportunities and that are presented to a corporation or its officers, directors or stockholders. Our New Charter will, to the maximum extent permitted from time to time by Delaware law, renounce any interest or expectancy that we have in, or right to be offered an opportunity to participate in, specified business opportunities that are from time to time presented to our officers, directors or stockholders or their respective affiliates, other than those officers, directors, stockholders or affiliates who are our or our subsidiaries' associates. Our New Charter will provide that, to the fullest extent permitted by law, any non-employee directors and their respective affiliates will not have any duty to refrain from engaging in a corporate opportunity in the same or similar lines of business in which we or our affiliates now engage or propose to engage. In addition, to the fullest extent permitted by law, in the event that any non-employee director acquires knowledge of a potential transaction or other business opportunity which may be a corporate opportunity for himself or herself or his or her affiliates or for us or our affiliates, such person will have no duty to communicate or offer such transaction or business opportunity to us or any of our affiliates, and they may take any such opportunity for themselves or offer it to another person or entity. Our New Charter will not renounce our interest in any business opportunity that is expressly offered to a non-employee director solely in his or her capacity as a director or officer of the Company. To the fullest extent permitted by law, no business opportunity will be deemed to be a potential corporate opportunity for us unless we would be permitted to undertake the opportunity under our New Charter, we have sufficient financial resources to undertake the opportunity and the opportunity would be in line with our business.

**Transfer Agent and Registrar** 

The transfer agent and registrar for our Class A common stock is Equiniti Trust Company, LLC. The transfer agent's address is 48 Wall Street, 23rd Floor, New York, NY 10005 and its phone number is (718) 921-8183.

**Listing** 

We intend to apply to list our Class A common stock on Nasdaq under the symbol "CSIG."

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**SHARES ELIGIBLE FOR FUTURE SALE** 

Prior to this offering, there has been no public market for our Class A common stock. Future sales of substantial amounts of our Class A common stock in the public market could adversely affect market prices prevailing from time to time. Furthermore, because only a limited number of shares of Class A common stock will be available for sale shortly after this offering due to existing contractual and legal restrictions on resale as described below, there may be sales of substantial amounts of our Class A common stock in the public market after the restrictions lapse. This may adversely affect the prevailing market price and our ability to raise equity capital in the future.

Upon completion of this offering, we will have shares of Class A common stock outstanding (or shares of Class A common stock if the underwriters exercise their option to purchase additional shares in full), shares of Class B common stock outstanding and shares of Series A preferred stock outstanding. All shares sold in this offering will be freely transferable without restriction or registration under the Securities Act, except for any shares purchased by one of our "affiliates," as that term is defined in Rule 144 under the Securities Act. The remaining outstanding shares will be "restricted securities" as defined in Rule 144. Restricted securities may be sold in the public market only if registered or if they qualify for an exemption from registration under Rule 144 or 701 of the Securities Act. After the expiration of the contractual lock-up period described below, to the extent applicable, these shares may be sold in the public market only if registered or pursuant to an exemption under Rule 144 or 701, each of which is summarized below.

***Rule 144***

In general, a person who has beneficially owned shares of common stock that are restricted securities for at least six months would be entitled to sell such shares, provided that (i) such person is not deemed to have been one of our affiliates at the time of, or at any time during the 90 days preceding, the sale, and (ii) we are subject to, and in compliance with certain of, the Exchange Act periodic reporting requirements for at least 90 days before the sale, but this clause (ii) will not apply to the sale if such person has beneficially owned such shares for at least one year. Persons who have beneficially owned shares of common stock that are restricted securities for at least six months but who are our affiliates at the time of, or any time during the 90 days preceding, a sale, would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of shares of common stock that does not exceed the greater of either of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1% of the number of shares of Class A common stock then-outstanding; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the average weekly trading volume of shares of Class A common stock on the     during the four
calendar weeks preceding the filing of a notice on Form 144 with respect to the sale;

*provided*, in each case, that we are subject to, and in compliance with certain of, the Exchange Act periodic reporting requirements for at least 90 days before the sale. Such sales must also comply with the manner of sale and notice provisions of Rule 144 to the extent applicable.

***Rule 701***

In general, under Rule 701, any of our employees, directors, officers, consultants or advisors who purchases shares from us in connection with a compensatory stock or option plan or other written agreement before the effective date of this offering is entitled to resell such shares 90 days after the effective date of this offering in reliance on Rule 144, without having to comply with the holding period requirements or other restrictions contained in Rule 701.

The SEC has indicated that Rule 701 will apply to typical stock options and RSUs granted by an issuer before it becomes subject to the reporting requirements of the Exchange Act, along with the

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shares acquired upon exercise of such options, including exercises after the date of this prospectus. Securities issued in reliance on Rule 701 are restricted securities and, subject to the contractual restrictions described below, beginning 90 days after the date of this prospectus, may be sold by persons other than "affiliates," as defined in Rule 144, subject only to the manner of sale provisions of Rule 144 and by "affiliates" under Rule 144 without compliance with the minimum holding period requirement.

We anticipate issuing shares of Class A common stock upon the expiration of the lock-up agreements discussed below in connection with the vesting and settlement of RSUs outstanding as of the date of this prospectus for which the time-based vesting condition was satisfied as of the date of this prospectus and for which we expect the liquidity-based vesting condition will be satisfied upon the expiration of the lock-up agreements. Shares received by such issuance will then be eligible for resale in the public markets without any restrictions, subject to applicable limitations set forth in Rule 144.

***Equity Incentive Plans***

We intend to file one or more registration statements on Form S-8 under the Securities Act to register all shares of Class A common stock issued or issuable pursuant to the exercise of outstanding stock options reserved for issuance under our stock-based compensation plans, except for stock options for which Form S-8 is not available. We expect to file the registration statement or statements, which will become effective immediately upon filing, upon or shortly after the date of this prospectus. Shares covered by these registration statements will then be eligible for sale in the public markets, subject to vesting restrictions and any applicable holding periods, any applicable lock-up agreements described below and Rule 144 limitations applicable to affiliates.

***Lock-up and Market Standoff Agreements***

See "Underwriting (Conflicts of Interest)" for a description of the lock-up and market standoff agreements applicable to our capital stock.

***Registration Rights***

Upon completion of this offering, the holders of approximately shares of Class A common stock (or securities convertible into shares of our Class A common stock) will be entitled to various rights with respect to the registration of their shares under the Securities Act. Registration of these shares under the Securities Act would enable the holders to sell these shares without restriction under the Securities Act upon the effectiveness of the registration statement.

***General Demand Registration Rights***

At any time beginning 180 days after the completion of this offering, and for so long as Prysm holds at least 50% of the number of registrable shares of Class A common stock it held as of April 13, 2022, the holders of at least 50% of the registrable shares of Class A common stock (or securities convertible into shares of our Class A common stock) then-outstanding can request that we register the offer and sale of their shares of Class A common stock. Such request for registration must cover at least 20% of the registrable securities then-outstanding or for which the anticipated aggregate public offering price is at least $20.0 million, net of any underwriting discounts or commissions. We are obligated to effect only one such registration.

***General S-3 Registration Rights***

If we are eligible to file a registration statement on Form S-3, the holders of at least 30% of the registrable shares of Class A common stock (or securities convertible into shares of our Class A common stock) then-outstanding may make a written request that we register the offer and sale of their

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shares of Class A common stock on a registration statement on Form S-3, so long as the request covers securities for which the anticipated aggregate public offering price is at least $25.0 million, net of any underwriting discounts or commissions. These stockholders may only make one request for registration on Form S-3 in any 12-month period preceding the date of the request.

***Special Demand and S-3 Registration Rights***

At any time beginning 180 days after the completion of this offering, certain holders (the "Key Holders") of at least 20% of the registrable shares of Class A common stock (or securities convertible into shares of our Class A common stock) then-outstanding may make a written request that we register the offer and sale of their shares of Class A common stock on a registration statement on Form S-1 or, if we are eligible to file a registration statement on Form S-3, on Form S-3, so long as the request covers at least 20% of the registrable securities held by Key Holders then-outstanding or for which the anticipated aggregate public offering price is at least $50.0 million, net of any underwriting discounts or commissions. These Key Holders may only make one request for registration on Form S-1 and one request on Form S-3 in any 12-month period preceding the date of the request.

***Shelf Registration***

Holders of registrable shares of Class A common stock, including Key Holders, may request that we file and keep effective a shelf registration statement pursuant to Rule 415 under the Securities Act with respect to all or any portion of their registrable shares of Class A common stock, subject to certain limitations. Holders of at least 20% of the registrable shares of Class A common stock then-outstanding, or Key Holders of at least 20% of the registrable shares of Class A common stock held by Key Holders then-outstanding, may request that we register the offer and sale of their shares of Class A common stock on such shelf registration at any time, however such holders or Key Holders may only make one request for registration pursuant to such shelf registration statement in any 12-month period preceding the date of the request. Holders (other than Key Holders) of at least 20% of the registrable shares of Class A common stock then-outstanding, or Key Holders of at least 20% of the registrable shares of Class A common stock held by Key Holders then-outstanding, may request that we effectuate an underwritten block trade. The holders or Key Holders, as the case may be, may make an unlimited number of requests for registration pursuant to an underwritten block trade.

***Piggyback Registration Rights***

In connection with this offering, holders of registrable shares of Class A common stock are entitled to register their shares pursuant to the registration statement of which this prospectus forms a part, and holders of shares of our Series A preferred stock are entitled to register their shares pursuant to a registration statement filed within 90 days of the date of this prospectus. After the completion of this offering, if we propose to file a registration statement (other than certain excluded registrations) to register the offer and sale of any shares of Class A common stock under the Securities Act, either for our own account or for the account of other security holders, the holders of registrable shares of Class A common stock and holders of shares of our Series A preferred stock will be entitled to certain "piggyback" registration rights allowing such holders to include their requisite shares in such registration, subject to certain marketing and other limitations.

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**Registration Statement on Form S-8** 

We intend to file one or more registration statements on Form S-8 under the Securities Act to register shares of our Class A common stock subject to outstanding stock options, as well as shares of our Class A common stock reserved for future issuance, under the 2021 Plan, the 2026 Plan and the ESPP. We expect to file these registration statements as soon as permitted under the Securities Act. However, the shares registered on Form S-8 may be subject to the volume limitations and the manner of sale, notice and public information requirements of Rule 144. See "Executive and Director Compensation—Equity Compensation Plans and Arrangements" for a description of the 2021 Plan and the 2026 Plan and the ESPP.

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**MATERIAL U.S. FEDERAL INCOME AND ESTATE TAX CONSIDERATIONS TO NON-U.S. HOLDERS** 

The following is a general discussion of the material U.S. federal income and estate tax consequences of the ownership and disposition of our common stock by a "non-U.S. holder." A "non-U.S. holder" is a beneficial owner of a share of our common stock that is neither a partnership (or an entity or arrangement treated as a partnership for U.S. federal income tax purposes) nor, for U.S. federal income tax purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an individual who is a citizen or resident of the United States,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation created or organized under the laws of the United States, any state thereof or the District of Columbia,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate, the income of which is subject to U.S. federal income tax regardless of its source, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust (i) the administration of which is subject to the primary supervision of a U.S. court and that has one or more
U.S. persons (as defined under the Internal Revenue Code of 1986, as amended (the "Code")) that have the authority to control all substantial decisions of the trust or (ii) that has a valid election in effect under applicable U.S.
Treasury regulations to be treated as a U.S. person.

If an entity or arrangement treated as a partnership or other type of pass-through entity for U.S. federal income tax purposes owns our common stock, the tax treatment of a partner or beneficial owner of the entity may depend upon the status of the partner or beneficial owner, the activities of the entity and certain determinations made at the partner or beneficial owner level. Partners and beneficial owners in partnerships or other pass-through entities that own our common stock should consult their own tax advisors as to the particular U.S. federal income and estate tax consequences applicable to them.

This discussion is based on the Code, administrative pronouncements, judicial decisions and final, temporary and proposed U.S. Treasury regulations, changes to any of which subsequent to the date of this prospectus supplement may affect the tax consequences described herein (possibly with retroactive effect). This discussion does not address all aspects of U.S. federal income and estate taxation that may be relevant to non-U.S. holders in light of their particular circumstances, does not address any U.S. federal gift tax, alternative minimum tax or Medicare contribution tax considerations, the special tax accounting rules under Section 451(b) of the Code, or any tax consequences arising under the laws of any state, local or non-U.S. jurisdiction, and does not address non-U.S. holders subject to special rules under U.S. federal income tax laws, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain former citizens or long-term residents of the United States,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• partnerships or other entities or arrangements treated as partnerships or other pass-through entities for U.S. federal
income tax purposes (and investors therein),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "controlled foreign corporations,"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "passive foreign investment companies,"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• corporations that accumulate earnings to avoid U.S. federal income tax,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• banks, financial institutions, investment funds, or insurance companies,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• brokers, dealers, or traders in securities or foreign currencies,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-exempt organizations or governmental organizations,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-qualified retirement plans,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• non-U.S. holders who acquire our common stock through the exercise of an option or
otherwise as compensation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• qualified foreign pension funds as defined in Section 897(l)(2) of the Code and entities all of the interests of which
are held by qualified foreign pension funds,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• non-U.S. holders that own or have owned, actually or constructively, more than 5%
of our common stock, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• non-U.S. holders holding our common stock as part of a hedging or conversion
transaction or straddle, or a constructive sale, or other risk reduction strategy or integrated investment.

Prospective holders are urged to consult their tax advisors with respect to the particular tax consequences to them of owning and disposing of our common stock, including the consequences under the laws of any state, local or non-U.S. jurisdiction

**Dividends** 

To the extent that we make a distribution of cash or other property (other than certain pro rata distributions of our stock) in respect of our common stock, the distribution generally will be treated as a dividend for U.S. federal income tax purposes to the extent it is paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles). Any portion of a distribution that exceeds our current and accumulated earnings and profits generally will be treated first as a tax-free return of capital that reduces a non-U.S. holder's adjusted tax basis in our common stock, and to the extent the amount of the distribution exceeds a non-U.S. holder's adjusted tax basis in our common stock, the excess will be treated as gain from the disposition of our common stock (the tax treatment of which is discussed below under "—Gain on Disposition of Common Stock").

Subject to the discussions of effectively connected income, backup withholding, and FATCA (as defined below) withholding taxes below, dividends paid to a non-U.S. holder generally will be subject to U.S. federal withholding tax at a 30% rate, or a reduced rate specified by an applicable income tax treaty. In order to obtain a reduced rate of withholding under an applicable income tax treaty, a non-U.S. holder generally will be required to provide a properly executed IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, certifying such non-U.S. holder's entitlement to benefits under the treaty. In the case of a non-U.S. holder that is an entity, applicable U.S. Treasury regulations and the relevant income tax treaty provide rules to determine whether, for purposes of determining the applicability of the income tax treaty, dividends will be treated as paid to the entity or to those holding an interest in the entity. If the non-U.S. holder holds our common stock through a financial institution or other agent acting on the non-U.S. holder's behalf, the non-U.S. holder will be required to provide appropriate documentation to the agent, which then will be required to provide certification to us or our withholding agent, either directly or through other intermediaries.

A non-U.S. holder eligible for a reduced rate of U.S. federal withholding tax pursuant to an income tax treaty may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS.

However, dividends paid to a non-U.S. holder that are effectively connected with the non-U.S. holder's conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, are attributable to a permanent establishment or fixed base maintained by the non-U.S. holder in the United States) will not be subject to U.S. federal withholding tax if the non-U.S. holder provides a properly executed IRS Form W-8ECI. Instead, the effectively connected dividend income will generally be subject to regular U.S. income tax as if the non-U.S. holder were a U.S. person as defined under the Code. A non-U.S. holder that is treated as a corporation for U.S. federal

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income tax purposes receiving effectively connected dividend income may also be subject to an additional "branch profits tax" imposed at a rate of 30% (or a lower treaty rate) on its effectively connected earnings and profits (subject to certain adjustments).

**Gain on Disposition of Common Stock** 

Subject to the discussions of backup withholding and FATCA withholding taxes below, a non-U.S. holder generally will not be subject to U.S. federal income tax on gain realized on a sale or other disposition of our common stock unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the gain is effectively connected with a trade or business of the non-U.S. holder
in the United States (and, if required by an applicable tax treaty, the gain is attributable to a permanent establishment or fixed base maintained by the non-U.S. holder in the United States), in which case
the gain will be subject to U.S. federal income tax generally in the same manner as if the non-U.S. holder were a U.S. person as defined under the Code (and, in the case of a non-U.S. holder that is treated as a corporation for U.S. federal income tax purposes, may also be subject to the "branch profits tax" described above);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the non-U.S. holder is an individual present in the United States for 183 days or
more in the taxable year of disposition and certain other conditions are met, in which case the gain (net of certain U.S.-source losses) generally will be subject to U.S. federal income tax at a rate of 30% (or a lower treaty rate); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are or have been a "United States real property holding corporation" (as described below) at any time within
the five-year period preceding the disposition or the non-U.S. holder's holding period, whichever period is shorter, and either (i) our common stock is not regularly traded on an established
securities market during the calendar year in which the sale or disposition occurs or (ii) the non-U.S. holder has owned or is deemed to have owned, at any time within the five-year period preceding the
disposition or the non-U.S. holder's holding period, whichever period is shorter, more than 5% of our common stock.

We will be a United States real property holding corporation at any time that the fair market value of our "United States real property interests," as defined in the Code and applicable U.S. Treasury regulations, equals or exceeds 50% of the aggregate fair market value of our worldwide real property interests and our other assets used or held for use in a trade or business (all as determined for U.S. federal income tax purposes). We believe that we are not, and do not anticipate becoming in the foreseeable future, a United States real property holding corporation.

**Information Reporting and Backup Withholding** 

Distributions paid to a non-U.S. holder and the amount of any tax withheld with respect to such distributions generally will be reported to the IRS. Copies of the information returns reporting such distributions, and any withholding may also be made available to the tax authorities in the country in which the non-U.S. holder resides under the provisions of an applicable income tax treaty.

A non-U.S. holder will not be subject to backup withholding, currently at a rate of 24%, on dividends received if such holder certifies under penalty of perjury that it is a non-U.S. holder, such as by providing a properly executed IRS Form W-8BEN, IRS Form W-8BEN-E, or IRS Form W-8ECI (and the payor does not have actual knowledge or reason to know that such holder is a U.S. person as defined under the Code), or such holder otherwise establishes an exemption.

Information reporting and, depending on the circumstances, backup withholding will apply to the proceeds of a sale or other disposition of our common stock made within the United States or

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conducted through certain U.S.-related financial intermediaries, unless the non-U.S. holder complies with certification procedures to establish that it is not a U.S. person in order to avoid information reporting and backup withholding. The certification procedures required to claim a reduced rate of withholding under a treaty will generally satisfy the certification requirements necessary to avoid backup withholding as well.

Backup withholding is not an additional tax and the amount of any backup withholding from a payment to a non-U.S. holder will be allowed as a credit against the non-U.S. holder's U.S. federal income tax liability and may entitle the non-U.S. holder to a refund, provided that the required information is furnished to the IRS in a timely manner.

**FATCA** 

Under Sections 1471 through 1474 of the Code (such Sections commonly referred to as "FATCA"), payments of dividends on and the gross proceeds of dispositions of common stock of a U.S. issuer paid to (i) a "foreign financial institution" (as specifically defined in the Code) or (ii) a "non-financial foreign entity" (as specifically defined in the Code) will be subject to a withholding tax (separate and apart from, but without duplication of, the withholding tax described above under "—Dividends") at a rate of 30%, unless various U.S. information reporting and due diligence requirements (generally relating to ownership by U.S. persons of interests in or accounts with those entities) have been satisfied or an exemption from these rules applies. Under proposed U.S. Treasury regulations promulgated by the Treasury Department on December 13, 2018, which state that taxpayers may rely on the proposed U.S. Treasury regulations until final U.S. Treasury regulations are issued, this withholding tax will not apply to the gross proceeds from the sale or disposition of common stock. An intergovernmental agreement between the United States and an applicable foreign country may modify these requirements. If a dividend payment is both subject to withholding under FATCA and subject to the withholding tax discussed above under "—Dividends," the withholding under FATCA may be credited against, and therefore reduce, such other withholding tax. Non-U.S. holders should consult their tax advisors regarding the possible implications of this withholding tax on their investment in our common stock.

**Federal Estate Tax** 

Individual non-U.S. holders (as specifically defined for U.S. federal estate tax purposes) and entities the property of which is potentially includible in such an individual's gross estate for U.S. federal estate tax purposes (for example, a trust funded by such an individual and with respect to which the individual has retained certain interests or powers) should note that the common stock will be treated as U.S. situs property subject to U.S. federal estate tax, unless an applicable estate tax treaty provides otherwise.

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**UNDERWRITING (CONFLICTS OF INTEREST)** 

We and the underwriters named below have entered into an underwriting agreement with respect to the shares of Class A common stock being offered. Subject to certain conditions, each underwriter has severally agreed to purchase the number of shares indicated in the following table. Goldman Sachs & Co. LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC, UBS Securities LLC, and Clear Street LLC are the representatives of the underwriters (the "Representatives").

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| | |
|:---|:---|
| **Underwriters** | **Number of<br>Shares** |
|  Goldman Sachs & Co. LLC |  |
|  BofA Securities, Inc. |  |
|  Morgan Stanley & Co. LLC |  |
|  UBS Securities LLC |  |
|  Clear Street LLC |  |
|  **Total** |  |

---

The underwriters are committed to take and pay for all of the shares of Class A common stock being offered, if any are taken, other than the shares of Class A common stock covered by the option described below unless and until this option is exercised.

The underwriters have an option to buy up to an additional shares of Class A common stock from us. They may exercise that option for 30 days. If any shares of Class A common stock are purchased pursuant to this option, the underwriters will severally purchase shares of Class A common stock in approximately the same proportion as set forth in the table above.

The following table shows the per share and total underwriting discounts and commissions to be paid to the underwriters by us. Such amounts are shown assuming both no exercise and full exercise of the underwriters' option to purchase additional shares of Class A common stock.

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| | | |
|:---|:---|:---|
| **Paid by Us** | **No Exercise** | **Full Exercise** |
|  Per Share | $| $|
|  Total | $| $|

---

Shares of Class A common stock sold by the underwriters to the public will initially be offered at the initial public offering price set forth on the cover of this prospectus. Any shares of Class A common stock sold by the underwriters to securities dealers may be sold at a discount of up to $ per share from the initial public offering price. After the initial offering of the shares, the Representatives may change the offering price and the other selling terms. The offering of the shares by the underwriters is subject to receipt and acceptance and subject to the underwriters' right to reject any order in whole or in part.

We have agreed with the underwriters, during the 180 days after the date of this prospectus (the "Company Lock-Up Period"), subject to certain exceptions, not to (i) offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or otherwise transfer or dispose of, directly or indirectly, or file with the SEC a registration statement under the Securities Act relating to, any of our securities that are substantially similar to the Class A common stock, including but not limited to any stock options or warrants to purchase shares of Class A common stock or Class B common stock, or any securities that are convertible into or exchangeable for, or that represent the right to receive, Stock or any such substantially similar securities, or publicly disclose the intention to make any offer, sale, pledge, disposition or filing or (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the shares of Class A common stock, Class B common stock or any such other securities, whether any such transaction described in clause (i) or (ii)

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above is to be settled by delivery of shares of Class A common stock or such other securities, in cash or otherwise, without the prior written consent of the Representatives, *provided, however*, that the foregoing restrictions shall not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Class A common stock to be sold in this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any shares of Class A common stock issued upon the reclassification, conversion or exchange of shares outstanding as of the
date of this Prospectus, including any shares of outstanding preferred stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any shares of Class A common stock or any securities or other awards convertible into, exercisable for, or that represent
the right to receive, Class A common stock pursuant to any equity plans existing on, or upon the conversion or exchange of convertible or exchangeable securities outstanding as of the date of this prospectus, including the conversion of Class B
Common Stock into Class A Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the issuance of shares of Class A common stock upon the conversion or transfer of Class B Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• grants or settlement of stock options, RSUs or other equity or equity-based awards or restricted shares to our or our
subsidiaries' officers, directors, employees and other service providers in accordance with the terms of the equity plans described herein, or the issuance by the Company of any shares of Class A common stock upon the exercise of such
instruments (including by way of "net" or "cashless" exercise);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the forfeiture, cancellation, surrender or repurchase of any shares of Class A common stock or equity awards by us pursuant
to the terms of any equity plans, award agreements or other agreements in effect as of the date of this prospectus, including in connection with the termination of employment or service, in each case for no consideration or for consideration equal
to the original purchase price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the issuance or transfer of shares of Class A common stock, or the withholding or disposition of shares of Stock, in each
case solely in connection with the satisfaction of tax withholding obligations arising from the vesting, exercise, settlement or conversion of equity awards issued pursuant to the 2021 Plan or the 2026 Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the filing of any registration statement on Form S-8 or a successor form relating to the securities granted or to be
granted pursuant to the 2021 Plan, 2026 Plan or any assumed incentive compensation plans or agreements pursuant to an acquisition or similar strategic transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the offer or issuance of shares of Class A common stock in connection with an acquisition, joint venture, commercial or
collaborative relationship or the acquisition or license by us of the securities, business property or other assets of another person or entity or pursuant to an employee benefit plan as assumed by us in connection with any such acquisition
(collectively, a "Potential Acquisition"), provided that the aggregate number of shares of common stock that we may offer or issue pursuant to this clause shall not exceed 10.0% of the total number of shares of Class A common stock
issued and outstanding immediately prior to the Potential Acquisition and any recipient of shares of Class A common stock pursuant to clause shall enter into a lock-up agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the confidential submission of a registration statement with the SEC by us under the Securities Act relating to any lock-up
securities, provided that, with respect to this clause, (i) no public filing with the SEC or any other public announcement may be made during the Company Lock-Up Period in relation to such registration and
(ii) such registration shall not result in an offer, sale, contract to sell, pledge, option to purchase, short sale or other transfer or disposition of, directly or indirectly, any lock-up securities during the Company Lock-Up Period; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the facilitation of establishing a trading plan for any officers or directors of the Company pursuant to Rule 10b5-1 under
the Exchange Act for the transfer of lock-up securities during the Company Lock-Up Period; provided that no public announcement, report filing under the Exchange Act or otherwise is required of or will be voluntarily made by the Company or any such
officer or director, during the Company Lock-Up Period regarding the establishment of such plan.

Our officers, directors, and holders of approximately % of our shares of common stock, have agreed with the underwriters, for the period beginning on the date of this prospectus and continuing to and including the date that is 180 days after the date of this prospectus (the "Stockholder Lock-Up Period") not to (i) offer, sell, contract to sell, pledge, grant any option, right or warrant to purchase, purchase any option or contract to sell, lend or otherwise transfer or dispose of any shares of Class A common stock, or any options or warrants to purchase any shares of Class A common stock, or any securities convertible into, exchangeable for or that represent the right to receive shares of Class A common stock, including the Class B common stock (such shares of common stock, options, rights, warrants or other securities, collectively, "Lock-Up Securities"), including, without limitation, any such Lock-Up Securities now owned or hereafter acquired by the holders (ii) engage in any hedging or other transaction or arrangement (including, without limitation, any short sale or the purchase or sale of, or entry into, any put or call option, or combination thereof, forward, swap or any other derivative transaction or instrument, however described or defined) which is designed to or which reasonably could be expected to lead to or result in a sale, loan, pledge or other disposition (whether by the holders or someone other than the holders or transfer of any of the economic consequences of ownership, in whole or in part, directly or indirectly, of any Lock-Up Securities, whether any such transaction or arrangement (or instrument provided for thereunder) would be settled by delivery of common stock or other securities, in cash or otherwise, (iii) make any demand for or exercise any right with respect to the registration of any Lock-Up Securities or (iv) otherwise publicly announce any intention to engage in or cause any action, activity, transaction or arrangement described in clause (i), (ii) or (iii) above.

The restrictions imposed by the lock-up agreements are subject to certain exceptions, including with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) transfer the holder's Lock-Up Securities: (i) as one or more bona fide gifts or charitable contributions, or for
bona fide estate planning purposes; (ii) upon death by will, testamentary document or the laws of intestate succession; (iii) (A) if the holder is a natural person, to any member of the holder's immediate family or to any trust for the direct
or indirect benefit of the holder or the holder's immediate family or (B) if the holder is a trust, to a trustor or beneficiary of the trust or the estate of a beneficiary of such trust or an entity wholly-owned by one or more members of the
holder's immediate family; (iv) to a corporation, partnership, limited liability company or other entity of which the holder and the holder's immediate family are the legal and beneficial owner of all of the outstanding equity securities
or similar interests or (v) to a nominee or custodian of a person or entity to whom a disposition or transfer would be permissible under clauses (a)(i) through (iv) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the holder is a corporation, partnership, limited liability company, trust or other business entity, (A) transfers to
another corporation, partnership, limited liability company or other business entity that is an affiliate (as defined in Rule 405 under the Securities Act) of the holder, or to any investment fund or other entity which fund or entity is controlling,
controlled by, managing or managed by or under common control with the holder or affiliates of the holder, or (B) as part of a distribution, transfer or disposition by the holder to its shareholders, limited stockholders, partners, general partners,
limited liability company members or other equityholders or to the estate of any such shareholders, limited stockholders, partners, general partners, limited liability company members or other equityholders;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) transfers by operation of law, such as pursuant to a qualified domestic order, divorce settlement, divorce decree,
separation agreement or other court or regulatory agency order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) transfers to us from our employee upon death, disability or in connection with termination of employment, in each case,
of such employee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) if the holder is not an officer or director of the Company, transfers in connection with a sale of the holder's
shares of Class A common stock acquired (A) from the underwriters in the offering or (B) in open market transactions after the closing date of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) transfers to us in connection with the vesting, settlement or exercise of RSUs, shares of restricted stock, options,
warrants or other rights to purchase shares of Class A common stock (including, in each case, by way of "net" or "cashless" exercise) that are scheduled to expire or automatically vest or settle during the Stockholder Lock-Up
Period, including any transfer to us for the payment of tax withholdings or remittance payments due as a result of the vesting, settlement or exercise of such restricted stock units, options, warrants or other rights, or in connection with the
conversion or exchange of convertible securities, in all such cases pursuant to equity awards granted under a stock incentive plan or other equity award plan, each as describe herein, or pursuant to the terms of convertible or exchangeable
securities, as applicable, provided that any securities received upon such vesting, settlement, exercise or conversion that are not transferred to cover any such tax obligations shall be subject to the terms of the lock-up agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) transfers by pledging, hypothecating or otherwise granting a security interest in up to 25.0% of the holder's
Lock-Up Securities to one or more lending institutions as collateral or security for any bona fide loan, advance or extension of credit for the holder and any transfer upon foreclosure upon such Lock-Up Securities in accordance with the terms of the
documentation governing any loan, advance, or extension of credit, provided, that the holder shall provide each of Goldman Sachs & Co. LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC and UBS Securities LLC prior written notice informing
them of any public filing, report or announcement with respect to such pledge, hypothecation or other grant of a security interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) transfers made with the prior written consent of Goldman Sachs & Co. LLC, BofA Securities, Inc., Morgan Stanley &
Co. LLC and UBS Securities LLC on behalf of the underwriters

*provided that* (A) in the case of clauses (a) and (b) above, such transfer or distribution shall not involve a disposition for value, (B) in the case of clauses (a), (b), (c) and (g), above, it shall be a condition to the transfer or distribution that the donee, devisee, transferee or distributee, as the case may be, shall sign and deliver a lock-up agreement, (C) in the case of clauses (a)(ii), (a)(iii), (a)(iv), (a)(v), (b) and (g) above, no filing by any party (including, without limitation, any donor, donee, devisee, transferor, transferee, distributor or distributee) under the Exchange Act, or other public filing, report or announcement reporting a reduction in beneficial ownership of Lock-Up Securities shall be required or shall be voluntarily made in connection with such transfer or distribution, and (D) in the case of clauses (a)(i), (c), (d), (e), and (f) above, no filing under the Exchange Act or other public filing, report or announcement shall be voluntarily made, and if any such filing, report or announcement shall be legally required during the Lock-Up Period, such filing, report or announcement shall clearly indicate in the footnotes thereto (A) the circumstances of such transfer or distribution and (B) in the case of a transfer or distribution pursuant to clauses (a)(i) or (c) above, that the donee, devisee, transferee or distributee has agreed to be bound by a lock-up agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) entry into a written plan meeting the requirements of Rule 10b5-1 under the Exchange Act relating to the transfer, sale
or other disposition of the holder's Lock-Up Securities, if then permitted by us, provided that none of the securities subject to such plan may be transferred, sold or otherwise disposed of until after the expiration of the Stockholder Lock-Up
Period and no public announcement, report or filing under the Exchange Act, or any

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other public filing, report or announcement, shall be voluntarily made (whether by or on behalf of the holder, us or any other party) regarding, or that otherwise discloses, the establishment of such plan during the Stockholder Lock-Up Period, and if any such filing, report or announcement shall be legally required during the Stockholder Lock-Up Period, such filing, report or announcement shall clearly indicate that that none of the securities subject to such plan may be transferred, sold or otherwise disposed of pursuant to such plan until after the expiration of the Stockholder Lock-Up Period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) transfers pursuant to a bona fide third-party tender offer, merger, consolidation or other similar transaction that is
approved by the Board of Directors and made to all of our stockholders involving a change of control, in one transaction or a series of related transactions, to a person or group of affiliated persons, of shares of capital stock if, after such
transfer, such person or group of affiliated persons would hold at least a majority of our outstanding voting securities (or the surviving entity); provided that in the event that such tender offer, merger, consolidation or other similar transaction
is not completed, the holder's Lock-Up Securities shall remain subject to the provisions of the lock-up agreement.

Furthermore, holders of approximately % of our shares of common stock that are not subject to lock-up agreements are subject to market standoff agreements in our ROFR Agreement and/or our 2021 Plan, pursuant to which holders of such shares of Class A common stock have agreed not to lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of common stock or any of our other equity securities or any securities convertible into or exercisable or exchangeable (directly or indirectly) for such Class A common stock or other equity securities, in each case held immediately prior to the effectiveness of the registration statement of which this prospectus forms a part during the period from the date of this prospectus through the end of the 180-day period following the date of this prospectus. We have agreed to enforce all such market standoff restrictions on behalf of the underwriters and not to amend or waive any such market standoff agreements during the Stockholder Lock-up Period, unless the waiver is with the prior written consent of Goldman Sachs & Co. LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC and UBS Securities LLC or in the same manner as such restrictions would be waived had such security holder entered into the lock-up agreement described above.

Prior to the offering, there has been no public market for the Class A common stock. The initial public offering price has been negotiated among us and the Representatives. Among the factors to be considered in determining the initial public offering price of the shares, in addition to prevailing market conditions, will be our historical performance, estimates of our business potential and earnings prospects, an assessment of our management and the consideration of the above factors in relation to market valuation of companies in related businesses.

We intend to apply to list our Class A common stock on Nasdaq under the symbol "CSIG."

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available for purchase in the open market as compared to the price at which they may purchase additional shares pursuant to the option described above. "Naked" short sales are any short sales that create a short position greater than the amount of additional shares for which the option described above may be exercised. The underwriters must cover any such naked short position by purchasing shares in the open market. A naked short position is more likely to be created if the underwriters are concerned that there may be downward pressure on the price of the common stock in the open market after pricing that could adversely affect investors who purchase shares of Class A common stock in this offering. Stabilizing transactions consist of various bids for or purchases of Class A common stock made by the underwriters in the open market prior to the completion of this offering.

The underwriters may also impose a penalty bid. This occurs when a particular underwriter repays to the underwriters a portion of the underwriting discount received by it because the Representatives have repurchased shares of Class A common stock sold by or for the account of such underwriter in stabilizing or short covering transactions.

Purchases to cover a short position and stabilizing transactions, as well as other purchases by the underwriters for their own accounts, may have the effect of preventing or retarding a decline in the market price of our stock, and together with the imposition of the penalty bid, may stabilize, maintain or otherwise affect the market price of the Class A common stock. As a result, the price of the Class A common stock may be higher than the price that otherwise might exist in the open market. The underwriters are not required to engage in these activities and may end any of these activities at any time. These transactions may be effected on Nasdaq, in the over-the-counter market or otherwise.

We estimate that our total expenses of this offering, excluding underwriting discounts and commissions, will be approximately $. We have also agreed to reimburse the underwriters for certain expenses, including those related to FINRA, incurred by them in connection with this offering in an amount not to exceed $.

We have agreed to indemnify the several underwriters against certain liabilities, including liabilities under the Securities Act.

The underwriters and their respective affiliates are full service financial institutions engaged in various activities, which may include sales and trading, commercial and investment banking, advisory, investment management, investment research, principal investment, hedging, market making, brokerage and other financial and non-financial activities and services. Certain of the underwriters and their respective affiliates have provided, and may in the future provide, a variety of these services to us and to persons and entities with relationships with us, for which they received or will receive customary fees and expenses. For example, Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Inc., UBS AG, Stamford Branch and Bank of America, N.A., affiliates of Goldman Sachs & Co. LLC, Morgan Stanley, UBS Investment Bank and BofA Securities, Inc., respectively, are lenders under our Credit Agreement with BMO Bank.

In the ordinary course of their various business activities, the underwriters and their respective affiliates, officers, directors and employees may purchase, sell or hold a broad array of investments and actively trade securities, derivatives, loans, commodities, currencies, credit default swaps and other financial instruments for their own account and for the accounts of their customers, and such investment and trading activities may involve or relate to our assets, securities and/or instruments (directly, as collateral securing other obligations or otherwise) and/or persons and entities with relationships with us. The underwriters and their respective affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect of such assets, securities or instruments and may at any time hold, or recommend to clients that they should acquire, long and/or short positions in such assets, securities and financial instruments.

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We have retained FTP Securities LLC ("FT Partners"), a FINRA member, to provide certain financial advisory services in connection with this offering. FT Partners is not engaged in, nor affiliated with any entity that is engaged in, the solicitation or distribution of the offering and is an independent financial advisor for purposes of FINRA Rule 5110.

**Conflicts of Interest** 

Clear Street Group Inc. is an affiliate of CS LLC, a FINRA member which will act as an underwriter for the sale of shares of Class A common stock to the public in this offering. Because Clear Street Group Inc. will receive all the net proceeds from sales of shares in this offering made to the public through CS LLC, CS LLC is deemed to have a "conflict of interest" within the meaning of FINRA Rule 5121. Consequently, this offering will be conducted in compliance with the provisions of FINRA Rule 5121. In accordance with Rule 5121, CS LLC is not permitted to sell shares of Class A common stock in this offering to an account over which it exercises discretionary authority without the prior specific written approval of the account holder. Goldman Sachs & Co. LLC, one of the underwriters of this offering, will act as "qualified independent underwriter" as defined in FINRA Rule 5121. In that role, Goldman Sachs & Co. LLC has participated in the preparation of the registration statement and has exercised the usual standards of "due diligence" in connection with the offering, as required by FINRA Rule 5121. We have agreed to indemnify Goldman Sachs & Co. LLC against certain liabilities incurred in connection with acting as a qualified independent underwriter, including liabilities under the Securities Act. Goldman Sachs & Co. LLC will not receive any additional compensation for acting as a qualified independent underwriter.

**Directed Share Program** 

At our request, the underwriters have reserved up to shares of our Class A common stock, or 5% of the shares being offered pursuant to this prospectus, for sale at the initial public offering price to certain individuals and entities as determined by certain of our officers through a directed share program administered by the Representatives and their affiliates. If purchased by these persons, these shares will not be subject to a lock-up restriction, except to the extent that the purchasers of such shares are otherwise subject to lock-up or market stand-off agreements as a result of their relationship with us. The number of shares of our Class A common stock available for sale to the general public in this offering will be reduced to the extent these individuals and entities purchased such reserved shares. Any reserved shares that are not so purchased will be offered by the underwriters to the general public on the same basis as the other shares offered by this prospectus. Other than the underwriting discount described on the front cover on this prospectus, the underwriters will not be entitled to any commission with respect to shares of Class A common stock sold pursuant to the directed share program. We have agreed to indemnify the several underwriters against certain liabilities and expenses, including liabilities under the Securities Act, in connection with sales of the shares sold through the directed share program.

**Selling Restrictions** 

*European Economic Area* 

In relation to each Member State of the EEA (each, a "Relevant Member State"), an offer to the public of any shares may not be made in that Relevant Member State, except that an offer to the public in that Relevant Member State of any shares may be made at any time under the following exemptions under the EU Prospectus Regulation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to any legal entity which is a "qualified investor" as defined under the EU Prospectus Regulation;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to fewer than 150 natural or legal persons (other than "qualified investors" as defined under the EU
Prospectus Regulation), subject to obtaining the prior consent of the Representatives for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other circumstances falling within Article 1(4) of the EU Prospectus Regulation, provided that no such offer of
shares shall result in a requirement for us and/or selling stockholders or any of the Representatives to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or a supplemental prospectus pursuant to Article 23 of the Prospectus
Regulation and each person who initially acquires any shares or to whom any offer is made will be deemed to have represented, warranted and agreed to and with each of the Representatives and us that it is a qualified investor within the meaning of
Article 2 of the EU Prospectus Regulation.

In the case of any shares being offered to a financial intermediary as that term is used in Article 1(4) of the EU Prospectus Regulation, each financial intermediary will also be deemed to have represented, warranted and agreed that the shares acquired by it in the offer have not been acquired on a non-discretionary basis on behalf of, nor have they been acquired with a view to their offer or resale to, persons in circumstances which may give rise to an offer of any shares to the public, other than their offer or resale in a Relevant Member State to qualified investors as so defined or in circumstances in which the prior consent of the Representatives has been obtained to each such proposed offer or resale.

We, the underwriters and their affiliates will rely upon the truth and accuracy of the foregoing representations, warranties and agreements. Notwithstanding the above, a person who is not a "qualified investor" and who has notified the underwriters of such fact in writing may, with the prior consent of the Representatives, be permitted to acquire shares in the offer.

For the purposes of this provision, the expression an "offer to the public" in relation to any shares in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and any shares of Class A common stock to be offered so as to enable an investor to decide to purchase or subscribe for any shares, and the expression "EU Prospectus Regulation" means Regulation (EU) 2017/1129.

*United Kingdom* 

An offer to the public of any shares may not be made in the United Kingdom, except that an offer to the public in the United Kingdom of any shares may be made at any time under the following exemptions under the UK Prospectus Regulation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to any legal entity which is a "qualified investor" as defined under the UK Prospectus Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to fewer than 150 natural or legal persons (other than "qualified investors" as defined under the UK
Prospectus Regulation), subject to obtaining the prior consent of the Representatives for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other circumstances falling within section 86 of the Financial Services and Markets Act 2000 (as amended,
"FSMA");

*provided* that no such offer of shares shall result in a requirement for us or any Representative to publish a prospectus pursuant to section 85 of the FSMA or a supplemental prospectus pursuant to Article 23 of the UK Prospectus Regulation and each person who initially acquires any shares or to whom any offer is made will be deemed to have represented, warranted and agreed to and with each of the Representatives and us that it is a qualified investor within the meaning of Article 2 of the UK Prospectus Regulation.

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In the case of any shares being offered to a financial intermediary as that term is used in Article 1(4) of the UK Prospectus Regulation, each financial intermediary will also be deemed to have represented, warranted and agreed that the shares acquired by it in the offer have not been acquired on a non-discretionary basis on behalf of, nor have they been acquired with a view to their offer or resale to, persons in circumstances which may give rise to an offer of any shares to the public, other than their offer or resale in the United Kingdom to qualified investors as so defined or in circumstances in which the prior consent of the Representatives has been obtained to each such proposed offer or resale.

We, the underwriters and their affiliates will rely upon the truth and accuracy of the foregoing representations, warranties and agreements. Notwithstanding the above, a person who is not a "qualified investor" and who has notified the Representatives of such fact in writing may, with the prior consent of the Representatives, be permitted to acquire shares in the offer.

For the purposes of this provision, the expression an "offer to the public" in relation to any shares in the United Kingdom means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares.

This prospectus is only being distributed to and is only directed at: (A) persons who are outside the United Kingdom, or (B) qualified investors who are also (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"), or (ii) high-net-worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons falling within (1) – (3) together being referred to as "relevant persons"). The shares are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire the shares will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this prospectus or any of its contents.

*Canada* 

The shares may be sold in Canada only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions, and Ongoing Registrant Obligations. Any resale of the securities must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this offering memorandum (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory of these rights or consult with a legal advisor.

Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with this offering.

*Hong Kong* 

The shares may not be offered or sold in Hong Kong by means of any document other than (i) in circumstances which do not constitute an offer to the public within the meaning of the Companies

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(Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of Hong Kong) ("Companies (Winding Up and Miscellaneous Provisions) Ordinance") or which do not constitute an invitation to the public within the meaning of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) ("Securities and Futures Ordinance"), or (ii) to "professional investors" as defined in the Securities and Futures Ordinance and any rules made thereunder, or (iii) in other circumstances which do not result in the document being a "prospectus" as defined in the Companies (Winding Up and Miscellaneous Provisions) Ordinance, and no advertisement, invitation or document relating to the shares may be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to shares which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" in Hong Kong as defined in the Securities and Futures Ordinance and any rules made thereunder.

*Singapore* 

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the shares may not be circulated or distributed, nor may the shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor (as defined under Section 4A of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA")) under Section 274 of the SFA, (ii) to a "relevant person" (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA, in each case subject to conditions set forth in the SFA.

Where the shares are subscribed or purchased under Section 275 of the SFA by a relevant person which is a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor, the securities (as defined in Section 239(1) of the SFA) of that corporation shall not be transferable for six months after that corporation has acquired the shares under Section 275 of the SFA except: (1) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (2) where such transfer arises from an offer in that corporation's securities pursuant to Section 275(1A) of the SFA, (3) where no consideration is or will be given for the transfer, (4) where the transfer is by operation of law, (5) as specified in Section 276(7) of the SFA, or (6) as specified in Regulation 32 of the Securities and Futures (Offers of Investments) (Shares and Debentures) Regulations 2005 of Singapore ("Regulation 32").

Where the shares are subscribed or purchased under Section 275 of the SFA by a relevant person which is a trust (where the trustee is not an accredited investor (as defined in Section 4A of the SFA)) whose sole purpose is to hold investments and each beneficiary of the trust is an accredited investor, the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferable for six months after that trust has acquired the shares under Section 275 of the SFA except: (1) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (2) where such transfer arises from an offer that is made on terms that such rights or interest are acquired at a consideration of not less than $200,000 (or its equivalent in a foreign currency) for each transaction (whether such amount is to be paid for in cash or by exchange of securities or other assets), (3) where no consideration is or will be given for the transfer, (4) where the transfer is by operation of law, (5) as specified in Section 276(7) of the SFA, or (6) as specified in Regulation 32.

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*Japan* 

The shares have not been and will not be registered under the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948, as amended) ("FIEA"). The shares may not be offered or sold, directly or indirectly, in Japan or to or for the benefit of any resident of Japan (including any person resident in Japan or any corporation or other entity organized under the laws of Japan) or to others for reoffering or resale, directly or indirectly, in Japan or to or for the benefit of any resident of Japan, except pursuant to an exemption from the registration requirements of the FIEA and otherwise in compliance with any relevant laws and regulations of Japan.

*Brazil* 

The offer and sale of the securities have not been and will not be registered with the Brazilian securities commission (Comissão de Calores Mobiliários, or "CVM") and, therefore, will not be carried out by any means that would constitute a public offering in Brazil under CVM resolution no 160, dated 13 July 2022, as amended ("CVM Resolution 160") or unauthorized distribution under Brazilian laws and regulations. The securities may only be offered to Brazilian professional investors (as defined by applicable CVM regulation), who may only acquire the securities through a non-Brazilian account, with settlement outside Brazil in non-Brazilian currency. The trading of these securities on regulated securities markets in Brazil is prohibited.

*Israel* 

The shares offered by this prospectus have not been approved by the Israel Securities Authority (the "ISA"), nor have such shares been registered for sale in Israel. The shares may not be offered or sold to the public in Israel, absent the publication of a prospectus that has been approved by the ISA.

This prospectus does not constitute a prospectus under the Israeli Securities Law, 5728-1968 (the "Israeli Securities Law"), and has not been filed with or approved by the ISA. In Israel, this prospectus is being distributed only to, and is directed only at, and any offer of the shares is directed only at, (i) a limited number of persons in accordance with the Israeli Securities Law, and (ii) investors listed in the first addendum (the "Addendum") to the Israeli Securities Law, consisting primarily of joint investment in trust funds, provident funds, insurance companies, banks, portfolio managers, investment advisors, members of the Tel Aviv Stock Exchange, underwriters, venture capital funds, entities with equity in excess of NIS 50 million and "qualified individuals," each as defined in the Addendum (as it may be amended from time to time), collectively referred to as qualified investors (in each case, purchasing for their own account or, where permitted under the Addendum, for the accounts of their clients who are investors listed in the Addendum). Qualified investors are required to submit written confirmation that they fall within the scope of the Addendum, are aware of the meaning of same and agree to it.

*Australia* 

No placement document, prospectus, product disclosure statement or other disclosure document has been lodged with the Australian Securities and Investments Commission, in relation to the offering. This prospectus does not constitute a prospectus, product disclosure statement or other disclosure document under the Corporations Act 2001 (the "Corporations Act") and does not purport to include the information required for a prospectus, product disclosure statement or other disclosure document under the Corporations Act.

Any offer in Australia of the shares may only be made to persons (the "Exempt Investors") who are "sophisticated investors" (within the meaning of section 708(8) of the Corporations Act), "professional investors" (within the meaning of section 708(11) of the Corporations Act) or otherwise

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pursuant to one or more exemptions contained in section 708 of the Corporations Act so that it is lawful to offer the shares without disclosure to investors under Chapter 6D of the Corporations Act.

The shares applied for by Exempt Investors in Australia must not be offered for sale in Australia in the period of 12 months after the date of allotment under the offering, except in circumstances where disclosure to investors under Chapter 6D of the Corporations Act would not be required pursuant to an exemption under section 708 of the Corporations Act or otherwise or where the offer is pursuant to a disclosure document which complies with Chapter 6D of the Corporations Act. Any person acquiring shares must observe such Australian on-sale restrictions.

This prospectus contains general information only and does not take account of the investment objectives, financial situation, or particular needs of any particular person. It does not contain any securities recommendations or financial product advice. Before making an investment decision, investors need to consider whether the information in this prospectus is appropriate to their needs, objectives, and circumstances, and, if necessary, seek expert advice on those matters.

*Italy* 

The offering of shares has not been registered with the Commissione Nazionale per le Società e la Borsa ("CONSOB") pursuant to Italian securities legislation and, accordingly, no shares may be offered, sold or delivered, nor copies of this prospectus or any other documents relating to the shares may not be distributed in Italy except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to "qualified investors," as referred to in Article 100 of Legislative Decree No. 58 of 24 February
1998, as amended (the "Decree No. 58") and defined in Article 26, paragraph 1, letter d) of CONSOB Regulation No. 16190 of 29 October 2007, as amended ("Regulation No. 16190") pursuant to Article 34-ter, paragraph 1, letter. b) of CONSOB Regulation No. 11971 of 14 May 1999, as amended ("Regulation No. 11971"); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in any other circumstances where an express exemption from compliance with the offer restrictions applies, as provided
under Decree No. 58 or Regulation No. 11971.

Any offer, sale or delivery of the shares or distribution of copies of this prospectus or any other documents relating to the shares in the Republic of Italy must be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• made by investment firms, banks or financial intermediaries permitted to conduct such activities in the Republic of Italy
in accordance with Legislative Decree No. 385 of 1 September 1993, as amended (the "Banking Law"), Decree No. 58 and Regulation No. 16190 and any other applicable laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in compliance with Article 129 of the Banking Law, and the implementing guidelines of the Bank of Italy, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in compliance with any other applicable notification requirement or limitation which may be imposed, from time to time, by
CONSOB or the Bank of Italy or other competent authority.

Please note that, in accordance with Article 100-bis of Decree No. 58, where no exemption from the rules on public offerings applies, the subsequent distribution of the shares on the secondary market in Italy must be made in compliance with the public offer and the prospectus requirement rules provided under Decree No. 58 and Regulation No. 11971.

Furthermore, shares which are initially offered and placed in Italy or abroad to qualified investors only but in the following year are regularly ("sistematicamente") distributed on the secondary market in Italy to non-qualified investors become subject to the public offer and the prospectus requirement rules

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provided under Decree No. 58 and Regulation No. 11971. Failure to comply with such rules may result in the sale of the shares being declared null and void and in the liability of the intermediary transferring the shares for any damages suffered by such non-qualified investors.

*Switzerland* 

The shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. This prospectus has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland.

Neither this prospectus nor any other offering or marketing material relating to the shares or the offering may be publicly distributed or otherwise made publicly available in Switzerland. Neither this prospectus nor any other offering or marketing material relating to the offering, us, the shares have been or will be filed with or approved by any Swiss regulatory authority. In particular, this prospectus will not be filed with, and the offer of shares will not be supervised by, the Swiss Financial Market Supervisory Authority FINMA, and the offer of shares has not been and will not be authorized under the Swiss Federal Act on Collective Investment Schemes ("CISA"). The investor protection afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers of shares.

*Monaco* 

The shares may not be offered or sold, directly or indirectly, to the public in Monaco other than by a Monaco Bank or a duly authorized Monegasque intermediary acting as a professional institutional investor which has such knowledge and experience in financial and business matters as to be capable of evaluating the risks and merits of an investment in the Fund. Consequently, this prospectus may only be communicated to (i) banks, and (ii) portfolio management companies duly licensed by the "Commission de Contrôle des Activités Financières" by virtue of Law n° 1.338, of September 7, 2007, and authorized under Law n° 1.144 of July 26, 1991. Such regulated intermediaries may in turn communicate this prospectus to potential investors.

*Peoples Republic of China* 

This prospectus will not be circulated or distributed in the PRC and the shares will not be offered or sold, and will not be offered or sold to any person for re-offering or resale, directly or indirectly, to any residents of the PRC except pursuant to any applicable laws and regulations of the PRC. Neither this prospectus nor any advertisement or other offering material may be distributed or published in the PRC, except under circumstances that will result in compliance with applicable laws and regulations.

*Korea* 

The shares have not been and will not be registered under the Financial Investments Services and Capital Markets Act of Korea (the "FSCMA"), and the decrees and regulations thereunder and the shares have been and will be offered in Korea as a private placement under the FSCMA. None of the shares may be offered, sold, or delivered, directly or indirectly, or offered or sold to any person for re-offering or resale, directly or indirectly, in Korea or to any resident of Korea except pursuant to the applicable laws and regulations of Korea, including the FSCMA and the Foreign Exchange Transaction Law of Korea (the "FETL"), and the decrees and regulations thereunder. The shares have not been listed on any of securities exchanges in the world including, without limitation, the Korea Exchange in

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Korea. Furthermore, the purchaser of the shares shall comply with all applicable regulatory requirements (including but not limited to requirements under the FETL) in connection with the purchase of the shares. By the purchase of the shares, the relevant holder thereof will be deemed to represent and warrant that if it is in Korea or is a resident of Korea, it purchased the shares pursuant to the applicable laws and regulations of Korea.

*Malaysia* 

No prospectus or other offering material or document in connection with the offer and sale of the securities has been or will be registered with the Securities Commission of Malaysia, or Commission, for the Commission's approval pursuant to the Capital Markets and Services Act 2007. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the securities may not be circulated or distributed, nor may the shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Malaysia other than to persons falling within the categories specified under Schedule 6 or Section 229(l)(b), Schedule 7 or Section 230(l)(b) and Schedule 8 or Section 257(3) of the Capital Market and Services Act, 2007 of Malaysia: (i) a closed end fund approved by the Commission, (ii) a holder of a Capital Markets Services License, (iii) a person who acquires the shares as principal, if the offer is on terms that the shares may only be acquired at a consideration of not less than RM250,000 (or its equivalent in foreign currencies) for each transaction, (iv) an individual whose total net personal assets or total net joint assets with his or her spouse exceeds RM3 million (or its equivalent in foreign currencies), excluding the value of the primary residence of the individual, (v) an individual who has a gross annual income exceeding RM300,000 (or its equivalent in foreign currencies) per annum in the preceding twelve months, (vi) an individual who, jointly with his or her spouse, has a gross annual income of RM400,000 (or its equivalent in foreign currencies), per annum in the preceding twelve months, (vii) a corporation with total net assets exceeding RM10 million (or its equivalent in a foreign currencies) based on the last audited accounts, (viii) a partnership with total net assets exceeding RM10 million (or its equivalent in foreign currencies), (ix) a bank licensee or insurance licensee as defined in the Labuan Financial Services and Securities Act 2010, (x) an Islamic bank licensee or takaful licensee as defined in the Labuan Financial Services and Securities Act 2010, and (xi) any other person as may be specified by the Commission; provided that, in the each of the preceding categories (i) to (xi), the distribution of the shares is made by a holder of a Capital Markets Services License who carries on the business of dealing in securities. The distribution in Malaysia of this prospectus is subject to Malaysian laws. This prospectus does not constitute and may not be used for the purpose of public offering or an issue, offer for subscription or purchase, invitation to subscribe for or purchase any securities requiring the registration of a prospectus with the Commission under the Capital Markets and Services Act 2007. The Securities Commission of Malaysia shall not be liable for any non-disclosure on the part of our company and assumes no responsibility for the correctness of any statements made or opinions or reports expressed in this prospectus.

*Thailand* 

This prospectus does not, and is not intended to, constitute a public offering in Thailand. The shares may not be offered or sold to persons in Thailand, unless such offering is made under the exemptions from approval and filing requirements under applicable laws, or under circumstances which do not constitute an offer for sale of the shares to the public for the purposes of the Securities and Exchange Act of 1992 of Thailand, nor require approval from the Office of the Securities and Exchange Commission of Thailand.

*Taiwan* 

The shares have not been and will not be registered with the Financial Supervisory Commission of Taiwan pursuant to relevant securities laws and regulations and may not be sold, issued or offered

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within Taiwan through a public offering or in circumstances which constitutes an offer within the meaning of the Securities and Exchange Act of Taiwan that requires a registration or approval of the Financial Supervisory Commission of Taiwan. No person or entity in Taiwan has been authorized to offer, sell, give advice regarding or otherwise intermediate the offering and sale of the shares in Taiwan.

*Saudia Arabia* 

This prospectus may not be distributed in the Kingdom of Saudi Arabia except to such persons as are permitted under the Offers of Securities Regulations as issued by the board of the Saudi Arabian Capital Market Authority (the "CMA"), pursuant to resolution number 2-11-2004 dated October 4, 2004, as amended by resolution number 1-28-2008, as amended (the "CMA Regulations"). The CMA does not make any representation as to the accuracy or completeness of this prospectus and expressly disclaims any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this prospectus. Prospective purchasers of the securities offered hereby should conduct their own due diligence on the accuracy of the information relating to the securities. If you do not understand the contents of this prospectus, you should consult an authorized financial adviser.

*Qatar* 

The shares described in this prospectus have not been, and will not be, offered, sold or delivered, at any time, directly or indirectly in the State of Qatar in a manner that would constitute a public offering. This prospectus has not been, and will not be, registered with or approved by the Qatar Financial Markets Authority or Qatar Central Bank and may not be publicly distributed. This prospectus is intended for the original recipient only and must not be provided to any other person. It is not for general circulation in the State of Qatar and may not be reproduced or used for any other purpose.

*United Arab Emirates* 

The shares have not been, and are not being, publicly offered, sold, promoted, or advertised in the United Arab Emirates (including the DIFC) other than in compliance with the laws of the United Arab Emirates (and the DIFC) governing the issue, offering, and sale of securities. Further, this prospectus does not constitute a public offer of securities in the United Arab Emirates (including the DIFC) and is not intended to be a public offer. This prospectus has not been approved by or filed with the Central Bank of the United Arab Emirates, the Securities and Commodities Authority, or the DFSA.

*Abu Dhabi Global Market* 

The Abu Dhabi Global Market ("ADGM"), including the Financial Services Regulatory Authority and the Registration Authority does not accept any responsibility for the content of the information included in this prospectus, including the accuracy or completeness of such information. The liability for the content of this prospectus lies with us and other persons, such as experts, whose opinions are included in this prospectus with their consent. The ADGM has also not assessed the suitability of the securities to which this prospectus relates to any particular investor or type of investor. The securities to which this prospectus relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the securities offered should conduct their own due diligence on the securities. If you do not understand the contents of this prospectus or are unsure whether the securities to which this prospectus relates are suitable for your individual investment objectives and circumstances, you should consult an authorized financial adviser.

*Dubai International Financial Centre (the "DIFC")* 

This prospectus relates to an Exempt Offer in accordance with the Markets Rules 2012 of the Dubai Financial Services Authority (the "DFSA"). This prospectus is intended for distribution only to

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persons of a type specified in the Markets Rules 2012 of the DFSA. It must not be delivered to, or relied on by, any other person. The DFSA has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The DFSA has not approved this prospectus nor taken steps to verify the information set forth herein and has no responsibility for this prospectus. The securities to which this prospectus relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the securities offered should conduct their own due diligence on the securities. If you do not understand the contents of this prospectus you should consult an authorized financial advisor.

In relation to its use in the DIFC, this prospectus is strictly private and confidential and is being distributed to a limited number of investors and must not be provided to any person other than the original recipient, and may not be reproduced or used for any other purpose. The interests in the securities may not be offered or sold directly or indirectly to the public in the DIFC.

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**LEGAL MATTERS** 

The validity of the issuance of our Class A common stock offered in this prospectus will be passed upon for us by Davis Polk & Wardwell LLP, New York, New York. Certain legal matters in connection with this offering will be passed upon for the underwriters by Cooley LLP, New York, New York.

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**EXPERTS** 

The consolidated financial statements of the Company at December 31, 2024, and for the year then ended, appearing in this prospectus and registration statement have been audited by Ernst & Young LLP, independent registered public accounting firm, and at December 31, 2023, and for the year then ended, by RSM US LLP, independent registered public accounting firm, as set forth in their respective reports thereon appearing elsewhere herein, and are included in reliance upon such reports given on the authority of such firms as experts in accounting and auditing.

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**CHANGE IN INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

On May 1, 2024, we dismissed RSM US LLP ("RSM") as our independent accountant and subsequently engaged Ernst & Young LLP to audit our consolidated financial statements in accordance with the auditing standards of the PCAOB as of and for the year ended December 31, 2024. We previously engaged RSM to audit our consolidated financial statements in accordance with GAAP as of and for the year ended December 31, 2023. The decision to dismiss RSM and engage Ernst & Young LLP was approved by our Board of Directors.

The reports of RSM on our consolidated financial statements as of and for the year ended December 31, 2023 did not contain an adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainties, audit scope or accounting principles.

During the year ended December 31, 2023, and through the period ended May 1, 2024, there were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no "disagreements" (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions thereto) with RSM on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements,
if not resolved to its satisfaction, would have caused RSM to make reference in connection with its opinion to the subject matter of the disagreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no "reportable events" as such term is defined in Item 304(a)(1)(v) of Regulation S-K and the related instructions thereto other than the material weakness in the internal control over financial reporting relating to a lack of properly designed controls with sufficient
precision to tie out supporting schedules and a failure to implement formal documentation and review of accounting positions.

We have provided RSM with a copy of the foregoing disclosures and have requested that RSM furnish us with a letter addressed to the SEC stating whether it agrees with the statements made by us as set forth above and, if not, stating the respects in which it does not agree. A copy of RSM's letter, dated January 20, 2025, is filed as Exhibit 16.1 to the registration statement of which this prospectus forms a part.

During the year ended December 31, 2023, and through the period ended May 1, 2024, neither we, nor anyone acting on our behalf, consulted with Ernst & Young LLP on matters that involved the application of accounting principles to a specified transaction, either completed or proposed, the type of audit opinion that might be rendered on our financial statements, or any other matter that was the subject of a disagreement as that term is used in Item 304 (a)(1)(iv) of Regulation S-K and the related instructions to Item 304 of Regulation S-K or a reportable event as that term is used in Item 304(a)(1)(v) and the related instructions to Item 304 of Regulation S-K.

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**WHERE YOU CAN FIND MORE INFORMATION** 

We have filed with the SEC a registration statement on Form S-1 under the Securities Act to register our Class A common stock being offered in this prospectus. This prospectus, which forms part of the registration statement, does not contain all of the information included in the registration statement and the attached exhibits. You will find additional information about us and our Class A common stock in the registration statement. References in this prospectus to any of our contracts, agreements or other documents are not necessarily complete, and you should refer to the exhibits attached to the registration statement for copies of the actual contracts, agreements or documents.

The SEC maintains a website that contains reports, proxy statements and other information about companies like us, who file electronically with the SEC. The address of that website is http://www.sec.gov. This reference to the SEC's website is an inactive textual reference only and is not a hyperlink.

Upon the effectiveness of the registration statement of which this prospectus forms a part, we will be subject to the reporting, proxy and information requirements of the Exchange Act, and will be required to file periodic reports, proxy statements and other information with the SEC. These periodic reports, proxy statements and other information will be available on the website of the SEC referred to above, as well as on our website free of charge, https://www.clearstreet.io. This reference to our website is an inactive textual reference only and is not a hyperlink. The contents of our website are not part of this prospectus, and you should not consider the contents of our website in making an investment decision with respect to our Class A common stock. We will furnish our stockholders with annual reports containing audited financial statements and quarterly reports containing unaudited interim financial statements for each of the first three quarters of each year.

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**CLEAR STREET GROUP INC.** 

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS** 

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| | |
|:---|:---|
|  | Page |
|  **Audited consolidated financial statements of Clear Street Group Inc.** |  |
|  [Report of Independent Registered Public Accounting Firm (PCAOB ID: 42)](#fin39893_1) | F-2 |
|  [Report of Independent Registered Public Accounting Firm (PCAOB ID: 49)](#fin39893_1a) | F-3 |
|  [Consolidated statements of financial condition as of December 31 2024 and 2023](#fin39893_2) | F-4 |
|  [Consolidated statements of comprehensive income (loss) for the years ended December 31, 2024 and 2023](#fin39893_3) | F-6 |
|  [Consolidated statements of changes in temporary equity and stockholders' equity for the years ended December 31, 2024 and 2023](#fin39893_4) | F-7 |
|  [Consolidated statements of cash flows for the years ended December 31, 2024 and 2023](#fin39893_5) | F-9 |
|  [Notes to audited consolidated financial statements](#fin39893_6) | F-11–F-66 |
|  [Schedule I to consolidated financial statements](#fin39893_7) | F-67 |

---

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| | |
|:---|:---|
|  | Page |
|  **Unaudited condensed consolidated financial statements of Clear Street Group Inc.** |  |
|  [Condensed Consolidated Statements of Financial Condition as of the nine months ended September 30, 2025 and 2024](#fin39893_8) | F-72 |
|  [Condensed Consolidated Statements of Comprehensive Income for the nine months ended September 30, 2025 and 2024](#fin39893_9) | F-74 |
|  [Condensed Consolidated Statements of Changes in Temporary Equity and Shareholders' Equity for the nine months ended September 30, 2025 and 2024](#fin39893_10) | F-75 |
|  [Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024](#fin39893_11) | F-76 |
|  [Notes to Unaudited Condensed Consolidated Financial Statements](#fin39893_12) | F-78 |

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**Report of Independent Registered Public Accounting Firm** 

To the Shareholders and the Board of Directors of Clear Street Group Inc.

**Opinion on the Financial Statements** 

We have audited the accompanying consolidated statement of financial condition of Clear Street Group Inc. (the Company) as of December 31, 2024, the related consolidated statements of comprehensive income (loss), changes in temporary equity and shareholders' equity and cash flows for the year then ended, and the related notes and the financial statement schedule I (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024, and the results of its operations and its cash flows for the year then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ Ernst & Young LLP

We have served as the Company's auditor since 2024.

New York, New York

November 4, 2025

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**Report of Independent Registered Public Accounting Firm** 

To the Stockholders and the Board of Directors of Clear Street Group Inc.

**Opinion on the Financial Statements** 

We have audited the accompanying consolidated statement of financial condition of Clear Street Group Inc. and its subsidiaries (the Company) as of December 31, 2023, the related consolidated statements of comprehensive income (loss), changes in temporary equity and stockholders' equity and cash flows for the year then ended, and the related notes to the consolidated financial statements and Schedule I to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ RSM US LLP

We served as the Company's auditor from 2019 to 2023.

New York, New York

November 4, 2025

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**Clear Street Group Inc.** 

**Consolidated Statements of Financial Condition** 

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
|  | **(in thousands, except shares<br>par value and amounts)** | **(in thousands, except shares<br>par value and amounts)** |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $273934 | $296099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash segregated under federal and other regulations | 183081 | 122195 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized agreements: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under repurchase agreements | 23106957 | 18714195 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed | 11475515 | 11135587 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities received as collateral | 3471261 | 3910205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments owned, at fair value | 15324573 | 2346076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from customers (includes $49.1 million and $0.0 million with related parties at December 31, 2024 and 2023, respectively) | 778127 | 705528 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from broker-dealers and clearing organizations (includes $1.6 million and $0.0 million with related parties at December 31, 2024 and 2023, respectively) | 757820 | 264318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill | 29146 | 10132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net of accumulated amortization | 97371 | 71868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease right-of-use assets | 16830 | 19174 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax assets, net | 16657 | 1306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 30760 | 12481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets of discontinued operations (Note 18) |  | 779915 |
|  **Total Assets** | $**55562032** | $**38389079** |
|  **Liabilities and Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized financing: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under repurchase agreements | $23155357 | $17648018 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned | 14805880 | 13176376 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligation to return securities received as collateral | 3471261 | 3910205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments sold, not yet purchased, at fair value | 10334660 | 273850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to customers (includes $0.8 million and $79.1 million with related parties at December 31, 2024 and 2023, respectively) | 2484373 | 1394440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to broker-dealers and clearing organizations | 151483 | 197530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes payable, net of unamortized debt issuance costs | 187977 | 133953 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | 17849 | 19759 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | 120195 | 47803 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax liabilities | 8355 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Warrant liability | 52886 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities of discontinued operations (Note 18) |  | 697620 |
|  **Total Liabilities** | $**54790276** | $**37499554** |
|  **Commitments and Contingencies (Note 15)** |  |  |
|  **Temporary Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series A preferred stock ($0.00001 par value; authorized 1,400,000 shares; issued 960,000 shares; aggregate liquidation preference $24.0 million at December 31, 2024. Classified in Shareholders' Equity at December 31, 2023) | 23507 |  |

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**Clear Street Group Inc.** 

**Consolidated Statements of Financial Condition** 

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
|  | **(in thousands, except shares par<br>value and amounts)** | **(in thousands, except shares par<br>value and amounts)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series B preferred stock ($0.00001 par value; authorized 97,873,350 shares; issued 87,094,907 shares, aggregate liquidation preference $721.1 million at December 31, 2024. Classified in Shareholders' Equity at December 31, 2023) | 718375 |  |
|  **Redeemable Noncontrolling Interest** |  | 70210 |
|  **Stockholders' Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series A preferred stock ($0.00001 par value; authorized 1,400,000 shares; issued 1,400,000 shares; aggregate liquidation preference $35.0 million at December 31, 2023. Classified as Temporary Equity at December 31, 2024) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series B preferred stock ($0.00001 par value; authorized 97,873,350 shares; issued 84,699,697 shares; aggregate liquidation preference $701.1 million at December 31, 2023. Classified as Temporary Equity at December 31, 2024) |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common A stock ($0.00001 par value; authorized 294,864,597 shares; issued 30,488,447 and 31,721,692 shares at December 31, 2024 and 2023, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common X stock (zero par value; authorized 130,373,000 shares; issued zero and 130,373,000 shares at December 31, 2024 and 2023, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Z stock ($0.00001 par value; authorized 130,373,000 shares; issued 112,605,223 and zero shares at December 31, 2024 and 2023, respectively) | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 33377 | 755998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Accumulated deficit) / Retained earnings | (3581) | 4200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustments | 77 | (115) |
|  **Total Stockholders' Equity** | **29874** | **760084** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling interest |  | 59231 |
|  **Total Equity** | **29874** | **819315** |
|  **Total Liabilities, Temporary Equity and Equity** | $**55562032** | $**38389079** |

---

The accompanying notes are an integral part of these Consolidated Financial Statements.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.**

**Consolidated Statements of Comprehensive Income (Loss)**

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** |
| **Revenues** | **(in thousands, except<br>per share amounts)** | **(in thousands, except<br>per share amounts)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net financing revenues (includes $(0.5) million and $(0.2) million with related parties for the years ended December 31, 2024 and 2023, respectively) | $325704 | $100935 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction revenues, net (includes $0.2 million and $2.0 million with related parties for the years ended December 31, 2024 and 2023, respectively) | 136698 | 93719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other revenues | 1207 | 1137 |
|  **Net revenues** | **463609** | **195791** |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensation and benefits | 170002 | 87976 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction and market access costs, net | 72965 | 48919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and market data | 42617 | 30238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees, marketing and other (includes $1.6 million and $1.2 million to related parties for the years ended December 31, 2024 and 2023, respectively) | 47046 | 27432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization and depreciation | 29236 | 19491 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense on borrowings | 10039 | 8150 |
|  **Total operating expenses** | **371905** | **222206** |
|  **Operating income (loss)** | **91704** | **(26415)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on the termination of lease |  | 1835 |
|  **Income (loss) from continuing operations before income tax expense** | **91704** | **(24580)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | 10618 | (714) |
|  **Income (loss) from continuing operations** | **81086** | **(23866)** |
|  **Discontinued operations:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income from discontinued operations | 8042 | 6032 |
|  **Net income (loss)** | **89128** | **(17834)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) attributable to noncontrolling interests | 46257 | (20388) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to redeemable noncontrolling interests | 3493 | 7578 |
|  **Net income (loss) attributable to Clear Street Group Inc.** | $**39378** | $**(5024)** |
|  **Earnings (loss) per share attributable to Class A and Class Z common shares:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted loss per share from continuing operations | $(0.35) | $(0.29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted earnings per share from discontinued operations | 0.10 | 0.06 |
|  **Basic and diluted loss per share attributable to stockholders** | $**(0.25)** | $**(0.23)** |
|  Weighted-average shares used in computing per share amounts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted | 30966 | 32514 |
|  **Comprehensive Income (loss)** |  |  |
|  **Net income (loss) available for Clear Street Group Inc.** | $39378 | $(5024) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustment | 192 | (111) |
|  **Comprehensive income (loss) available for Clear Street Group Inc.** | $**39570** | $**(5135)** |

---

The accompanying notes are an integral part of these Consolidated Financial Statements.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Consolidated Statements of Changes in Temporary Equity and Shareholders' Equity** 

---

| | | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **(in thousands, except<br>share data)** | **Redeemable<br>noncontrolling<br>interest** | **Series A**<br>**Preferred Stock-<br>Redeemable** | **Series A**<br>**Preferred Stock-<br>Redeemable** | **Series B**<br>**Preferred Stock-<br>Redeemable** | **Series B**<br>**Preferred Stock-<br>Redeemable** | **Series A<br>Preferred Stock** | **Series A<br>Preferred Stock** | **Series B<br>Preferred Stock** | **Series B<br>Preferred Stock** | **Class A**<br>**Common Stock** | **Class A**<br>**Common Stock** | **Class X**<br>**Common Stock** | **Class X**<br>**Common Stock** | **Class Z**<br>**Common Stock** | **Class Z**<br>**Common Stock** | **Additional<br>Paid-in<br>Capital** | **(Accumulated<br>deficit) /<br>Retained<br>earnings** | **Other<br>Comprehensive<br>Income** | **Total<br>Stockholders'<br>Equity** | **Non-<br>Controlling<br>Interest** | **Total<br>Equity** |
| **(in thousands, except<br>share data)** | **Redeemable<br>noncontrolling<br>interest** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Additional<br>Paid-in<br>Capital** | **(Accumulated<br>deficit) /<br>Retained<br>earnings** | **Other<br>Comprehensive<br>Income** | **Total<br>Stockholders'<br>Equity** | **Non-<br>Controlling<br>Interest** | **Total<br>Equity** |
|  **Balance at December 31, 2022** | $**120645** | **—** | $**—** | **—** | $**—** | **1400000** | $**—** | **22269032** | $**—** | **33317300** | $**—** | **130373000** | $**—** |  | $**—** | $**241425** | $**11776** | $**(4)** | $**253197** | $**79788** | $**332985** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation |  |  |  |  |  |  |  |  |  | (665204) |  |  |  |  |  | (214) |  |  | (214) |  | (214) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of preferred stock, net of issuance cost |  |  |  |  |  |  |  | 62430665 | 1 |  |  |  |  |  |  | 516537 |  |  | 516538 |  | 516538 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend to preferred stockholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2450) |  | (2450) |  | (2450) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to controlling interest holders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (102) |  | (102) |  | (102) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to noncontrolling interest | (58013) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (169) | (169) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common share buy-back |  |  |  |  |  |  |  |  |  | (930404) |  |  |  |  |  | (1750) |  |  | (1750) |  | (1750) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (111) | (111) |  | (111) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | 7578 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (5024) |  | (5024) | (20388) | (25412) |
|  **Balance at December 31, 2023** | $**70210** | **—** | $**—** | **—** | $**—** | **1400000** | $**—** | **84699697** | $**1** | **31721692** | $**—** | **130373000** | $**—** |  | $**—** | $**755998** | $**4200** | $**(115)** | $**760084** | $**59231** | $**819315** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation |  |  |  |  |  |  |  |  |  | 988023 |  |  |  |  |  | 3890 |  |  | 3890 |  | 3890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reclassification of preferred shares to mezzanine |  | 1400000 | 33870 | 84699697 | 698847 | (1400000) |  | (84699697) | (1) |  |  |  |  |  |  | (732716) |  |  | (732717) |  | (732717) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reclassification of right to purchase preferred shares to liability |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (8814) | (44072) |  | (52886) |  | (52886) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of preferred stock, net of issuance costs |  |  |  | 2395210 | 19528 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and accretion to preferred stockholders |  |  | 637 |  |  |  |  |  |  |  |  |  |  |  |  |  | (3087) |  | (3087) |  | (3087) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchase of preferred stock |  | (440000) | (11000) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to noncontrolling interest | (73703) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (17438) | (17438) |

---

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Consolidated Statements of Changes in Temporary Equity and Shareholders' Equity** 

---

| | | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **(in thousands, except<br>share data)** | **Redeemable<br>noncontrolling<br>interest** | **Series A**<br>**Preferred Stock-<br>Redeemable** | **Series A**<br>**Preferred Stock-<br>Redeemable** | **Series B**<br>**Preferred Stock-<br>Redeemable** | **Series B**<br>**Preferred Stock-<br>Redeemable** | **Series A<br>Preferred Stock** | **Series A<br>Preferred Stock** | **Series B<br>Preferred Stock** | **Series B<br>Preferred Stock** | **Class A**<br>**Common Stock** | **Class A**<br>**Common Stock** | **Class X**<br>**Common Stock** | **Class X**<br>**Common Stock** | **Class Z**<br>**Common Stock** | **Class Z**<br>**Common Stock** | **Additional<br>Paid-in<br>Capital** | **(Accumulated<br>deficit) /<br>Retained<br>earnings** | **Other<br>Comprehensive<br>Income** | **Total<br>Stockholders'<br>Equity** | **Non-<br>Controlling<br>Interest** | **Total<br>Equity** |
| **(in thousands, except<br>share data)** | **Redeemable<br>noncontrolling<br>interest** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Additional<br>Paid-in<br>Capital** | **(Accumulated<br>deficit) /<br>Retained<br>earnings** | **Other<br>Comprehensive<br>Income** | **Total<br>Stockholders'<br>Equity** | **Non-<br>Controlling<br>Interest** | **Total<br>Equity** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution of the Markets Business |  |  |  |  |  |  |  |  |  |  |  | (17718795) |  |  |  | (2001) |  |  | (2001) | (65287) | (67288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common share buy-back |  |  |  |  |  |  |  |  |  | (2221268) |  |  |  |  |  | (13772) |  |  | (13772) |  | (13772) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Termination of Up-C structure and related tax effect |  |  |  |  |  |  |  |  |  |  |  | (112605223) |  | 112605223 | 1 | 31179 |  |  | 31180 | (22763) | 8417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  |  |  |  |  |  |  |  |  |  |  | (48982) |  |  |  | (387) |  |  | (387) |  | (387) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 192 | 192 |  | 192 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | 3493 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 39378 |  | 39378 | 46257 | 85635 |
|  **Balance at December 31, 2024** | $**—** | **960000** | $**23507** | **87094907** | $**718375** |  | $**—** |  | $**—** | **30488447** | $**—** | **—** | $**—** | **112605223** | $**1** | $**33377** | $**(3581)** | $**77** | $**29874** | $**—** | $**29874** |

---

The accompanying notes are an integral part of these Consolidated Financial Statements.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Consolidated Statements of Cash Flows** 

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** |
|  **Cash Flows from Operating Activities** | **(in thousands)** | **(in thousands)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $89128 | $(17834) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred taxes | (6027) | (759) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation of equipment and leasehold improvements | 2002 | 691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets | 27335 | 17332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred debt issuance costs | 1963 | 1604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation | 3890 | (214) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for losses on accounts receivable | 2728 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on lease termination |  | (1835) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange gains (losses) and other items | 2277 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in assets – (increase) decrease: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under repurchase agreements | (4392762) | (5527952) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed | (339928) | (2178387) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities received as collateral | 438943 | (3839799) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments owned, at fair value | (12942353) | 1051012 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from customers | (72599) | (464294) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from broker-dealers and clearing organizations | (58345) | 1360389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | (1028) | 477 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in liabilities – increase (decrease): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under repurchase agreements | 5507340 | 4433106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned | 1629504 | 2950419 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligation to return securities received as collateral | (438943) | 3839799 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments sold, not yet purchased | 9611222 | (1706183) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to customers | 1089933 | 438493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to broker-dealers and clearing organizations | (51377) | (637573) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term loan payable |  | (68000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | (2100) | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | 56405 | (1848) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax liabilities | 8333 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net cash flows provided by (used in) operating activities** | $**165541** | $**(351321)** |
|  **Cash Flows from Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalization of internally developed software | $(40825) | $(27934) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of office equipment and leasehold improvements | (2047) | (1973) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of intangible assets and exchange memberships | (12921) | (2005) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for business acquisition, net of cash acquired | (28770) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net cash flows used in investing activities** | $**(84563)** | $**(31912)** |
|  **Cash Flows from Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to controlling interest holders | $— | $(102) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to noncontrolling interest | (83383) | (58182) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution of the Markets Business to noncontrolling interest holders | (416) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of preferred stock, net of $0.4 million issuance costs | 19528 | 516538 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to preferred stockholders | (2450) | (2450) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchase of preferred stock | (11000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common share buy-back | (13772) | (1750) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from termed debt offering, net of $1.6 million issuance costs | 78376 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of Notes Payable | (25000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit facility issuance costs | (2214) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net cash flows (used in) provided by financing activities** | $**(40331)** | $**454054** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of exchange rate changes on cash, cash equivalents and Cash segregated under federal and other regulations | (2419) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net increase in Cash and cash equivalents, and Cash segregated under federal and other regulations** | $**38228** | $**70821** |

---

The accompanying notes are an integral part of these Consolidated Financial Statements.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Consolidated Statements of Cash Flows** 

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** |
|  **Cash and cash equivalents, and Cash segregated under federal and other regulations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning balance | 418294 | 347966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents of discontinued operations | 493 | (493) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Ending balance** | $**457015** | $**418294** |
|  **Reconciliation of Cash and cash equivalents, and Cash segregated under federal and other regulations** |  |  |
|  Cash and cash equivalents | $273934 | $296099 |
|  Cash segregated under federal and other regulations | 183081 | 122195 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Cash and cash equivalents and Cash segregated under federal and other regulations** | $**457015** | $**418294** |
|  **Supplemental disclosure of cash flow information** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid during the year for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest | $2370505 | $1640825 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxes | 9524 | 646 |
|  **Non-cash financing and investing transactions during the year** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred taxes associated with termination of the Up-C structure | 8417 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution to noncontrolling interest holders | (7758) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Term extension of warrant liability | (8527) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution of the Markets business | (67288) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obtaining a right-of-use asset in exchange for a lease liability | 639 | 18079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derecognition of operating lease right-of-use asset upon lease termination |  | 15947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derecognition of operating lease liability upon lease termination |  | 17783 |

---

The accompanying notes are an integral part of these Consolidated Financial Statements.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**1.** **ORGANIZATION AND DESCRIPTION OF BUSINESS** 

**Description of Business** 

Clear Street Group Inc. ("CSG" or the "Company") is a Delaware company formed on December 29, 2020. CSG has adopted a holding company structure. CSG's primary asset is its ownership of the membership interests of Clear Street Holdings LLC ("CSH LLC"), a Delaware limited liability company formed on July 1, 2019. The Company is the sole managing member of CSH LLC and controls all of the businesses and affairs of CSH LLC. Refer to Note 10, *Temporary Equity, Shareholders' Equity and Earnings per Share*, for information on a transaction effected on December 31, 2024 that resulted in CSH LLC becoming a wholly-owned subsidiary of CSG. Also refer to *Note 2, Significant Accounting Policies - Basis of Presentation and Consolidation, including Noncontrolling Interests,* for further information on these Consolidated Financial Statements.

On December 31, 2024, CSH LLC's regulated broker-dealer subsidiaries were Clear Street LLC ("CS LLC") in the U.S and Clear Street Canada Inc. ("CS Canada"). CS LLC is registered with the Securities and Exchange Commission ("SEC"), the Municipal Securities Rulemaking Board ("MSRB"), the Financial Industry Regulatory Authority, Inc. ("FINRA"), and the Securities Investor Protection Corporation ("SIPC"). CS LLC is also a registered futures commission merchant ("FCM") with the Commodity Futures Trading Commission ("CFTC") and a member of the National Futures Association ("NFA"). In addition, CS LLC is a member of various clearing organizations and exchanges in the U.S. and abroad. CS Canada is a Canada-based broker-dealer that registered with the Canadian Investment Regulatory Organization ("CIRO") effective March 30, 2023. Another CSH LLC subsidiary, Precision Securities LLC, was de-registered as a broker-dealer from the SEC effective November 24, 2023. Additional regulated subsidiaries include Clear Street Derivatives LLC ("CSD"), a security-based swap dealer that registered with the SEC effective September 29, 2023, and Clear Street UK Limited ("CS UK"), formed July 13, 2023, which is registered as a MIFIDPRU Investment Firm with the UK Financial Conduct Authority ("FCA"), effective October 17, 2024.

**Discontinued Operations** 

Effective March 31, 2024 ("Effective Date") the Company's controlling shareholder (which was also a noncontrolling interest holder in CSH LLC until the Up-C structure was terminated effective December 31, 2024) acquired 100% of the common membership interests in two CSG subsidiaries, Clear Street Markets LLC ("CS Markets") and Clear Street Investments LLC, along with certain related technology and fixed assets (together, the "Markets Business").

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

This transaction represented a strategic shift that had a major effect on the Company's operations and financial results. See Note 18, *Discontinued Operations* for additional information on the Markets Business transaction.

**Business Combination** 

On September 30, 2024, the Company completed an acquisition of specific assets and liabilities of Fox River for total cash consideration of approximately $28.7 million. Fox River is a well-established provider of algorithmic execution solutions for buy and sell-side firms, and markets, sells, and supports such execution solutions products. Fox River has been integrated into CSG's existing business complementing the Company's cloud-native platform and enhancing its electronic trading capabilities.

The acquisition was accounted for as a business combination since the specific assets and liabilities acquired, along with the assembled workforce and process, met the definition of a business in accordance with ASC 805, *Business Combinations*. The Fox River acquisition resulted in recorded goodwill driven by a skilled workforce, a proven ability to generate new products and services to drive future revenue, and expected synergies with CSG. The following table summarizes the fair value of the consideration transferred, the assets acquired, and liabilities assumed at the date of acquisition:

---

| | |
|:---|:---|
| **($ in thousands)** | **Year Ended<br>December 31,** |
|  | **2024** |
|  Fair value of cash consideration transferred | $**28710** |
|  Intangible assets | 9300 |
|  Other assets | 1686 |
|  Accounts payable and accrued liabilities | (1290) |
|  Net assets acquired | **9696** |
|  Goodwill | $**19014** |

---

The results of operations for Fox River are included in the consolidated financial statements of the Company from the date of acquisition. Fox River did not generate material revenues or net income for the year ended December 31, 2024. The following unaudited pro forma summary presents the consolidated information of the Company as if the business combination had occurred on January 1, 2023:

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
|  | **2024** | **2023** |
|  Revenues | $470289 | $205355 |
|  Net income (loss) attributable to CSG | 38144 | (6199) |

---

At the acquisition date, the Company entered into a transition services agreement ("TSA") and a minimum payable agreement ("MPA") for professional services with the former owners of Fox River. The TSA provides for transitional support ending no later than the two-year anniversary of the acquisition date. The MPA provides for a minimum of $10.0 million of professional services to be performed over the period ending on the four-year anniversary of the acquisition date. Both agreements were accounted for as separate transactions from the acquisition and included terms which were comparable to the market.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**Corporate Simplification** 

On December 31, 2024, the Company's controlling shareholder exercised its right to exchange its direct ownership interest in CSH LLC for shares in the Company. This exchange simplified the Company's corporate structure by eliminating its Up-C structure and converting it to a more traditional structure whereby all stockholders hold their voting and economic interests directly through CSG.

As allowed pursuant to the Exchange Agreement between the Company and its controlling shareholder dated April 13, 2022, the Company's controlling shareholder notified the Company of its election to deliver to the Company 112,605,223 Class A Units it held in CSH LLC in exchange for the issuance by the Company to that interest holder of the same number of the Company's Class Z Common Stock effective as of December 31, 2024. As stipulated in the Company's Certificate of Incorporation, as in effect at such time, upon this exchange, the same number of the Company's Class X Common Stock held by the Company's controlling shareholder were cancelled.

As a result of the shareholder exchange transaction, CSH LLC became a wholly owned subsidiary of the Company.

**2.** **SIGNIFICANT ACCOUNTING POLICIES** 

**Basis of Presentation and Consolidation, including Noncontrolling Interests** 

CSH LLC's Operating Agreement designates CSG as the managing member of CSH LLC and assigns it the power and authority to effectively manage, and make significant operating and financial decisions on behalf of CSH LLC. As the sole managing member of CSH LLC, the Company exerts control over the operations of CSH LLC and its subsidiaries. In accordance with ASC 810, *Consolidation*, the Company consolidates CS Management's as well as CSH LLC's consolidated financial statements and prior to the termination of the Up-C structure effective December 31, 2024, recorded the interests in CSH LLC owned by other parties, including the Company's controlling shareholder, as noncontrolling interests. Effective upon the termination of the Up-C structure on December 31, 2024, CSH LLC became a wholly owned subsidiary of CSG and there are no longer outstanding noncontrolling interests in CSH LLC owned by other parties (see Note 10, *Temporary Equity, Shareholders' Equity and Earnings per Share*). These Consolidated Financial Statements reflect the historical financial position, results of operations and cash flows of the businesses comprising CSG and its consolidated subsidiaries based on their respective historical financial statements and accounting records.

The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") , and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding financial reporting. The Consolidated Financial Statements are presented in U.S. dollars.

All intercompany transactions have been eliminated in accordance with U.S. GAAP. Certain reclassifications have been made to previously reported amounts to conform to the current presentation.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**Use of Estimates** 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in these Consolidated Financial Statements and accompanying notes. These estimates and assumptions are based on judgments and the best available information at the time. Therefore, actual results could differ materially from those estimates. Such estimates include valuation of certain financial instruments owned and sold, not yet purchased, both at fair value, goodwill and intangible assets, provision for losses on accounts receivable, capitalized software, equity-based compensation, warrant liability and other matters that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period.

**Change in Accounting Principles** 

In 2024, the Company voluntarily changed its annual goodwill impairment testing date from December 31st to October 1st. This is a change in accounting principle, which management believes is preferable, as the new assessment date provides for a more robust operation of controls given the additional time allotted. This change was not material to the Company's consolidated financial statements as it did not delay, accelerate, or avoid any potential goodwill impairment charge. This change has been applied prospectively from October 1, 2024 as retrospective application is deemed impracticable due to the inability to objectively determine the assumptions and significant estimates used in earlier periods without the benefit of hindsight.

**Cash and Cash Equivalents and Cash Segregated in Compliance with Federal and Other Regulations** 

Cash and cash equivalents and cash segregated in compliance with federal and other regulations include demand deposits held in banks and certain highly liquid investments with original maturities of three months or less when purchased. The carrying amount of such cash equivalents approximates their fair value due to the short-term nature of these instruments.

The Company maintains cash in bank accounts that, at times, may exceed the federally insured limits. The Company minimizes the risk by selecting financial institutions deemed highly creditworthy.

**Collateralized Agreements and Financing** 

The Company enters into collateralized financing transactions, primarily to acquire securities to accommodate counterparty needs, earn residual interest spreads and obtain securities for settlement purposes. The Company's collateralized financing transactions include securities purchased under agreements to resell ("resale agreements"), securities sold under agreements to repurchase ("repurchase agreements"), and securities lending and borrowing transactions. Additionally, the Company receives securities as collateral in securities-for-securities transactions.

Where the requirements of ASC 210-20, *Balance Sheet—Offsetting*, are met, collateralized transactions are presented on a net-by-counterparty basis on the Consolidated Statements of Financial Condition.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

***Resale Agreements and Repurchase Agreements***

The resale agreements and repurchase agreements are accounted for as collateralized financing transactions and are carried at principal amount plus accrued interest, which approximates the fair value. It is the Company's policy to take possession of collateral under resale agreements. In the same manner, the Company provides securities to its external counterparties to collateralize repurchase agreements. These agreements are collateralized with U.S. treasury and federal agency securities, corporate bonds, and mortgage-backed securities with a fair value equal to or in excess of the principal amount loaned. The fair value of the underlying collateral is reviewed daily, and additional cash or other collateral is obtained or returned as necessary. Counterparties are principally the primary dealers of U.S. government debt securities and financial institutions. At December 31, 2024 and 2023, the Company held $8.6 million and $112.6 million, respectively, of qualified securities for the benefit of customers in a segregated account pursuant to Rule 15c3-3 of the Securities Exchange Act of 1934.

***Securities Borrowed and Securities Loaned Transactions***

Securities borrowed and securities loaned result from transactions with other brokers and dealers or financial institutions and are recorded at the amount of cash collateral advanced or received, plus accrued interest, which approximates the fair value. Interest received or paid by the Company for these transactions is recorded gross on an accrual basis under Net financing revenues in the Consolidated Statements of Comprehensive Income (Loss).

In connection with these transactions, the Company receives or delivers collateral, which comprises cash or securities. In accordance with substantially all its stock borrowed agreements, the Company is permitted to sell or repledge securities received. Securities borrowed or loaned are recorded based on the amount of cash or other collateral advanced or received. As part of the Company's risk management practices, the initial cash collateral advanced or received generally is greater than the fair value of the underlying securities borrowed or loaned. The Company monitors the fair value of securities borrowed or loaned and delivers or obtains additional collateral as appropriate. Securities borrowed and securities loaned with the same counterparty are not offset on the Consolidated Statements of Financial Condition, as the requirements of ASC 210-20, *Balance Sheet—Offsetting*, are not met.

The Company acts as a lender in securities lending transactions and may receive securities that can be pledged or sold as collateral instead of receiving cash. To the extent that the Company receives securities collateral in exchange for securities lent, such assets are recorded at fair value in Securities received as collateral with a corresponding Obligation to return securities received as collateral in the same amount on the Consolidated Statements of Financial Condition.

**Receivable from/Payable to Customers** 

Amounts receivable from and amounts payable to customers include amounts due on cash and margin transactions. The Company's receivables from its brokerage customers include margin loans and accrued interest on these loans. Margin loans represent credit extended to customers to finance their purchases of securities by borrowing against securities they own and are fully collateralized by the securities in the customer's account. Collateral is maintained at required levels or above at all times. The borrowers of a margin loan are contractually required to continually adjust the amount of the collateral as its fair value changes.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

For security-based swap transactions, Receivable from customers and Payable to customers include the portions of cash collateral posted to and received from counterparties which are not eligible for netting under ASC 815-10-45, or where the cash collateral delivered/received exceeds the related derivative payable/receivable as of the date of the Consolidated Statement of Financial Condition. In addition, counterparties for security-based swaps transactions pledged, under account control agreements, to the Company $2,206.3 million and $270.0 million in cash collateral they posted to qualified custodians at December 31, 2024 and 2023, respectively. Such collateral is not recorded on the Consolidated Statements of Financial Condition.

The Company nets receivables and payables in accordance with individual customer agreements. It is the Company's policy to settle these transactions on a net basis with its customers. Securities owned by customers are held as collateral for receivables. Receivables and payables are reflected in the accompanying Consolidated Statements of Financial Condition on a settlement-date basis.

**Receivable from/Payable to Broker-Dealers and Clearing Organizations** 

Receivable from broker-dealers and clearing organizations primarily include cash and cash equivalents deposited with clearing organizations, securities failed to deliver, amounts due from broker-dealers, amounts due from clearing organizations, and receivables under resale agreements. Amounts receivable from broker-dealers and clearing organizations may be restricted to the extent they serve as deposits for securities sold, not yet purchased or if they are segregated in accordance with regulations for the benefits of the Company's customers.

Payable to broker-dealers and clearing organizations primarily represent amounts due to clearing organizations and broker-dealers, securities failed to receive, and payables under resale agreements.

Securities, primarily U.S government obligations owned by the Company's customers and held by the Company as collateral or as margin, and the fair value of customers' option positions, are not reflected on the Consolidated Statements of Financial Condition.

**Financial Instruments Owned and Financial Instruments Sold, Not Yet Purchased** 

Financial instruments owned and Financial instruments sold, not yet purchased relate to financing trades, and include listed and other equity securities, listed equity options, and debt securities. These lines also include instruments related to the Company's security-based swap activity, comprised of derivative assets and derivative liabilities related to open security-based swaps in listed equity securities, listed equity securities primarily entered into to hedge the market risk exposure related to these swaps, and listed index and equity options entered into primarily for funding or hedging purposes.

The Company records financial instruments owned, including those pledged as collateral, and financial instruments sold, not yet purchased, at fair value. Gains and losses arising from financial instrument transactions are recorded net on a trade-date basis in Net financing revenues in the Consolidated Statements of Comprehensive Income (Loss).

At December 31, 2024 , included in Financial instruments owned were U.S. treasury securities which were segregated under Rule 1.20 of the Commodity Exchange Act and held at banks of $181.7 million and at clearing organizations of $250.0 million. At December 31, 2023, no securities were required to be segregated under Rule 1.20 of the Commodity Exchange Act.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**Allowance for Credit Losses** 

Per FASB ASC Topic 326 – "Financial Instruments—Credit Loss" ("ASC 326"), the Current Expected Credit Loss ("CECL") model requires recognition of expected credit losses for financial assets measured at amortized cost using relevant information about past events (including historical credit loss experience on financial assets with similar risk characteristics), current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. The overall estimate of the allowance for credit losses is based on both quantitative and qualitative considerations.

The model provides a practical expedient for certain financial assets that are secured by collateral maintenance provisions. This election may be made when the counterparty is contractually obligated to continue to fully replenish the collateral to meet the requirements of the contract, and the Company reasonably expects the counterparty to continue to replenish the collateral.

The Company determined that its balances related to collateralized financing agreements meet the eligibility requirements for the elective practical expedient.

With regards to its collateralized financing arrangements, the Company maintains collateral from counterparties, continuously monitors the value of the securities posted as collateral and obtains additional collateral pursuant to contractual provisions to ensure the cash held by the counterparty is fully collateralized. When the fair value of the collateral is less than the amortized cost basis of the financial assets, the Company evaluates whether an allowance for credit losses is necessary for the unsecured amount of the amortized cost basis, limited to the difference between the fair value of the collateral at the reporting date and the amortized cost basis of the financial assets.

The Company also elected to apply the practical expedient to margin loans and the accrued interest on these loans based on the terms of margin agreements with customers. Margin levels are monitored daily and contract terms require the customer to deposit additional collateral or reduce positions when necessary.

The Company deemed the credit risk of organizations with which it entered into clearing agreements, relating to Receivables from broker-dealers and clearing organizations, to be immaterial, as the in-scope assets are primarily subject to collateral maintenance provisions for which the Company elected to apply the practical expedient noted above and short term in duration. Therefore, the Company did not record an allowance for credit losses related to Receivables from Broker-dealers and clearing organizations as of December 31, 2024 and 2023.

The Company recorded an allowance for credit losses of $2.3 million and $0.1 million as of December 31, 2024 and 2023, respectively, related to its uncollateralized Receivables from customers. The Company did not record an allowance for credit losses on its collateralized financing arrangements or margin loans as all positions were fully collateralized as of December 31, 2024 and 2023.

**Fair Value of Financial Instruments** 

Fair value is defined as the price that would be received to sell an asset or would be paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. Fair value measurements are not adjusted for transaction costs. The recognition of

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

discounts for large holdings ("block discounts") of unrestricted financial instruments where quoted prices are readily and regularly available in an active market is prohibited.

The Company categorizes its financial instruments into a three-level hierarchy, which prioritizes the observable inputs to valuation techniques used to measure fair value. The hierarchy level assigned to each measurement is based on the assessment of the transparency and reliability of the inputs used in the valuation, based on the lowest level of input that is significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements).

Financial instruments measured and reported at fair value are classified and disclosed in one of the following categories based on inputs:

Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;

Level 2 — Quoted prices in markets that are not active and financial instruments for which all significant inputs are observable, either directly or indirectly, but do not qualify as Level 1; or

Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

In certain cases, the inputs used to measure the fair value may fall into different levels of the fair value hierarchy. When there is more than one input at different levels within the hierarchy, the fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Assessment of the significance of a particular input, to the fair value measurement in its entirety, requires substantial judgment and consideration of factors specific to the asset or liability. Level 3 inputs are inherently difficult to estimate. Changes to these inputs can have a significant impact on fair value measurements. Assets and liabilities measured at fair value using Level 3 inputs are based on one or more of the following valuation techniques: market approach, income approach, or cost approach.

Transfers in or out of levels are recognized based on the beginning fair value of the period in which the transfers occurred. For the years ended December 31, 2024 and 2023, there were no transfers into or out of level 3.

**Derivative Instruments** 

Derivative instruments include listed equity and equity indices options and security-based swaps in listed equities. The Company uses derivative instruments in direct support of its financing business. Derivative instruments are carried at fair value in the Consolidated Statements of Financial Condition. Gains or losses on these derivative instruments are recorded in Net financing revenues in the Consolidated Statements of Comprehensive Income (Loss). Fair values for exchange-traded derivatives are based on quoted market prices. Cash flows associated with derivative activities are included in Cash Flows from Operating Activities on the Consolidated Statements of Cash Flows. Refer to Note 6, *Derivative Instruments*, for further information related to the Company's derivative holdings.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**Exchange Memberships** 

The Company's exchange memberships, which represent ownership interests in the exchanges and provide the Company with the right to conduct business on the exchanges, are recorded at cost or, if an impairment in value has occurred, at a value that reflects management's estimate of the impairment. There were no exchange membership impairments in 2024 or 2023. Exchange memberships totaled $10.8 million and $0.9 million as of December 31, 2024 and 2023, respectively.

**Leases** 

The Company determines if an arrangement is a lease, or contains a lease, at inception of the contract. Operating lease assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating leases result in the Company recording a right-of-use ("ROU") asset and a lease liability on its Consolidated Statements of Financial Condition. Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of the operating leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date to determine the present value of future payments. The lease terms may include an option to extend or terminate the lease when it is reasonably certain the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the Consolidated Statements of Financial Condition and are instead recognized on a straight-line basis over the lease term. See Note 16, *Leases*, for additional discussion about the Company's policy for accounting for leases and other required disclosures.

**Goodwill and Indefinite-Lived Intangible Assets** 

Goodwill represents the excess of the consideration transferred in a business combination transaction over the underlying net identifiable assets acquired and liabilities assumed. Goodwill and other indefinite-lived intangible assets are not amortized but are assessed for impairment on an annual basis, as well as between annual assessments whenever impairment indicators exist. When testing goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after making an assessment, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then no further analysis is necessary. However, if the Company concludes otherwise, then it is required to perform a quantitative impairment test.

During 2024, the Company changed its annual goodwill impairment testing date from December 31st to October 1st - refer to Note 2, *Significant Accounting Policies* - *Change in Accounting Principle*. As of October 1, 2024 and December 31, 2023, the Company's annual impairment test of goodwill for the years ended December 31, 2024 and 2023, respectively, were completed at the reporting unit level and no impairment charges were determined to be necessary.

**Finite Lived Intangible Assets** 

The Company capitalizes certain costs incurred in connection with developing its clearing and settlement full stack internal use software in accordance with ASC 350-40, *Internal-Use Software*. The Company expenses all costs that relate to preliminary phases and to post-implementation maintenance

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

activities in the Company's Consolidated Statements of Comprehensive Income (Loss). Capitalization of costs begins when the preliminary project stage is completed, and it is deemed probable that the project will be completed and used for its intended purpose. Once a project has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the internal use software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing.

In the post-implementation stage, costs associated with maintenance of the existing software are expensed and included in the Company's Consolidated Statements of Comprehensive Income (Loss). Subsequent additions, modifications, or upgrades to the Company's internal use software are capitalized only to the extent they enable the software to perform additional functionality.

A key estimate included within the capitalized internal use software cost balance includes the determination of the useful life. The Company amortizes finite-lived intangible assets, including capitalized cost related to the development of internal use software, over the finite-lived intangible assets' estimated useful life. Finite-lived intangible assets and capitalized internal-use software are tested for impairment when impairment indicators are present, and if impaired, the finite-lived intangible assets are written down to their fair value.

Refer to Note 8, *Goodwill and Intangible Assets*, for further information related to amortization, impairment and useful life period.

**Borrowings, Interest Expense on Borrowings and Deferred Debt Issuance Costs** 

The Company capitalizes certain costs associated with obtaining, refinancing, and amending its debt.

Costs incurred in connection with revolving debt are recognized as debt issuance costs, net of related accumulated amortization, and are presented in Other assets in the Consolidated Statements of Financial Condition. Costs incurred in connection with term loans, net of related amortization, are presented as a direct deduction from the carrying value of the related term loan in the Company's Consolidated Statements of Financial Condition.

The costs related to the term loans and the revolving credit facilities are amortized over the term of the financing arrangement using the straight-line method. The straight-line method amortization for the term loans approximates the effective interest method. Amortization of debt issuance costs in connection with the Company's revolving and term debt is recorded as additional interest expense of the relevant instrument in the Consolidated Statements of Comprehensive Income (Loss).

Interest expenses on corporate borrowings are included in Interest expense on borrowings in the Consolidated Statements of Comprehensive Income (Loss).

**Net Revenues** 

***Net Financing Revenues***

Net financing revenues represent all revenues earned by the Company, which are outside of the scope of ASC 606, *Revenue from Contracts with Customers.*

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

Net financing revenues include (i) net financing generated from customer margin debit, credit and short balances associated with equities, options, futures, and fixed income positions, and realized and unrealized gains or losses on security-based swaps in equities along with the realized and unrealized gains or losses generated from equities that hedge these security-based swaps (together "customer margin financing"), (ii) net interest earned from collateralized financing transactions, including securities resale and repurchase agreements and stock borrow and loan agreements (together "collateralized financing"), as well as (iii) net interest earned from cash deposits held at clearing organizations, brokers and banks (together "other financing"). Net financing revenue also includes the interest expense on the related lines of credit. Net financing revenues are accrued in accordance with contractual rates and included in Net financing revenues on the Consolidated Statements of Comprehensive Income (Loss).

In direct support of its financing business, the Company may buy or sell financial instruments which are measured at fair value (together "financing trades"). The changes in fair value of such financial instruments owned and financial instruments sold, not yet purchased (i.e., unrealized gains and losses), realized gains and losses on financial instruments owned and financial instruments sold, not yet purchased, and dividends earned and incurred on financial instruments owned and financial instruments sold, not yet purchased, is recorded on the trade date and reported on a net basis in Net financing revenues on the Consolidated Statements of Comprehensive Income (Loss). Dividends on financial instruments owned and financial instruments sold, not yet purchased, are recorded on the ex-dividend date and reported on a net basis in Net financing revenues on the Consolidated Statements of Comprehensive Income (Loss).

***Transaction Revenues, net***

Transaction revenues, net include the Company's revenues from customers in the scope of ASC 606, *Revenue from Contracts with Customers*, exclusive of amounts presented in Other revenues.

*Commission and clearing income* represents fees earned, on a per share or per contract basis, for providing trade execution and clearing services to customers. Commissions (net of soft dollar commissions) and clearing fees are recorded on the trade date. The Company believes that its performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon, and the control of the underlying financial instrument has effectively been transferred to/from the customer.

*Other fee income* is derived primarily from securities locate services and client pass-through fees. Security locate service fees represent fees earned for providing customers with access to securities available to borrow, typically in connection with short sale activity. Fees are charged on a per-locate request basis. Client pass-through fees represent reimbursable expenses, primarily related to brokerage, execution and exchange fees, that the Company charges to its customers, while associated expenses, net of rebates, are recorded in Transaction and market access costs, net. The Company believes its performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is located and identified, the pricing is agreed upon, and the control of the underlying financial instrument has effectively been transferred to/from the customer.

*Investment banking income* arises mostly from arrangements in which the Company acts as an underwriter or selling agent, or from advisory services it provides in conjunction with mergers and acquisitions ("M&A"). Underwriting fees are earned from fees arising from securities offerings in which

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

the Company acts as an underwriter. Revenue is recognized on the trade date (the date on which the Company purchases the securities from the issuer) for the portion the Company is contracted to buy. The Company believes that the trade date is the appropriate point in time to recognize revenue for securities underwriting transactions as there are no significant actions which the Company needs to take subsequent to this date and the issuer obtains the control and benefit of the capital markets offering at that point. M&A advisory fees are generally recognized at the point in time that performance obligations under the arrangement are completed (i.e. the closing date of the transaction) or that the contract is cancelled.

***Other Revenues*** 

Other revenues represent subscription and consulting fees earned from licensees of the Company's proprietary platform.

**Equity-Based Compensation**

The Company measures and recognizes the cost of equity-based awards that do not contain performance conditions that are granted to employees and directors based on the grant-date fair value of the award and recognizes the expense on a straight-line basis over the vesting period. For awards that contain performance conditions, the Company recognizes the compensation cost using the graded vesting method when fully vested. The majority of the Company's awards have a performance vesting condition, which requires a liquidity event to occur in order for the awards to fully vest. For these awards, no expenses are recognized until it is probable that the performance condition will be achieved. The Company has elected to recognize forfeitures as they occur as the Company does not have sufficient historical experience to develop a forfeiture rate.

**Transaction and Market Access Costs, Net** 

Transaction and market access costs, net of rebates incurred, comprise the costs of executing and clearing trades and are recorded on a trade date basis, net of rebates. Rebates consist of volume discounts, credits or payments received from exchanges or other marketplaces related to the placement and removal of liquidity from the order flow in the marketplace. Rebates are recorded on an accrual basis in Transaction and Market Access Costs, net, in the Consolidated Statements of Comprehensive Income (Loss).

**Technology and Market Data** 

Technology and market data expenses comprise the costs associated with operating the Company's technology infrastructure and costs related to accessing market data. Technology-related costs primarily relate to cloud infrastructure, software, and connectivity to trading venues. Market data expenses include costs related to market data and reference data feeds.

**Professional Fees, Marketing, and Other** 

Professional fees, marketing, and other expenses include costs associated with professional fees, marketing, occupancy, foreign currency gains and losses, administrative, and related expenses.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**Income Taxes** 

CSG is subject to U.S. federal, state and local taxes on its taxable income, including its allocable share of income from CSH LLC. CSH LLC is a limited liability company that is treated as a partnership for U.S. tax purposes. Applicable U.S. federal, state and local income taxes related to the partnership's income or loss are passed through to the individual members of CSH LLC, of which CSG is a member. Income taxes also include unincorporated business tax on income earned in certain state and local jurisdictions in which CSH LLC operates as well as taxes on income or loss on certain operations in foreign jurisdictions. These taxes are reflected as part of income tax expense or benefit in the Consolidated Statements of Comprehensive Income (Loss). Effective December 31, 2024, as a result of the shareholder exchange transaction, CSH LLC ceases to be a partnership and is a single member LLC of CSG.

In connection with the shareholder exchange transaction (refer to Note 10, *Temporary Equity, Shareholders' Equity and Earnings per Share*), CSH LLC terminated as a partnership and became a wholly owned disregarded entity of CSG. The transaction resulted in a revaluation of the Company's deferred tax assets and liabilities based on the changes from the net difference between the tax bases and financial reported amounts of CSG's share of investment in CSH LLC to the net difference between the tax bases and reported amounts of the Company's underlying assets and liabilities. The effects of the change were reflected through equity as a transaction among or with shareholders in accordance with the guidance in ASC 740-20-45-11(g).

CSG is subject to the income tax laws of the various jurisdictions in which it operates, including U.S. federal, state and local and non-U.S. jurisdictions. These laws are often complex and may be subject to different interpretations. To determine the financial statement impact of accounting for income taxes, including the provision for income tax expense and unrecognized tax benefits, the Company must make assumptions and judgments about how to interpret and apply these complex tax laws to numerous transactions and business events, as well as make judgments regarding the timing of when certain items may affect taxable income.

In accordance with the provisions of ASC 740, *Income Taxes*, ("ASC 740"), deferred tax assets and liabilities are recognized for the future tax effect of the differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect during the year in which the basis differences reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the Consolidated Statements of Comprehensive Income (Loss) in the period that includes the enactment date.

A valuation allowance is recorded against deferred tax assets if it is more likely than not that those assets will not be realized. In assessing the need for a valuation allowance, the Company considers all available positive and negative evidence such as historical results, recent cumulative losses, estimates of future taxable income and tax planning strategies.

The Company provides for uncertain tax positions based on management's assessment of whether a tax benefit is more likely than not to be sustained upon examination based on the technical merits of the position. Because management's assessment involves significant assumptions and judgment in determining whether a tax benefit is more likely than not to be sustained upon examination by taxing authorities, the ultimate resolution of such matters may be different from its estimates. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense or benefit.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

A U.S. shareholder of a controlled foreign corporation ("CFC") is required to include in their income Global Intangible Low-Taxed Income ("GILTI"). The Company elects to recognize income taxes associated with the inclusion of GILTI as a current period expense when incurred.

**Earnings Per Share** 

Basic earnings per share ("EPS") is computed by dividing the net income available to common stockholders by the weighted average number of shares outstanding for that period. Diluted EPS is calculated by dividing the net income available for common stockholders by the diluted weighted average shares outstanding for that period, to the extent they are dilutive.

**Recent Accounting Pronouncements** 

***Accounting Pronouncements, Recently Adopted***

In November 2023, the FASB issued ASU No. 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures* ("ASU 2023-07"). The ASU enhances the segment disclosure requirements and requires public entities with a single reportable segment to provide certain disclosures such as significant segment expenses, the title and position of the CODM and how the CODM uses the reported measures of profit or loss in assessing segment performance. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis. The Company adopted ASU 2023-07 for the fiscal year ended December 31, 2024. The adoption resulted in some additional incremental disclosures and otherwise had no material impact on the Company's Consolidated Financial Statements.

In June 2022, the FASB issued ASU No. 2022-03, *Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities to Contractual Sale Restrictions ("ASU 2022-03")*. The ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring the fair value. The ASU also introduces new disclosure requirements which provide information about the restriction including the nature and remaining duration of the restriction. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company adopted ASU 2022-03 for the fiscal year ended December 31, 2024. The adoption of ASU 2022-03 did not have a material impact on the Company's Consolidated Financial Statements and related disclosures.

***Accounting Pronouncements, Pending Adoption***

In September 2025, the FASB issued ASU No. 2025-06, *Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (*"ASU 2025-06"*)*. ASU 2025-06 removes all references to prescriptive and sequential software development stages, and prescribes factors that an entity should consider in evaluating the probable-to-complete recognition threshold. ASU 2025-06 also specifies disclosure requirements. The amendments in the ASU are effective for annual and interim periods beginning after December 15, 2027. The Company is currently evaluating the impact of adopting ASU 2025-06 on its financial statements and related disclosures.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

In July 2025, the FASB issued ASU No. 2025-05, *Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets* ("ASU 2025-05"). ASU 2025-05 provides a practical expedient to all entities when developing reasonable and supportable forecasts as part of estimating expected credit losses, to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. The amendment in the ASU is effective for annual and interim periods beginning after December 15, 2025. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2025-05 on its financial statements and related disclosures.

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses* ("DISE"), which will require additional disclosure of the nature of expenses included in the income statement in response to longstanding requests from investors for more information about an entity's expenses. This ASU was further clarified by ASU 2025-01, *Income Statement*—*Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date*, which was issued in January 2025. The new standards require disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The new standards will be effective for public companies for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. The Company is evaluating the effect of the amendments on its consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures* ("ASU 2023-09"). The ASU amends Topic 740 to enhance and improve the transparency of annual income tax disclosures by requiring greater disaggregation of information related to the income tax rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2025 and are to be applied prospectively with the option for retrospective application. While additional incremental disclosures are anticipated as a result of the amendments, the Company plans to early adopt for the annual period beginning January 1, 2025, and does not expect the early adoption of ASU 2023-09 to have a material impact on its consolidated financial statements.

**3. CASH SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS** 

The Company maintains custody of customer funds and is obligated by rules and regulations mandated by the SEC and the CFTC to segregate or set aside cash and qualified securities to satisfy these regulations, which have been promulgated to protect customer assets.

At December 31, 2024 and 2023, included in Cash segregated under federal and other regulations on the Consolidated Statements of Financial Condition were $175.8 million and $122.0 million, respectively, which have been segregated in a special reserve account for the exclusive benefit of the Company's customers, and $1.2 million and $0.1 million, respectively, in a special account for the exclusive benefit of broker-dealers. In addition, at December 31, 2024, $6.1 million of cash has been segregated under the Commodity Exchange Act. At December 31, 2023, no amounts were required to be segregated and secured under the Commodity Exchange Act.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**4. RECEIVABLES FROM AND PAYABLES TO BROKER-DEALERS AND CLEARING ORGANIZATIONS** 

Receivables from and Payables to broker-dealers and clearing organizations consist of the following at December 31, 2024 and 2023:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from broker dealers | $17538 | $471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from clearing organizations | 642979 | 94451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities failed to deliver | 30165 | 62223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable under resale agreements | 38686 | 107173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unsettled trades with clearing organizations | 28452 |  |
|  **Total receivables from broker-dealers and clearing organizations** | $**757820** | $**264318** |

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  **Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to broker dealers | $22884 | $10243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to clearing organizations | 29291 | 13510 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities failed to receive | 29390 | 81814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable under resale agreements | 69918 | 16636 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unsettled trades with clearing organizations |  | 75327 |
|  **Total payables to broker-dealers and clearing organizations** | $**151483** | $**197530** |

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**5. FAIR VALUE MEASUREMENT** 

**Financial Instruments Measured at Fair Value** 

The Company's financial instruments recorded at fair value have been categorized based upon a fair value hierarchy in accordance with accounting standards, refer to Note 2, *Significant Accounting Policies—Fair Value of Financial Instruments*, for descriptions of the fair value hierarchy categorization of the Company's financial instruments.

Exchange-traded equity securities and listed equity options are measured at the quoted prices from the primary exchange as well as reported bid and offer quotes from parties trading the security, and are classified as Level 1 securities in the fair value hierarchy. Restricted equity securities are valued based on quoted prices from the primary exchanges and are classified as Level 2 securities in the fair value hierarchy. Security-based swaps are valued based on inputs derived from the quoted prices of the underlying listed securities from the primary exchange and are classified as Level 2 financial instruments in the fair value hierarchy. Fair values for financial instruments other than those discussed above are estimated by the Company and are generally categorized as Level 2 or Level 3 in the fair value hierarchy.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

A venture capital firm (the "VC Firm") is the lead investor in the Company's Series B Preferred Stock. The VC Firm holds a right to purchase additional shares of Series B Preferred Stock (the "VC Firm Right to Purchase") as provided under the investment agreement. The Company categorized the VC Firm Right to Purchase which is recorded in Warrant liability on the Company's Consolidated Statements of Financial Condition, as Level 3 within the fair value hierarchy due to the use of significant unobservable inputs.

The fair value of the VC Firm Right to Purchase (see Note 10, *Temporary Equity, Shareholders' Equity and Earnings per Share—Redeemable Preferred Stock*) at the reclassification date and as of December 31, 2024 was measured by independent third-party valuation specialists using a hybrid valuation approach that considers multiple potential liquidity scenarios. In estimating the fair value of the underlying equity, the Company considered both (i) an M&A exit scenario and (ii) an initial public offering (IPO) scenario, reflecting alternative future outcomes available to market participants ("Hybrid Valuation Model").

Under the M&A scenario, the Company applied the Options Pricing Method (OPM) which estimates the value of the Company's equity securities by allocating the total equity value to each class of security based on its rights and preferences, assuming a liquidity event occurs at a future date. Under the IPO scenario, the Company applied the Probability-Weighted Expected Return Method (PWERM), which estimates the equity value based on the expected per-share value under an IPO event. The resulting values from each scenario were weighted based on the Company's estimate of the relative probability of each outcome, reflecting inputs such as current market conditions, recent transaction activity, discussions with potential investors, and the Company's progress toward a public listing. The combined weighted value was then used to estimate the fair value of the VC Firm Right to Purchase, which was $5.52 per share at the reclassification date.

Significant unobservable inputs to the valuation included the expected time to liquidity, volatility, discount rate, probability weighting between the IPO and M&A scenarios and estimated enterprise value. Changes in these assumptions could materially affect the fair value measurement.

The significant inputs under the OPM included:

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| | | |
|:---|:---|:---|
|  Expected term (in years) | OPM | 1 |
|  Expected volatility | OPM | 31.00% |
|  Expected dividend yield | OPM | 0.00% |
|  Risk-free interest rate | OPM | 4.16% |
|  Discount rate | PWERM | 16.25% |

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

Fair value measurements for items measured at fair value on a recurring basis are summarized below at December 31, 2024 and 2023:

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| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total Fair<br>Value** |
|  **Assets** |  |  |  |  |
|  Financial instruments owned |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | $12606956 | $15000 | $— | $12621956 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity options | 681349 |  |  | 681349 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity index options | 1386794 |  |  | 1386794 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps |  | 201990 |  | 201990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. treasury securities | 431756 |  |  | 431756 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 368 |  | 360 | 728 |
|  Securities received as collateral | 3471261 |  |  | 3471261 |
|  **Financial assets measured at fair value** | $**18578484** | $**216990** | $**360** | $**18795834** |
|  **Liabilities** |  |  |  |  |
|  Financial instruments sold, not yet purchased |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | $121593 | $— | $— | $121593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity index options | 3985055 |  |  | 3985055 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity options | 4199996 |  |  | 4199996 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps |  | 2028016 |  | 2028016 |
|  Obligation to return securities received as collateral | 3471261 |  |  | 3471261 |
|  Warrant liability |  |  | 52886 | 52886 |
|  **Financial liabilities measured at fair value** | $**11777905** | $**2028016** | $**52886** | $**13858807** |

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

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| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total Fair<br>Value** |
|  **Assets** |  |  |  |  |
|  Financial instruments owned |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | $2249059 | $9482 | $— | $2258541 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible notes |  |  | 180 | 180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity options | 22455 |  |  | 22455 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps |  | 64900 |  | 64900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities received as collateral | 3910205 |  |  | 3910205 |
|  **Financial instruments owned** | $**6181719** | $**74382** | $**180** | $**6256281** |
|  **Liabilities** |  |  |  |  |
|  Financial instruments sold, not yet purchased |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | $77426 | $— | $— | $77426 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity options | 161286 |  |  | 161286 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps |  | 35138 |  | 35138 |
|  Obligation to return securities received as collateral | 3910205 |  |  | 3910205 |
|  **Financial instruments sold, not yet purchased** | $**4148917** | $**35138** | $**—** | $**4184055** |

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**Financial Instruments Not Measured at Fair Value** 

The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value on the Consolidated Statements of Financial Condition at December 31, 2024 and 2023. Non-financial assets and liabilities are excluded. The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 and Level 2 approximates fair value due to the relatively short-term nature of the underlying assets.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Carrying Value** | **Fair Value** | **Level 1** | **Level 2** | **Level 3** |
|  **Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $273934 | $273934 | $273934 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash segregated under federal and other regulations | 183081 | 183081 | 183081 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under repurchase agreements | 23106957 | 23106957 |  | 23106957 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed | 11475515 | 11475515 |  | 11475515 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from customers | 778127 | 778127 |  | 778127 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from broker-dealers and clearing organizations | 757820 | 757820 |  | 757820 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets | 16898 | 17762 | 2361 | 7003 | 8398 |
|  **Total Assets** | $**36592332** | $**36593196** | $**459376** | $**36125422** | $**8398** |
|  **Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under repurchase agreements | $23155357 | $23155357 | $— | $23155357 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned | 14805880 | 14805880 |  | 14805880 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to customers | 2484373 | 2484373 |  | 2484373 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to broker-dealers and clearing organizations | 151483 | 151483 |  | 151483 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes payable, net of unamortized issuance costs | 187977 | 185989 |  | 185989 |  |
|  **Total Liabilities** | $**40785070** | $**40783082** | $**—** | $**40783082** | $**—** |

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
|  | **Carrying Value** | **Fair Value** | **Level 1** | **Level 2** | **Level 3** |
|  **Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $296099 | $296099 | $296099 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash segregated under federal and other regulations | 122195 | 122195 |  | 122195 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under repurchase agreements | 18714195 | 18714195 |  | 18714195 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed | 11135587 | 11135587 |  | 11135587 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from customers | 705528 | 705528 |  | 705528 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from broker-dealers and clearing organizations | 264318 | 264318 |  | 264318 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets | 11731 | 11731 |  | 11731 |  |
|  **Total Assets** | $**31249653** | $**31249653** | $**296099** | $**30953554** | $**—** |
|  **Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under repurchase agreements | $17648018 | $17648018 | $— | $17648018 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned | 13176376 | 13176376 |  | 13176376 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to customers | 1394440 | 1394440 |  | 1394440 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to broker-dealers and clearing organizations | 197530 | 197530 |  | 197530 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes payable, net of unamortized issuance costs | 133953 | 133953 |  | 133953 |  |
|  **Total Liabilities** | $**32550317** | $**32550317** | $**—** | $**32550317** | $**—** |

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**6. DERIVATIVE INSTRUMENTS** 

The Company does not have any derivative instruments designated as hedging instruments under ASC 815, *Derivatives and Hedging*. The fair value of the Company's derivative instruments on a gross basis consisted of the following at December 31, 2024 and 2023:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **($ in thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** |
| **Derivative Assets** | **Financial Statements<br>Caption** | **Fair Value** | **Notional Value** | **Fair Value** | **Notional Value** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity options | Financial instruments owned | $681349 | $28088199 | $22455 | $2021765 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity index options | Financial instruments owned | 1386794 | 24761662 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps | Financial instruments owned | 201990 | 1447053 | 64900 | 248397 |
|  **Derivative Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity options | Financial instruments sold, not yet purchased | $4199996 | $28028846 | $161286 | $2025014 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity index options | Financial instruments sold, not yet purchased | 3985055 | 24761662 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based Swaps | Financial instruments sold, not yet purchased | 2028016 | 7177941 | 35138 | 293850 |

---

The following table summarizes the net gain (loss) from derivative instruments, excluding any offsetting gains or losses from associated financing and economic hedging activity, for the years ended December 31, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
| **($ in thousands)** |  | **Years Ended December 31,** | **Years Ended December 31,** |
| **Derivative instruments not designated**<br> **as hedging instruments:** | **Financial Statement Caption** | **2024** | **2023** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity options | Net financing revenues | $(384219) | $(266545) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity index options | Net financing revenues | (66138) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps | Net financing revenues | (1629069) | 41948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity index futures | Net financing revenues | 9399 | 22364 |

---

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**Offsetting of Derivatives** 

The Company enters into master netting and collateral agreements with all of its security-based swap counterparties. Where legally enforceable, these master netting and collateral agreements give the Company, in the event of default by the counterparty, the right to offset receivables, including cash collateral received, and payables with the same counterparty. At December 31, 2024, the Company had the following derivative assets and derivative liabilities under master netting and collateral agreements:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Gross amounts<br>of recognized<br>assets/<br>liabilities(1)** | **Amounts offset<br>in the<br>consolidated<br>statement of<br>financial<br>condition** | **Net amounts<br>presented** | **Amounts not offset in the<br>consolidated statement of<br>financial condition(2)** | **Amounts not offset in the<br>consolidated statement of<br>financial condition(2)** | **Net amount** |
|  | | | | **Counterparty<br>netting** | **Cash collateral** | |
|  **Derivative assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps | $201990 | $— | $201990 | $(1098) | $(200892) | $— |
|  **Derivative liabilities** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps | $2028016 | $— | $2028016 | $(1098) | $(1995670) | $31248 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
|  | **Gross amounts<br>of recognized<br>assets/<br>liabilities(1)** | **Amounts offset<br>in the<br>consolidated<br>statement of<br>financial<br>condition** | **Net amounts<br>presented** | **Amounts not offset in the<br>consolidated statement of<br>financial condition(2)** | **Amounts not offset in the<br>consolidated statement of<br>financial condition(2)** | **Net amount** |
|  | | | | **Counterparty<br>netting** | **Cash collateral** | |
|  **Derivative assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps | $64900 | $— | $64900 | $(5609) | $(59291) | $— |
|  **Derivative liabilities** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps | $35138 | $— | $35138 | $(5609) | $(8000) | $21529 |

---

(1) Includes all gross balances related to securities-based swaps balances irrespective of whether they are transacted under
legally enforceable master netting and collateral agreements or whether the Company has obtained sufficient evidence of enforceability of the master netting and collateral agreement. The gross balance of derivative assets and derivative liabilities
which are documented under master netting and collateral agreements for which the Company has not yet obtained sufficient evidence of legal enforceability was $202.0 million and $2,028.0 million, respectively, at December 31, 2024,
and $64.9 million and $35.1 million, respectively, at December 31, 2023.

(2) Amounts relate to master netting and collateral agreements which are not permitted to be offset on the face of the
Consolidated Statements of Financial Condition in accordance with ASC 210-20, *Balance Sheet—Offsetting*, and ASC 815, *Derivatives and Hedging*, but which provide the Company with the legal
right to offset in the event of default.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**7. COLLATERALIZED AGREEMENTS AND FINANCING** 

The Company enters into collateralized transactions including resale agreements and repurchase agreements, securities borrowing and securities lending transactions, mainly to finance trading inventory positions, obtain securities for settlement, and meet customers' needs.

Although the Company only offsets collateralized transactions when the requirements of ASC 210-20, *Balance Sheet—Offsetting*, are met, substantially all of these transactions are documented under industry standard master netting agreements which reduce the Company's credit exposure to counterparties as they permit the close-out and offset of transactions and collateral amounts in the event of default of the counterparty. In addition, the Company minimizes credit risk associated with these activities by monitoring counterparty credit exposure and collateral values on a daily basis and requiring additional collateral to be deposited with or returned by the Company when deemed necessary.

In the table below, the amounts of collateralized transactions that are offset on the Consolidated Statements of Financial Condition and netted against financial liabilities with specific counterparties under legally enforceable master netting agreements if counterparties were to default, are presented to provide financial statements readers with the Company's estimate of its net exposure to counterparties for these consolidated financial instruments.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Gross amounts of<br>recognized<br>assets/ liabilities(1)** | **Amounts offset<br>in the<br>Consolidated<br>Statement of<br>Financial<br>Condition** | **Net amounts<br>presented** | **Amounts not<br>offset(2)** | **Net amount** |
|  **Offsetting of Financial Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under agreements to resell | $32458706 | $(9351749) | $23106957 | $(23051463) | $55494 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed | 11475515 |  | 11475515 | (11040630) | 434885 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities received as collateral | 3471261 |  | 3471261 | (3471261) |  |
|  **Total** | $**47405482** | $**(9351749)** | $**38053733** | $**(37563354)** | $**490379** |
|  **Offsetting of Financial Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under agreements to repurchase | $32507106 | $(9351749) | $23155357 | $(23070738) | $84619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned | 14805880 |  | 14805880 | (14225695) | 580185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligation to return collateral | 3471261 |  | 3471261 | (3471261) |  |
|  **Total** | $**50784247** | $**(9351749)** | $**41432498** | $**(40767694)** | $**664804** |

---

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
|  | **Gross amounts of<br>recognized<br>assets/liabilities(1)** | **Amounts offset<br>in the<br>Consolidated<br>Statement of<br>Financial<br>Condition** | **Net amounts<br>presented** | **Amounts not<br>offset(2)** | **Net amount** |
|  **Offsetting of Financial Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under agreements to resell | $25790209 | $(7076014) | $18714195 | $(18714195) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed | 11135587 |  | 11135587 | (11021907) | 113680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities received as collateral | 3910205 |  | 3910205 | (3910205) |  |
|  **Total** | $**40836001** | $**(7076014)** | $**33759987** | $**(33646307)** | $**113680** |
|  **Offsetting of Financial Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under agreements to repurchase | $24724033 | $(7076015) | $17648018 | $(17486522) | $161496 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned | 13176376 |  | 13176376 | (13041916) | 134460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligation to return collateral | 3910205 |  | 3910205 | (3910205) |  |
|  **Total** | $**41810614** | $**(7076015)** | $**34734599** | $**(34438643)** | $**295956** |

---

(1) Substantially all of the gross carrying amounts of these arrangements are subject to enforceable netting agreements.

(2) Amounts relate to master netting and collateral agreements which are not permitted to be offset on the face of the
Consolidated Statement of Financial Condition in accordance with ASC 210-20, *Balance Sheet—Offsetting*, but which provide the Company with the legal right to offset in the event of default. This
column also includes the fair value of collateral received or posted subject to enforceable credit support agreements.

Under most collateralized financing agreements, the Company is permitted to sell or repledge securities received as collateral and use these securities to enter into collateralized financing transactions to deliver these securities to counterparties or clearing organizations to cover short positions. At December 31, 2024, and 2023, substantially all of the securities received as collateral were delivered or repledged.

The below two tables present gross obligations for repurchase agreements, securities loaned transactions and obligations to return securities received as collateral by remaining contractual maturity and class of collateral pledged as of December 31, 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** |
|  | **Overnight and<br>continuous** | **Up to 30 days** | **30-90 days** | **Greater than<br>90 days** | **Total** |
|  Securities sold under agreements to repurchase | $24759174 | $7246198 | $403848 | $97886 | $32507106 |
|  Securities loaned | 14093853 | 670627 | 41400 |  | 14805880 |
|  Obligation to return securities received as collateral |  | 25317 |  | 3445944 | 3471261 |
|  **Total** | $**38853027** | $**7942142** | $**445248** | $**3543830** | $**50784247** |

---

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **Class of collateral pledged** | **Class of collateral pledged** | **Class of collateral pledged** | **Class of collateral pledged** |
|  | **Securities sold under<br>repurchase<br>agreements** | **Securities loaned** | **Obligation to<br>return securities<br>received as<br>collateral** | **Total** |
|  U.S. Treasury bonds and notes | $24594242 | $116515 | $— | $24710757 |
|  Equities |  | 14476567 | 3471261 | 17947828 |
|  Corporate debt securities | 616526 | 212798 |  | 829324 |
|  US Agency bonds and notes | 7296338 |  |  | 7296338 |
|  **Total** | $**32507106** | $**14805880** | $**3471261** | $**50784247** |

---

The below two tables present gross obligations for repurchase agreements, securities loaned transactions and obligations to return securities received as collateral by remaining contractual maturity and class of collateral pledged as of December 31, 2023.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** |
|  | **Overnight and<br>continuous** | **Up to 30 days** | **30-90 days** | **Greater than<br>90 days** | **Total** |
|  Securities sold under agreements to repurchase | $3298905 | $20603737 | $729446 | $91945 | $24724033 |
|  Securities loaned | 13176376 |  |  |  | 13176376 |
|  Obligation to return securities received as collateral |  | 241994 | 3668211 |  | 3910205 |
|  **Total** | $**16475281** | $**20845731** | $**4397657** | $**91945** | $**41810614** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **Class of collateral pledged** | **Class of collateral pledged** | **Class of collateral pledged** | **Class of collateral pledged** |
|  | **Securities sold under<br>repurchase<br>agreements** | **Securities loaned** | **Obligation to<br>return securities<br>received as<br>collateral** | **Total** |
|  U.S. Treasury bonds and notes | $24548662 | $347469 | $— | $24896131 |
|  Equities |  | 12404744 | 3779490 | 16184234 |
|  Corporate debt securities | 175371 | 424163 | 130715 | 730249 |
|  **Total** | $**24724033** | $**13176376** | $**3910205** | $**41810614** |

---

In the normal course of business, the Company pledges qualified securities with clearing organizations to satisfy daily margin and clearing fund requirements.

**8. GOODWILL AND INTANGIBLE ASSETS** 

The following table presents the Company's goodwill for the years ended December 31, 2024 and 2023:

---

| | |
|:---|:---|
| **($ in thousands)** | **Amount** |
|  Goodwill balance at December 31, 2022 | $10132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additions in 2023 |  |
|  Goodwill balance at December 31, 2023 | 10132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additions in 2024 | 19014 |
|  **Goodwill balance at December 31, 2024** | $**29146** |

---

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

During 2024, the Company changed its annual goodwill impairment testing date from December 31st to October 1st—refer to Note 2, *Significant Accounting Policies—Change in Accounting Principle*. As of October 1, 2024 and December 31, 2023, the Company's annual impairment test of goodwill was completed at the reporting unit level, and no impairment charges were determined to be necessary.

The Company's intangible assets consisted of acquired intangible assets related to past business combinations and asset purchases, capitalized software costs, and other at December 31, 2024 and 2023:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Gross Carrying<br>Amount** | **Accumulated<br>Amortization** | **Net Carrying<br>Amount** | **Useful Lives<br>(Years)** |
|  Capitalized software | $101395 | $(27928) | $73467 | 3-5 |
|  Customer relationships | 44790 | (30849) | 13941 | 7-12 |
|  Acquired developed technology | 11708 | (2246) | 9462 | 3-5 |
|  Trade name | 200 | (33) | 167 | 1.5 |
|  Other | 345 | (11) | 334 |  |
|  **Total** | $**158438** | $**(61067)** | $**97371** |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
|  | **Gross Carrying<br>Amount** | **Accumulated<br>Amortization** | **Net Carrying<br>Amount** | **Useful Lives<br>(Years)** |
|  Capitalized software | $68762 | $(17469) | $51293 | 3-5 |
|  Customer relationships | 43090 | (24623) | 18467 | 7 |
|  Acquired developed technology | 2005 | (334) | 1671 | 3 |
|  Trade name | 680 | (680) |  | 3 |
|  Acquired broker-dealer license | 338 |  | 338 | Indefinite |
|  Domain name | 125 | (26) | 99 | 15 |
|  **Total** | $**115000** | $**(43132)** | $**71868** |  |

---

Amortization expense relating to finite-lived intangible assets included in amortization of intangibles on the Consolidated Statements of Comprehensive Income (Loss) was $27.3 million and $17.3 million for the years ended December 31, 2024 and 2023, respectively. The total amount charged to expense for amortization and write down of capitalized software in the Consolidated Statements of Comprehensive Income (Loss) was $18.6 million and $9.1 million for the years ended December 31, 2024 and 2023, respectively. The total expense includes impairment charges of $4.5 million and $0.3 million for the years ended December 31, 2024 and 2023, respectively, due to capitalized software assets for projects that were fully abandoned by the Company and consequently had no value.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

The weighted average amortization period for the intangible assets acquired during 2024 was as follows:

---

| | |
|:---|:---|
| **Asset class** | **Weighted average<br>amortization period (years)** |
|  Customer relationships | 12 |
|  Developed technology | 5 |
|  Trade name | 1.5 |
|  All intangibles acquired | 6.2 |

---

The Company expects to record amortization expense (excluding capitalized software costs of projects which have not yet been placed into service and the timing of their amortization depends on future developments) as follows over the next five years:

---

| | |
|:---|:---|
| **Year** | **Amount** |
|  | **($ in thousands)** |
| 2025 | $29274 |
| 2026 | 26066 |
| 2027 | 14912 |
| 2028 | 9636 |
| 2029 | 4849 |

---

**9. BORROWINGS** 

**Revolving Credit Agreements** 

On February 6, 2019, CS LLC entered into a revolving credit agreement with a related party. The agreement was amended and the maturity extended a few times, lastly until February 6, 2023, upon which CS LLC did not further extend the agreement. Prior to its maturity, the proceeds from the Revolving Line of Credit were used to meet margin requirements associated with the products traded by the Company in the ordinary course, and to finance securities positions purchased as part of the ordinary course broker-dealer activities. The Revolving Line of Credit bore interest at the Federal Funds Rate plus 2.5% per annum. CS LLC's obligations under the Agreement were unsecured. In connection with the Revolving Line of Credit, the Company did not incur issuance costs.

On December 4, 2020, CS LLC entered into a revolving credit agreement (the "Committed Facility") with a consortium of banks which has been extended and amended annually. The Committed Facility was amended to $300.0 million in aggregate on December 3, 2022, $315.0 million in aggregate on December 2, 2023, $440.0 million in aggregate on November 12, 2024 and again to $515.0 million in aggregate on December 20, 2024. The Committed Facility consists of five borrowing bases: (i) Borrowing Base A Loan is to be used to finance the purchase and settlement of securities, (ii) Borrowing Base B Loan is to be used to fund margin deposits with the National Securities Clearing Corporation ("NSCC"), (iii) Borrowing Base C Loan is to be used to fund, under certain circumstances, customer withdrawals, (iv) Borrowing Based D Loan includes borrowings to cover Fixed Income Clearing Corporation ("FICC") mortgage-backed securities ("MBS") blackout periods, and (v) Borrowing Base E Loan is to fund margin at domestic Futures/Options clearing houses. Outstanding borrowing balances under Base A are collateralized by certain firm and client collateral available to the Company.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

The limits and interest rates for each of the Borrowing Bases is shown below:

---

| | | | |
|:---|:---|:---|:---|
| **($ in thousands)** | **Prior Limit** | **Current Limit** | **Interest Rate** |
|  Borrowing Base A | $315000 | $515000 | Base + 1.5% |
|  Borrowing Base B | 210000 | 386250 | Base + 2.5% |
|  Borrowing Base C | 210000 | 386250 | Base + 2.5% |
|  Borrowing Base D | 210000 | 386250 | Base + 2.0% |
|  Borrowing Base E | 210000 | 386250 | Base + 2.0% |

---

In connection with the amendments to the Committed Facility, CS LLC incurred issuance costs of $2.2 million and $1.2 million for the years ended December 31, 2024 and 2023, respectively, which are being amortized over the term of the agreements. Included in Other assets in the Consolidated Statements of Financial Condition at December 31, 2024 and 2023 were $2.0 million and $1.1 million, respectively, representing the unamortized balance of these costs. Recorded in Net interest expense on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2024 and 2023 was $1.3 million and $1.0 million, respectively, representing the amortization of the issuance costs.

The Committed Facility contains customary financial covenants, including affirmative and negative financial and operating covenants, and at December 31, 2024, requires CS LLC to maintain minimum Tangible Net Worth of $487.5 million, minimum Excess Net Capital of $300.0 million, and maximum of Leverage Ratio, adjusted for certain collateralized arrangements, of 13.0 (all these ratios as defined in the agreement). At December 31, 2024 and 2023, and at the date of the filing of this report, CS LLC was in compliance with all of its covenants related to this agreement.

As of December 31, 2024, CS LLC had an uncommitted credit agreement (the "Uncommitted Facility"). The agreement was amended and extended on November 12, 2024, for a total maximum amount of $200.0 million, and consisted of three borrowing bases: (i) Borrowing Base A for Margin Loans used to finance the purchase and settlement of securities and for general working capital purposes at 1.5% plus the bank's overnight base rate, (ii) Borrowing Base B which is available up to $10.0 million of unsecured overnight loans at the bank's prime commercial rate as in effect on such day, and (iii) Borrowing Base C which is available up to $150.0 (and up to $150.0 together with the overnight loans) for Clearinghouse Margin Loans used to finance NSCC deposit requirements and OCC excess margin deposits, at the bank's prime commercial rate as in effect on such day. Loans made under this facility are repayable on demand.

Previously, the agreement had been amended on March 28, 2022, to increase Borrowing Base A to $200.0 million, and Borrowing Base B of $10.0 million to include unsecured overnight loans ("Overnight Loans") instead of Reserve Account Loans. In addition, the interest rates were changed to 1.5% plus the bank's overnight rate for Broker Loans, and the bank's prime commercial rate as in effect on such day for Overnight Loans. In connection with the Uncommitted Facility, the Company did not incur any issuance costs.

The Committed Facility and the Uncommitted Facility include unused commitment fees of 0.50% and 0.125% per annum, respectively, on the average daily unused portion of these facilities which are payable quarterly in arrears. Included in Professional fees, marketing and other expenses for the years ended December 31, 2024 and 2023, were $1.3 million and $1.6 million, respectively, representing unused line of credit fees paid to the bank.

The following summarizes the Company's revolving lines of credit carrying values and the related unamortized debt issuance costs, where applicable.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

---

| | | | |
|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Financing<br>Available** | **Borrowing<br>Outstanding** | **Deferred Debt<br>Issuance<br>Cost** |
|  Revolving Credit Agreement | $515000 | $— | $2029 |
|  Uncommitted Credit Agreement | 200000 |  |  |
|  | $**715000** | $**—** | $**2029** |

---

---

| | | | |
|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
|  | **Financing<br>Available** | **Borrowing<br>Outstanding** | **Deferred Debt<br>Issuance<br>Cost** |
|  Revolving Credit Agreement | $315000 | $— | $1132 |
|  Uncommitted Credit Agreement | 200000 |  |  |
|  | $**515000** | $**—** | $**1132** |

---

**Notes Payable** 

The following summarizes the Company's term borrowing balances outstanding, net of unamortized discount or premium and debt issuance costs, where applicable:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Maturity<br>Date** | **Interest<br>Rate** | **Outstanding<br>Principal** | **Deferred Debt<br>Issuance Cost** | **Outstanding<br>Borrowings, net** |
|  2025 Senior Unsecured Notes | September 2025 | 6.0% | $50000 | $161 | $49839 |
|  2026 Senior Unsecured Notes | May 2026 | 5.875% | 60000 | 293 | 59707 |
|  2029 Senior Unsecured Notes | October 2029 | 8.25% | 80000 | 1569 | 78431 |
|  **Total** |  |  | $**190000** | $**2023** | $**187977** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
|  | **Maturity<br>Date** | **Interest<br>Rate** | **Outstanding<br>Principal** | **Deferred Debt<br>Issuance Cost** | **Outstanding<br>Borrowings, net** |
|  2024 Senior Unsecured Notes | December 2024 | 6.5% | $25000 | $171 | $24829 |
|  2025 Senior Unsecured Notes | September 2025 | 6.0% | 50000 | 377 | 49623 |
|  2026 Senior Unsecured Notes | May 2026 | 5.875% | 60000 | 499 | 59501 |
|  **Total** |  |  | $**135000** | $**1047** | $**133953** |

---

***Issuance of 2024 Senior Unsecured Notes***

On December 20, 2019, CSH LLC closed on a $25.0 million senior unsecured note offering (the "2024 Notes"). The 2024 Notes matured on December 30, 2024 and had a fixed annual interest rate of 6.5% per annum. The interest rate was contractually dependent on the Company maintaining a minimum credit rating of A- (or equivalent). If the rating of the Company would have been BBB+, BBB, or BBB-, then the interest rate would have increased by a minimum of 0.25% per annum. If the rating

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

would have been BB+, BB, or BB- then the interest rate would have increased by a minimum of 0.75% per annum, up to a maximum of 8.5% per annum if the Company would have failed to maintain any rating. The placement agreements related to the 2024 Notes also contained customary financial covenants, including maintenance of debt and interest coverage ratios and minimum net worth requirements. The 2024 Notes contained a minimum liquidity covenant requiring that, so long as any of the 2024 Notes were outstanding, the Company was not to declare or pay any cash dividends or cash distributions to any members of the Company unless, at such time, the Company had at least $25.0 million in unrestricted cash and cash equivalents. The Company fully repaid the 2024 Notes upon maturity in December 2024.

In connection with the issuance of the 2024 Notes, the Company incurred issuance costs of $0.9 million, of which $0.2 million were unamortized at December 31, 2023. These deferred issuance costs were amortized over the term of the 2024 Notes and were recorded in Notes payable, net of unamortized issuance costs on the Consolidated Statements of Financial Condition. For the years ended December 31, 2024 and 2023, the Company recorded $0.2 million and $0.2 million, respectively, of amortization included in Interest expense on borrowings on the Consolidated Statements of Comprehensive Income (Loss).

***Issuance of 2025 Senior Unsecured Notes***

On October 8, 2020, Clear Street Capital LLC ("Clear Street Capital") issued $50.0 million in aggregate principal amount of senior unsecured notes (the "2025 Notes"). Effective December 31, 2020, CSH LLC assumed the 2025 Notes from Clear Street Capital in conjunction with Clear Street Capital's merger with and into CSH LLC. The 2025 Notes mature on October 15, 2025, and have a fixed annual interest rate of 6.0% per annum. The interest rate is dependent on the Company maintaining a minimum credit rating of A- (or equivalent). If the rating of the Company is BBB+, BBB, or BBB-, then the interest rate will increase by a minimum of 0.25% per annum. If the rating is BB+, BB, or BB- then the interest rate will increase by a minimum of 0.75% per annum, up to a maximum of 8.0% per annum if the Company fails to maintain any rating. The 2025 Notes purchase agreement related to the 2025 Notes also contains customary financial covenants including maintenance of debt and interest coverage ratios and minimum net worth requirements. The 2025 Notes contain a minimum liquidity covenant requiring, so long as any of the 2025 Notes are outstanding, the Company will not declare or pay any cash dividends or cash distributions to any members of the Company unless, at such time, the Company shall have at least $25.0 million in unrestricted cash and cash equivalents. Upon a change in control, as defined in the agreement, all holders of the 2025 Notes have the right to require CSH LLC to repurchase all their holdings for 101% of the principal amount, plus accrued and unpaid interest. The 2025 Notes are redeemable by CSH LLC in an amount not less than $2.5 million in the case of a partial redemption at 100% of the principal amount prepaid, plus accrued but unpaid interest.

In connection with the issuance of the 2025 Notes, the Company incurred issuance costs of $1.1 million, of which $0.2 million and $0.4 million were unamortized at December 31, 2024 and 2023, respectively. These deferred issuance costs are amortized over the term of the 2025 Notes and are recorded in Notes payable, net of unamortized issuance costs on the Consolidated Statements of Financial Condition. For the year ended December 31, 2024 and 2023, the Company recorded $0.2 million and $0.2 million, respectively, of amortization in Interest expense on borrowings on the Consolidated Statements of Comprehensive Income (Loss).

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

***Issuance of 2026 Senior Unsecured Notes***

On May 6, 2021, CSH LLC closed on an additional $60.0 million senior unsecured note offering (the "2026 Notes"). The 2026 Notes mature on May 15, 2026 and have a fixed annual interest rate of 5.875% per annum. The interest rate is dependent on the Company maintaining a minimum credit rating of A- (or equivalent). If the rating of the Company is BBB+, BBB, or BBB-, then the interest rate will increase by a minimum of 0.25% per annum. If the rating is BB+, BB, or BB-, the interest rate will increase by a minimum of 0.75% per annum. If the Company fails to maintain any rating, the interest rate will increase by 2.00%. The placement agreements related to the 2026 Notes also contain customary financial covenants including maintenance of debt and interest coverage ratios and minimum net worth requirements. The 2026 Notes contain a minimum liquidity covenant requiring, so long as any of the 2026 Notes are outstanding, the Company will not declare or pay any cash dividends or cash distributions to any members of the Company unless, at such time, the Company shall have at least $25.0 million in unrestricted cash and cash equivalents. Upon a change in control, as defined in the agreement, all holders of the 2026 Notes have the right to require CSH LLC to repurchase all their holdings for 101% of the principal amount, plus accrued and unpaid interest. The 2026 Notes are redeemable by CSH LLC at 100% of the principal amount prepaid, plus accrued but unpaid interest.

In connection with the issuance of the 2026 Notes, the Company incurred issuance costs of $1.0 million, of which $0.3 million and $0.5 million were unamortized at December 31, 2024 and 2023, respectively. These deferred issuance costs are amortized over the term of the 2026 Notes and are recorded in Notes payable, net of unamortized issuance costs on the Consolidated Statements of Financial Condition. For the year ended December 31, 2024 and 2023, the Company recorded $0.2 million and $0.2 million of amortization included in Interest expense on borrowings on the Consolidated Statements of Comprehensive Income (Loss).

***Issuance of 2029 Senior Unsecured Notes***

On October 23, 2024, CSH LLC closed on a $80.0 million senior unsecured note offering (the "2029 Notes"). The 2029 Notes mature on October 30, 2029 and have a fixed annual interest rate of 8.25% per annum. The interest rate is dependent on the Company maintaining a minimum credit rating of BBB- (or equivalent). If the rating of the Company is BB+ or lower, then the interest rate will increase to 9% per annum. If there is no rating, then the interest rate will increase to 10.25% per annum. CSH LLC may at its option redeem at any time all or part of the Notes, for the outstanding principal and a make-whole premium, as specified in the agreement.

The note placement agreements related to the 2029 Notes also contain customary financial covenants including maintenance of debt and interest coverage ratios and minimum net worth requirements. The 2029 Notes contain a minimum liquidity covenant requiring, so long as any of the 2029 Notes are outstanding, that CSH LLC will not declare or pay any cash dividends or cash distributions unless, at such time, is has at least $25.0 million in unrestricted cash and cash equivalents. Upon a change in control, as defined in the agreement, all holders of the 2029 Notes have the right to require CSH LLC to repurchase all their holdings for 101% of the principal amount, plus accrued and unpaid interest. Until October 30, 2026, the 2029 Notes are redeemable for a make-whole payment of 104.125% of the outstanding principal redeemed plus any excess remaining scheduled payments, as defined in the 2029 Notes purchase agreement. Between October 30, 2026, and October 29, 2027, the 2029 Notes are redeemable, in whole or in part, at 104.125% of the outstanding

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

principal redeemed, plus accrued but unpaid interest. Between October 30, 2027, and October 29, 2028, the 2029 Notes are redeemable, in whole or in part, at 102.0625% of the outstanding principal redeemed, plus accrued but unpaid interest. After October 29, 2028, the 2029 Notes are redeemable at par, plus accrued but unpaid interest.

In connection with the placement of the 2029 Notes, the Company incurred issuance costs of $1.6 million, of which $1.6 million were unamortized at December 31, 2024. These deferred issuance costs are amortized over the term of the 2029 Notes and are recorded in Notes payable, net of unamortized issuance costs on the Consolidated Statements of Financial Condition. For the year ended December 31, 2024, the Company recorded $0.1 million of amortization included in Interest expense on borrowings on the Consolidated Statements of Comprehensive Income (Loss).

At December 31, 2024, aggregate future required minimum principal payments based on the terms of the term borrowings were as follows:

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| | |
|:---|:---|
| **Year** | **December 31,** |
|  | **($ in thousands)** |
| 2025 | $50000 |
| 2026 | 60000 |
| 2027 |  |
| 2028 |  |
| 2029 | 80000 |
|  | $190000 |

---

**10. TEMPORARY EQUITY, SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE** 

**Common Stock** 

The Company has three classes of authorized common stock. The Class A common stock has one vote per share. The Class X and Class Z common stock have ten votes per share. Shares of the Company's common stock generally vote together as a single class on all matters submitted to a vote of the Company's stockholders. Class X common stock is not entitled to receive dividends and other distributions.

Issuances of common stock are determined at the discretion of the Company. At December 31, 2024, the total number of shares of all classes of stock which CSG had the authority to issue was 654.9 million shares, including 294.9 million shares of Class A common stock.

On November 8, 2023, the Company redeemed 0.9 million shares of vested Class A common stock from a former Company employee. Related to this redemption, the Company reversed $0.9 million in previously recorded stock-based compensation expense.

During June and July of 2024, the Company redeemed 2.2 million shares of vested Class A common stock from certain of the Company's employees.

Refer to Note 11, *Equity-Based Compensation*, for additional information regarding the Company's equity-based compensation plan.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

Refer to Note 1, *Organization and Description of Business—Corporate Simplification*, for a description of the shareholder exchange transaction that resulted in the termination of the Company's Up-C structure.

**Redeemable Preferred Stock** 

***Series A Preferred Stock***

In October 2021, the Company issued 1,400,000 shares of a fixed rate reset perpetual cumulative Series A preferred stock ("Series A Preferred Stock"), for aggregate consideration of $35.0 million. In the event of a liquidation, dissolution or winding up of the Company, either voluntary or involuntary, the holders of Series A Preferred Stock then outstanding are entitled to receive an amount per share equal to the sum of $25.00 per share, plus all then accrued and unpaid dividends, prior to any payment on the Company's Series B Preferred Stock or common stock. The holders of shares of the Series A Preferred Stock have the right to elect two directors of the Company whenever dividends on the Series A Preferred Stock are in arrears for six or more Dividend Payments Dates (as defined below) and the right to a separate 2/3 vote of the Series A Preferred Stock on amendments to the Company's certificate of incorporation that would materially adversely affect the powers, preferences, privileges, or rights of the Series A Preferred Stock. The Series A Preferred Stock have the right to vote together with other classes of the Company's voting stock on all other matters on which stockholders generally are entitled to vote.

The holders of Series A Preferred Stock are entitled to receive dividends quarterly, commencing on January 30, 2022, ("Dividend Payment Date") at a rate of 7.0% from the date of issuance up to, but excluding October 30, 2026 ("First Reset Date") and thereafter, at the rate equal to the sum of the five-year treasury rate as of the most recent reset date (i.e., each date falling on the fifth anniversary of the preceding reset date) and 6.0% during each Reset Period from, and including the First Reset Date.

The Company, at its option, may redeem the Series A Preferred Stock, in whole or in part, on any Dividend Payment Date on or after the First Reset Date for $25.00 per share plus accrued but unpaid dividends, whether declared or not. Additionally, in the event of a change in control of the Company or CSH LLC prior to the First Reset Date, the Company will have the right to redeem the Series A Preferred Stock at a price of $25.50 per share plus accrued and unpaid dividends. The Series A Preferred Stock is not convertible.

Upon issuance, the Series A Preferred Stock were classified in permanent equity. However, following the Markets Business transaction (See Note 18, *Discontinued Operations*) the Company's controlling shareholder became a holder of 4.9 million of Series B-1 Preferred Stock. As a result, all classes of preferred stock of the Company were reclassified from permanent equity to temporary equity, as they could become redeemable upon deemed liquidation events, which are no longer considered to be within the control of the Company. Since the Series A Preferred Stock will become redeemable by the Company after the first Reset Date, the Company accretes the changes in the redemption value using an effective interest method over the period from the date of reclassification to the earliest redemption date.

During October 2024, the Company mutually agreed with holders of 0.4 million Series A Preferred Stock to redeem them for total proceeds of $11.0 million.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

For the years ended December 31, 2024 and 2023, the Company declared and paid $2.5 million and $2.5 million, respectively, in dividends to the holders of Series A Preferred Stock.

***Series B Preferred Stock***

As of December 31, 2024, the Company was authorized to issue 97.9 million shares of Series B Preferred Stock, in two series, with a par value of $0.00001 per share ("Series B Preferred Stock"). In the event of a liquidation, dissolution or winding up of the Company, the Series B Preferred Stock then outstanding takes precedence over the Company's common stock with respect to the payment of dividends and the distribution of assets, but is subordinated to the Series A Preferred Stock. A merger or consolidation (other than one in which stockholders of the Company own a majority by voting power of the outstanding shares of the surviving or acquiring corporation) and a sale, lease, transfer, exclusive license or other disposition of all or substantially all of the assets of the Company will be treated as a liquidation event.

The Series B Preferred Stock initially converts 1:1 to common stock at any time at the option of the Holders, subject to anti-dilution adjustments. Each share of Series B Preferred Stock will automatically convert into the Company's common stock at the then applicable conversion rate (i) in the event of a firm commitment underwritten public offering with net proceeds to the Company of not less than $100 million, or (ii) upon the written consent of the Holders.

Dividends will be paid on the Series B Preferred Stock on an as-converted basis when, as, and if paid on the common stock. Upon the initial closing of the sale of Series B Preferred Stock in April 2022, the Board of Directors of the Company included two directors who were designated by the VC Firm that was the lead investor in the Series B Preferred Stock issuance.

In 2023, the Company issued Series B-1 Preferred Stock for an aggregate amount of $521.3 million, with the VC Firm as the lead investor. In connection with the placement of the Series B-1 Preferred Stock, the Company incurred issuance costs of $4.8 million during 2023. In connection with its investment in the Company, in December 2023 the VC Firm was also granted a right to purchase up to an aggregate of 12.0 million additional shares of the Company's Series B-1 Preferred Stock at $8.35 per share for a total exercise price of $100.0 million during the subsequent 12 months (the "VC Firm Right to Purchase").

On December 27, 2024, the VC Firm exercised the VC Firm Right to Purchase an aggregate of 2.4 million additional shares of the Company's Series B-1 Preferred Stock at $8.35 per share for a total exercise price of $20.0 million. The Company also agreed to extend the term of the VC Firm Right to Purchase with respect to the remaining $80.0 million for an additional 12 months. In connection with the VC Firm's exercise, the Company incurred issuance costs of $0.5 million during 2024.

Upon issuance, the Series B preferred stock were classified in permanent equity. However, following the Markets Business transaction (See Note 18, *Discontinued Operations*) the Company's controlling shareholder became a holder of 4.9 million of Series B-1 Preferred Stock. As a result, all classes of preferred stock of the Company are considered contingently redeemable, as they are redeemable upon deemed liquidation events, which are no longer considered to be within the control of the Company. Accordingly, all classes of preferred stock were reclassified from permanent equity to temporary equity on the Company's Consolidated Statement of Financial Condition.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

In a deemed liquidation event, the Series B-1 Preferred Stock are redeemable for the higher of (i) the original issue price ($8.35 per share of Series B-1 Preferred Stock, $5.79 per share of Series B-2 Preferred stock), subject to certain adjustments and (ii) an amount per share as would have been payable had all shares of Series B Preferred Stock been converted into common stock immediately prior to such deemed liquidation event, subject to certain adjustments.

The redemption provisions are not currently considered probable, as a deemed liquidation event is not considered likely to occur. Therefore, the Series B Preferred Stock amounts included in temporary equity are not subsequently adjusted.

The VC Firm Right to Purchase was initially recognized in equity, as the ASC 480, *Distinguishing Liabilities from Equity ("ASC 480"),* criteria to classify a financial instrument other than an outstanding share as a liability were assessed, as required, at inception of the instrument, and were found to not require classification as a liability. Since the VC Firm Right to Purchase is not a mandatorily redeemable instrument, the Company made an accounting policy election not to subsequently reassess whether the instrument should be classified as an asset or liability under ASC 480. ASC 815-40 requires an issuer to reassess equity contracts at each balance sheet date, and according to management's reassessment until the term extension described below, the VC Firm Right to Purchase continued to meet all the criteria to be classified in equity. In addition, freestanding derivative instruments that are classified in stockholders' equity pursuant to Subtopic 815-40 are not subject to the redeemable equity guidance.

On December 27, 2024, the Company extended the term of the remaining unexercised VC Firm's Right to Purchase to December 31, 2025. The extension was required to be accounted for as an extinguishment and re-issuance of the instrument, which necessitated a reassessment of its classification.

The following tables set forth a summary of the Company's preferred stock outstanding at December 31, 2024 and 2023.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **($ in<br>thousands,<br>except share<br>data)** | **Shares<br>Authorized to<br>be Issued** | **Shares Issued<br>and<br>Outstanding** | **Carrying Value<br>in Temporary<br>Equity, Net of<br>Issuance Cost** | **Issue Date** | **Earliest<br>Redemption /<br>Conversion Date** | **Dividend<br>Rate in<br>Effect** | **Aggregate<br>liquidation<br>preference** |
|  Series A | 1400000 | 960000 | $23507 | 10/20/21 | 10/30/26 | 7.0% | $24000 |
|  Series B-1 | 95466593 | 84688150 | 699963 | 4/13/22 - 12/27/24 | At any time |  | 707146 |
|  Series B-2 | 2406757 | 2406757 | 18412 | 4/25/22 | At any time |  | 13935 |
|  **Total** | **99273350** | **88054907** | $**741882** |  |  |  |  |

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| **($ in<br>thousands,<br>except<br>share data)** | **Shares<br>Authorized to<br>be Issued** | **Shares Issued<br>and<br>Outstanding** | **Carrying Value<br>in Shareholder's<br>Equity, Net of<br>Issuance Cost** | **Issue Date** | **Earliest<br>Redemption /<br>Conversion Date** | **Dividend<br>Rate in<br>Effect** | **Aggregate<br>liquidation<br>preference** |
|  Series A | 1400000 | 1400000 | $33870 | 10/20/21 | 10/30/26 | 7.0% | $35000 |
|  Series B-1 | 95466593 | 82292940 | 680435 | 4/13/22 - 12/31/23 | At any time |  | 687146 |
|  Series B-2 | 2406757 | 2406757 | 18412 | 4/13/22 | At any time |  | 13935 |
|  **Total** | **99273350** | **86099697** | $**732717** |  |  |  |  |

---

**Noncontrolling Interest** 

During the years ended December 31, 2024 and 2023, the Company had an Up-C structure, where the controlling shareholder of the Company held direct ownership interests in CSH LLC. During such periods, a related party also held a preferred interest in CSH LLC. These interests were recorded on the balance sheet as noncontrolling interest and redeemable noncontrolling interest, respectively.

The redeemable preferred noncontrolling interest accrued interest at the Fed Fund rate plus 3.5% per annum starting from March 1, 2023 (Fed Fund rate plus 5% per annum until that date), and is recorded at the redemption value, which includes the interest accrued. The holder of the redeemable preferred interest had the right to require the Company to distribute the outstanding amount of preferred interest, which the Company could defer under certain circumstances. Since the redeemable preferred noncontrolling interest is currently redeemable, it is adjusted to its redemption amount at each balance sheet date. The preferred interest was fully redeemed as of December 16, 2024.

***Shareholder Exchange Transaction—Termination of the Up-C Structure***

On December 31, 2024, the Company's controlling shareholder (which was also the noncontrolling interest holder in CSH LLC) exercised its right to exchange its direct ownership interest in CSH LLC for shares in the Company. This exchange simplified the Company's corporate structure by eliminating its Up-C structure and converting it to a more traditional structure whereby all stockholders hold their voting and economic interests directly through CSG.

Refer to Note 1, *Organization and Description of Business—Corporate Simplification* for more details.

**Earnings Per Share** 

Basic earnings per share is calculated utilizing net income available for common stockholders divided by the weighted average number of shares of Class A and Class Z common stock outstanding for that period.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

The computation for the earnings per share is presented below (in thousands, except for per share data):

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
|  | **2024** | **2023** |
|  **Numerator** |  |  |
|  Net income (loss) from continuing operations | $81086 | $(23866) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net income (loss) from continuing operations attributable to noncontrolling interest | 41419 | (24370) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net income from continuing operations attributable to redeemable noncontrolling interest | 3493 | 7578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: dividends on Series A preferred stock | 2450 | 2450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: accretion on Series A preferred stock | 637 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: deemed dividend on reclassification to warrant liability | 44072 |  |
|  Net loss from continuing operations attributable to Clear Street Group Inc. shareholders for basic and diluted EPS | $(10985) | $(9524) |
|  Net income from discontinued operations, net of taxes | $8042 | $6032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net income from discontinued operations attributable to noncontrolling interest | 4838 | 3981 |
|  Net income from discontinued operations attributable to Clear Street Group Inc. shareholders | $3204 | $2051 |
|  **Denominator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted average shares of common stock outstanding—basic |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | 30658 | 32514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class Z | 308 |  |
|  | 30966 | 32514 |
|  **Earnings (loss) per share attributable to Class A and Class Z common shares:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted loss per share from continuing operations | $(0.35) | $(0.29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted earnings per share from discontinued operations | 0.10 | 0.06 |
|  **Basic and diluted loss per share attributable to stockholders** | $(0.25) | $(0.23) |

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At December 31, 2024, the following instruments were excluded from the computation of diluted earnings (loss) per share, as their effect would have been anti-dilutive: 26.6 million unvested RSUs, employees' options to purchase 9.0 million shares of Class A common stock, 87.1 million of Series B convertible Preferred Stock, the VC Firm Right to purchase 9.6 million of Series B Preferred Stock, and 0.4 million unvested shares issued in the T3 transaction.

At December 31, 2023, the following instruments were excluded from the computation of diluted earnings (loss) per share as their effect would have been anti-dilutive: 20.7 million unvested RSUs,

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

employees' options to purchase 3.5 million shares of Class A common stock, 84.7 million of Series B convertible Preferred Stock, the VC Firm Right to purchase 12.0 million of Series B preferred Stock and redeemable preferred noncontrolling interest convertible to 7.5 million Series B convertible Preferred Stock.

The Class X common stock is non-economic and represents voting rights only; therefore, it is not considered in the calculation of basic or diluted loss per share.

**11. EQUITY-BASED COMPENSATION** 

**2021 Stock Incentive Plan** 

On March 18, 2021, the Company's board of directors and stockholders approved the adoption of the Clear Street Group Inc. 2021 Stock Incentive Plan (as later amended and restated, the "2021 Stock Incentive Plan") which provided a framework for the issuance of stock option awards and restricted stock unit awards ("RSUs") in CSG.

The Company grants RSUs and stock option awards pursuant to the 2021 Stock Incentive Plan for the purpose of retaining the services of certain employees, board members, and consultants of CSG (collectively, the "Participants"). The RSU and stock option awards relate to shares of Class A common stock in CSG. The RSUs time-vest in tranches over certain time periods (most commonly 4 years), as dictated in the RSU and Stock Option Issuance Agreements between the Company and each Participant. In addition to the service vesting condition, the RSUs and the vast majority of the stock options also contain a performance vesting condition, which requires a liquidity event to occur in order for the time-vested RSUs and stock options to fully vest. The performance condition was not deemed probable at any point from inception of the 2021 Stock Incentive Plan. Accordingly, no compensation expenses have been recognized for these awards for the years ended December 31, 2024 and 2023.

The fair value of each RSU is estimated on the grant date based on valuations of the Company's share price performed periodically. Forfeitures are recognized as they occur. On December 31, 2024, the Company used the Hybrid Valuation Model to estimate the fair value of RSUs to be $11.15 per share, which represents an increase in value when compared to the fair value of $6.20 on December 31, 2023. 7.8 million and 7.8 million RSUs were granted to employees in the years ended December 31, 2024 and 2023, respectively, however the valuations are performed at specific points in time. Therefore, the fair market value of the grants on the grant dates was determined by interpolating between the common stock values derived from periodic independent third-party valuations, using an approach that considered the Company's operating performance and prevailing market multiples of comparable companies during the intervening periods.

The Hybrid Valuation Model assumptions for determining the fair value of the RSUs in the years ended December 31, 2024 and 2023, were as follows:

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| | | |
|:---|:---|:---|
| **Years Ended December 31,** | **2024** | **2023** |
|  Expected term (in years) | 2.00 - 2.50 | 2.00 - 2.50 |
|  Expected volatility | 39.0% - 42.5% | 46.5% - 52.0% |
|  Expected dividend yield | 0% | 0% |
|  Risk-free interest rate | 4.25% - 4.48% | 4.06% - 4.12% |
|  Discount for lack of marketability | 13.0% - 23.0% | 14.0% - 22.0% |

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**Other Stock Based Compensation Expenses** 

On April 15 2024, CSH LLC acquired certain customer contracts from T3 Trading Group LLC ("T3") for purchase consideration paid at the closing of the transaction, along with milestone proceeds to be paid when specified revenue targets related to the customer contracts were met. As the transaction consideration had a continued employment requirement by the founder of T3, the transaction was accounted for as a compensatory arrangement. The closing purchase consideration and milestone proceeds consisted of both cash consideration and stock awards that were deemed to be equity classified. As of the transaction date, the milestone was probable of being achieved. The closing purchase consideration of $5.0 million in cash and 0.4 million Class A common stock with a grant date fair value of $2.4 million, and the milestone proceeds of $3.25 million in cash and 0.6 million Class A common stock with a grant date fair value of $3.7 million, are recognized over the requisite service periods, 6 months and 24 months, respectively, starting from the date of the transaction.

**Equity Compensation Awards Activity** 

***Stock Options***

Pursuant to the 2021 Stock Incentive Plan as described above, stock options to purchase shares of Class A common stock in CSG ("Stock Option") were granted. Each Stock Option time-vests in tranches over certain time periods (most commonly over a 4-year period), as dictated in the Stock Option Agreement with each participant, and expires no later than 10 years from the date of grant. The vast majority of the Stock Options also contain a performance vesting condition, which requires a liquidity event to occur in order for the time-vested Stock Options to fully vest.

The following table summarizes activity related to Stock Options for the years ended December 31, 2024 and December 31, 2023:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Options Outstanding** | **Options Outstanding** | **Options Outstanding** | **Options Outstanding** | **Options<br>Exercisable** | **Options<br>Exercisable** |
|  | **Number of<br>Units** | **Weighted<br>Average<br>Grant Date<br>Fair Value/<br>Unit** | **Weighted<br>Average<br>Exercise<br>Price per<br>Share** | **Weighted<br>Average<br>Remaining<br>Contractual<br>Life** | **Number<br>of<br>Stock<br>Options** | **Weighted<br>Average<br>Exercise<br>Price per<br>Share** |
|  Stock Options |  |  |  |  |  |  |
|  **At December 31, 2022** | 325000 | $1.27 | $8.35 | 7.70 | 26562 | $8.35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted | 3666346 | $1.64 | $8.35 | 8.54 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercised |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (444429) | $1.51 | $8.35 |  |  |  |
|  **At December 31, 2023** | 3546917 | $1.63 | $8.35 | 8.54 | 45312 | $8.35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted | 5930170 | $2.87 | $8.35 | 9.57 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercised |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (481373) | $1.86 | $8.35 |  |  |  |
|  **At December 31, 2024** | 8995714 | $2.35 | $8.35 | 9.16 | 82394 | $8.35 |

---

The fair value of the Stock Option grants in 2024 and 2023 was determined using a Black-Scholes option pricing model. On December 31, 2024, the Company used a Black-Scholes option pricing model to estimate the fair value of Stock Options to be $5.55 per option, which represents an increase in value when compared to the fair value of $1.91 on December 31, 2023. 5.9 million and

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

3.7 million Stock Options were granted to employees in the years ended December 31, 2024 and 2023, respectively, however the valuations are performed at specific points in time. Therefore, the fair market value of the grants on the grant dates was determined by using straight-line interpolation between the common stock values derived from periodic independent third-party valuations.

The option pricing model assumptions for determining the fair value of the Stock Options in the years ended December 31, 2024 and 2023, were as follows:

---

| | | |
|:---|:---|:---|
| **Years Ended December 31,** | **2024** | **2023** |
|  Expected term (in years) | 4.00 | 4.00 |
|  Expected volatility | 44.3% | 45.8% |
|  Expected dividend yield | 0% | 0% |
|  Risk-free interest rate | 4.33% | 3.93% |

---

***Restricted Stock Units***

The following is a summary of the RSUs' activity for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **Number of<br>Units** | **Weighted<br>Average<br>Grant Date<br>Fair Value/<br>Unit** |
|  RSUs |  |  |
|  **Outstanding at January 1, 2023** | 14458215 | $5.39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted | 7824146 | $5.49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchased |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (1611185) | $5.50 |
|  **Outstanding at December 31, 2023** | 20671176 | $5.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted | 7802538 | $7.36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchased |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (1861537) | $5.61 |
|  **Outstanding at December 31, 2024** | 26612177 | $5.98 |

---

All of the RSUs granted are non-vested as of December 31, 2024, since they only become vested upon a liquidity event of the Company.

**Equity-Based Compensation Expense** 

For the years ended December 31, 2024 and 2023, the Company recognized no compensation expense related to the RSUs and Stock Options. No compensation expense will be recognized until a liquidity event is probable, at which time the Company will recognize a cumulative catch up of equity-based compensation expense equal to the portion of RSUs and Stock Options that are fully time-vested. As of December 31, 2024 and 2023, there were $164.1 million and $108.6 million of unrecognized compensation expense, respectively.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**12. NET REVENUES** 

The following table presents the revenue of the Company disaggregated by type, as described in Note 2, *Significant Accounting Policies*, for the years ended December 31, 2024 and 2023:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **Years Ended December 31, 2024** | **Years Ended December 31, 2024** | **Years Ended December 31, 2024** | **Years Ended December 31, 2024** |
|  | **Net interest** | **Fair value<br>through profit<br>or loss** | **Services** | **Total** |
|  **Net financing revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer margin financing | $52173 | $396401 | $— | $448574 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized financing | (143918) |  |  | (143918) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing trades |  | 7385 |  | 7385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financing | 13663 |  |  | 13663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total net financing revenues** | $**(78082)** | $**403786** | $**—** | $**325704** |
|  **Transaction revenues, net** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commission and clearing income |  |  | 93880 | 93880 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other fee income |  |  | 27302 | 27302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment banking income |  |  | 15516 | 15516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total transaction revenues, net** | **—** | **—** | **136698** | **136698** |
|  **Other revenues** |  |  | 1207 | 1207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total other revenues** | **—** | **—** | **1207** | **1207** |
|  **Total revenues** | $**(78082)** | $**403786** | $**137905** | $**463609** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **Years Ended December 31, 2023** | **Years Ended December 31, 2023** | **Years Ended December 31, 2023** | **Years Ended December 31, 2023** |
|  | **Net<br>interest** | **Fair value<br>through profit<br>or loss** | **Services** | **Total** |
|  **Net financing revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer margin financing | $54207 | $602 | $— | $54809 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized financing | (41623) |  |  | (41623) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing trades |  | 78397 |  | 78397 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financing | 9352 |  |  | 9352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total net financing revenues** | $**21936** | $**78999** | $**—** | $**100935** |
|  **Transaction revenues, net** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commission and clearing income |  |  | 63310 | 63310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other fee income |  |  | 29457 | 29457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment banking income |  |  | 952 | 952 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total transaction revenues, net** | **—** | **—** | **93719** | **93719** |
|  **Other revenues** |  |  | 1137 | 1137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total other revenues** | **—** | **—** | **1137** | **1137** |
|  **Total revenues** | $**21936** | $**78999** | $**94856** | $**195791** |

---

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

For the year ended December 31, 2024, investment banking revenues consisted of $7.7 million of underwriting revenue and $7.8 million of M&A advisory revenue. For the year ended on December 31, 2023, investment banking revenue consisted of $1.0 million of M&A advisory revenue.

For the year ended December 31, 2024, Net financing revenues include net gains of $2,458.0 million from financing trades in equity securities (including $23.8 million of dividend income and $36.4 million of dividend expense), a net loss of $(2,058.2) million from derivative assets and liabilities (see Note 6, *Derivative Instruments*), and net gain of $4.0 million from financing trades in fixed income securities, which is included in Fair value through profit or loss in the table above.

Net financing revenues also include interest income of $2,153.4 million and interest expense of $2,297.4 million from collateralized financing, and the net amount is included in Net interest in the table above.

Net financing revenues also include $139.0 million income and $86.9 million expense from customer margin financing, and the net amount is included in Net interest in the table above.

Net financing revenues also include $17.1 million income and $3.5 million expense from other financing, and the net amount is included in Net interest in the table above.

For the year ended on December 31, 2023, Net financing revenues include net gains of $75.1 million from financing trades in equity securities (including $21.7 million of dividend income and $37.7 million of dividend expense), and a net gain of $3.2 million from financing trades in derivative assets and liabilities, which is included in Fair value through profit or loss in the table above.

Net financing revenues also include interest income of $1,665.5 million and interest expense of $1,707.2 million from collateralized financing, and the net amount is included in Net interest in the table above.

Net financing revenues also include $55.4 million income and $10.1 million expense from customer margin financing, and the net amount is included in Net interest in the table above.

Net financing revenues also include $9.5 million income and less than $0.1 million expense from other financing, and the net amount is included in Net interest in the table above.

**13. INCOME TAXES** 

The Company files income tax returns in the U.S. federal as well as certain U.S. state and local and non-U.S. jurisdictions.

The Company had total pretax income (loss) from continuing operations of $91.7 million and $(24.5) million for the years ended December 31, 2024 and 2023, respectively.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

The Company had pretax income (loss) from domestic operations of $98.0 million and $(21.0) million for the years ended December 31, 2024 and 2023, respectively. The Company had pretax income (loss) from foreign operations of $(6.3) million and $(3.5) million for the years ended December 31, 2024 and 2023, respectively.

The following table reflects the components of income tax expense/(benefit) from continuing operations included in the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2024 and 2023.

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  Current income tax expense / (benefit) |  |  |
|  U.S. federal | $13654 | $(21) |
|  U.S. state and local | 3849 | (8) |
|  Non-U.S. | 40 |  |
|  **Total current income tax expense / (benefit)** | $**17543** | $**(29)** |
|  **Deferred income tax expense / (benefit)** |  |  |
|  U.S. federal | $(6045) | $(508) |
|  U.S. state and local | (880) | (177) |
|  Non-U.S. |  |  |
|  **Total deferred income tax expense / (benefit)** | **(6925)** | **(685)** |
|  **Total income tax expense / (benefit)** | $**10618** | $**(714)** |

---

For the years ended December 31, 2024 and 2023, the Company recorded income tax expense (benefit) of $10.6 million and $(0.7) million, respectively, in Income (loss) from continuing operations in its Consolidated Statements of Comprehensive Income (Loss). For the years ended December 31, 2024 and 2023, the Company recorded income tax expense (benefit) of $1.2 million and $0.7 million, respectively, in Net income from discontinued operations.

At December 31, 2024 and 2023, the Company had a net income tax payable of $8.4 million and net income tax receivable of $0.9 million, respectively, which were included in Income tax liabilities and Other assets, respectively, in the Consolidated Statements of Financial Condition.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

The difference between the Company's statutory U.S. federal income tax rate and the effective tax rate is primarily attributable to the benefit related to the tax effect of noncontrolling interest partially offset by the provision of state and local taxes. The following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate.

---

| | | |
|:---|:---|:---|
| **Years Ended December 31,** | **2024** | **2023** |
|  Statutory U.S. federal tax rate | 21.0% | 21.0% |
|  Increase/(decrease) in tax rate resulting from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. state and local taxes, net of U.S. federal income tax benefit | 2.0% | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling interests | (11.3%) | (12.0%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance | 1.8% | (3.6%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax credit | (1.1%) | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return to provision adjustment | (1.3%) | (3.8%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 0.5% | 0.6% |
|  **Effective tax rate** | **11.6%** | **3.0%** |

---

Significant components of the Company's deferred tax asset and liability consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  **Deferred tax asset** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basis difference of investment | $— | $1306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research & experimentation expense amortization | 5558 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net operating loss carryforwards | 2622 | 975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred compensation | 1410 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 5002 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other | 4687 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total deferred tax asset** | $**19279** | $**2281** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance | (2622) | (975) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Deferred tax asset, net of valuation allowance** | $**16657** | $**1306** |
|  **Deferred tax liability** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total deferred tax liability** | **—** | **—** |
|  **Net deferred tax asset** | $**16657** | $**1306** |

---

In connection with the shareholder exchange transaction, CSH LLC terminated as a partnership and became a wholly owned disregarded entity of the Company. As a result, the effects of noncontrolling interest will no longer apply as all of the earnings of CSH LLC will be taxable to CSG. The transaction resulted in a revaluation of the Company's deferred tax assets and liabilities based on the changes from the net difference between the tax bases and financial reported amounts of CSG's share of investment in CSH LLC to the net difference between the tax bases and reported amounts of the Company's underlying assets and liabilities. As a result, a revaluation adjustment of $8.4 million as an increase to deferred tax asset was recorded at December 31, 2024.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

As of December 31, 2024, the Company had tax-effected net operating loss carry forwards ("NOLs") in non-U.S. jurisdictions of approximately $2.6 million. These losses, if unused, can be carried forward indefinitely. Due to limited operational history, a full valuation allowance has been recorded against the NOLs.

The Company's tax returns are subject to routine examination by the Internal Revenue Service ("IRS") and by tax authorities in various state and local and foreign jurisdictions. CSG, generally, remains open for examination beginning with the tax year ended December 31, 2021 and is no longer subject to examination for tax years prior to 2021.

A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits were as follows:

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  **Beginning balance of unrecognized tax benefit** | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross increases for prior year tax positions | 129 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross decreases for prior year tax positions |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross increases for current year tax positions | 221 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross decreases for current year tax positions |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decreases relating to settlements with taxing authorities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reductions resulting from a lapse of the applicable statute of limitations |  |  |
|  **Ending balance of unrecognized tax benefits** | $**350** | $**—** |

---

Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense or benefit in the Consolidated Statements of Comprehensive Income (Loss). Accrued interest and penalties are included within Income tax liabilities on the Consolidated Statements of Financial Condition.

As of December 31, 2024, the Company recorded $0.1 million of interest and penalties related to uncertain tax positions. As of December 31, 2023, no unrecognized tax benefits and/or related interest and penalties were recorded. Of the balance at December 31, 2024 and December 31, 2023, approximately $0.3 million and $- million respectively, represents the amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate in future years. The Company does not believe that the amounts of unrecognized tax benefits will materially change within the next twelve months.

**14. RISKS AND UNCERTAINTIES** 

The Company's activities expose it to a number of financial risks, including market risk and credit risk. The Company seeks to manage its financial risks using various mitigating controls.

**Market Risk** 

The Company is exposed to various market risks. Exposures to market risks arise primarily from equity price risk and changes in interest rates.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

***Equity Price Risk***

The Company has sold securities that it does not currently own and will therefore be obligated to purchase such securities at a future date. The Company has recorded these obligations in the Consolidated Financial Statements at December 31, 2024 and 2023 at fair value of the related securities and will incur a loss if the fair value of the securities increases subsequent to year-end.

With regards to its security-based swaps, it is the Company's policy to mitigate its market risk exposure on security-based swaps through the purchase or sale of the corresponding underlying securities. As a result, the Company is not exposed to material market risk on its security-based swaps, other than the potential operational or trading errors that may occur. The Company monitors its exposures daily to ensure that open positions remain appropriately hedged. For the years ended on December 31, 2024 and 2023, the Company recognized a net trading gain (loss) of less than $(0.1) million and less than $0.1 million, respectively, related to its net exposure to security-based swaps.

In connection with its security-based swap dealer activities, the Company enters into transactions in a variety of securities and derivative financial instruments, primarily exchange-traded equity options and other instruments used for funding or additional hedges to mitigate the risk related to extreme adverse market moves. Options held provide the Company with the opportunity to deliver or take delivery of specified financial instruments at a contractual price. Options written obligate the Company to deliver or take delivery of specified financial instruments at a contractual price in the event the option is exercised by the holder.

The Company may enter into underwriting commitments and, as a result, be subject to market risk on any committed but unsold shares issued in the offerings. The Company manages its risk exposure by limiting its participation, limiting the transaction size or through a syndication process.

***Interest Rate Risk***

The Company's exposure to changes in interest rates primarily relates to its Net financing revenues earned on interest-bearing client and counterparty balances. Net financing revenues are determined by various factors such as the distribution and composition of interest-bearing balances and the spread earned on financing transactions. Because both the rates charged to clients or counterparties balances and the rates at which these balances are funded are generally indexed to the same reference rate, such as the Overnight Bank Funding Rate, increases or decreases in interest rates are not expected to proportionally increase or decrease the Company's Net financing revenues.

The Company also has exposure to changes in interest rates related to its variable-rate revolving credit agreement (refer to Note 9, *Borrowings—Revolving Credit Agreements*).

**Credit Risk** 

The Company is engaged in various trading, brokerage, FCM clearing and security-based swap dealer activities servicing a diverse group of entities. The Company's transactions are collateralized and are primarily executed with and on behalf of brokers-dealers, banks, pension plans, governments, mutual funds, hedge funds and other financial institutions. A substantial portion of the Company's security-based swaps transactions are executed with and on behalf of 40 Act Funds. The Company is exposed to credit risk in the event a counterparty fails to meet its contractual obligations. The majority

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

of the Company's concentration of its credit exposures are with customers, broker-dealers and other financial institutions located in the United States. The Company does not anticipate non-performance by customers or counterparties. If parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, the maximum amount of loss due to credit risk is approximately the same as the total carrying amount of the financial instruments.

With regards to its security-based swap dealer activity, the Company's exposure to credit risk associated with the non-performance of counterparties can be directly impacted by volatile securities markets or regulatory changes, which may impair the counterparties' ability to satisfy their obligation to the Company. The Company does not anticipate non-performance by the counterparties in the situation described.

The Company also conducts futures and options on futures contract transactions for its clients. The purchase and sale of futures contracts requires margin deposits with an FCM. The Commodity Exchange Act requires an FCM to segregate all client transactions and assets from the FCM's proprietary activities. A client's cash and other equity deposited with an FCM are considered commingled with all other client funds subject to the FCM's segregation requirements. In the event of an FCM's insolvency, recovery may be limited to the Company's pro rata share of segregated client funds available. It is possible that the recovery amount could be less than the total cash and other equity deposited.

The credit risk team, an independent function of the Company, is tasked with minimizing credit risk from the Company's various trading, brokerage and security-based swap dealer activities. The Company's process for managing credit risk includes the evaluation of likelihood that a counterparty defaults on its payments and obligations; assignment of internal credit ratings to all active counterparties; approval of extensions of credit and establishment of credit limits; measurement, monitoring and management of the Company's current and potential future credit exposures; setting credit terms in legal documentation including margin terms; use of appropriate credit risk mitigants including netting; collateral and hedging; and active communication and co-operation with various stakeholders such as Trading units, Operations, Legal, Compliance and Finance.

Refer to Note 2, *Significant Accounting Policies*—*Allowance for Credit Losses* for additional information.

**Off-Balance Sheet Risk** 

In the ordinary course of business, the Company enters into various types of off-balance sheet arrangements. The Company may be exposed to a risk of loss not reflected in the Consolidated Financial Statements when it extends credit that is collateralized by cash and securities in the customers' accounts. This may expose the Company to significant off-balance sheet risk in the event margin requirements are insufficient to fully cover losses that clients may incur and those clients fail to satisfy their obligations. The majority of the Company's transactions with off-balance sheet risk are short-term in duration.

With regards to the futures and options on futures contract transactions that the Company conducts for its clients, the client commodities activities are transacted either on a cash or on a margin basis. In margin transactions, the Company extends credit to its clients, subject to various regulatory

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

and internal margin requirements, collateralized by cash and securities in the clients' accounts. Such transactions may expose the Company to significant off-balance-sheet risk in the event margin deposits are not sufficient to fully cover losses that clients may incur. In the event margin deposits are not sufficient to satisfy the Company's obligations, it may be required to purchase or sell financial instruments at prevailing market prices to fulfill the client's obligation.

Additionally, in the ordinary course of business, the Company purchases and sells securities and derivative financial instruments. If a party to a transaction fails to fulfill its contractual obligations, the Company may incur a loss if the market value of the security is different from the contract amount of the transaction. The majority of the Company's transactions with off-balance sheet risk are short-term in duration.

**15. COMMITMENTS AND CONTINGENCIES** 

The nature of the Company's business subjects it to claims, lawsuits and regulatory examinations and other proceedings in the ordinary course of business.

At December 31, 2024, there were no unasserted claims or assessments that the Company is aware of or legal counsel has advised are probable of assertion and which must be disclosed. In the opinion of management, the ultimate outcome of all matters will not have a material impact on the Company's financial condition.

The Company's regulated subsidiaries are also involved, from time to time, in reviews, examinations, and proceedings by governmental and self-regulatory agencies (both formal and informal) regarding their businesses, operations, reporting or other matters, which may result in judgments, settlements, fines, penalties, injunctions, enhanced oversight, remediation, or other relief.

**16. LEASES** 

The Company's leases portfolio consists of office space (real estate), which are all classified as operating leases. At December 31, 2024 and 2023, the weighted-average remaining lease terms are 5.7 years and 6.5 years, respectively. At December 31, 2024 and 2023, the weighted-average discount rate used to measure the lease liabilities is 7.0% and 6.9%, respectively.

Included in Professional fees, marketing and other expenses was rent expense of $4.5 million and $4.0 million for the years ended December 31, 2024 and 2023, respectively. Short-term rent expense was $0.6 million and $0.3 million for the years ended December 31, 2024 and 2023, respectively. During the year ended December 31, 2023, the Company terminated an existing sub-lease as the sub-lessor went into bankruptcy and then entered into a new lease with the landlord of the same office space over the same remaining term. Related to this termination, the Company recorded a $1.8 million gain.

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**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

Future minimum lease payments under operating leases with non-cancelable lease terms, at December 31, 2024, are as follows:

---

| | |
|:---|:---|
| **($ in thousands)** | **Commitment** |
| 2025 | $3691 |
| 2026 | 3769 |
| 2027 | 3828 |
| 2028 | 3504 |
|  2029 and thereafter | 7066 |
|  **Total future minimum lease payments** | $**21858** |
|  Less imputed interest | 4009 |
|  **Total operating lease liabilities** | $**17849** |

---

Cash payments included in the measurement of the leases were $3.3 million and $2.9 million for the twelve months ended December 31, 2024 and 2023, respectively.

**17. RELATED PARTY TRANSACTIONS** 

In the ordinary course of business, the Company may engage in transactions with a controlling shareholder or its subsidiaries, with its directors and officers or with other related parties.

The Company through its subsidiary CS LLC provides clearing and execution services to affiliated entities under common control and other related parties. For the year ended on December 31, 2024, the Company earned Transaction revenues of $0.2 million and Net financing revenues of $(0.5) million. For the year ended December 31, 2023, the Company earned Transaction revenues of $2.0 million and Net financing revenues of $(0.2) million.

At December 31, 2024, the Company had recorded in the Consolidated Statement of Financial Condition $49.1 million in Receivable from customers, $1.6 million in Receivable from broker-dealers and clearing organizations, and $0.8 million in Payable to customers from transactions with these related parties. At December 31, 2023, the Company had recorded $79.1 million in Payable to customers to these related parties.

The Company also receives various services from related parties. For the year ended on December 31, 2024, the Company incurred Professional fees, marketing and other expenses of $1.6 million from transactions with these related parties. For the year ended December 31, 2023, the Company incurred Professional fees and other expenses of $1.2 million from transactions with these related parties.

At December 31, 2024, the Company had recorded in the Consolidated Statement of Financial Condition a payable of $7.8 million in Accounts payable and accrued liabilities for an unpaid tax distribution to a shareholder that was paid on February 2025.

See also Note 18, *Discontinued Operations* for a description of the Markets Business transaction.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**18. DISCONTINUED OPERATIONS** 

Effective March 31, 2024 ("Effective Date"), the Company's controlling shareholder (the "Acquirer") acquired 100% of the common membership interests in two CSG subsidiaries, Clear Street Markets LLC and Clear Street Investments LLC, along with certain related technology and fixed assets (together the "Markets Business"). Clear Street Markets LLC is a proprietary trading firm and broker-dealer that is registered with the SEC and maintains memberships at principal United States exchanges. Clear Street Investments LLC is a non-regulated proprietary trading firm.

The Company transferred its interests in the Markets Business to the Acquirer in return for the forfeiture of 17.7 million shares of Class X common stock of CSG and the redemption by CSH LLC of an identical number of the Class A Units of CSH LLC previously held by the Acquirer in a cashless transaction. The Markets Business net assets carrying value included in the transaction amounted to $67.3 million. After the completion of the transfer of the Markets Business, the Acquirer transferred some of its holdings in the Markets Business to the VC Firm in return for 4.9 million Series B Preferred Stock of the Company. See also Note 10, *Temporary Equity, Shareholders' Equity and Earnings per Share - Redeemable Preferred Stock.*

The transfer of the Markets Business met the GAAP criteria to be classified as a discontinued operation as the sale represented a strategic decision that had a major effect on the Company's operations and financial results. As such, the Markets Business' results for the period from January 1, 2024 through March 31, 2024 have been presented as discontinued operations in the Consolidated Statement of Comprehensive Income (Loss) for the year ended December 31, 2024. This presentation was retrospectively applied for the Consolidated Statement of Financial Condition and Consolidated Statement of Comprehensive Income (Loss) for the year ended December 31, 2023. Since the transaction constituted a transfer of a business to the Company's controlling shareholders, no gain or loss on disposal of discontinued operations was recognized upon the transfer of the Markets Business.

The parties entered into a Transition Services Agreement which provides that for a limited time, certain subsidiaries of the Company and the Markets Business holding company will each provide services that are needed by the other party to continue operating the business without disruption, for no consideration.

The parties also entered into a Mirror Forfeiture Agreement which pertains to 24 employees of the Markets Business who were granted share-based compensation under the equity incentive plan of CSG. The employees' grants in CSG continue to vest after the transaction, as long as they provide services to the Markets Business. In order to mitigate the dilution to CSG shareholders upon vesting of the awards, shares of CSG held by the Markets Business owners will be automatically forfeited, based on the fair value of the grants vested.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

The following table presents the composition of major classes of assets and liabilities of the discontinued operation, as included in Assets of discontinued operations and Liabilities of discontinued operations in the Consolidated Statement of Financial Condition:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents |  | $493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments owned, at fair value |  | 306695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from broker-dealers and clearing organizations |  | 471631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Assets |  | 1096 |
|  **Total Assets** | $— | $779915 |
|  **Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments sold, not yet purchased, at fair value |  | 669897 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to broker-dealers and clearing organizations |  | 8325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities |  | 19398 |
|  **Total Liabilities** | $— | $697620 |

---

The components of net income from discontinued operations on the Consolidated Statement of Comprehensive Income (Loss) were as follows:

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  **Revenues** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net financing revenues | $31263 | $84647 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other revenues | 12 | 31 |
|  **Net revenues** | $**31275** | $**84678** |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensation and benefits | $10218 | $30167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction and market access costs, net | 7628 | 32727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and market data | 2500 | 8543 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees, marketing and other | 1578 | 6343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization and depreciation | 101 | 136 |
|  **Total operating expenses** | $**22025** | $**77916** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expenses | 1208 | 730 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income from discontinued operations** | $**8042** | $**6032** |

---

For the period from January 1, 2024 through March 31, 2024 as included in the Consolidated Statement of Comprehensive Income (Loss), the Markets Business Net financing revenues included $60.5 million net gains from trading in equity securities, $57.0 million net loss from trading in options,

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

$16.2 million net gains from trading in futures, $4.2 million net gains from trading in swaps and net gain of $0.7 million from trading in other instruments.

The cash flows of the discontinued operation as included in the Consolidated Statements of Cash Flows were as follows:

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  Cash provided by (used in) operating activities | $(3697) | $5298 |
|  Cash used in investing activities |  | (12) |

---

**19. SEGMENT REPORTING** 

The Company has a single reportable segment, which is managed on a consolidated basis by the Company's chief operating decision maker ("CODM"). The Company's CODM is its Chief Executive Officer. Consolidated net income is used by the CODM to compare against budgeted and prior periods results, in order to assess the performance of the business and establish company-wide objectives.

The Company's single segment operates a modern infrastructure platform to provide access to the global capital markets. The Company provides clearing, execution, prime brokerage, stock lending, margin lending and investment banking services to hedge funds, ETFs, introducing broker dealers, traditional and alternative asset managers, family offices and individual investors.

Since the Company is managed on a consolidated basis, there are no reconciling items between segment and the consolidated amounts reported in these Consolidated Financial Statements, including total assets and segments assets. The accounting policies of the Company's single segment are the same as those described in the summary in Note 2—*Significant Accounting Policies*.

The significant expense categories are consistent with those presented on the face of the Consolidated Statements of Comprehensive Income (Loss).

For the year ended December 31, 2024 one customer accounted for $105.9 million of the Company's net revenues. For the year ended December 31, 2023, no single customer accounted for more than 10% of the Company's net revenue.

**Geographic Information** 

CSG is a financial infrastructure technology company operating primarily in the U.S., with operations that are expanding in other countries, primarily the UK, Canada and Sweden in 2024 and 2023. For the years ended December 31, 2024 and 2023, less than 1% of the Company's consolidated revenues were generated outside of the U.S. The revenues are attributed to countries based on the locations of the subsidiaries generating the revenue.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**20. NET CAPITAL REQUIREMENTS** 

CS LLC and CS Markets are subject to Rule 15c3-1 of the Securities Exchange Act of 1934 for broker-dealers. CSD is subject to Rule 18a-1 of the Securities Exchange Act of 1934 for security-based swap dealers ("SEC Rule 18a-1"), which require the maintenance of minimum net capital. CS LLC is also subject to the CFTC's minimum net capital rule under Regulation 1.17.

CS LLC's regulatory capital and regulatory capital requirements at December 31, 2024 and 2023 were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  Net capital | $551615 | $603784 |
|  Required net capital | 54509 | 37889 |
|  Excess net capital | 497106 | 565895 |

---

CSD is required to maintain net capital equal to the greater of $20.0 million or two percent of the risk margin amount, as defined by SEC Rule 18a-1. CSD's regulatory capital and regulatory capital requirements at December 31, 2024 and 2023 were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| **($ in thousands)** | **2024** | **2023** |
|  Net capital | $125679 | $42078 |
|  Required net capital | 25875 | 20000 |
|  Excess net capital | 99804 | 22078 |

---

As discussed in Note 1, *Organization and Description of Business*, CS UK registered as a MIFIDPRU Investment Firm with the FCA effective October 17, 2024. CS UK's regulatory capital and regulatory capital requirements at December 31, 2024 were as follows:

---

| | |
|:---|:---|
|  | **December 31,** |
| **($ in thousands)** | **2024** |
|  Own Funds | $34194 |
|  Own Funds Threshold Requirement ("OFTR") | 9877 |
|  Surplus over OFTR | 24317 |

---

CS Canada's regulatory capital and regulatory capital requirements at December 31, 2024 and 2023 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| **(C$ in thousands)** | **2024** | **2024** | **2023** | **2023** |
|  Risk Adjusted Capital ("RAC") | C$ | 1712 | C$ | 521 |
|  Minimum RAC |  | 250 |  | 250 |
|  Excess RAC |  | 1462 |  | 271 |

---

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

CS Market's regulatory capital and regulatory capital requirements at December 31, 2023 were as follows:

---

| | |
|:---|:---|
|  | **December 31,** |
| **($ in thousands)** | **2023** |
|  Net capital | $23327 |
|  Required net capital | 1000 |
|  Excess net capital | 22327 |

---

**21. SUBSEQUENT EVENTS** 

**2030 Notes** 

On September 17, 2025, CSH LLC closed on a $221.5 million senior unsecured note offering (the "2030 Notes"). The 2030 Notes mature on September 30, 2030, and have a fixed annual interest rate of 8.00% per annum. The interest rate is subject to adjustment based on the credit rating of the 2030 Notes. If the 2030 Notes are rated below investment grade, the interest rate increases by 1%. If the rating falls below BB- (or its equivalent), the interest rate increases by an additional 1%. If the 2030 Notes are unrated, the interest rate increases by 2% during the period in which there is no rating.

The 2030 Notes include financial covenants requiring the maintenance of specified leverage and interest coverage ratios and minimum net worth and consolidated EBITDA thresholds. The 2030 Notes also include customary affirmative and negative covenants, including limitations on indebtedness of CSH LLC's non-regulated subsidiaries. CSH LLC has established, and is required to maintain, a funded interest reserve equal to the aggregate interest payable on the 2030 Notes over the next twelve months, which is held in a designated interest reserve account.

As part of the 2030 Notes issuances, the Company repurchased $5.0 million in aggregate principal amount of the 2025 Notes at par plus accrued interest and $13.5 million in aggregate principal amount of the 2026 Notes at a discount to par plus accrued interest.

**Exercise of Right to Purchase Preferred Stock** 

On September 30, 2025, the VC Firm exercised the VC Firm Right to Purchase additional 0.6 million shares of Series B-1 Preferred Stock of the Company for $8.35 per share, for a total of $5.0 million.

During October 2025, the VC Firm exercised its right to purchase additional 9.0 million shares of Series B-1 Preferred Stock of the Company for $8.35 per share, for a total of $75.0 million. Following this exercise, the VC Firm has fully exercised its right.

See also Note 10, *Temporary Equity, Shareholders' Equity and Earnings per Share—Series B Preferred Stock.*

**Repayment of the 2025 Senior Unsecured Notes** 

On October 15, 2025, the date of maturity of the 2025 Notes, the Company fully repaid all amounts outstanding under the 2025 Notes.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Consolidated Financial Statements** 

**CS LLC Revolving Line of Credit** 

On October 24, 2025, CS LLC entered into a Revolving Note and Cash Subordination Agreement (the "Agreement") with a group of banks (collectively, the "Lenders"). Under the Agreement, the Lenders have committed to provide CS LLC with a revolving credit facility of up to $75.0 million during a credit period ending October 24, 2027. Amounts borrowed under the facility will bear interest at the Secured Overnight Financing Rate (SOFR) plus 4.75% (but not less than 5.75%) paid monthly, and will mature on October 24, 2028, unless accelerated in accordance with the Agreement.

The Agreement includes subordination, suspension of repayment, and regulatory capital maintenance provisions. Any repayment of principal or interest is prohibited during periods in which the broker-dealer's net capital would fall below specified regulatory thresholds. The Agreement also contains provisions for accelerated maturity upon the occurrence of defined events of default or regulatory capital impairment. The Agreement was subject to approval by FINRA, which was obtained on October 24, 2025.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Schedule I to Consolidated Financial Statements** 

**Schedule I. PARENT COMPANY CONDENSED FINANCIAL STATEMENTS** 

The Condensed Statements of Financial Condition, Statements of Comprehensive Income (Loss), and Statements of Cash Flow for Clear Street Group, Inc. ("Parent Company") are presented below:

***Parent Company Only—Condensed Statements of Financial Condition***

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| **Assets** | **(in thousands)** | **(in thousands)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $11 | $153689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intercompany receivables | 13 | 27452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 189 | 1118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries | 820929 | 576843 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax assets | 16657 | 1306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Assets** | $**837799** | $**760408** |
|  **Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | $400 | $94 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intercompany payables | 4739 | 230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax payable | 8018 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Warrant liability | 52886 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Liabilities** | $**66043** | $**324** |
|  Temporary Equity - redeemable preferred Shares | $741882 | $— |
|  **Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series A preferred stock ($0.00001 par value; authorized 1,400,000 shares; issued 1,400,000 shares; aggregate liquidation preference $35.0 million at December 31, 2023. Classified as Temporary Equity at December 31, 2024) | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series B preferred stock ($0.00001 par value; authorized 97,873,350 shares; issued 84,699,697 shares; aggregate liquidation preference $701.1 million at December 31, 2023. Classified as Temporary Equity at December 31, 2024) |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common A stock ($0.00001 par value; authorized 294,864,597 shares; issued 30,488,447 and 31,721,692 shares at December 31, 2024 and 2023, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common X stock (zero par value; authorized 130,373,000 shares; issued zero and 130,373,000 shares at December 31, 2024 and 2023, respectively) |  |  |

---

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Schedule I to Consolidated Financial Statements** 

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| **Assets** | **(in thousands)** | **(in thousands)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Z stock ($0.00001 par value; authorized 130,373,000 shares; issued 112,605,223 and zero shares at December 31, 2024 and 2023, respectively) | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 33377 | 755998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Accumulated deficit) / Retained earnings | (3581) | 4200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustments | 77 | (115) |
|  **Total Equity** | $**29874** | $**760084** |
|  **Total Liabilities, Temporary Equity and Shareholders' Equity** | $**837799** | $**760408** |

---

***Parent Company Only—Condensed Statements of Comprehensive Income (Loss)***

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| **Revenues** | **(in thousands)** | **(in thousands)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | $2253 | $2411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intercompany interest income | 2552 | 874 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income | 41 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total revenues** | $**4846** | $**3298** |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees, marketing and other operating expenses | $881 | $591 |
|  **Total expenses** | $**881** | $**591** |
|  **Income before equity in income (loss) of subsidiaries** | $**3965** | $**2707** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity in income (loss) of subsidiaries | 46213 | (8018) |
|  **Income (loss) before income tax** | $**50178** | $**(5311)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax expense (income) | 10800 | (287) |
|  **Net income (loss)** | $**39378** | $**(5024)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustments | 192 | (111) |
|  **Comprehensive income (loss)** | $**39570** | $**(5135)** |

---

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Schedule I to Consolidated Financial Statements** 

***Parent Company Only—Condensed Statements of Cash Flows***

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| **Cash Flows from Operating Activities** | **(in thousands)** | **(in thousands)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $39378 | $(5024) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income (loss) to cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred taxes | (14414) | (759) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity in income (loss) of subsidiaries | (46213) | 8018 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions from subsidiaries | 7291 | 2450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in assets—(increase) decrease: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intercompany receivables | 27439 | 10048 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 1285 | 87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in liabilities—increase (decrease): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | 306 | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intercompany payables | 4510 | (822) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax payable | 15829 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net cash flows provided by operating activities** | $**35411** | $**14050** |
|  **Cash Flows from Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries | $(181395) | $(377962) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of investments |  | (180) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan repaid |  | 1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net cash flows used in investing activities** | $**(181395)** | $**(377142)** |
|  **Cash Flows from Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the issuance of preferred stock, net of issuance costs | $19528 | $516537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to preferred stockholders | (2450) | (2450) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchase of preferred stock | (11000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchase of common stock | (13772) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net cash flows (used in) provided by financing activities** | $**(7694)** | $**514087** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net (decrease) increase in Cash and cash equivalents** | (153678) | 150995 |
|  **Cash and cash equivalents** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning balance | 153689 | 2694 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Ending balance** | $11 | $153689 |

---

***Restricted Net Assets of Subsidiaries***

CS LLC is subject to covenants related to the Committed Facility, as described in Note 9, *Borrowings—Revolving Credit Agreements*. These covenants might restrict its ability to transfer net assets to the Parent Company in the form of dividend payments, loans or advances. The restricted net assets of CS LLC amounted to $625.1 million and $392.6 million as of December 31, 2024, and 2023, respectively.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Schedule I to Consolidated Financial Statements** 

In addition, certain of the Companies' subsidiaries are regulated entities and might be restricted in their ability to transfer net assets to the Parent Company in the form of dividend payments, loans, or advances. Refer to Note 20, Net Capital Requirements for details.

***Parent Company Guarantees***

The Parent Company has issued a guarantee for the lease of its subsidiary CS LLC. The Parent Company has guaranteed the subsidiary's compliance with and payment of all monetary obligations included within the lease. In the event CS Management fails to make full and timely payments, the lessor may seek payment from the Parent Company.

The Parent Company has also guaranteed CS UK's obligations under a clearing membership agreement with an exchange and its obligations to a custodian bank.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Condensed Consolidated Financial Statements (Unaudited)** 

**for the Nine Months Ended** 

**September 30, 2025 and 2024** 

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Condensed Consolidated Statements of Financial Condition** 

---

| | | |
|:---|:---|:---|
|  | **September 30,<br>2025** | **December 31,<br>2024** |
|  | **(in thousands, except shares<br>par value and amounts)** | **(in thousands, except shares<br>par value and amounts)** |
|  | **(unaudited)** | |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $327392 | $273934 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash segregated under federal and other regulations | 532387 | 183081 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized agreements: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under repurchase agreements | 25095506 | 23106957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed | 14170625 | 11475515 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities received as collateral | 3557112 | 3471261 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments owned, at fair value | 25635682 | 15324573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from customers (includes $38.3 million and $49.1 million with related parties at September 30, 2025 and December 31, 2024, respectively) | 2165755 | 778127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from broker-dealers and clearing organizations (includes $18.7 million and $1.6 million with related parties at September 30, 2025 and December 31, 2024, respectively) | 942068 | 757820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill | 29146 | 29146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net of accumulated amortization | 117574 | 97371 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease right-of-use assets | 58303 | 16830 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax assets, net |  | 16657 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 67329 | 30760 |
|  **Total Assets** | $**72698879** | $**55562032** |
|  **Liabilities and Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized financing: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under repurchase agreements | $23928054 | $23155357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned | 21700308 | 14805880 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligation to return securities received as collateral | 3557112 | 3471261 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments sold, not yet purchased, at fair value | 17297037 | 10334660 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to customers (includes $6.4 million and $0.8 million with related parties at September 30, 2025 and December 31, 2024, respectively) | 4077323 | 2484373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to broker-dealers and clearing organizations | 437469 | 151483 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes payable, net of unamortized debt issuance costs | 386800 | 187977 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | 61254 | 17849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | 183017 | 128550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Warrant liability | 131317 | 52886 |
|  **Total Liabilities** | $**71759691** | $**54790276** |
|  **Commitments and Contingencies (Note 14)** |  |  |
|  **Temporary Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series A preferred stock ($0.00001 par value; authorized 1,400,000 shares; issued 960,000 and 960,000 shares at September 30, 2025 and December 31, 2024, respectively) | 23808 | 23507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series B preferred stock ($0.00001 par value; authorized 97,873,350 shares; issued 87,693,709 and 87,094,907 shares at September 30, 2025 and December 31, 2024, respectively) | 732129 | 718375 |

---

The accompanying notes are an integral part of these Consolidated Financial Statements.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Condensed Consolidated Statements of Financial Condition** 

---

| | | |
|:---|:---|:---|
|  | **September 30,<br>2025** | **December 31,<br>2024** |
|  | **(in thousands, except shares<br>par value and amounts)** | **(in thousands, except shares<br>par value and amounts)** |
|  | **(unaudited)** | |
|  **Stockholders' Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common A stock ($0.00001 par value; authorized 294,864,597 shares; issued 30,339,673 and 30,488,447 shares at September 30, 2025 and December 31, 2024, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common X stock (zero par value; authorized 130,373,000 shares; issued zero and zero shares at September 30, 2025 and December 31, 2024, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Z stock ($0.00001 par value; authorized 130,373,000 shares; issued 112,605,223 and 112,605,223 shares at September 30, 2025 and December 31, 2024, respectively) | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 31871 | 33377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings (accumulated deficit) | 151860 | (3581) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustments | (481) | 77 |
|  **Total Equity** | **183251** | **29874** |
|  **Total Liabilities, Temporary Equity and Equity** | $**72698879** | $**55562032** |

---

The accompanying notes are an integral part of these Consolidated Financial Statements.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Condensed Consolidated Statements of Comprehensive Income** 

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended**<br>**September 30,** | **Nine Months Ended**<br>**September 30,** |
|  | **2025** | **2024** |
|  | **(in thousands,<br>except per**<br>**share amounts;<br>unaudited)** | **(in thousands,<br>except per**<br>**share amounts;<br>unaudited)** |
|  **Revenues** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net financing revenues (includes $1.9 million and $(1.0) million with related parties for the nine months ended September 30, 2025 and 2024, respectively) | $515711 | $210558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction revenues (includes $1.0 million and less than $0.1 million from related parties for the nine months ended September 30, 2025 and 2024, respectively) | 267130 | 90333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other revenues | 866 | 990 |
|  **Net Revenues** | $**783707** | $**301881** |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensation and benefits | 239235 | 124768 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction and market access costs, net | 82747 | 46853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and market data | 49726 | 28780 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees, marketing and other (includes $1.3 million and $1.3 million to related parties for the nine months ended September 30, 2025 and 2024, respectively) | 50714 | 28427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization and depreciation | 25664 | 20404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense on borrowings | 11043 | 6558 |
|  **Total operating expenses** | $**459129** | $**255790** |
|  **Operating income** | $**324578** | $**46091** |
|  Loss from change in fair value of warrant liability | (87186) |  |
|  **Income from continuing operations before income tax expense** | $**237392** | $**46091** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 80196 | 5386 |
|  **Income from continuing operations** | $**157196** | $**40705** |
|  **Discontinued operations:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income from discontinued operations |  | 8042 |
|  **Net income** | $**157196** | $**48747** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to noncontrolling interests |  | 24991 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to redeemable noncontrolling interests |  | 3076 |
|  **Net income attributable to Clear Street Group Inc.** | $**157196** | $**20680** |
|  **Basic earnings per share attributable to Class A and Class Z common shares:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic earnings per share from continuing operations | $0.68 | $0.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic earnings per share from discontinued operations |  | 0.03 |
|  **Basic earnings per share attributable to stockholders** | $**0.68** | $**0.17** |
|  **Diluted earnings per share attributable to Class A and Class Z common shares:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share from continuing operations | $0.68 | $0.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share from discontinued operations |  | 0.03 |
|  **Diluted earnings per share attributable to stockholders** | $**0.68** | $**0.17** |
|  **Weighted-average shares used in computing per share amounts:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 142762 | 30880 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 229928 | 115580 |
|  **Comprehensive Income** |  |  |
|  **Net income available for Clear Street Group Inc.** | **157196** | **20680** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustment | (558) | 276 |
|  **Comprehensive income available for Clear Street Group Inc.** | $**<br>156638** | $**20956** |

---

The accompanying notes are an integral part of these Consolidated Financial Statements.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Condensed Consolidated Statements of Changes in Temporary Equity and Shareholders' Equity** 

---

| | | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **(in thousands, except share<br>data; unaudited)** | **Redeemable<br>noncontrolling<br>interest** | **Series A**<br>**Preferred Stock** | **Series A**<br>**Preferred Stock** | **Series B**<br>**Preferred Stock** | **Series B**<br>**Preferred Stock** | **Series A**<br>**Preferred Stock** | **Series A**<br>**Preferred Stock** | **Series B**<br>**Preferred Stock** | **Series B**<br>**Preferred Stock** | **Class A**<br>**Common Stock** | **Class A**<br>**Common Stock** | **Class X**<br>**Common Stock** | **Class X**<br>**Common Stock** | **Class Z**<br>**Common Stock** | **Class Z**<br>**Common Stock** | **Additional<br>Paid-in<br>Capital** | **Retained<br>Earnings** | **Other<br>Comprehensive<br>Income** | **Total<br>Stockholders'<br>Equity** | **Non-<br>Controlling<br>Interest** | **Total<br>Equity** |
|  | | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | | | | | | |
|  **Balance at December 31, 2023** | $**70210** | **—** | $**—** | **—** | $**—** | **1400000** | $**—** | **84699697** | $**1** | **31721692** | $**—** | **130373000** | $**1** | **—** | $**—** | $**755998** | $**4200** | $**(116)** | $**760084** | $**59231** | $**819315** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation |  |  |  |  |  |  |  |  |  | 389221 |  |  |  |  |  | 2964 |  |  | 2964 |  | 2964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reclassification of preferred shares to mezzanine |  | 1400000 | 33870 | 84699697 | 698847 | (1400000) |  | (84699697) | (1) |  |  |  |  |  |  | (732717) |  |  | (732718) |  | (732718) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and accretion to preferred stockholders |  |  | 271 |  |  |  |  |  |  |  |  |  |  |  |  |  | (2108) |  | (2108) |  | (2108) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to NCI | (38000) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution of the Markets business |  |  |  |  |  |  |  |  |  |  |  | (17718795) |  |  |  | (2001) |  |  | (2001) | (65287) | (67288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock buy back |  |  |  |  |  |  |  |  |  | (2221268) |  |  |  |  |  | (13772) |  |  | (13772) |  | (13772) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  |  |  |  |  |  |  |  |  |  |  | (48982) |  |  |  | (910) |  |  | (910) |  | (910) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 276 | 276 |  | 276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | 3076 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 20678 |  | 20678 | 24991 | 45669 |
|  **Balance at September 30, 2024** | $**35286** | **1400000** | $**34141** | **84699697** | $**698847** | **—** | $**—** | **—** | $**—** | **29889645** | $**—** | **112605223** | $**1** | **—** | $**—** | $**9562** | $**22770** | $**160** | $**32493** | $**18935** | $**51428** |
| **(in thousands, except share<br>data; unaudited)** | **Redeemable<br>noncontrolling<br>interest** | **Series A**<br>**Preferred Stock** | **Series A**<br>**Preferred Stock** | **Series B**<br>**Preferred Stock** | **Series B**<br>**Preferred Stock** | **Series A**<br>**Preferred Stock** | **Series A**<br>**Preferred Stock** | **Series B**<br>**Preferred Stock** | **Series B**<br>**Preferred Stock** | **Class A**<br>**Common Stock** | **Class A**<br>**Common Stock** | **Class X**<br>**Common Stock** | **Class X**<br>**Common Stock** | **Class Z**<br>**Common Stock** | **Class Z**<br>**Common Stock** | **Additional<br>Paid-in<br>Capital** | **Retained<br>Earnings** | **Other<br>Comprehensive<br>Income** | **Total<br>Stockholders'<br>Equity** | **Non-<br>Controlling<br>Interest** | **Total<br>Equity** |
|  |  | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** | **Shares** | **Amounts** |  |  |  |  |  |  |
|  **Balance at December 31, 2024** | $**—** | **960000** | $**23507** | **87094907** | $**718375** | **—** | $**—** | **—** | $**—** | **30488447** | $**—** | **—** | $**—** | **112605223** | $**1** | $**33377** | $**(3581)** | $**77** | $**29874** | $**—** | $**29874** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1532 |  |  | 1532 |  | 1532 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of preferred stock, net of issuance costs |  |  |  | 598802 | 13754 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and accretion to preferred stockholders |  |  | 301 |  |  |  |  |  |  |  |  |  |  |  |  |  | (1561) |  | (1561) |  | (1561) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common share buy-back |  |  |  |  |  |  |  |  |  | (148774) |  |  |  |  |  | (977) |  |  | (977) |  | (977) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax adjustment for Up-C termination |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2061) |  |  | (2061) |  | (2061) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (194) |  | (194) |  | (194) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (558) | (558) |  | (558) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 157196 |  | 157196 |  | 157196 |
|  **Balance at September 30, 2025** | $**—** | **960000** | $**23808** | **87693709** | $**732129** | **—** | $**—** | **—** | $**—** | **30339673** | $**—** | **—** | $**—** | **112605223** | $**1** | $**31871** | $**151860** | $**(481)** | $**183251** | $**—** | $**183251** |

---

The accompanying notes are an integral part of these Consolidated Financial Statements.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Condensed Consolidated Statements of Cash Flows** 

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** |
|  | **2025** | **2024** |
|  | **(in thousands; unaudited)** | **(in thousands; unaudited)** |
|  **Cash Flows from Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $157196 | $48747 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred taxes | 21286 | (4580) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation of equipment and leasehold improvements | 1279 | 560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets | 24385 | 19844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred debt issuance costs | 2220 | 1371 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for losses on accounts receivable | 800 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity-based compensation | 1532 | 2964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss from change in fair value of warrant liability | 87186 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange and other items | (459) | (89) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in assets - (increase) decrease: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under repurchase agreements | (1988549) | (6022844) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed | (2695110) | (2111170) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities received as collateral | (85850) | 406869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments owned, at fair value | (10311108) | (10458513) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from customers | (1387651) | 554929 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from broker-dealers and clearing organizations | (184248) | (121278) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | (12201) | 4699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in liabilities - increase (decrease): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under repurchase agreements | 772697 | 6465994 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned | 6894428 | 3607333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligation to return securities received as collateral | 85850 | (407131) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments sold, not yet purchased, at fair value | 6962377 | 7948931 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to customers | 1592950 | 305454 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to broker-dealers and clearing organizations | 285986 | (184879) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | (430) | (1521) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | 55574 | 45264 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net cash flows provided by operating activities** | $**280140** | $**100962** |
|  **Cash Flows from Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalization of internally developed software | $(45239) | $(28225) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of office equipment and leasehold improvements | (4088) | (1619) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of intangible assets and exchange memberships and other investing activities | (1033) | (11418) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for business acquisition, net of cash acquired |  | (28710) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net cash flows used in investing activities** | $**(50360)** | $**(69972)** |
|  **Cash Flows from Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to noncontrolling interest | $(7758) | $(38000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution of the Markets Business to noncontrolling interest holders |  | (416) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of preferred stock, net of issuance costs | 5000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to preferred stockholders | (1260) | (1838) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common share buy-back | (977) | (13772) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from termed debt offering, net of issuance costs | 216763 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayments of Notes Payable | (18317) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit facility issuance costs | (666) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net cash flows provided by (used in) financing activities** | $**192785** | $**(54026)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of exchange rate changes on cash, cash equivalents and Cash segregated under federal and other regulations | 239 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net increase (decrease) in Cash and cash equivalents, cash segregated under federal and other regulations and restricted cash** | $**422804** | $**(23036)** |

---

The accompanying notes are an integral part of these Consolidated Financial Statements.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Condensed Consolidated Statements of Cash Flows** 

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** |
|  | **2025** | **2024** |
|  | **(in thousands; unaudited)** | **(in thousands; unaudited)** |
|  **Cash and cash equivalents, cash segregated under federal and other regulations and restricted cash** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning balance | $457015 | $418787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Ending balance** | $**879819** | $**395751** |
|  **Reconciliation of Cash and cash equivalents, cash segregated under federal and other regulations and restricted cash:** |  |  |
|  Cash and cash equivalents | $327392 | $272738 |
|  Cash segregated under federal and other regulations | 532387 | 123013 |
|  Restricted cash included in other assets | 20039 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Cash and cash equivalents, cash segregated under federal and other regulations and restricted cash** | $**879818** | $**395751** |
|  **Supplemental disclosure of cash flow information** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid during the period for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest | 1683804 | 1797335 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxes | 72847 | 4354 |
|  **Non-cash transactions during the year** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obtaining a right-of-use asset in exchange for a lease liability | 43835 | 639 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution of the Markets business |  | (67288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reclassification of warrant liability to temporary equity upon exercise | 8754 |  |

---

The accompanying notes are an integral part of these Consolidated Financial Statements.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

**1.** **ORGANIZATION AND DESCRIPTION OF BUSINESS** 

**Description of Business** 

Clear Street Group Inc. ("CSG" or the "Company") is a Delaware company formed on December 29, 2020. CSG has adopted a holding company structure. CSG's primary asset is its ownership of the membership interests of Clear Street Holdings LLC ("CSH LLC"), a Delaware limited liability company formed on July 1, 2019. The Company is the sole managing member of CSH LLC and controls all of the businesses and affairs of CSH LLC. Refer to *Note 10, Temporary Equity, Shareholders' Equity and Earnings per Share*, for information on a transaction effected on December 31, 2024 that resulted in CSH LLC becoming a wholly-owned subsidiary of CSG. Also refer to *Note 2, Significant Accounting Policies*—*Basis of Presentation and Consolidation*, including Noncontrolling Interests, for further information on these Condensed Consolidated Financial Statements.

On September 30, 2025, CSH LLC's regulated broker-dealer subsidiaries were Clear Street LLC ("CS LLC") and CS Enhanced Lending LLC ("CS Lending") in the U.S, and Clear Street Canada ("CS Canada"). CS LLC is registered with the Securities and Exchange Commission ("SEC"), the Municipal Securities Rulemaking Board ("MSRB"), the Financial Industry Regulatory Authority, Inc. ("FINRA"), and the Securities Investor Protection Corporation ("SIPC"). CS LLC is also a registered futures commission merchant ("FCM") with the Commodity Futures Trading Commission ("CFTC"), a member of the National Futures Association ("NFA") and a registered security-based swap dealer with the SEC. In addition, CS LLC is a member of various clearing organizations and exchanges in the U.S. and abroad. CS Lending is registered with the SEC and FINRA. CS Canada is a Canadian broker-dealer that is registered with the Canadian Investment Regulatory Organization ("CIRO") and with CDS Clearing and Depository Services Inc. ("CDS"). Additional regulated subsidiaries include Clear Street Derivatives LLC ("CSD"), a security-based swap dealer, and Clear Street UK Limited ("CS UK"), which is registered as a MIFIDPRU Investment Firm with the UK Financial Conduct Authority ("FCA"), effective October 17, 2024.

As of September 30, 2025 and December 31, 2024, all of the Company's regulated subsidiaries had capital in excess of the minimum net capital required by their respective regulators.

**Discontinued Operations** 

Effective March 31, 2024 ("Effective Date") the Company's controlling shareholder (which was also a noncontrolling interest holder in CSH LLC until the Up-C structure was terminated effective December 31, 2024) acquired 100% of the common membership interests in two CSG subsidiaries, Clear Street Markets LLC ("CS Markets") and Clear Street Investments LLC, along with certain related technology and fixed assets (together, the "Markets Business").

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

This transaction represented a strategic shift that had a major effect on the Company's operations and financial results. See *Note 17, Discontinued Operations* for additional information on the Markets Business transaction.

**Business Combination** 

On September 30, 2024, the Company completed an acquisition of specific assets and liabilities of Fox River for total cash consideration of approximately $28.7 million. Fox River is a well-established provider of algorithmic execution solutions for buy and sell-side firms, and markets, sells, and supports such execution solutions products. Fox River has been integrated into CSG's existing business complementing the Company's cloud-native platform and enhancing its electronic trading capabilities.

The acquisition was accounted for as a business combination since the specific assets and liabilities acquired, along with the assembled workforce and process, met the definition of a business in accordance with ASC 805, *Business Combinations*. The Fox River acquisition resulted in recorded goodwill driven by a skilled workforce, a proven ability to generate new products and services to drive future revenue, and expected synergies with CSG. The following table summarizes the fair value of the consideration transferred, the assets acquired, and liabilities assumed at the date of acquisition:

---

| | |
|:---|:---|
| **($ in thousands)** | **Year Ended<br>December 31,** |
|  | **2024** |
|  Fair value of cash consideration transferred | $28710 |
|  Intangible assets | 9300 |
|  Other assets | 1686 |
|  Accounts payable and accrued liabilities | (1290) |
|  Net assets acquired | 9696 |
|  Goodwill | $19014 |

---

The results of operations for Fox River are included in the Condensed Consolidated Financial Statements of the Company from the date of acquisition. Fox River did not generate material revenues or net income for the period ended September 30, 2025.

At the acquisition date, the Company entered into a transition services agreement ("TSA") and a minimum payable agreement ("MPA") for professional services with the former owners of Fox River. The TSA provides for transitional support ending no later than the two-year anniversary of the acquisition date. The MPA provides for a minimum of $10.0 million of professional services to be performed over the period ending on the four-year anniversary of the acquisition date. Both agreements were accounted for as separate transactions from the acquisition and included terms which were comparable to the market.

**Corporate Simplification** 

On December 31, 2024, the Company's controlling shareholder exercised its right to exchange its direct ownership interest in CSH LLC for shares in the Company. This exchange simplified the Company's corporate structure by eliminating its Up-C structure and converting it to a more traditional structure whereby all stockholders hold their voting and economic interests directly through CSG.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

As allowed pursuant to the Exchange Agreement between the Company and its controlling shareholder dated April 13, 2022, the Company's controlling shareholder notified the Company of its election to deliver to the Company 112,605,223 Class A Units it held in CSH LLC in exchange for the issuance by the Company to that interest holder of the same number of the Company's Class Z Common Stock effective as of December 31, 2024. As stipulated in the Company's Certificate of Incorporation, as in effect at such time, upon this exchange, the same number of the Company's Class X Common Stock held by the Company's controlling shareholder were cancelled.

As a result of the shareholder exchange transaction, CSH LLC became a wholly owned subsidiary of the Company.

**2.** **SIGNIFICANT ACCOUNTING POLICIES** 

**Basis of Presentation and Consolidation, including Noncontrolling Interests** 

CSH LLC's Operating Agreement designates CSG as the managing member of CSH LLC and assigns it the power and authority to effectively manage, and make significant operating and financial decisions on behalf of, CSH LLC. As the sole managing member of CSH LLC, the Company exerts control over the operations of CSH LLC and its subsidiaries. In accordance with ASC 810, *Consolidation*, the Company consolidates CS Management's as well as CSH LLC's consolidated financial statements and prior to the termination of the Up-C structure effective December 31, 2024, recorded the interests in CSH LLC owned by other parties, including the Company's controlling shareholder, as noncontrolling interests. Effective upon the termination of the Up-C structure on December 31, 2024, CSH LLC became a wholly owned subsidiary of CSG and there are no longer outstanding noncontrolling interests in CSH LLC owned by other parties (see *Note 10, Temporary Equity, Shareholders' Equity and Earnings per Share*). These Condensed Consolidated Financial Statements reflect the historical financial position, results of operations and cash flows of the businesses comprising CSG and its consolidated subsidiaries based on their respective historical financial statements and accounting records.

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") , and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding financial reporting. The Condensed Consolidated Financial Statements are presented in U.S. dollars.

These Condensed Consolidated Financial Statements are unaudited and should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2024. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in accordance with SEC rules and regulations. All intercompany transactions have been eliminated in accordance with U.S. GAAP. Certain reclassifications have been made to previously reported amounts to conform to the current presentation. In the opinion of management, the Condensed Consolidated Financial Statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the Company's financial condition and results of operations and cash flows for the interim periods presented. The results of the nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the full year ending December 31, 2025.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

**Summary of Significant Accounting Policies** 

For a detailed discussion of the Company's significant accounting policies, refer to *Note 2, Significant Accounting Policies* in the Consolidated Financial Statements for the fiscal year ended December 31, 2024.

**Use of Estimates** 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in these Condensed Consolidated Financial Statements and accompanying notes. These estimates and assumptions are based on judgments and the best available information at the time. Therefore, actual results could differ materially from those estimates. Such estimates include valuation of certain financial instruments owned and sold, not yet purchased, both at fair value, goodwill and intangible assets, provision for losses on accounts receivable, capitalized software, equity-based compensation, warrant liability and other matters that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period.

**Change in Accounting Principles** 

In 2024, the Company voluntarily changed its annual goodwill impairment testing date from December 31st to October 1st. This is a change in accounting principle, which management believes is preferable, as the new assessment date provides for a more robust operation of controls given the additional time allotted. This change was not material to the Company's Consolidated Financial Statements as it did not delay, accelerate, or avoid any potential goodwill impairment charge. This change has been applied prospectively from October 1, 2024 as retrospective application is deemed impracticable due to the inability to objectively determine the assumptions and significant estimates used in earlier periods without the benefit of hindsight.

**Recent Accounting Pronouncements** 

For a detailed discussion for a summary of our significant accounting policies, refer to *Note 2, Significant Accounting Policies* in the Consolidated Financial Statements for the fiscal year ended December 31, 2024. There have been no significant changes in our significant accounting policies since December 31, 2024.

**Accounting Pronouncements, Pending Adoption** 

In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements ("ASU 2025-11"). This ASU improves the navigability of interim disclosure requirements, provides additional guidance on the disclosures required in interim reporting periods, and introduces a principle requiring entities to disclose events occurring since the end of the most recent annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for public business entities in interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2025-11 on its financial statements and related disclosures.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

**3.** **CASH SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS** 

The Company maintains custody of customer funds and is obligated by rules and regulations mandated by the SEC and the CFTC to segregate or set aside cash and qualified securities to satisfy these regulations, which have been promulgated to protect customer assets.

At September 30, 2025 and December 31, 2024, included in Cash segregated under federal and other regulations on the Condensed Consolidated Statements of Financial Condition were $98.2 million and $175.8 million, respectively, which have been segregated in a special reserve account for the exclusive benefit of the Company's customers, and $6.2 million and $1.2 million, respectively, in a special account for the exclusive benefit of broker-dealers. In addition, at September 30, 2025 and December 31, 2024, $426.6 million and $6.1 million of cash have been segregated under the Commodity Exchange Act, respectively, and $1.4 million and no amounts have been segregated under rule 30.7 of the CFTC, respectively.

As of September 30, 2025, $20.0 million of the Company's cash was classified within Other assets due to restrictions on its use. Of this amount, $18.0 million was required to be maintained in an interest reserve account pursuant to the 2030 Notes (as defined herein) (as defined herein) (see Note 9, *Borrowings—Notes Payable*), and $2.0 million was required to be maintained in a bank account as collateral for a letter of credit issued in connection with a new lease arrangement entered into in June 2025.

**4. RECEIVABLES FROM AND PAYABLES TO BROKER-DEALERS AND CLEARING ORGANIZATIONS** 

Receivables from and Payables to broker-dealers and clearing organizations consist of the following at September 30, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from broker dealers | $25329 | $17538 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from clearing organizations | 801549 | 642979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities failed to deliver | 100232 | 30165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable under resale agreements | 14958 | 38686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unsettled trades with clearing organizations |  | 28452 |
|  **Total receivables from broker-dealers and clearing organizations** | $**942068** | $**757820** |

---

---

| | | |
|:---|:---|:---|
| **($ in thousands)** | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  **Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to broker dealers | $46082 | $22884 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to clearing organizations | 22289 | 29291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities failed to receive | 107945 | 29390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable under resale agreements | 89412 | 69918 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unsettled trades with clearing organizations | 171741 |  |
|  **Total payables to broker-dealers and clearing organizations** | $**437469** | $**151483** |

---

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

**5. FAIR VALUE MEASUREMENT** 

**Financial Instruments Measured at Fair Value** 

The Company's financial instruments recorded at fair value have been categorized based upon a fair value hierarchy in accordance with accounting standards. For a detailed discussion on financial instruments measured at fair value, refer to *Note 2, Significant Accounting Policies—Fair Value of Financial Instruments*, and *Note 5, Fair Value Measurement*, in the Consolidated Financial Statements for the fiscal year ended December 31, 2024.

For the nine months ended September 30, 2025 and 2024, there were no transfers into or out of Level 3.

A venture capital firm (the "VC Firm") is the lead investor in the Company's Series B Preferred Stock. The VC Firm holds a right to purchase additional shares of Series B Preferred Stock (the "VC Right to Purchase") as provided under the investment agreement. The Company categorized the VC Right to Purchase, which is recorded in Warrant liability on the Company's Consolidated Statements of Financial Condition, as Level 3 within the fair value hierarchy due to the use of significant unobservable inputs.

The fair value of the VC Right to Purchase (see *Note 10, Temporary Equity, Shareholders' Equity and Earnings per Share—Redeemable Preferred Stock*) at the reclassification date, as of December 31, 2024, and September 30, 2025 was measured by independent third-party valuation specialists using a hybrid valuation approach that considers multiple potential liquidity scenarios. In estimating the fair value of the underlying equity, the Company considered both (i) an M&A exit scenario and (ii) an initial public offering (IPO) scenario, reflecting alternative future outcomes available to market participants ("Hybrid Valuation Model").

Under the M&A scenario, the Company applied the Options Pricing Method (OPM) which estimates the value of the Company's equity securities by allocating the total equity value to each class of security based on its rights and preferences, assuming a liquidity event occurs at a future date. Under the IPO scenario, the Company applied the Probability-Weighted Expected Return Method (PWERM), which estimates the equity value based on the expected per-share value under an IPO event. The resulting values from each scenario were weighted based on the Company's estimate of the relative probability of each outcome, reflecting inputs such as current market conditions, recent transaction activity, discussions with potential investors, and the Company's progress toward a public listing. The combined weighted value was then used to estimate the fair value of the VC Right to Purchase, which was $14.62 and $5.52 per share at September 30, 2025 and December 31, 2024, respectively.

Significant unobservable inputs to the valuation included the expected time to liquidity, volatility, discount rate, probability weighting between the IPO and M&A scenarios and estimated enterprise value. Changes in these assumptions could materially affect the fair value measurement.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

The significant inputs under the OPM included:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **September 30,** | **December 31,** |
|  |  | **2025** | **2024** |
|  Expected term (in years) | OPM | 0.2 | 1 |
|  Expected volatility | OPM | 47.20% | 31.00% |
|  Expected dividend yield | OPM | 0.00% | 0.00% |
|  Risk-free interest rate | OPM | 4.02% | 4.16% |
|  Discount rate | PWERM | 18.50% | 16.25% |

---

Fair value measurements for items measured at fair value on a recurring basis are summarized below at September 30, 2025 and December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total Fair<br>Value** |
|  **Assets** |  |  |  |  |
|  Financial instruments owned |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | $20223902 | $21120 | $— | $20245022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity options | 144190 |  |  | 144190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity index options | 3585072 |  |  | 3585072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps |  | 598541 |  | 598541 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. treasury securities | 1045266 |  |  | 1045266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate Debt | 16847 |  |  | 16847 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 384 |  | 360 | 744 |
|  Securities received as collateral | 3557112 |  |  | 3557112 |
|  **Financial assets measured at fair value** | $**28572773** | $**619661** | $**360** | $**29192794** |
|  **Liabilities** |  |  |  |  |
|  Financial instruments sold, not yet purchased |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | $182766 | $— | $— | $182766 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity index options | 11274890 |  |  | 11274890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity options | 1409029 |  |  | 1409029 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps |  | 4430352 |  | 4430352 |
|  Obligation to return securities received as collateral | 3557112 |  |  | 3557112 |
|  Warrant liability |  |  | 131317 | 131317 |
|  **Financial liabilities measured at fair value** | $**16423797** | $**4430352** | $**131317** | $**20985466** |

---

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total Fair<br>Value** |
|  **Assets** |  |  |  |  |
|  Financial instruments owned |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | $12606956 | $15000 | $— | $12621956 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity options | 681349 |  |  | 681349 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity index options | 1386794 |  |  | 1386794 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps |  | 201990 |  | 201990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. treasury securities | 431756 |  |  | 431756 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 368 |  | 360 | 728 |
|  Securities received as collateral | 3471261 |  |  | 3471261 |
|  **Financial assets measured at fair value** | $**18578484** | $**216990** | $**360** | $**18795834** |
|  **Liabilities** |  |  |  |  |
|  Financial instruments sold, not yet purchased |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | $121593 | $— | $— | $121593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity index options | 3985055 |  |  | 3985055 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity options | 4199996 |  |  | 4199996 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps |  | 2028016 |  | 2028016 |
|  Obligation to return securities received as collateral | 3471261 |  |  | 3471261 |
|  Warrant liability |  |  | 52886 | 52886 |
|  **Financial liabilities measured at fair value** | $**11777905** | $**2028016** | $**52886** | $**13858807** |

---

As of September 30, 2025, the Company held $34.8 million of equity securities with contractual sale restrictions, which lapse within 6 months from the balance sheet date. As of December 31, 2024, the Company held no equity securities with contractual sale restrictions.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

**Financial Instruments Not Measured at Fair Value** 

The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value on the Condensed Consolidated Statements of Financial Condition at September 30, 2025 and December 31, 2024. Non-financial assets and liabilities are excluded. The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 and Level 2 approximates fair value due to the relatively short-term nature of the underlying assets.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Carrying Value** | **Fair Value** | **Level 1** | **Level 2** | **Level 3** |
|  **Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $327392 | $327392 | $327392 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash segregated under federal and other regulations | 532387 | 532387 | 532387 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under repurchase agreements | 25095506 | 25095506 |  | 25095506 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed | 14170625 | 14170625 |  | 14170625 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from broker-dealers and clearing organizations | 942068 | 942068 |  | 942068 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from customers | 2165755 | 2165755 |  | 2165755 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets | 37036 | 38236 | 22687 | 5849 | 9700 |
|  **Total financial assets** | $**43270769** | $**43271969** | $**882466** | $**42379803** | $**9700** |
|  **Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under repurchase agreements | $23928054 | $23928054 | $— | $23928054 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned | 21700308 | 21700308 |  | 21700308 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to customers | 4077323 | 4077323 |  | 4077323 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to broker-dealers and clearing organizations | 437469 | 437469 |  | 437469 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes payable, net of unamortized issuance costs | 386800 | 390504 |  | 390504 |  |
|  **Total financial liabilities** | $**50529954** | $**50533658** | $**—** | $**50533658** | $**—** |

---

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Carrying Value** | **Fair Value** | **Level 1** | **Level 2** | **Level 3** |
|  **Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $273934 | $273934 | $273934 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash segregated under federal and other regulations | 183081 | 183081 | 183081 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under repurchase agreements | 23106957 | 23106957 |  | 23106957 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed | 11475515 | 11475515 |  | 11475515 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from broker-dealers and clearing organizations | 778127 | 778127 |  | 778127 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from customers | 757820 | 757820 |  | 757820 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial assets | 16898 | 17792 | 2361 | 7003 | 8398 |
|  **Total financial assets** | $**36592332** | $**36593226** | $**459376** | $**36125422** | $**8398** |
|  **Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under repurchase agreements | $23155357 | $23155357 | $— | $23155357 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned | 14805880 | 14805880 |  | 14805880 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to customers | 2484373 | 2484373 |  | 2484373 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to broker-dealers and clearing organizations | 151483 | 151483 |  | 151483 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes payable, net of unamortized issuance costs | 187977 | 185989 |  | 185989 |  |
|  **Total financial liabilities** | $**40785070** | $**40783082** | $**—** | $**40783082** | $**—** |

---

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

**6. DERIVATIVE INSTRUMENTS** 

The Company does not have any derivative instruments designated as hedging instruments under ASC 815, *Derivatives and Hedging*. The fair value of the Company's derivative instruments on a gross basis consisted of the following at September 30, 2025 and December 31, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **($ in thousands)** | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Derivative Assets** | **Financial Statements<br>Caption** | **Fair Value** | **Notional Value** | **Fair Value** | **Notional Value** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity options | Financial instruments owned | $144190 | $8791258 | $681349 | $28088199 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity index options | Financial instruments owned | 3585072 | 83439876 | 1386794 | 24761662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps | Financial instruments owned | 598541 | 1658794 | 201990 | 1447053 |
|  **Derivative Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity options | Financial instruments sold, not yet purchased | $1409029 | $8294573 | $4199996 | $28028846 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity index options | Financial instruments sold, not yet purchased | 11274890 | 83439876 | 3985055 | 24761662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based Swaps | Financial instruments sold, not yet purchased | 4430352 | 1859704 | 2028016 | 7177941 |

---

The following table summarizes the net gain (loss) from derivative instruments, excluding any offsetting gains or losses from associated financing and economic hedging activity, for the nine months ended September 30, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
| **($ in thousands)** |  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| **Derivative instruments not designated<br>as hedging instruments:** | **Financial Statement Caption** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity options | Net financing revenues | $(1726765) | $(125886) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Listed equity index options | Net financing revenues | (190548) | 64507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps | Net financing revenues | (2029129) | (927063) |

---

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

**Offsetting of Derivatives** 

The Company enters into master netting and collateral agreements with all of its security-based swap counterparties. Where legally enforceable, these master netting and collateral agreements give the Company, in the event of default by the counterparty, the right to offset receivables, including cash collateral received, and payables with the same counterparty. At September 30, 2025 and December 31, 2024, the Company had the following derivative assets and derivative liabilities under master netting and collateral agreements:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Gross<br>amounts of<br>recognized<br>assets/<br>liabilities(1)** | **Amounts offset in<br>the condensed<br>consolidated<br>statement of<br>financial<br>condition** | **Net amounts<br>presented** | **Amounts not offset in the<br>condensed consolidated<br>statement of financial<br>condition(2)** | **Amounts not offset in the<br>condensed consolidated<br>statement of financial<br>condition(2)** | **Net amount** |
|  | | | | **Counterparty<br>netting** | **Cash<br>collateral** | |
|  **Derivative assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps | $598541 | $— | $598541 | $(13958) | $(343230) | $241353 |
|  **Derivative liabilities** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps | $4430352 | $— | $4430352 | $(13958) | $(4014264) | $402130 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Gross<br>amounts of<br>recognized<br>assets/<br>liabilities(1)** | **Amounts offset in<br>the condensed<br>consolidated<br>statement of<br>financial<br>condition** | **Net amounts<br>presented** | **Amounts not offset in the<br>condensed consolidated<br>statement of financial<br>condition(2)** | **Amounts not offset in the<br>condensed consolidated<br>statement of financial<br>condition(2)** | **Net amount** |
|  | | | | **Counterparty<br>netting** | **Cash<br>collateral** | |
|  **Derivative assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps | $201990 | $— | $201990 | $(1098) | $(200892) | $— |
|  **Derivative liabilities** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security-based swaps | $2028016 | $— | $2028016 | $(1098) | $(1995670) | $31248 |

---

(1) Includes all gross balances related to securities-based swaps balances irrespective of whether they are transacted under
legally enforceable master netting and collateral agreements or whether the Company has obtained sufficient evidence of enforceability of the master netting and collateral agreement. The gross balance of derivative assets and derivative liabilities
which are documented under master netting and collateral agreements for which the Company has not yet obtained sufficient evidence of legal enforceability was $598.5 million and $4,430.4 million, respectively, at September 30, 2025, and $202.0
million and $2,028.0 million, respectively, at December 31, 2024.

(2) Amounts relate to master netting and collateral agreements which are not permitted to be offset on the face of the
Consolidated Statement of Financial Condition in accordance with ASC 210-20, *Balance Sheet—Offsetting*, and ASC 815, *Derivatives and Hedging*, but which provide the Company with the legal right to offset in the event of default.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

**7. COLLATERALIZED AGREEMENTS AND FINANCING** 

The Company enters into collateralized transactions including resale agreements and repurchase agreements, securities borrowing and securities lending transactions, mainly to finance trading inventory positions, obtain securities for settlement, and meet customers' needs.

Although the Company only offsets collateralized transactions when the requirements of ASC 210-20, *Balance Sheet—Offsetting*, are met, substantially all of these transactions are documented under industry standard master netting agreements which reduce the Company's credit exposure to counterparties as they permit the close-out and offset of transactions and collateral amounts in the event of default of the counterparty. In addition, the Company minimizes credit risk associated with these activities by monitoring counterparty credit exposure and collateral values on a daily basis and requiring additional collateral to be deposited with or returned by the Company when deemed necessary.

In the table below, the amounts of collateralized transactions that are offset on the Condensed Consolidated Statements of Financial Condition and netted against financial liabilities with specific counterparties under legally enforceable master netting agreements if counterparties were to default, are presented to provide financial statements readers with the Company's estimate of its net exposure to counterparties for these consolidated financial instruments.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Gross<br>amounts of<br>recognized<br>assets/<br>liabilities(1)** | **Amounts offset<br>in the<br>Condensed<br>Consolidated<br>Statement of<br>Financial<br>Condition** | **Net amounts<br>presented** | **Amounts not<br>offset(2)** | **Net<br>amount** |
|  **Offsetting of Financial Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under agreements to resell | $37039422 | $(11943916) | $25095506 | $25044785 | $50721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed | 14170625 |  | 14170625 | 13785770 | 384855 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities received as collateral | 3557112 |  | 3557112 | 3557112 |  |
|  **Total** | $**54767159** | $**(11943916)** | $**42823243** | $**42387667** | $**435576** |
|  **Offsetting of Financial Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under agreements to repurchase | $35871970 | $(11943916) | $23928054 | $23877333 | $50721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned | 21700308 |  | 21700308 | 21265719 | 434589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligation to return collateral | 3557112 |  | 3557112 | 3557112 |  |
|  **Total** | $**61129390** | $**(11943916)** | $**49185474** | $**48700164** | $**485310** |

---

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Gross<br>amounts of<br>recognized<br>assets/<br>liabilities(1)** | **Amounts offset in<br>the Condensed<br>Consolidated<br>Statement of<br>Financial Condition** | **Net amounts<br>presented** | **Amounts not<br>offset(2)** | **Net<br>amount** |
|  **Offsetting of Financial Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under agreements to resell | $32458706 | $(9351749) | $23106957 | $23051463 | $55494 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed | 11475515 |  | 11475515 | 11040630 | 434885 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities received as collateral | 3471261 |  | 3471261 | 3471261 |  |
|  **Total** | $**47405482** | $**(9351749)** | $**38053733** | $**37563354** | $**490379** |
|  **Offsetting of Financial Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under agreements to repurchase | $32507106 | $(9351749) | $23155357 | $23070738 | $84619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned | 14805880 |  | 14805880 | 14225695 | 580185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligation to return collateral | 3471261 |  | 3471261 | 3471261 |  |
|  **Total** | $**50784247** | $**(9351749)** | $**41432498** | $**40767694** | $**664804** |

---

(1) Substantially all of the gross carrying amounts of these arrangements are subject to enforceable netting agreements.

(2) Amounts relate to master netting and collateral agreements which are not permitted to be offset on the face of the
Consolidated Statement of Financial Condition in accordance with ASC 210-20, *Balance Sheet—Offsetting*, but which provide the Company with the legal right to offset in the event of default. This column also includes the fair value of
collateral received or posted subject to enforceable credit support agreements.

Under most collateralized financing agreements, the Company is permitted to sell or repledge securities received as collateral and use these securities to enter into collateralized financing transactions to deliver these securities to counterparties or clearing organizations to cover short positions. At September 30, 2025 and December 31, 2024, substantially all of the securities received as collateral were delivered or repledged.

The below two tables present gross obligations for repurchase agreements, securities loaned transactions and obligations to return securities received as collateral by remaining contractual maturity and class of collateral pledged as of September 30, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** |
|  | **Overnight and<br>continuous** | **Up to 30<br>days** | **30-90 days** | **Greater than<br>90 days** | **Total** |
|  Securities sold under agreements to repurchase | $31417865 | $4353321 | $100784 | $— | $35871970 |
|  Securities loaned | 20973773 | 494581 | 231954 |  | 21700308 |
|  Obligation to return securities received as collateral |  |  |  | 3557112 | 3557112 |
|  **Total** | $**52391638** | $**4847902** | $**332738** | $**3557112** | $**61129390** |

---

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **Class of collateral pledged** | **Class of collateral pledged** | **Class of collateral pledged** | **Class of collateral pledged** |
|  | **Securities sold under**<br>**repurchase<br>agreements** | **Securities<br>loaned** | **Obligation to**<br>**return securities<br>received as<br>collateral** | **Total** |
|  U.S. Treasury bonds and notes | $28366003 | $117323 | $— | $28483326 |
|  Equities |  | 21455482 | 3557112 | 25012594 |
|  Corporate debt securities | 703123 | 127503 |  | 830626 |
|  US Agency bonds and notes | 6802844 |  |  | 6802844 |
|  **Total** | $**35871970** | $**21700308** | $**3557112** | $**61129390** |

---

The below two tables present gross obligations for repurchase agreements, securities loaned transactions and obligations to return securities received as collateral by remaining contractual maturity and class of collateral pledged as of December 31, 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** | **Remaining contractual maturity of the agreements** |
|  | **Overnight and<br>continuous** | **Up to 30<br>days** | **30-90 days** | **Greater than<br>90 days** | **Total** |
|  Securities sold under agreements to repurchase | $24759174 | $7246198 | $403848 | $97886 | $32507106 |
|  Securities loaned | 14093853 | 670627 | 41400 |  | 14805880 |
|  Obligation to return securities received as collateral |  | 25317 |  | 3445944 | 3471261 |
|  **Total** | $**38853027** | $**7942142** | $**445248** | $**3543830** | $**50784247** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **Class of collateral pledged** | **Class of collateral pledged** | **Class of collateral pledged** | **Class of collateral pledged** |
|  | **Securities sold under**<br>**repurchase<br>agreements** | **Securities<br>loaned** | **Obligation to**<br>**return securities<br>received as<br>collateral** | **Total** |
|  U.S. Treasury bonds and notes | $24594242 | $116515 | $— | $24710757 |
|  Equities |  | 14476567 | 3471261 | 17947828 |
|  Corporate debt securities | 616526 | 212798 |  | 829324 |
|  US Agency bonds and notes | 7296338 |  |  | 7296338 |
|  **Total** | $**32507106** | $**14805880** | $**3471261** | $**50784247** |

---

In the normal course of business, the Company pledges securities with clearing organizations to satisfy daily margin and clearing fund requirements.

**8. GOODWILL AND INTANGIBLE ASSETS** 

The following table presents the Company's goodwill for the nine months ended September 30, 2025 and year ended December 31, 2024:

---

| | |
|:---|:---|
| **($ in thousands)** | **Amount** |
|  Goodwill balance at December 31, 2023 | $10132 |
|  Additions in 2024 | 19014 |
|  Goodwill balance at December 31, 2024 | $29146 |
|  Additions in 2025 |  |
|  Goodwill balance at September 30, 2025 | $**29146** |

---

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

During 2024, the Company changed its annual goodwill impairment testing date from December 31st to October 1st—refer to *Note 2, Significant Accounting Policies—Change in Accounting Principle* for detailed discussion. As of October 1, 2024, the Company's annual impairment test of goodwill was completed at the reporting unit level, and no impairment charges were determined to be necessary.

The Company's intangible assets consisted of acquired intangible assets related to past business combinations and asset purchases, capitalized software costs, and other at September 30, 2025 and December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Gross Carrying<br>Amount** | **Accumulated<br>Amortization** | **Net Carrying<br>Amount** | **Useful Lives<br>(Years)** |
|  Capitalized software | $143904 | $(43080) | $100824 | 3-5 |
|  Customer relationships | 44790 | (35537) | 9253 | 7-12 |
|  Acquired developed technology | 11708 | (4572) | 7136 | 3-5 |
|  Trade name | 200 | (133) | 67 | 1.5 |
|  Other | 400 | (106) | 294 |  |
|  **Total** | $**201002** | $**(83428)** | $**117574** |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Gross Carrying<br>Amount** | **Accumulated<br>Amortization** | **Net Carrying<br>Amount** | **Useful Lives<br>(Years)** |
|  Capitalized software | $101395 | $(27928) | $73467 | 3-5 |
|  Customer relationships | 44790 | (30849) | 13941 | 7-12 |
|  Acquired developed technology | 11708 | (2246) | 9462 | 3-5 |
|  Trade name | 200 | (33) | 167 | 1.5 |
|  Other | 345 | (11) | 334 |  |
|  **Total** | $**158438** | $**(61067)** | $**97371** |  |

---

Amortization expense relating to finite-lived intangible assets included in amortization of intangibles on the Condensed Consolidated Statements of Comprehensive Income was $24.4 million and $19.8 million for the nine months ended September 30, 2025 and 2024, respectively. The total amount charged to expense for amortization and write down of capitalized software in the Condensed Consolidated Statements of Comprehensive Income was $17.2 million and $13.7 million for the nine months ended September 30, 2025 and 2024, respectively. The total expense includes impairment charges of $0.1 million and $4.2 million for the nine months ended September 30, 2025 and 2024, respectively, due to capitalized software assets for projects that were fully abandoned by the Company and consequently had no value.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

The Company expects to record amortization expense (excluding capitalized software costs of projects which have not yet been placed into service and the timing of their amortization depends on future developments) as follows over the next five years as of September 30, 2025:

---

| | |
|:---|:---|
| **Year** | **Amount** |
|  | **($ in thousands)** |
|  Remainder of 2025 | $10378 |
| 2026 | 37901 |
| 2027 | 27564 |
| 2028 | 21951 |
| 2029 | 14788 |
| 2030 | 6989 |

---

**9. BORROWINGS** 

**Revolving Credit Agreements** 

On December 4, 2020, CS LLC entered into a revolving credit agreement (the "Committed Facility") with a consortium of banks which has been extended and amended annually. The Committed Facility was amended to $315.0 million in aggregate on December 2, 2023, $440.0 million in aggregate on November 12, 2024 and again to $515.0 million in aggregate on December 20, 2024. The Committed Facility consists of five borrowing bases: (i) Borrowing Base A Loan is to be used to finance the purchase and settlement of securities, (ii) Borrowing Base B Loan is to be used to fund margin deposits with the National Securities Clearing Corporation ("NSCC"), (iii) Borrowing Base C Loan is to be used to fund, under certain circumstances, customer withdrawals, (iv) Borrowing Based D Loan includes borrowings to cover Fixed Income Clearing Corporation ("FICC") mortgage-backed securities ("MBS") blackout periods, and (v) Borrowing Base E is to fund margin at domestic Futures/Options clearing houses. Outstanding borrowing balances under Base A are collateralized by certain firm and client collateral available to the Company.

The limits and interest rates for each of the Borrowing Bases as of September 30, 2025 are shown below:

---

| | | | |
|:---|:---|:---|:---|
| **($ in thousands)** | **Prior<br>Limit** | **Current<br>Limit** | **Interest Rate** |
|  Borrowing Base A | 315000 | 515000 | Overnight Base + 1.5% |
|  Borrowing Base B | 210000 | 386250 | Overnight Base + 2.5% |
|  Borrowing Base C | 210000 | 386250 | Overnight Base + 2.5% |
|  Borrowing Base D | 210000 | 386250 | Base + 2.0% |
|  Borrowing Base E | 210000 | 386250 | Base + 2.0% |

---

In connection with the latest amendments to the Committed Facility in 2024 and 2023, CS LLC incurred issuance costs of $2.2 million and $1.2 million, respectively, which are being amortized over the term of the agreements. Included in Other assets at September 30, 2025 and December 31, 2024 were $0.4 million and $2.0 million, respectively, representing the unamortized balance of these costs. Recorded in Net financing revenues on the Condensed Consolidated Statement of Comprehensive Income for the nine months ended September 30, 2025 and 2024, was $1.7 million and $0.9 million, respectively, representing the amortization of the issuance costs.

------

##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

The Committed Facility contains customary financial covenants, including affirmative and negative financial and operating covenants, and at September 30, 2025, requires CS LLC to maintain minimum Tangible Net Worth of $487.5 million, minimum Excess Net Capital of $300.0 million, and maximum of Leverage Ratio, adjusted for certain collateralized arrangements, of 9.0 (all these ratios as defined in the agreement). These covenants might restrict its ability to transfer net assets to CSG, its parent company, in the form of dividend payments, loans or advances. At September 30, 2025, December 31, 2024, and the date of the filing of these Condensed Consolidated Statements of Financial Condition, CS LLC was in compliance with all of its covenants related to this agreement.

As of September 30, 2025 and December 31, 2024, CS LLC had an uncommitted credit agreement (the "Uncommitted Facility"). The agreement was amended and extended on November 12, 2024, for a total maximum amount of $200.0 million, and consisted of three borrowing bases: (i) Borrowing Base A for Margin Loans used to finance the purchase and settlement of securities and for general working capital purposes at 1.5% plus the bank's overnight base rate, (ii) Borrowing Base B which is available up to $10.0 million of unsecured overnight loans at the bank's prime commercial rate as in effect on such day, and (iii) Borrowing Base C which is available up to $150.0 (and up to $150.0 together with the overnight loans) for Clearinghouse Margin Loans used to finance NSCC deposit requirements and OCC excess margin deposits, at the bank's prime commercial rate as in effect on such day. Loans made under this facility are repayable on demand. In connection with the Uncommitted Facility, the Company did not incur any issuance costs.

The Committed Facility and the Uncommitted Facility include unused commitment fees of 0.50% and 0.125% per annum, respectively, on the average daily unused portion of these facilities which are payable quarterly in arrears. Included in Professional fees, marketing and other expenses for the nine months ended September 30, 2025 and 2024, were $2.1 million and $1.2 million, respectively, representing unused line of credit fees paid to the bank.

On September 23, 2025, CS UK entered into a Revolving Credit Facility (the "UK Facility") with a consortium of banks (collectively, the "UK Lenders"). Under the UK Facility, the UK Lenders have committed to provide CS UK with a revolving credit facility of up to $55.0 million during a credit period ending September 22, 2026. Amounts borrowed under the UK Facility will bear interest at BMO Bank N.A.'s commercial prime rate, which was 7.25% per annum, as of September 23, 2025, paid monthly. The UK Facility is subject to certain covenants, including restrictions for the UK Facility's use and duration of any drawdowns, and financial covenants relating to CS UK's minimum regulatory capital requirements. The UK Facility includes unused commitment fees of 0.50% per annum on the average daily unused portion of the UK Facility which are payable quarterly in arrears.

The following summarizes the Company's revolving lines of credit carrying values and the related unamortized debt issuance costs, where applicable.

---

| | | | |
|:---|:---|:---|:---|
| **($ in thousands)** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Financing<br>Available** | **Borrowing<br>Outstanding** | **Deferred<br>Debt<br>Issuance<br>Cost** |
|  Revolving Credit Agreement | $515000 | $— | $369 |
|  Uncommitted Credit Agreement | 200000 |  |  |
|  UK Facility | 55000 |  | 641 |
|  | $**770000** | $**—** | $**1010** |

---

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

---

| | | | |
|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Financing<br>Available** | **Borrowing<br>Outstanding** | **Deferred<br>Debt<br>Issuance<br>Cost** |
|  Revolving Credit Agreement | $515000 | $— | $2029 |
|  Uncommitted Credit Agreement | 200000 |  |  |
|  | $**715000** | $**—** | $**2029** |

---

**Notes Payable** 

The following summarizes the Company's term borrowing balances outstanding, net of unamortized discount or premium and debt issuance costs, where applicable:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Maturity Date** | **Interest<br>Rate** | **Outstanding<br>Principal** | **Deferred Debt<br>Issuance Cost** | **Outstanding<br>Borrowings, net** |
|  2025 Senior Unsecured Notes | October 2025 | 6.0% | 45000 |  | 45000 |
|  2026 Senior Unsecured Notes | May 2026 | 5.875% | 46500 | 137 | 46363 |
|  2029 Senior Unsecured Notes | October 2029 | 8.25% | 80000 | 1326 | 78674 |
|  2030 Senior Unsecured Notes | September 2030 | 8.0% | 221500 | $4737 | 216763 |
|  **Total** |  |  | $**393000** | $**6200** | $**386800** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Maturity<br>Date** | **Interest<br>Rate** | **Outstanding<br>Principal** | **Deferred Debt<br>Issuance Cost** | **Outstanding<br>Borrowings, net** |
|  2025 Senior Unsecured Notes | October<br>2025 | 6.0% | 50000 | 161 | 49839 |
|  2026 Senior Unsecured Notes | May<br>2026 | 5.875% | 60000 | 293 | 59707 |
|  2029 Senior Unsecured Notes | October<br>2029 | 8.25% | 80000 | 1569 | 78431 |
|  **Total** |  |  | $**190000** | $**2023** | $**187977** |

---

***Issuance of 2024 Senior Unsecured Notes***

On December 20, 2019, CSH LLC closed on a $25.0 million senior unsecured note offering (the "2024 Notes"). The 2024 Notes matured on December 30, 2024 and had a fixed annual interest rate of 6.5% per annum. The interest rate was contractually dependent on the Company maintaining a minimum credit rating of A- (or equivalent). If the rating of the Company would have been BBB+, BBB, or BBB-, then the interest rate would have increased by a minimum of 0.25% per annum. If the rating would have been BB+, BB, or BB- then the interest rate would have increased by a minimum of 0.75% per annum, up to a maximum of 8.5% per annum if the Company would have failed to maintain any rating. The placement agreements related to the 2024 Notes also contained customary financial covenants including maintenance of debt and interest coverage ratios and minimum net worth

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

requirements. The 2024 Notes contained a minimum liquidity covenant requiring that, so long as any of the 2024 Notes were outstanding, the Company was not to declare or pay any cash dividends or cash distributions to any members of the Company unless, at such time, the Company had at least $25.0 million in unrestricted cash and cash equivalents. The Company fully repaid the 2024 Notes upon maturity in December 2024.

In connection with the issuance of the 2024 Notes, the Company incurred issuance costs of $0.9 million, all of which were amortized at December 31, 2024. These deferred issuance costs were amortized over the term of the 2024 Notes and were recorded in Notes payable, net of unamortized issuance costs on the Condensed Consolidated Statements of Financial Condition. For the nine months ended September 30, 2024, the Company recorded $0.1 million of amortization in Interest expense on borrowings on the Condensed Consolidated Statements of Comprehensive Income.

***Issuance of 2025 Senior Unsecured Notes***

On October 8, 2020, Clear Street Capital LLC ("Clear Street Capital") issued $50.0 million in aggregate principal amount of senior unsecured notes (the "2025 Notes"). Effective December 31, 2020, CSH LLC assumed the 2025 Notes from Clear Street Capital in conjunction with Clear Street Capital's merger with and into CSH LLC. The 2025 Notes mature on October 15, 2025, and have a fixed annual interest rate of 6.0% per annum. The interest rate is dependent on the Company maintaining a minimum credit rating of A- (or equivalent). If the rating of the Company is BBB+, BBB, or BBB-, then the interest rate will increase by a minimum of 0.25% per annum. If the rating is BB+, BB, or BB- then the interest rate will increase by a minimum of 0.75% per annum, up to a maximum of 8.0% per annum if the Company fails to maintain any rating. The 2025 Notes purchase agreement related to the 2025 Notes also contains customary financial covenants including maintenance of debt and interest coverage ratios and minimum net worth requirements. The 2025 Notes contain a minimum liquidity covenant requiring, so long as any of the 2025 Notes are outstanding, the Company will not declare or pay any cash dividends or cash distributions to any members of the Company unless, at such time, the Company shall have at least $25.0 million in unrestricted cash and cash equivalents. Upon a change in control, as defined in the agreement, all holders of the 2025 Notes have the right to require CSH LLC to repurchase all their holdings for 101% of the principal amount, plus accrued and unpaid interest. The 2025 Notes are redeemable by CSH LLC in an amount not less than $2.5 million in the case of a partial redemption at 100% of the principal amount prepaid, plus accrued but unpaid interest.

In connection with the placement of the 2025 Notes, the Company incurred issuance costs of $1.1 million, of which $0.0 million and $0.2 million were unamortized at September 30, 2025 and December 31, 2024, respectively. These deferred issuance costs are amortized over the term of the 2025 Notes and are recorded in Notes payable, net of unamortized issuance costs on the Condensed Consolidated Statements of Financial Condition. For the nine months ended September 30, 2025 and 2024, the Company recorded $0.2 million and $0.2 million, respectively, of amortization in Interest expense on borrowings on the Condensed Consolidated Statements of Comprehensive Income.

In connection with the issuance of its 2030 Notes, the Company early redeemed $5.0 million aggregate principal amount of the 2025 Notes at par.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

***Issuance of 2026 Senior Unsecured Notes***

On May 6, 2021, CSH LLC closed on an additional $60.0 million senior unsecured note offering (the "2026 Notes"). The 2026 Notes mature on May 15, 2026 and have a fixed annual interest rate of 5.875% per annum. The interest rate is dependent on the Company maintaining a minimum credit rating of A- (or equivalent). If the rating of the Company is BBB+, BBB, or BBB-, then the interest rate will increase by a minimum of 0.25% per annum. If the rating is BB+, BB, or BB-, the interest rate will increase by a minimum of 0.75% per annum. If the Company fails to maintain any rating, the interest rate will increase by 2.00%. The placement agreements related to the 2026 Notes also contain customary financial covenants including maintenance of debt and interest coverage ratios and minimum net worth requirements. The 2026 Notes contain a minimum liquidity covenant requiring, so long as any of the 2026 Notes are outstanding, the Company will not declare or pay any cash dividends or cash distributions to any members of the Company unless, at such time, the Company shall have at least $25.0 million in unrestricted cash and cash equivalents. Upon a change in control, as defined in the agreement, all holders of the 2026 Notes have the right to require CSH LLC to repurchase all their holdings for 101% of the principal amount, plus accrued and unpaid interest. The 2026 Notes are redeemable by CSH LLC at 100% of the principal amount prepaid, plus accrued but unpaid interest.

In connection with the placement of the 2026 Notes, the Company incurred issuance costs of $1.0 million, of which $0.1 million and $0.3 million were unamortized at September 30, 2025 and December 31, 2024, respectively. These deferred issuance costs are amortized over the term of the 2026 Notes and are recorded in Notes payable, net of unamortized issuance costs on the Condensed Consolidated Statements of Financial Condition. For the nine months ended September 30, 2025 and 2024, the Company recorded $0.2 million and $0.2 million, respectively, of amortization included in Interest expense on borrowings on the Condensed Consolidated Statements of Comprehensive Income.

In connection with the issuance of its 2030 Notes, the Company early redeemed $13.5 million aggregate principal amount of the 2026 Notes at a discount to par.

***Issuance of 2029 Senior Unsecured Notes***

On October 23, 2024, CSH LLC closed on a $80.0 million senior unsecured note offering (the "2029 Notes"). The 2029 Notes mature on October 30, 2029 and have a fixed annual interest rate of 8.25% per annum. The interest rate is dependent on the Company maintaining a minimum credit rating of BBB- (or equivalent). If the rating of the Company is BB+ or lower, then the interest rate will increase to 9% per annum. If there is no rating, then the interest rate will increase to 10.25% per annum. CSH LLC may at its option redeem at any time all or part of the Notes, for the outstanding principal and a make-whole premium, as specified in the agreement.

The note placement agreements related to the 2029 Notes also contain customary financial covenants including maintenance of debt and interest coverage ratios and minimum net worth requirements. The 2029 Notes contain a minimum liquidity covenant requiring, so long as any of the 2029 Notes are outstanding, that CSH LLC will not declare or pay any cash dividends or cash distributions unless, at such time, is has at least $25.0 million in unrestricted cash and cash equivalents. Upon a change in control, as defined in the agreement, all holders of the 2029 Notes have the right to require CSH LLC to repurchase all their holdings for 101% of the principal amount, plus accrued and unpaid interest. Until October 30, 2026, the 2029 Notes are redeemable for a make-whole

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

payment of 104.125% of the outstanding principal redeemed plus any excess remaining scheduled payments, as defined in the 2029 Notes purchase agreement. Between October 30, 2026, and October 29, 2027, the 2029 Notes are redeemable, in whole or in part, at 104.125% of the outstanding principal redeemed, plus accrued but unpaid interest. Between October 30, 2027, and October 29, 2028, the 2029 Notes are redeemable, in whole or in part, at 102.0625% of the outstanding principal redeemed, plus accrued but unpaid interest. After October 29, 2028, the 2029 Notes are redeemable at par, plus accrued but unpaid interest.

In connection with the placement of the 2029 Notes, the Company incurred issuance costs of $1.6 million, of which $1.3 million and $1.6 million were unamortized at September 30, 2025 and December 31, 2024, respectively. These deferred issuance costs are amortized over the term of the 2029 Notes and are recorded in Notes payable, net of unamortized issuance costs on the Condensed Consolidated Statements of Financial Condition. For the nine months ended September 30, 2025, the Company recorded $0.2 million of amortization included in Interest expense on borrowings on the Condensed Consolidated Statements of Comprehensive Income.

***Issuance of 2030 Senior Unsecured Notes***

On September 17, 2025, CSH LLC closed on a $221.5 million senior unsecured note offering (the "2030 Notes"). The 2030 Notes mature on September 30, 2030, and have a fixed annual interest rate of 8.00% per annum. The interest rate is subject to adjustment based on the credit rating of the 2030 Notes. If the 2030 Notes are rated below investment grade, the interest rate increases by 1%. If the rating falls below BB- (or its equivalent), the interest rate increases by an additional 1%. If the 2030 Notes are unrated, the interest rate increases by 2% during the period in which there is no rating.

The 2030 Notes include financial covenants requiring the maintenance of specified leverage and interest coverage ratios and minimum net worth and consolidated EBITDA thresholds. The 2030 Notes also include customary affirmative and negative covenants, including limitations on indebtedness of CSH LLC's non-regulated subsidiaries. CSH LLC has established, and is required to maintain, a funded interest reserve equal to the aggregate interest payable on the 2030 Notes over the next twelve months, which is held in a designated interest reserve account.

As part of the 2030 Notes issuances, the Company repurchased $5.0 million in aggregate principal amount of the 2025 Notes at par plus accrued interest and $13.5 million in aggregate principal amount of the 2026 Notes at a discount to par plus accrued interest. In connection with the placement of the 2030 Notes, the Company incurred issuance costs of $4.7 million.

At September 30, 2025, aggregate future required minimum principal payments based on the terms of the term borrowings were as follows:

---

| | |
|:---|:---|
| **Year** | |
|  |<br>**($ in thousands)** |
|  Remainder of 2025 | $45000 |
| 2026 | 46500 |
| 2027 |  |
| 2028 |  |
| 2029 | 80000 |
| 2030 | 221500 |
|  | $393000 |

---

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

**10. TEMPORARY EQUITY, SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE** 

**Common Stock** 

The Company has three classes of authorized Common Stock. Each share of Class A Common Stock is entitled to one vote per share. Each share of Class X Common Stock and Class Z Common Stock is entitled to ten votes per share. Shares of the Company's Common Stock generally vote together as a single class on all matters submitted to a vote of the Company's stockholders. Class X common stock is not entitled to receive dividends or other distributions.

Issuances of Common Stock are determined at the discretion of the Company. At September 30, 2025, the total number of shares of all classes of stock which CSG had the authority to issue was 654.9 million shares, including 294.9 million shares of Class A Common Stock.

During June and July of 2024, the Company redeemed 2.2 million shares of vested Class A Common Stock from certain of the Company's employees.

During June and July of 2025, the Company redeemed 0.1 million shares of vested Class A Common Stock from certain of the Company's employees.

Refer to *Note 11, Equity-Based Compensation*, for additional information regarding the Company's equity-based compensation plan.

Refer to *Note 1, Organization and Description of Business—Corporate Simplification*, for a description of the shareholder exchange transaction that resulted in the termination of the Company's Up-C structure.

**Redeemable Preferred Stock** 

***Series A Preferred Stock***

In October 2021, the Company issued 1,400,000 shares of a fixed rate reset perpetual cumulative Series A preferred stock ("Series A Preferred Stock"), for aggregate consideration of $35.0 million. In the event of a liquidation, dissolution or winding up of the Company, either voluntary or involuntary, the holders of Series A Preferred Stock then-outstanding are entitled to receive an amount per share equal to the sum of $25.00 per share, plus all then accrued and unpaid dividends, prior to any payment on the Company's Series B Preferred Stock or common stock. The holders of shares of the Series A Preferred Stock have the right to elect two directors of the Company whenever dividends on the Series A Preferred Stock are in arrears for six or more Dividend Payments Dates (as defined below) and the right to a separate 2/3 vote of the Series A Preferred Stock on amendments to the Company's certificate of incorporation that would materially adversely affect the powers, preferences, privileges, or rights of the Series A Preferred Stock. The Series A Preferred Stock have the right to vote together with other classes of the Company's voting stock on all other matters on which stockholders generally are entitled to vote.

The holders of Series A Preferred Stock are entitled to receive dividends quarterly, commencing on January 30, 2022, ("Dividend Payment Date") at a rate of 7.0% from the date of issuance up to, but excluding October 30, 2026 ("First Reset Date") and thereafter, at the rate equal to the sum of the five-year treasury rate as of the most recent reset date (i.e., each date falling on the fifth anniversary of the preceding reset date) and 6.0% during each Reset Period from, and including the First Reset Date.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

The Company, at its option, may redeem the Series A Preferred Stock, in whole or in part, on any Dividend Payment Date on or after the First Reset Date for $25.00 per share plus accrued but unpaid dividends, whether declared or not. Additionally, in the event of a change in control of the Company or CSH LLC prior to the First Reset Date, the Company will have the right to redeem the Series A Preferred Stock at a price of $25.50 per share plus accrued and unpaid dividends. The Series A Preferred Stock is not convertible.

Upon issuance, the Series A Preferred Stock were classified in permanent equity. However, following the Markets Business transaction (See *Note 17, Discontinued Operations*) the Company's controlling shareholder became a holder of 4.9 million of Series B-1 Preferred Stock. As a result, all classes of preferred stock of the Company were reclassified from permanent equity to temporary equity, as they could become redeemable upon deemed liquidation events, which are no longer considered to be within the control of the Company. Since the Series A Preferred Stock will become redeemable by the Company after the first Reset Date, the Company accretes the changes in the redemption value using an effective interest method over the period from the date of reclassification to the earliest redemption date.

During October 2024, the Company mutually agreed with holders of 0.4 million Series A Preferred Stock to redeem them for total proceeds of $11.0 million.

For the nine months ended September 30, 2025 and 2024, the Company declared and paid $1.3 million and $1.8 million, respectively, in dividends to holders of the Series A Preferred Stock.

***Series B Preferred Stock***

As of September 30, 2025, the Company was authorized to issue 97.9 million shares of Series B Preferred Stock, in two series, with a par value of $0.00001 per share ("Series B Preferred Stock"). In the event of a liquidation, dissolution or winding up of the Company, the Series B Preferred Stock then-outstanding takes precedence over the Company's common stock with respect to the payment of dividends and the distribution of assets, but is subordinated to the Series A Preferred Stock. A merger or consolidation (other than one in which stockholders of the Company own a majority by voting power of the outstanding shares of the surviving or acquiring corporation) and a sale, lease, transfer, exclusive license or other disposition of all or substantially all of the assets of the Company will be treated as a liquidation event.

The Series B Preferred Stock initially converts 1:1 to common stock at any time at the option of the Holders, subject to anti-dilution adjustments. Each share of Series B Preferred Stock will automatically convert into the Company's common stock at the then applicable conversion rate (i) in the event of a firm commitment underwritten public offering with net proceeds to the Company of not less than $100 million, or (ii) upon the written consent of the Holders.

Dividends will be paid on the Series B Preferred Stock on an as-converted basis when, as, and if paid on the common stock. Upon the initial closing of the sale of Series B Preferred Stock in April 2022, the Board of Directors of the Company included two directors who were designated by the VC Firm that was the lead investor in the Series B Preferred Stock issuance.

In 2023, the Company issued Series B-1 Preferred Stock for an aggregate amount net of issuance costs of $516.5 million, with the VC Firm as the lead investor. In connection with its investment in the Company, in December 2023 the VC Firm was also granted a right to purchase up to an aggregate of 12.0 million additional shares of the Company's Series B-1 Preferred Stock at $8.35 per share for a total exercise price of $100.0 million during the subsequent 12 months (the "VC").

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

On December 27, 2024, the VC Firm exercised the VC Right to Purchase an additional 2.4 million shares of the Company's Series B-1 Preferred Stock at $8.35 per share for a total exercise price of $20.0 million. The Company also agreed to extend the term of the VC Right to Purchase with respect to the remaining $80.0 million for an additional 12 months. In connection with the VC Firm's exercise, the Company incurred issuance costs of $0.5 million during 2024.

Upon issuance, the Series B preferred stock were classified in permanent equity. However, following the Markets Business transaction (See *Note 17, Discontinued Operations*) the Company's controlling shareholder became a holder of 4.9 million of Series B-1 Preferred Stock. As a result, all classes of preferred stock of the Company are considered contingently redeemable, as they are redeemable upon deemed liquidation events, which are no longer considered to be within the control of the Company. Accordingly, all classes of preferred stock were reclassified from permanent equity to temporary equity on the Company's Consolidated Statement of Financial Condition.

In a deemed liquidation event, the Series B-1 Preferred Stock are redeemable for the higher of (i) the original issue price ($8.35 per share of Series B-1 Preferred Stock, $5.79 per share of Series B-2 Preferred stock), subject to certain adjustments and (ii) an amount per share as would have been payable had all shares of Series B Preferred Stock been converted into common stock immediately prior to such deemed liquidation event, subject to certain adjustments.

The redemption provisions are not currently considered probable, as a deemed liquidation event is not considered likely to occur. Therefore, the Series B Preferred Stock amounts included in temporary equity are not subsequently adjusted.

The VC Right to Purchase was initially recognized in equity, as the ASC 480, *Distinguishing Liabilities from Equity* ("ASC 480")*,* criteria to classify a financial instrument other than an outstanding share as a liability were assessed, as required, at inception of the instrument, and were found to not require classification as a liability. Since the VC Right to Purchase is not a mandatorily redeemable instrument, the Company made an accounting policy election not to subsequently reassess whether an instrument should be classified as an asset or liability under ASC 480. ASC 815-40 requires an issuer to reassess equity contracts at each balance sheet date, and according to management's reassessment until the term extension described below, the VC Right to Purchase continued to meet all the criteria to be classified in equity. In addition, freestanding derivative instruments that are classified in stockholders' equity pursuant to Subtopic 815-40 are not subject to the redeemable equity guidance.

On December 27, 2024, the Company extended the term of the remaining unexercised VC Right to Purchase to December 31, 2025. The extension required the instrument to be accounted for as an extinguishment and re-issuance, which necessitated a reassessment of its classification.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

On September 30, 2025, the VC Firm exercised its right to purchase additional 0.6 million shares of Series B-1 Preferred Stock of the Company for $8.35 per share, for a total exercise price of $5.0 million.

The following tables set forth a summary of the Company's preferred stock outstanding at September 30, 2025 and December 31, 2024.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| **($ in<br>thousands,<br>except<br>share data)** | **Shares<br>Authorized to<br>be Issued** | **Shares Issued<br>and<br>Outstanding** | **Carrying Value<br>in Temporary<br>Equity, Net of<br>Issuance Cost** | **Issue Date** | **Earliest<br>Redemption /<br>Conversion Date** | **Dividend<br>Rate in<br>Effect** | **Aggregate<br>liquidation<br>preference** |
|  Series A | 1400000 | 960000 | 23808 | 10/20/21 | 10/30/26 | 7.0% | 24000 |
|  Series B-1 | 95466593 | 85286952 | 713717 | 4/13/22 -9/30/25 | At any time |  | 712146 |
|  Series B-2 | 2406757 | 2406757 | 18412 | 4/25/22 | At any time |  | 13935 |
|  **Total** | **99273350** | **88653709** | **755937** |  |  |  |  |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **($ in<br>thousands,<br>except share<br>data)** | **Shares<br>Authorized to<br>be Issued** | **Shares Issued<br>and<br>Outstanding** | **Carrying Value<br>in Shareholder's<br>Equity, Net of<br>Issuance Cost** | **Issue Date** | **Earliest<br>Redemption /<br>Conversion Date** | **Dividend**<br>**Rate in<br>Effect** | **Aggregate<br>liquidation<br>preference** |
|  Series A | 1400000 | 960000 | $23507 | 10/20/21 | 10/30/26 | 7.0% | $24000 |
|  Series B-1 | 95466593 | 84688150 | 699963 | 4/13/22 -12/27/24 | At any time |  | 707146 |
|  Series B-2 | 2406757 | 2406757 | 18412 | 4/25/22 | At any time |  | 13935 |
|  **Total** | **99273350** | **88054907** | $**741882** |  |  |  |  |

---

**Noncontrolling Interest** 

During the year ended December 31, 2024, the Company had an Up-C structure, where the controlling shareholder of the Company held direct ownership interests in CSH LLC. During such periods, a related party also held a preferred interest in CSH LLC. These interests were recorded on the balance sheet as noncontrolling interest and redeemable noncontrolling interest, respectively.

The redeemable preferred noncontrolling interest accrued interest at the Fed Fund rate plus 3.5% per annum starting from March 1, 2023 (Fed Fund rate plus 5% per annum until that date), and is recorded at the redemption value, which includes the interest accrued. The holder of the redeemable preferred interest had the right to require the Company to distribute the outstanding amount of preferred interest, which the Company could defer under certain circumstances. Since the redeemable preferred noncontrolling interest is currently redeemable, it is adjusted to its redemption amount at each balance sheet date. The preferred interest was fully redeemed as of December 16, 2024.

***Shareholder Exchange Transaction—Termination of the Up-C Structure***

On December 31, 2024, the Company's controlling shareholder (which was also the noncontrolling interest holder in CSH LLC) exercised its right to exchange its direct ownership interest in CSH LLC for shares in the Company. This exchange simplified the Company's corporate structure by eliminating its Up-C structure and converting it to a more traditional structure whereby all stockholders hold their voting and economic interests directly through CSG.

Refer to *Note 1, Organization and Description of Business—Corporate Simplification* for more details.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

**Earnings Per Share** 

Basic earnings per share is calculated utilizing net income available for common stockholders divided by the weighted average number of shares of Class A and Class Z common stock outstanding for that period.

The computation for the earnings per share is presented below (in thousands, except for per share data):

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| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** |
|  | **2025** | **2024** |
|  **Numerator** |  |  |
|  Net income from continuing operations | $157196 | $40705 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net income from continuing operations attributable to noncontrolling interest |  | 20153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net income from continuing operations attributable to redeemable noncontrolling interest |  | 3076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: dividends on Series A preferred stock | 1260 | 1838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: accretion on Series A preferred stock | 301 | (342) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: undistributed earnings allocated to participating securities from continuing operations | 59087 | 11719 |
|  Net income from continuing operations attributable to Clear Street Group Inc. shareholders for basic EPS | $96548 | $4261 |
|  Adjustment for diluted EPS |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Plus: Effect of assumed conversion of vested stock options | 18 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Plus: Effect of assumed conversion of unvested share based compensation |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Plus: Effect of assumed conversion of<br>Series B Preferred Stock | 58885 | 11688 |
|  Net income from continuing operations attributable to Clear Street Group Inc. shareholders for diluted EPS | $155451 | $15949 |
|  Net income from discontinued operations, net of taxes | $— | $8042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Income attributable to participating preferred securities |  | 4838 |
|  Net income from discontinued operations attributable to Clear Street Group Inc. shareholders | $— | $3204 |

---

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** |
|  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net income from discontinued operations attributable to noncontrolling interest |  | 2350 |
|  Net income from discontinued operations attributable to Clear Street Group Inc shareholders for basic EPS | $— | $854 |
|  Adjustment for diluted EPS |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of assumed conversion of participating securities |  |  |
|  Net income from discontinued operations attributable to Clear Street Group Inc shareholders for diluted EPS | $— | $854 |
|  **Denominator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted average shares of common stock outstanding - basic |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | 30156405 | 30879845 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class Z | 112605223 |  |
|  | 142761628 | 30879845 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted average ordinary share equivalents from participating convertible securities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Conversion of vested stock options | 69270 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Conversion of unvested share based compensation |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Conversion of Series B Preferred Stock | 87097100 | 84699697 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted average ordinary shares and ordinary share equivalent outstanding - diluted | 229927998 | 115579542 |
|  **Earnings per share attributable to Class A and Class Z common shares:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic earnings per share from continuing operations | $0.68 | $0.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic earnings per share from discontinued operations |  | 0.03 |
|  **Basic earnings per share attributable to stockholders** | $**0.68** | $**0.17** |
|  **Diluted Earnings per share attributable to Class A and Class Z common shares:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share from continuing operations | $0.68 | $0.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share from discontinued operations |  | 0.03 |
|  **Diluted earnings per share attributable to stockholders(1)** | $**0.68** | $**0.17** |

---

(1) The sum of the earnings per share amounts may not equal the totals due to rounding.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

At September 30, 2025, the following instruments were contingently issuable and excluded from the computation of diluted earnings per share, as their vesting conditions were not satisfied as of September 30, 2025: 30.2 million unvested RSUs and employees' options to purchase 9.6 million shares of Class A Common Stock. Additionally, the following instrument was excluded from the computation of diluted earnings per share, as its effect would have been anti-dilutive: VC Right to Purchase 9.0 million shares of Series B Preferred Stock.

At September 30, 2024, the following instruments were contingently issuable and excluded from the computation of diluted earnings per share, as their vesting conditions were not satisfied as of September 30, 2024: 25.4 million unvested RSUs and employees' options to purchase 8.9 million shares of Class A Common Stock. Additionally, the following instruments were excluded from the computation of diluted earnings per share, as their effect would have been anti-dilutive: the VC Right to Purchase 12.0 million of Series B Preferred Stock and redeemable preferred noncontrolling interest convertible to 3.0 million Series B convertible Preferred Stock.

**11. EQUITY-BASED COMPENSATION** 

**2021 Stock Incentive Plan** 

On March 18, 2021, the Company's board of directors and stockholders approved the adoption of the Clear Street Group Inc. 2021 Stock Incentive Plan (as later amended and restated, the "2021 Stock Incentive Plan") which provided a framework for the issuance of stock option awards and of restricted stock unit awards ("RSUs") in CSG.

The Company grants RSUs and stock option awards pursuant to the 2021 Stock Incentive Plan for the purpose of retaining the services of certain employees, board members, and consultants of CSG (collectively, the "Participants"). The RSU and stock option awards relate to shares of Class A common stock in CSG. The RSUs time-vest in tranches over certain time periods (most commonly 4 years), as dictated in the RSU and Stock Option Issuance Agreements between the Company and each Participant. In addition to the service vesting condition, the RSUs and the vast majority of the stock options also contain a performance vesting condition, which requires a liquidity event to occur in order for the time-vested RSUs and stock options to fully vest. The performance condition was not deemed probable at any point from inception of the 2021 Stock Incentive Plan. Accordingly, no compensation expenses have been recognized for these awards for the nine months ended September 30, 2025 and 2024.

The fair value of each RSU is estimated on the grant date based on valuations of the Company's share price performed periodically. Forfeitures are recognized as they occur. On September 30, 2025, the Company used the Hybrid Valuation Model to estimate the fair value of RSUs to be $20.81 per share, which represents an increase in value when compared to the fair value of $11.15 on December 31, 2024. 5.3 million and 6.7 million RSUs were granted to employees in the nine months ended September 30, 2025 and 2024, respectively. However the valuations are performed at specific points in time. Therefore, the fair market value of the grants on the grant dates was determined by interpolating between the common stock values derived from periodic independent third-party valuations, using an approach that considered the Company's operating performance and prevailing market multiples of comparable companies during the intervening periods.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

The Hybrid Valuation Model assumptions for determining the fair value of the RSUs at September 30, 2025 and December 31, 2024, were as follows:

---

| | | |
|:---|:---|:---|
|  | **September 30,<br>2025** | **December 31,<br>2024** |
|  Expected term (in years) | 0.75 - 2.00 | 2.00 - 2.50 |
|  Expected volatility | 38.7% - 45.8% | 39.0% - 42.5% |
|  Expected dividend yield | 0% | 0% |
|  Risk-free interest rate | 3.60% - 3.75% | 4.25% - 4.48% |
|  Discount for lack of marketability | 8.0% - 20.0% | 13.0% - 23.0% |

---

**Other Stock Based Compensation Expenses** 

On April 15 2024, CSH LLC acquired certain customer contracts from T3 Trading Group LLC ("T3") for purchase consideration paid at the closing of the transaction, along with milestone proceeds to be paid when specified revenue targets related to the customer contracts were met. As the transaction consideration had a continued employment requirement by the founder of T3, the transaction was accounted for as a compensatory arrangement. The closing purchase consideration and milestone proceeds consisted of both cash consideration and stock awards that were deemed to be equity classified. As of the transaction date, the milestone was probable of being achieved. The closing purchase consideration of $5.0 million in cash and 0.4 million Class A common stock with a grant date fair value of $2.4 million, and the milestone proceeds of $3.25 million in cash and 0.6 million Class A common stock with a grant date fair value of $3.7 million, are recognized over the requisite service periods, 6 months and 24 months, respectively, starting from the date of the transaction. Refer to the below for the assumptions utilized in the grant date fair value of the awards.

**Equity Compensation Awards Activity** 

***Stock Options***

Pursuant to the 2021 Stock Incentive Plan as described above, stock options to purchase shares of Class A common stock in CSG ("Stock Option") were granted. Each Stock Option time-vests in tranches over certain time periods (most commonly over a 4-year period), as dictated in the Stock Option Agreement with each participant, and expires no later than 10 years from the date of grant. The vast majority of the Stock Options also contain a performance vesting condition, which requires a liquidity event to occur in order for the time-vested Stock Options to fully vest.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

The following table summarizes activity related to Stock Options for the nine months ended September 30, 2025 and the year ended December 31, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Options Outstanding** | **Options Outstanding** | **Options Outstanding** | **Options Outstanding** | **Options**<br>**Exercisable** | **Options**<br>**Exercisable** |
|  | **Number of<br>Units** | **Weighted<br>Average<br>Grant Date<br>Fair Value/**<br>**Unit** | **Weighted<br>Average<br>Exercise<br>Price per<br>Share** | **Weighted<br>Average<br>Remaining<br>Contractual<br>Life** | **Number**<br>**of**<br>**Stock<br>Options** | **Weighted<br>Average<br>Exercise<br>Price per<br>Share** |
|  Stock Options |  |  |  |  |  |  |
|  At December 31, 2023 | 3546917 | $1.63 | $8.35 | 8.54 | 45312 | $8.35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted | 5930170 | $2.87 | $8.35 | 9.57 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercised |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (481373) | $1.86 | $8.35 |  |  |  |
|  At December 31, 2024 | 8995714 | $2.35 | $8.35 | 9.16 | 82394 | $8.35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted | 962375 | $7.58 | $10.84 | 9.52 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercised |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (258422) | $1.23 | $8.35 |  |  |  |
|  At September 30, 2025 | 9699667 | $3.61 | $8.60 | 8.58 | 104582 | $8.35 |

---

The fair value of the Stock Option grants in 2025 and 2024 was determined using a Black-Scholes option pricing model. On September 30, 2025, the Company used a Black-Scholes option pricing model to estimate the fair value of Stock Options to be $11.26 per option, which represents an increase in value when compared to the fair value of $5.55 on December 31, 2024. 1.0 million and 5.8 million Stock Options were granted to employees in the nine months ended September 30, 2025 and 2024, respectively, however the valuations are performed at specific points in time. Therefore, the fair market value of the grants on the grant dates was determined by using straight-line interpolation between the common stock values derived from periodic independent third-party valuations.

The option pricing model assumptions for determining the fair value of the Stock Options granted during the period ended September 30, 2025 and at December 31, 2024, were as follows:

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  Expected term (in years) | 4 | 4 |
|  Expected volatility | 47.2%-61.8% | 44.3% |
|  Expected dividend yield | — % | — % |
|  Risk-free interest rate | 3.95%-4.55% | 4.33% |

---

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

***Restricted Stock Units***

The following is a summary of the RSUs' activity for the nine months ended September 30, 2025 and year ended December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **Number of Units** | **Weighted<br>Average Grant<br>Date Fair<br>Value/Unit** |
|  RSUs |  |  |
|  Outstanding at December 31, 2023 | 20671176 | $5.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted | 7802538 | $7.36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (1861537) | $5.61 |
|  Outstanding at December 31, 2024 | **26612177** | $**5.98** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted | 5348354 | $14.47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (1725268) | $8.60 |
|  Outstanding at September 30, 2025 | **30235263** | $**7.61** |

---

All of the RSUs granted are non-vested as of September 30, 2025, since they only become vested upon a liquidity event of the Company.

**Equity-Based Compensation Expense** 

For the nine months ended September 30, 2025 and 2024, the Company recognized no compensation expense related to the RSUs and Stock Options. No compensation expense will be recognized until a liquidity event is probable, at which time the Company will recognize a cumulative catch up of equity-based compensation expense equal to the portion of RSUs and Stock Options that are fully time-vested. As of September 30, 2025 and 2024, there was $265.3 million and $152.7 million of unrecognized compensation expense, respectively.

**12. NET REVENUES** 

The following table presents the revenue of the Company disaggregated by type, as described in *Note 2, Significant Accounting Policies*, for the nine months ended September 30, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
|  | **Net interest** | **Fair value<br>through profit<br>or loss** | **Services** | **Total** |
|  **Net financing revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer margin financing | $40635 | $529818 | $— | $570453 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized financing | (140340) |  |  | (140340) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing trades |  | 72992 |  | 72992 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financing | 12606 |  |  | 12606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total net financing revenues** | **(87099)** | **602810** | **—** | **515711** |
|  **Transaction revenues, net** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commission and clearing income |  |  | 71558 | 71558 |

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
|  | **Net interest** | **Fair value<br>through profit<br>or loss** | **Services** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other fee income |  |  | 79552 | 79552 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment banking income |  | 5017 | 111003 | 116020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total transaction revenues, net** | **—** | **5017** | **262113** | **267130** |
|  Other revenues |  |  | 866 | 866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total other revenues** | **—** | **—** | **866** | **866** |
|  **Total revenues** | $**(87099)** | $**607827** | $**262979** | $**783707** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** |
|  | **Net interest** | **Fair value<br>through profit<br>or loss** | **Services** | **Total** |
|  **Net financing revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer margin financing | $45869 | $239834 | $— | $285703 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized financing | (97296) |  |  | (97296) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing trades |  | 11562 |  | 11562 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financing | 10589 |  |  | 10589 |
|  **Total net financing revenues** | **(40838)** | **251396** | **—** | **210558** |
|  Transaction revenues, net |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commission and clearing income |  |  | 32343 | 32343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other fee income |  |  | 45444 | 45444 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment banking income |  |  | 12546 | 12546 |
|  **Total transaction revenues, net** | **—** | **—** | **90333** | **90333** |
|  Other revenues |  |  | 990 | 990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total other revenues** | **—** | **—** | **990** | **990** |
|  **Total revenues** | $**(40838)** | $**251396** | $**91323** | $**301881** |

---

For the nine months ended September 30, 2025, investment banking revenues consisted of $18.8 million of underwriting revenue and $0.8 million of M&A advisory revenue. For the nine months ended September 30, 2024, investment banking revenue consisted of $6.3 million of underwriting revenue and $6.2 million of M&A advisory revenue. The Company also generates investment banking revenue from acting as a placement agent on equity capital markets transactions, including private investment in public equity ("PIPE") and other equity offerings. For the nine months ended September 30, 2025 and September 30, 2024, the Company had generated $96.4 million and $0.0 million from such placement agent activities, respectively.

For the nine months ended September 30, 2025, Net financing revenues include net gains of $609.3 million from financing trades in equity securities (including $23.9 million of dividend income and $6.5 million of dividend expense), a net loss of $(28.2) million from derivative assets and liabilities (see *Note 6, Derivative Instruments*), and net gain of $21.7 million from financing trades in fixed income securities, which is included in Fair value through profit or loss in the table above.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

Net financing revenues also include interest income of $1,457.3 million and interest expense of $1,597.6 million from collateralized financing, and the net amount is included in Net interest in the table above.

Net financing revenues also include $148.3 million income and $107.7 million expense from customer margin financing, and the net amount is included in Net interest in the table above.

Net financing revenues also include $15.7 million income and $3.1 million expense from other financing, and the net amount is included in Net interest in the table above.

For the nine months ended September 30, 2024, Net financing revenues include net gains of $290.6 million from financing trades in equity securities (including $13.2 million of dividend income and $22.4 million of dividend expense), a net loss of $(40.4) million and a net gain of $1.2 million from financing trades in derivative assets and liabilities, which is included in Fair value through profit or loss in the table above.

Net financing revenues also include interest income of $1,645.5 million and interest expense of $1,742.8 million from collateralized financing, and the net amount is included in Net interest in the table above.

Net financing revenues also include $65.9 million income and $20.0 million expense from customer margin financing, and the net amount is included in Net interest in the table above.

Net financing revenues also include $13.3 million income and less than $2.7 million expense from other financing, and the net amount is included in Net interest in the table above.

For additional information regarding credit risk, refer to *Note 14, Risks and Uncertainties* in the Consolidated Financial Statements for the fiscal year ended December 31, 2024.

**Allowance for Credit Losses on Receivables from Customers** 

The Company recorded an allowance for credit losses of $3.1 million and $2.3 million as of September 30, 2025 and December 31, 2024, respectively, related to its uncollateralized receivables from customers. The Company did not record an allowance for credit losses on its collateralized financing arrangements as all positions were fully collateralized as of September 30, 2025 and December 31, 2024.

**13. INCOME TAXES** 

Income tax expense from continuing operations was $80.2 million and $5.4 million for the nine months ended September 30, 2025 and 2024, respectively. The Company's effective tax rate was 33.9% and 11.7% for the nine months ended September 30, 2025 and 2024, respectively.

The effective tax rate for the nine months ended September 30, 2025 was higher than the U.S. federal statutory rate of 21.0% primarily due to a permanent difference for the change in fair value of warrant liability, state and local taxes and a change in the valuation allowance against foreign net operating losses. The effective tax rate for the nine months ended September 30, 2024 was lower than the U.S federal statutory rate of 21.0% primarily due to the effect of non-controlling interest partially offset by state and local taxes.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

As of September 30, 2025 and December 31, 2024, the Company had a net deferred tax liability of $(6.6) million and a net deferred tax asset of $16.6 million, respectively, which were included in Accounts payable and accrued liabilities and Deferred tax assets, net, respectively, in the Condensed Consolidated Statements of Financial Condition.

Management considers all positive and negative evidence in assessing the need for, or a change in, the valuation allowance against its deferred tax assets as of each reporting date. As of September 30, 2025 and December 31, 2024, the Company recorded a valuation allowance of $9.0 million and $2.6 million, respectively, against its foreign net operating losses.

The Company is subject to taxation in the U.S. federal and various state and local and foreign jurisdictions. As of September 30, 2025, the Company is no longer subject to examination for tax years before 2021.

On July 4, 2025, H.R. 1, commonly referred to as the "One Big Beautiful Bill Act" ("OBBBA"), was signed into law. The OBBBA includes a broad range of tax reform provisions, including 100% bonus depreciation and domestic research cost expensing. Additionally, OBBBA modifies certain key provisions from the Tax Cuts and Jobs Act of 2017 and expanding certain incentives from the Inflation Reduction Act of 2022. Certain provisions of the OBBBA are effective in 2025 while others are effective for tax years beginning after 2025. ASC Topic 740 requires the effects of changes in tax rates and laws to be recognized in the period in which the legislation is enacted. While the Company is currently evaluating the impact of the OBBBA, the provisions with effective dates in 2025 do not have a material impact to the Company's effective tax rate for the nine months ended September 30, 2025.

**14. COMMITMENTS AND CONTINGENCIES** 

The nature of the Company's business subjects it to claims, lawsuits and regulatory examinations and other proceedings in the ordinary course of business.

At September 30, 2025, there were no unasserted claims or assessments that the Company is aware of or legal counsel has advised are probable of assertion and which must be disclosed. In the opinion of management, the ultimate outcome of all matters will not have a material impact on the Company's financial condition.

The Company's regulated subsidiaries are also involved, from time to time, in reviews, examinations, and proceedings by governmental and self-regulatory agencies (both formal and informal) regarding their businesses, operations, reporting or other matters, which may result in judgments, settlements, fines, penalties, injunctions, enhanced oversight, remediation, or other relief.

**15. LEASES** 

The Company's leases portfolio consists of office space (real estate), which are all classified as operating leases. At September 30, 2025 and December 31, 2024, the weighted-average remaining lease terms are 11.3 years and 5.7 years, respectively. At September 30, 2025 and December 31, 2024, the weighted-average discount rate used to measure the lease liabilities is 8.0% and 7.0%, respectively.

In June 2025, the Company entered into a new operating lease to lease an additional floor in its New York head office building for a term of 12 years, and to extend the term of its existing lease to expire concurrently with the new lease.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

Included in Professional fees, marketing and other expenses was rent expense of $5.7 million and $3.3 million for the nine months ended September 30, 2025 and 2024, respectively. Short-term rent expense was $0.8 million and $0.2 million for the nine months ended September 30, 2025 and 2024, respectively.

Future minimum lease payments under operating leases with non-cancelable lease terms, at September 30, 2025, are as follows:

---

| | |
|:---|:---|
| **($ in thousands)** | **Commitment** |
|  Remainder of 2025 | $1105 |
| 2026 | 8421 |
| 2027 | 6858 |
| 2028 | 6934 |
| 2029 | 6372 |
|  2030 and thereafter | 68531 |
|  Total future minimum lease payments | $**98221** |
|  Less imputed interest | 36967 |
|  Total operating lease liabilities | $**61254** |

---

Cash payments included in the measurement of the leases were $3.1 million and $3.3 million for the nine months ended September 30, 2025 and year ended December 31, 2024, respectively.

**16. RELATED PARTY TRANSACTIONS** 

In the ordinary course of business, the Company may engage in transactions with a controlling shareholder or its subsidiaries, with its directors and officers or with other related parties.

The Company through its subsidiary CS LLC provides clearing and execution services to affiliated entities under common control and other related parties. For the nine months ended September 30, 2025, the Company earned Transaction revenues of $1.0 million and Net financing revenues of $1.9 million. For the nine months ended September 30, 2024, the Company earned Transaction revenues of less than $0.1 million and Net financing revenues of $(1.0) million.

At September 30, 2025, the Company had recorded in the Condensed Consolidated Statement of Financial Condition $38.3 million in Receivable from customers, $18.7 million in Receivable from broker-dealers and clearing organizations, and $6.4 million in Payable to customers from transactions with these related parties. At December 31, 2024, the Company had recorded in the Condensed Consolidated Statement of Financial Condition $49.1 million in Receivable from customers, $1.6 million in Receivable from broker-dealers and clearing organizations, and $0.8 million in Payable to customers from transactions with these related parties.

The Company also receives various services from related parties. For the nine months ended September 30, 2025, the Company incurred Professional fees, marketing and other expenses of $1.3 million from transactions with these related parties. For the nine months ended September 30, 2024, the Company incurred Professional fees, marketing and other expenses of $1.3 million from transactions with these related parties.

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##### [**Table of Contents**](#toc)
**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

At December 31, 2024, the Company had recorded in the Condensed Consolidated Statement of Financial Condition a payable of $7.8 million in Accounts payable and accrued liabilities for an unpaid tax distribution to a shareholder that was paid on February 2025.

See also *Note 17, Discontinued Operations* for a description of the Markets Business transaction.

**17. DISCONTINUED OPERATIONS** 

Effective March 31, 2024 ("Effective Date"), the Company's controlling shareholder (the "Acquirer") acquired 100% of the common membership interests in two CSG subsidiaries, Clear Street Markets LLC and Clear Street Investments LLC, along with certain related technology and fixed assets (together the "Markets Business"). Clear Street Markets LLC is a proprietary trading firm and broker-dealer that is registered with the SEC and maintains memberships at principal United States exchanges. Clear Street Investments LLC is a non-regulated proprietary trading firm.

The Company transferred its interests in the Markets Business to the Acquirer in return for the forfeiture of 17.7 million shares of Class X Common Stock of CSG and the redemption by CSH LLC of an identical number of the Class A Units of CSH LLC previously held by the Acquirer in a cashless transaction. The Markets Business net assets carrying value included in the transaction amounted to $67.3 million. After the completion of the transfer of the Markets Business, the Acquirer transferred some of its holdings in the Markets Business to the VC Firm in return for 4.9 million Series B Preferred Stock of the Company. See also *Note 10, Temporary Equity, Shareholders' Equity and Earnings per Share—Redeemable Preferred Stock.*

The transfer of the Markets Business met the GAAP criteria to be classified as a discontinued operation since the sale represented a strategic decision that had a major effect on the Company's operations and financial results. As such, the Markets Business' results for the period from January 1, 2024 through March 31, 2024 have been presented as discontinued operations in the Condensed Consolidated Statement of Comprehensive Income (Loss). Since the transaction constituted a transfer of a business to the Company's controlling shareholders, no gain or loss on disposal of discontinued operations was recognized upon the transfer of the Markets Business.

A Transition Services Agreement provides that during a limited time, certain subsidiaries of the Company and the Markets Business holding company will each provide services that are needed by the other party to continue operating the business without disruption, for no consideration.

A Mirror Forfeiture Agreement pertains to 24 employees of the Markets Business who were granted share-based compensation under the equity incentive plan of CSG. The employees' grants in CSG continue to vest after the transaction, as long as they provide services to the Markets Business. In order to mitigate the dilution to CSG shareholders upon vesting of the awards, shares of CSG held by the Markets Business owners will be automatically forfeited, based on the fair value of the grants vested.

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**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

The components of discontinued operations were as follows:

---

| | |
|:---|:---|
| **($ in thousands)** | **Nine months ended<br>September 30,** |
|  | **2024** |
|  **Revenues** |  |
|  Net financing revenues | $31263 |
|  Other revenues | 12 |
|  **Net revenues** | **31275** |
|  **Expenses** |  |
|  Compensation and benefits | 10218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction and market access costs, net | 7628 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technology and market data | 2500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees, marketing and other | 1578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization and depreciation | 101 |
|  **Total operating expenses** | **22025** |
|  Income tax expenses | 1208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income from discontinued operations** | $**8042** |

---

For the period from January 1, 2024 through March 31, 2024 as included in the Condensed Consolidated Statement of Comprehensive Income (Loss), the Markets Business Net financing revenues included $60.5 million net gains from trading in equity securities, $57.0 million net loss from trading in options, $16.2 million net gains from trading in futures, $4.2 million net gains from trading in swaps and net gain of $0.7 million from trading in other instruments.

The cash flows of the discontinued operation as included in the Condensed Consolidated Statements of Cash Flows were as follows:

---

| | |
|:---|:---|
|  | **Nine months ended<br>September 30,** |
| **($ in thousands)** | **2024** |
|  Cash used in operating activities | $(3697) |
|  Cash provided by investing activities |  |

---

**18. SEGMENT REPORTING** 

The Company has a single reportable segment, which is managed on a consolidated basis by the Company's chief operating decision maker ("CODM"). The Company's CODM is its Chief Executive Officer (from January 2025 through January 2026, its co-Chief Executive Officers). Consolidated net income is used by the CODM to compare against budgeted and prior periods results, in order to assess the performance of the business and establish company-wide objectives.

The Company's single segment operates a modern infrastructure platform to provide access to the global capital markets. The Company provides clearing, execution, prime brokerage, stock lending, margin lending and investment banking services to hedge funds, ETFs, introducing broker dealers, traditional and alternative asset managers, family offices and individual investors.

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**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

Since the Company is managed on a consolidated basis, there are no reconciling items between segment and the consolidated amounts reported in these Condensed Consolidated Financial Statements, including total assets and segments assets. The accounting policies of the Company's single segment are the same as those described in the summary in *Note 2, Significant Accounting Policies*.

The significant expense categories are consistent with those presented on the face of the Condensed Consolidated Statements of Comprehensive Income (Loss).

**19. SUBSEQUENT EVENTS** 

**Exercise of Right to Purchase Preferred Stock** 

During October 2025, the VC Firm exercised the VC Right to Purchase additional 9.0 million shares of Series B-1 Preferred Stock of the Company at $8.35 per share, for a total of $75.0 million. Following this exercise, the VC Right to Purchase has been fully exercised.

See also *Note 10, Temporary Equity, Shareholders' Equity and Earnings per Share—Series B Preferred Stock.*

**Repayment of the 2025 Senior Unsecured Notes** 

On October 15, 2025, the date of maturity of the 2025 Notes, the Company fully repaid all amounts outstanding under these Notes.

**CS LLC Additional Revolving Line of Credit** 

On October 24, 2025, CS LLC entered into a Revolving Note and Cash Subordination Agreement (the "Agreement") with a group of banks (collectively, the "Lenders"). Under the Agreement, the Lenders have committed to provide CS LLC with a revolving credit facility of up to $75.0 million during a credit period ending October 24, 2027. Amounts borrowed under the facility will bear interest at the Secured Overnight Financing Rate (SOFR) plus 4.75% (but not less than 5.75%) paid monthly, and will mature on October 24, 2028, unless accelerated in accordance with the Agreement.

The Agreement includes subordination, suspension of repayment, and regulatory capital maintenance provisions. Any repayment of principal or interest is prohibited during periods in which the broker-dealer's net capital would fall below specified regulatory thresholds. The Agreement also contains provisions for accelerated maturity upon the occurrence of defined events of acceleration or events of default. The Agreement was subject to approval by FINRA, which was obtained on October 24, 2025.

**CS LLC Increase to Committed Facility** 

On November 7, 2025, CS LLC amended its Committed Facility agreement to add additional lenders and increase the amount committed by certain existing lenders, to a total $980.0 million. The calculation of interest rate on Borrowing Bases D and E, and certain financial covenants and events of default were updated. In connection with the amendment, CS LLC incurred issuance costs of $4.3 million.

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**Clear Street Group Inc.** 

**Notes to Unaudited Condensed Consolidated Financial Statements** 

**Pulse Acquisition** 

On November 24, 2025, CSH LLC acquired 100% of Pulse Prime Technologies Inc. ("Pulse") pursuant to a two-step merger agreement. Pulse develops an execution management system for trading in digital assets. Total consideration at closing consisted of approximately $19.4 million worth of Class A Common Stock and $0.6 million of cash. In addition, the merger agreement provides for two contingent earn-outs of $14.7 million and $29.0 million, payable in 2027 and 2028, respectively, in Class A common stock at the then-current share price subject to caps on the maximum number of share issuable upon achievement of specified revenue targets.

**Issuance of Series C Preferred Stock** 

In December 2025 CSG raised $65.0 million through the issuance of 1.6 million shares of Series C Preferred Stock. In January 2026, CSG raised an additional $74.0 million through the issuance of 1.8 million shares of Series C Preferred Stock. The Series C preferred Stock have seniority, conversion and dividend rights similar to the Series B preferred Stock. Each share of Series C Preferred Stock carries a liquidation preference of $40.06. Holders of the Series C Preferred Stock do not have board voting representation.

**Add-On to the 2030 Notes** 

On January 13, 2026, CSH LLC completed an add-on issuance of $78.5 million of its 2030 Notes, increasing the outstanding principal amount to $300.0 million (see *Note 9, Borrowings*).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares

![LOGO](g39893g01z01.jpg)

**Clear Street Group Inc.** 

Class A Common Stock

**PRELIMINARY PROSPECTUS** 

**Goldman Sachs & Co. LLC** 

**BofA Securities** 

**Morgan Stanley** 

**UBS Investment Bank** 

**Clear Street** 

Through and including , (the 25<sup>th</sup> day after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

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##### [**Table of Contents**](#toc)
**PART II** 

**INFORMATION NOT REQUIRED IN PROSPECTUS** 

**Item 13.** **Other Expenses of Issuance and Distribution** <br>

The following table sets forth all costs and expenses, other than the underwriting discounts payable by the registrant, in connection with the offer and sale of the securities being registered. All amounts shown are estimates except for the Securities and Exchange Commission ("SEC") registration fee and the filing fee to the Financial Industry Regulatory Authority, Inc. ("FINRA").

---

| | |
|:---|:---|
|  SEC registration fee | $\* |
|  FINRA filing fee | \* |
|  Listing fee | \* |
|  Printing expenses | \* |
|  Legal fees and expenses | \* |
|  Accounting fees and expenses | \* |
|  Transfer agent fees and registrar fees | \* |
|  Miscellaneous expenses | \* |
|  Total expenses | $\* |

---

\* To be provided by amendment.

**Item 14.** **Indemnification of Directors and Officers** <br>

Section 102(b)(7) of the DGCL allows a corporation to provide in its amended and restated certificate of incorporation that a director of the corporation will not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except where the director breached the duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law or obtained an improper personal benefit. The registrant's amended and restated certificate of incorporation will provide for this limitation of liability.

Section 145 of the DGCL ("Section 145") provides that a Delaware corporation may indemnify any person who was, is or is threatened to be made party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of such corporation), by reason of the fact that such person is or was an officer, director, employee or agent of such corporation or is or was serving at the request of such corporation as a director, officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, provided that such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the corporation's best interests and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his conduct was illegal. A Delaware corporation may indemnify any persons who are, were or are threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation by reason of the fact that such person is or was a director, officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys' fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action or suit, provided that such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the corporation's best interests, provided that no indemnification is permitted without judicial approval if the officer, director, employee or agent is adjudged to be liable to the corporation. Where an officer or director is successful on the merits or otherwise in the defense of any action referred to above, the corporation must indemnify him against the expenses which such officer or director has actually and reasonably incurred.

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Section 145 further authorizes a corporation to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or enterprise, against any liability asserted against him and incurred by him in such capacity, or arising out of his status as such, whether or not the corporation would otherwise have the power to indemnify him under Section 145.

The registrant's amended and restated bylaws will provide that we will indemnify our directors and officers to the fullest extent authorized by the DGCL and must also pay expenses incurred in defending any such proceeding in advance of its final disposition upon delivery of an undertaking by or on behalf of an indemnified person to repay all amounts so advanced if it should be determined ultimately that such person is not entitled to be indemnified under this section or otherwise.

Upon completion of this offering, the registrant intends to enter into indemnification agreements with each of its executive officers and directors. The indemnification agreements will provide the executive officers and directors with contractual rights to indemnification, expense advancement and reimbursement, to the fullest extent permitted under the DGCL.

The indemnification rights set forth above shall not be exclusive of any other right which an indemnified person may have or hereafter acquire under any statute, provision of the registrant's amended and restated certificate of incorporation or amended and restated bylaws, agreement, vote of stockholders or disinterested directors or otherwise.

The registrant will maintain standard policies of insurance that provide coverage (1) to its directors and officers against loss arising from claims made by reason of breach of duty or other wrongful act and (2) to the registrant with respect to indemnification payments that the registrant may make to such directors and officers. The proposed form of Underwriting Agreement to be filed as Exhibit 1.1 to this Registration Statement provides for indemnification of the registrant's directors and officers by the underwriters party thereto against certain liabilities arising under the Securities Act of 1933 (the "Securities Act") or otherwise.

**Item 15.** **Recent Sales of Unregistered Securities** <br>

Set forth below is information regarding securities sold by the registrant within the past three years that were not registered under the Securities Act. Also included is the consideration, if any, received by the registrant for such securities and information relating to the section of the Securities Act, or rule of the SEC, under which exemption from registration was claimed.

Since January 1, 2023, the registrant has made sales of the following unregistered securities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The registrant has granted, under its 2021 Stock Incentive Plan, stock options to purchase an aggregate of 11,011,516
shares of our Class A common stock to certain of its employees, consultants, and directors, having exercise prices ranging from $8.35 to $11.15 per share, and 22,824,364 restricted stock units to be settled in shares of Class A common
stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Between February and May of 2023, the registrant issued and sold 32,490,545 shares of its Series B-1 Preferred Stock to five accredited investors at a purchase price of $8.35 per share for an aggregate purchase price of $271.3 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In December 2023, the registrant issued and sold 29,940,120 shares of its Series B-1 Preferred Stock in a private placement to one accredited investor at a purchase price of $8.35 per share for an aggregate purchase price of $250.0 million.

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In October 2024, the registrant issued and sold an aggregate principal amount of $80.0 million of senior unsecured
notes to sixteen accredited investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In December 2024, the registrant issued and sold 2,395,210 shares of its Series B-1 Preferred Stock in a private placement to one accredited investor at a purchase price of $8.35 per share for an aggregate purchase price of $20.0 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In December 2024, Global Corp. exercised its right to exchange its direct ownership interest in Clear Street Holdings LLC,
the registrant's subsidiary, for shares of the registrant. In connection with the exchange, the registrant issued 112,605,223 shares of Class B common stock to Global Corp.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In September 2025, the registrant issued and sold an aggregate principal amount of $221.5 million of senior unsecured
notes to 36 accredited investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In September 2025, the registrant issued and sold 598,802 shares of Series B-1 Preferred Stock in a private placement to one accredited investor at a purchase price of $8.35 per share for an aggregate purchase price of $5.0 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In October 2025, the registrant issued and sold 8,982,036 shares of Series B-1 Preferred Stock in a private placement to two accredited investors at a purchase price of $8.35 per share for an aggregate purchase price of $75.0 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In November 2025, the registrant issued 1,040,974 shares of Class A common stock valued at $19.4 million to three
accredited investors in connection with its acquisition of Pulse Prime Technologies Inc. (the "Pulse Acquisition"). The Pulse Acquisition was completed using a combination of cash and Class A common stock for total consideration of $20.0
million, subject to typical purchase price adjustments for working capital, cash, indebtedness and other customary adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In December 2025, the registrant issued and sold 1,622,568 shares of its Series C Preferred Stock in a private placement to
five accredited investors at a purchase price of $40.06 per share for an aggregate purchase price of $65.0 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In January 2026, the registrant issued and sold 1,757,114 shares of its Series C Preferred Stock in a private placement to
nine accredited investors at a purchase price of $40.06 per share for an aggregate purchase price of $70.4 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In January 2026, the registrant issued 8,500,000 restricted stock units to be settled in shares of Class A common stock to
one accredited investor.

Unless otherwise specified above, the registrant believes these transactions were exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act (and Regulation D or Regulation S promulgated thereunder) or Rule 701 promulgated under Section 3(b) of the Securities Act as transactions by an issuer not involving any public offering or under benefit plans and contracts relating to compensation as provided under Rule 701. The recipients of the securities in each of these transactions represented their intentions to acquire the securities for investment only and not with a view to or for sale in connection with any distribution thereof, and appropriate legends were placed on the share certificates issued in these transactions. All recipients had adequate access, through their relationships with the registrant, to information about the registrant. The sales of these securities were made without any general solicitation or advertising.

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**Item 16.** **Exhibits and Financial Statement Schedules** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(i) Exhibits***

---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Description** |
| 1.1\* | Form of Underwriting Agreement |
| 3.1 | [Seventh Amended and Restated Certificate of Incorporation of the registrant, as amended, as currently in effect](d39893dex31.htm) |
| 3.2\* | Form of Eighth Amended and Restated Certificate of Incorporation of the registrant, to be in effect upon the completion of this offering |
| 3.3 | [Bylaws of the registrant, as currently in effect](d39893dex33.htm) |
| 3.4\* | Form of Amended and Restated Bylaws of the registrant, to be in effect upon the completion of this offering |
| 5.1\* | Opinion of Davis Polk & Wardwell LLP |
| 10.1+ | [Amended and Restated 2021 Stock Incentive Plan, as amended and restated effective as of December 18, 2025](d39893dex101.htm) |
| 10.2+ | [Form of Restricted Stock Unit Issuance Agreement under the 2021 Plan](d39893dex102.htm) |
| 10.3+ | [Form of Stock Option Agreement under the 2021 Plan](d39893dex103.htm) |
| 10.4+\* | Form of Clear Street Group Inc. Omnibus Incentive Plan |
| 10.5+\* | Form of Option Award Agreement under the Omnibus Incentive Plan |
| 10.6+\* | Form of Restricted Stock Unit Agreement under the Omnibus Incentive Plan |
| 10.7+\* | Form of Clear Street Group Inc. Employee Stock Purchase Plan |
| 10.8+\* | Non-Employee Director Compensation Policy |
| 10.9+\* | Support Services and Equity Award Agreement |
| 10.10+\* | Restricted Stock Unit Issuance Agreement with Global Corp. |
| 10.11+\* | Employment Agreement by and between the registrant and Christopher Pento |
| 10.12+\* | Employment Agreement by and between the registrant and Edward T. Tilly |
| 10.13+\* | Amended and Restated Employment Agreement by and between the registrant and Edward T. Tilly |
| 10.14+\* | Employment Agreement by and between the registrant and Jonathan Daplyn |
| 10.15+\* | Employment Agreement by and between the registrant and John Levene |
| 10.16+ | [Separation Agreement and General Release by and between the registrant and Christopher Pento](d39893dex1016.htm) |
| 10.17^ | [Registration Rights Agreement, dated as of October 20, 2021, by and among the registrant and the investors party thereto](d39893dex1017.htm) |
| 10.18^ | [Amended and Restated Investors' Rights Agreement, dated as of December 18, 2025, by and among the registrant and the investors party thereto.](d39893dex1018.htm) |
| 10.19\* | Form of Director and Executive Officer Indemnification Agreement |

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---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Description** |
| 10.20 | [Loan Authorization Agreement, dated as of November 12, 2024, by and among Clear Street LLC and BMO Bank N.A.](d39893dex1020.htm) |
| 10.21 | [Credit Agreement, dated as of December 4, 2020, by and among Clear Street LLC, the lenders from time to time party thereto and BMO Bank N.A., as Administrative Agent, as amended on December 3, 2021, April 6, 2022, December 2, 2022, December 1, 2023, November 12, 2024, February 5, 2025 and November 7, 2025](d39893dex1021.htm) |
| 10.22 | [Credit Agreement, dated as of September 23, 2025, by and among Clear Street UK Limited, the lenders party thereto and BMO Bank N.A., as Administrative Agent](d39893dex1022.htm) |
| 10.23^ | [Revolving Note and Cash Subordination Agreement, dated as of October 24, 2025, by and among Clear Street LLC and the lenders from time to time party thereto](d39893dex1023.htm) |
| 10.24^ | [Form of Form of Note Purchase Agreement for Clear Street Holdings LLC's senior unsecured notes due 2026](d39893dex1024.htm) |
| 10.25^ | [Form of Form of Note Purchase Agreement for Clear Street Holdings LLC's senior unsecured notes due 2029](d39893dex1025.htm) |
| 10.26^ | [Form of Form of Note Purchase Agreement for Clear Street Holdings LLC's senior unsecured notes due 2030](d39893dex1026.htm) |
| 16.1 | [Letter Regarding Change in Accountants.](d39893dex161.htm) |
| 21.1 | [List of Subsidiaries of Clear Streep Group Inc.](d39893dex211.htm) |
| 23.1 | [Consent of Ernst & Young LLP](d39893dex231.htm) |
| 23.2 | [Consent of RSM US LLP](d39893dex232.htm) |
| 23.3\* | Consent of Davis Polk & Wardwell LLP (included in Exhibit 5.1) |
| 24.1 | Power of Attorney [(included on signature page)](#sig) |
| 107 | [Filing Fee Table](d39893dexfilingfees.htm) |

---

^ Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). The registrant agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request.

+ Indicates a management contract or compensatory plan.

\* To be filed by amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(ii) Financial statement schedules***

A financial statement schedule is included in the consolidated financial statements, which form part of this registration statement, and is incorporated herein by reference.

**Item 17.** **Undertakings** <br>

The undersigned registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is

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against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of
prospectus filed as part of this Registration Statement in reliance upon Rule 430A and contained in the form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act of 1933 shall be deemed to
be part of this Registration Statement as of the time it was declared effective; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that
contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at the time shall be deemed to be the initial bona fide offering thereof.

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**SIGNATURES** 

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York, New York, on January 20, 2026.

---

| | |
|:---|:---|
| By: | /s/ Edward T. Tilly |
|  | Name: Edward T. Tilly |
|  | Title: Chief Executive Officer |

---

**POWER OF ATTORNEY** 

The undersigned directors and officers of Clear Street Group Inc. hereby appoint each of Kenneth Sicklick and Michael Brudoley as attorney-in-fact for the undersigned, with full power of substitution and resubstitution, for and in the name, place and stead of the undersigned, to sign and file with the Securities and Exchange Commission under the Securities Act of 1933 any and all amendments (including post-effective amendments) and exhibits to this registration statement on Form S-1 (or any other registration statement for the same offering that is to be effective upon filing pursuant to Rule 462(b) under the Securities Act of 1933) and any and all applications and other documents to be filed with the Securities and Exchange Commission pertaining to the registration of the securities covered hereby, with full power and authority to do and perform any and all acts and things whatsoever requisite and necessary or desirable, hereby ratifying and confirming all that said attorney-in-fact, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ Edward T. Tilly<br> Edward T. Tilly | Chief Executive Officer and Director<br> (Principal Executive Officer) | January 20, 2026 |
| /s/ Steven Bisgay<br> Steven Bisgay | Chief Financial Officer<br> (Principal Financial and Accounting Officer) | January 20, 2026 |
| /s/ Uriel Cohen<br> Uriel Cohen | Executive Chairman | January 20, 2026 |
| /s/ Elli Ausubel<br> Elli Ausubel | Executive Vice Chairman | January 20, 2026 |
| /s/ Christopher Pento<br> Christopher Pento | Director | January 20, 2026 |
| /s/ Jay Park<br> Jay Park | Director | January 20, 2026 |
| /s/ Matthew Roberts<br> Matthew Roberts | Director | January 20, 2026 |

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## Exhibit 3.1

**Exhibit 3.1** 

**SEVENTH AMENDED AND RESTATED** 

**CERTIFICATE OF INCORPORATION** 

**OF** 

**CLEAR STREET GROUP INC.** 

(Pursuant to Sections 242 and 245 of the

General Corporation Law of the State of Delaware)

**Clear Street Group Inc.**, a corporation organized and existing to conduct the business and to promote the purposes hereinafter stated under the provisions and subject to the requirements of the General Corporation Law of the State of Delaware (the "**DGCL**"), hereby certifies that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The name of this corporation is Clear Street Group Inc. (the "**Corporation**"). The Corporation's original Certificate of Incorporation was filed with the Secretary of State of the State of Delaware on December 29, 2020. The Amended and Restated Certificate of Incorporation was filed with the Secretary of State of the State of Delaware on March 23, 2021. The Second Amended and Restated Certificate of Incorporation was filed with the Secretary of State of the State of Delaware on September 2, 2021. The Third Amended and Restated Certificate of Incorporation was filed with the Secretary of State of the State of Delaware on October 20, 2021. The Fourth Amended and Restated Certificate of Incorporation was filed with the Secretary of State of the State of Delaware on February 9, 2022. The Fifth Amended and Restated Certificate of Incorporation was filed with the Secretary of State of the State of Delaware on April 13, 2022. The Sixth Amended and Restated Certificate of Incorporation was filed with the Secretary of the State of Delaware on October 7, 2022, and was subsequently amended by the First Amendment to the Sixth Amended and Restated Certificate of Incorporation filed with the Secretary of the State of Delaware on January 11, 2023, the Second Amendment to the Sixth Amended and Restated Certificate of Incorporation filed with the Secretary of the State of Delaware on February 24, 2023, the Third Amendment to the Sixth Amended and Restated Certificate of Incorporation filed with the Secretary of the State of Delaware on April 17, 2023 and the Fourth Amendment to the Sixth Amended and Restated Certificate of Incorporation filed with the Secretary of the State of Delaware on December 28, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. This Seventh Amended and Restated Certificate of Incorporation (this "**Seventh A&R Certificate**" and/or as the same may be further amended from time to time, this "**Certificate**") was duly adopted in accordance with Sections 242 and 245 of the DGCL, and restates, integrates, and further amends the provisions of the Corporation's Certificate of Incorporation as in effect prior to the effectiveness hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The text of the Sixth Amended and Restated Certificate of Incorporation of the Corporation, as amended, is hereby amended and restated in its entirety to read as follows:

**ARTICLE I** 

**NAME** 

Section 1.1 <u>Name</u>. The name of the Corporation is Clear Street Group Inc.

**ARTICLE II** 

**REGISTERED AGENT** 

Section 2.1 <u>Address</u>. The address of the registered office of the Corporation in the State of Delaware is 800 North State Street, Suite 304, Kent County, Dover, DE 19901. The name of its registered agent at such address is United Corporate Services, Inc.

**ARTICLE III** 

**PURPOSE** 

Section 3.1 <u>Purpose</u>. The purpose of the Corporation is to engage in any lawful act or activity for which corporations may now or hereafter be organized under DGCL.

**ARTICLE IV** 

**CAPITALIZATION** 

Section 4.1 <u>Capital Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Reclassification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At the initial date and time of the filing and effectiveness of this Certificate (the "**Effective Time**"), the following reclassification shall occur (the "**Reclassification**"): (A) each share of Class Z Common Stock, $0.00001 par value per share (solely for the purposes of this <u>Section</u> <u>4.1(a</u><u>)</u>, as defined in the Sixth Amended and Restated Certificate of Incorporation of the Corporation, as amended) issued and outstanding immediately prior to the Effective Time shall, automatically and without further action, be reclassified into one (1) share of Class B Common Stock (as defined herein) and (B) the Corporation's authorized share capital with respect to its Class X Common Stock, $0.00001 par value per share, shall be 0 and the Corporation shall no longer have the authority to issue shares of Class X Common Stock. No scrip or fractional shares of Class B Common Stock will be issued by reason of this <u>Section</u> <u>4.1(a</u><u>)</u>. The Reclassification shall be deemed to occur at the Effective Time, regardless of when any Old Certificates (as defined below) are surrendered to the Corporation in exchange for certificates representing Class A Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each holder of a certificate or certificates that immediately prior to the Effective Time represented outstanding shares of Class Z Common Stock (the "**Old Certificates**") shall be entitled to receive upon surrender of such Old Certificates to the Corporation's transfer agent for cancellation (or, if such certificates are held in electronic form by eShares, Inc. (d/b/a Carta) ("**Carta**"), the surrender of such shares by means facilitated by Carta) a number of whole shares of Class B Common Stock, into which and for which the shares formerly represented by such Old Certificates are reclassified under the terms hereof as a result of the Reclassification. If more than one (1) Old Certificate

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shall be surrendered at one time with respect to the same class and series of stock for the account of the same stockholder, the number of full shares to be issued shall be computed on the basis of the aggregate number of shares by the Old Certificates so surrendered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Authorized Capital Stock</u>. Following the Reclassification, the total number of shares of all classes of stock which the Corporation shall have authority to issue is 551,397,052 shares, consisting of (i) 320,128,134 shares of Class A Common Stock, $0.00001 par value per share ("**Class A Common Stock**"); (ii) 130,373,000 shares of Class B Common Stock, $0.00001 par value per share ("**Class B Common Stock**" and, together with the Class A Common Stock, the "**Common Stock**"); and (iv) 100,895,918 shares of Preferred Stock, par value $0.00001 per share ("**Preferred Stock**").

Section 4.2 <u>Common Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. The voting, dividend and liquidation rights of the holders of the Common Stock are subject to and qualified by the rights, powers and preferences of the holders of the Preferred Stock set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Voting Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each holder of record of Class A Common Stock shall be entitled to one (1) vote for each share of Class A Common Stock held of record by such holder on all matters on which stockholders generally are entitled to vote or holders of Class A Common Stock as a separate class are entitled to vote, including the election or removal of directors (whether voting separately as a class or together with one or more other classes of the Corporation's capital stock).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each holder of record of Class B Common Stock, as such, shall be entitled to ten (10) votes for each share of Class B Common Stock held of record by such holder on all matters on which stockholders generally or holders of Class B Common Stock as a separate class are entitled to vote, including the election or removal of directors (whether voting separately as a class or together with one or more other classes of the Corporation's capital stock).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The number of authorized shares of Common Stock or any class of Common Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by (in addition to any vote of the holders of one (1) or more series of Preferred Stock that may be required by the terms of this Certificate) the affirmative vote of the holders of shares of capital stock of the Corporation representing a majority of the votes represented by all outstanding shares of capital stock of the Corporation entitled to vote, irrespective of the provisions of Section 242(b)(2) of the DGCL that would otherwise require a separate vote of the Common Stock or any class of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Except as otherwise provided in this Certificate or required by applicable law, the holders of Common Stock having the right to vote in respect of such Common Stock shall vote together as a single class (or, if the holders of one or more series of Preferred Stock are entitled to vote together with the holders of Common Stock having the right to vote in respect of such Common Stock, as a single class with the holders of

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such series of Preferred Stock) on all matters submitted to a vote of the stockholders having voting rights generally; <u>provided</u>, <u>however</u>, that, except as otherwise required by law, holders of Common Stock, as such, shall not be entitled to vote on any amendment to this Certificate that relates solely to the terms of one (1) or more series of Preferred Stock if the holders of such affected series are entitled, either separately or together with the holders of one (1) or more other such series, to vote thereon pursuant to this Certificate or pursuant to the DGCL. There shall be no cumulative voting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Dividends and Distributions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Class A Common Stock and Class B Common Stock*. Subject to applicable law and the rights of the holders of the Preferred Stock, the holders of Class A Common Stock and Class B Common Stock shall be entitled to receive ratably such dividends and other distributions as may from time to time be declared by the Board of Directors of the Corporation (the "**Board**") in its discretion out of the assets of the Corporation that are by law available therefor at such times and in such amounts as the Board in its discretion shall determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Liquidation, Dissolution or Winding Up</u>. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Corporation, after payment or provision for payment of the debts and other liabilities of the Corporation and all Liquidation Amounts required to be paid to the holders of shares of Preferred Stock, the holders of all outstanding shares of Class A Common Stock and Class B Common Stock shall be entitled to receive the remaining assets of the Corporation available for distribution to its stockholders or, in the case of a Deemed Liquidation Event (as defined below), the consideration not payable to the holders of shares of Preferred Stock shall be distributed among the holders of Class A Common Stock and Class B Common Stock ratably in proportion to the number of shares held by each such stockholder; <u>provided</u>, that if the holders of Series B Preferred Stock and Series C Preferred Stock (each as defined herein) are to receive the amount reflected in <u>clause</u> <u>(B)</u> of <u>Section</u> <u>4.3(b)(ii)</u> below, then such payment to the holders of Series B Preferred Stock and Series C Preferred Stock shall not be senior to, but shall rank *pari passu* with, any payment made to the holders of Class A Common Stock and Class B Common Stock and shall be paid pursuant hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Limitation on Transfer of Class</u> <u>B Common Stock; Conversion into Class</u> <u>A Common Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each share of Class B Common Stock shall be convertible, at the option of the holder thereof, at any time and from time to time, and without the payment of additional consideration by the holder thereof, into one share of Class A Common Stock, subject to adjustment for any stock split, stock dividend, recapitalization, reorganization, merger, amendment of this Certificate, scheme, arrangement or otherwise affecting the Class A Common Stock that has not otherwise caused an adjustment in the Class B Common Stock pursuant to this Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) In order for a holder of Class B Common Stock to voluntarily convert shares of Class B Common Stock into shares of Class A Common Stock, such holder shall (i) provide written notice to the Corporation's

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transfer agent at the office of the transfer agent for the Class A Common Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent) that such holder elects to convert all or any number of such holder's shares of Class B Common Stock and, if applicable, any event on which such conversion is contingent and (ii), if such holder's shares are certificated, surrender the certificate or certificates for such shares of Class B Common Stock (or, if such registered holder alleges that such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate), at the office of the transfer agent for the Class A Common Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent). Such notice shall state such holder's name or the names of the nominees in which such holder wishes the shares of Class A Common Stock to be issued. If required by the Corporation, any certificates surrendered for conversion shall be endorsed or accompanied by a written instrument or instruments of transfer, in form satisfactory to the Corporation, duly executed by the registered holder or his, her or its attorney duly authorized in writing. The close of business on the date of receipt by the transfer agent (or by the Corporation if the Corporation serves as its own transfer agent) of such notice and, if applicable, certificates (or lost certificate affidavit and agreement) shall be the time of conversion (the "**Class B Conversion Time**"), and the shares of Class A Common Stock issuable upon conversion of the specified shares shall be deemed to be outstanding of record as of such date. The Corporation shall, as soon as practicable after the Class B Conversion Time issue and deliver to such holder of Class B Common Stock, or to his, her or its nominees, a notice of issuance of uncertificated shares and may, upon written request, issue and deliver a certificate for the number of full shares of Class A Common Stock issuable upon such conversion in accordance with the provisions hereof and, may, if applicable and upon written request, issue and deliver a certificate for the number (if any) of the shares of Class B Common Stock represented by any surrendered certificate that were not converted into Class A Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) All shares of Class B Common Stock which have been surrendered for conversion as herein provided shall no longer be deemed to be outstanding and all rights with respect to such shares shall immediately cease and terminate at the Class B Conversion Time, except only the right of the holders thereof to receive shares of Class A Common Stock in exchange therefor. Any shares of Class B Common Stock so converted shall be retired and cancelled and may not be reissued as shares of such class, and the Corporation may thereafter take such appropriate action (without the need for stockholder action) as may be necessary to reduce the authorized number of shares of Class B Common Stock accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Reservation of Common Stock</u>. The Corporation shall at all times reserve and keep available out of the authorized but unissued capital stock such number of its duly authorized shares of Class A Common Stock as is from time to time sufficient to effect (i) the conversion of all outstanding Series B Preferred Stock into Class

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A Common Stock; (ii) the conversion of all outstanding Series C Preferred Stock (as defined herein) into Class A Common Stock; and (iii) the conversion of all outstanding Class B Common Stock into Class A Common Stock, and if at any time the number of authorized but unissued shares of Class A Common Stock is not sufficient to effect the foregoing, the Corporation shall take such corporate action as may be necessary to increase its authorized but unissued shares of Class A Common Stock to such number of shares as is sufficient for such purposes, including, without limitation, engaging in reasonable best efforts to obtain the requisite stockholder approval of any necessary amendment to this Certificate. Before taking any action which would cause an adjustment reducing the applicable Conversion Price (as defined herein) below the then par value of the shares of Class A Common Stock issuable upon conversion of the Series B Preferred Stock and Series C Preferred Stock, the Corporation will take any reasonable best corporate action which may, in the opinion of its counsel, be necessary in order that the Corporation may validly and legally issue fully paid and non-assessable shares of Class A Common Stock at such applicable adjusted Conversion Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Splits</u>. If the Corporation at any time combines or subdivides (by any stock split, stock dividend, recapitalization, reorganization, merger, amendment of this Certificate, scheme, arrangement or otherwise) the number of shares of any class or series of Common Stock into a greater or lesser number of shares, the shares of each other class or series shall be proportionately similarly combined or subdivided. Any adjustment described in this <u>Section</u> <u>4.2(g)</u> shall become effective at the close of business on the date the combination or subdivision becomes effective.

Section 4.3 <u>Preferred Stock Generally</u>. Except as otherwise required by law, holders of a series of Preferred Stock, as such, shall be entitled only to such voting rights as shall expressly be granted thereto by this Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>D</u><u>esignation</u>. 1,400,000 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series A Perpetual Preferred Stock**," 95,466,593 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series B-1 Preferred Stock**," 2,406,757 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series B-2 Preferred Stock**" and 1,622,568 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series C Preferred Stock**," each with the rights, preferences, powers, privileges and restrictions, qualifications and limitations set forth in this <u>Article</u> <u>IV</u>, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Liquidation, Dissolution or Winding Up; Certain Mergers, Consolidations, and Asset Sales</u>. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation, the holders of shares of Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Corporation available for distribution to its stockholders, and in the event of a Deemed Liquidation Event, the holders of shares of Preferred Stock then outstanding shall be entitled to be paid out of the consideration payable to stockholders in such Deemed Liquidation Event or out of the Available Proceeds (as defined below) in the following order of priority:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The holders of Series A Perpetual Preferred Stock shall be entitled to receive, on a *pari passu* basis, (x) subsequent and subordinate to any distribution or payment of any liquidation preference payable to any other class or series of Preferred Stock designated by this Certificate as senior in interest to the Series A Perpetual Preferred Stock with respect to liquidation preference ("**Senior Preferred**") and (y) prior to and in preference to any distribution or payment to the holders of Common Stock, Series B Preferred Stock, Series C Preferred Stock or any other class or series of Preferred Stock designated by this Certificate as junior in interest to the Series A Perpetual Preferred Stock with respect to liquidation preference ("**Junior Preferred**"), by reason of their ownership thereof, an amount per share equal to the sum of (i) $25.00 per share, plus (ii) an amount equal in cash to all accrued and unpaid dividends to the date of payment for the then-current Dividend Period (the amount payable in respect of the Series A Perpetual Preferred Stock pursuant to this sentence is hereinafter referred to as the "**Series A Liquidation Amount**"). If upon the occurrence of a liquidation, dissolution or winding up of the Corporation or Deemed Liquidation Event, the assets and funds to be distributed among the holders of the Series A Perpetual Preferred Stock in accordance with the foregoing and the assets and funds to be distributed among holders of any other class or series of Preferred Stock designated by this Certificate as on a *pari passu* basis with the Series A Perpetual Preferred Stock with respect to liquidation preference ("**Pari Passu Preferred**") are insufficient to permit the payment to such holders of the full preferential amount as provided in the first sentence of this <u>clause</u> <u>(i)</u>, then the entire assets and funds of the Corporation legally available for distribution shall be distributed ratably among the holders of the Series A Perpetual Preferred Stock and any such *pari passu* Preferred Stock in proportion to the relative preferential amounts each such holder would be otherwise entitled to receive in accordance with such first sentence of this <u>clause</u> <u>(i)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) After payment has been made to the holders of the Series A Perpetual Preferred Stock of the full preferential amount to which they are entitled as set forth in <u>Section</u> <u>4.3(b)(i)</u>, the holders of the Series B Preferred Stock and Series C Preferred Stock shall be entitled to receive, on a *pari passu* basis, prior to and in preference to any distribution or payment to the holders of Common Stock or any other class or series of Preferred Stock designated by this Certificate as junior in interest to the Series B Preferred Stock and Series C Preferred Stock with respect to liquidation preference by reason of their ownership thereof, an amount per share equal to the greater of (A) the sum of the Applicable Original Issue Price (as defined below) for each share of Series B Preferred Stock and Series C Preferred Stock, plus all declared but unpaid dividends on such share, and in each case reduced by any amounts previously paid with respect to such share upon a Deemed Liquidation Event, or (B) such amount per share, reduced by any amounts previously paid upon a Deemed Liquidation Event, as would have been payable had all shares of Series B Preferred Stock and Series C Preferred Stock been converted into Common Stock immediately prior to such liquidation, dissolution, winding up or Deemed Liquidation Event (the amount payable pursuant to this sentence for the Series B-1 Preferred Stock is hereinafter referred to as the "**Series B-1 Liquidation Amount**," the amount payable pursuant to this sentence for the Series B-2 Preferred Stock is hereinafter referred to as the "**Series B-2 Liquidation Amount**," and the amount payable pursuant to this sentence for the Series C Preferred Stock is hereinafter referred to as the "**Series C Liquidation Amount**" and collectively with the Series B-1 Liquidation Amount, Series B-2 Liquidation Amount and the Series A Liquidation Amount, the "**Liquidation Amounts**"); <u>provided</u>, that if the holders of Series B Preferred Stock and Series C Preferred

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Stock are to receive the amount reflected in <u>clause</u> <u>(B)</u> above, then such payment to the holders of Series B Preferred Stock and Series C Preferred Stock shall not be senior to, but shall rank *pari passu* with, any payment made to the holders of Class A Common Stock and Class B Common Stock. If upon the occurrence of a liquidation, dissolution or winding up of the Corporation or Deemed Liquidation Event, the assets and funds to be distributed among the holders of the Series B Preferred Stock and Series C Preferred Stock in accordance with the foregoing and the assets and funds to be distributed among holders of any other class or series of Preferred Stock designated by this Certificate as on a *pari passu* basis with the Series B Preferred Stock and Series C Preferred Stock with respect to liquidation preference are insufficient to permit the payment to such holders of the full preferential amount as provided in the first sentence of this <u>clause</u> <u>(ii)</u>, then the entire assets and funds of the Corporation legally available for distribution (but after payment of the amounts to be paid pursuant to <u>clause</u> <u>(i)</u> above) shall be distributed ratably among such holders in proportion to the respective amounts which would otherwise be payable in respect of the shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full. The "**Applicable Original Issue Price**" means (a) $8.35 per share of Series B-1 Preferred Stock, (b) $5.79 per share of Series B-2 Preferred Stock and (c) $40.06 per share of Series C Preferred Stock, in each case subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the applicable series of Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Deemed Liquidation Events</u>. Each of the following events shall be considered a "**Deemed Liquidation Event**" unless (A)(i) until the date and time (the "**Prysm Majority Expiration Time**") on which Prysm Capital, LLC and its Affiliates collectively hold less than a majority of the outstanding shares of Series B Preferred Stock, Prysm Capital, LLC or (ii) following the Prysm Majority Expiration Time, (x) the holders of at least a majority of the outstanding shares of Series B Preferred Stock and (y) until the first date (the "**Prysm Board Elimination Date**") that the number of shares of Series B Preferred Stock held by Prysm Capital, LLC and its Affiliates is less than 8,982,036, subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization, Prysm Capital, LLC (<u>clause</u> <u>(i)</u> or <u>clause</u> <u>(ii)</u>, as applicable, the "**Series B Requisite Holders**"), and (B) the holders of a majority of the outstanding shares of Series C Preferred Stock (the "**Series C Requisite Holders**") elect otherwise by written notice sent to the Corporation at least fifteen (15) days prior to the effective date of any such event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a merger or consolidation in which

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Corporation is a constituent party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a subsidiary of the Corporation is a constituent party and the Corporation issues shares of its capital stock pursuant to such merger or consolidation,

except any such merger or consolidation involving the Corporation or a subsidiary in which the shares of capital stock of the Corporation outstanding immediately prior to such merger or consolidation (excluding the Series A Perpetual Preferred Stock) continue to represent, or are converted into or exchanged, or are convertible into or

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exchangeable, for shares of capital stock that represent, immediately following such merger or consolidation, at least a majority of the capital stock of (1) the surviving or resulting corporation; or (2) if the surviving or resulting corporation is a wholly owned subsidiary of another corporation immediately following such merger or consolidation, the parent corporation of such surviving or resulting corporation (excluding the Series A Perpetual Preferred Stock); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A) the sale, lease, transfer, exclusive license, or other disposition, in a single transaction or series of related transactions, by the Corporation or any subsidiary of the Corporation of all or substantially all the assets of the Corporation and its subsidiaries taken as a whole or (B) the sale or disposition (whether by merger, consolidation or otherwise, and whether in a single transaction or a series of related transactions) of one (1) or more subsidiaries of the Corporation if substantially all of the assets of the Corporation and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or other disposition is to a wholly-owned subsidiary of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>E</u><u>ffecting a Deemed Liquidation Event</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Corporation shall not have the power to effect a Deemed Liquidation Event unless the agreement or plan of merger or consolidation for such transaction (the "**Merger Agreement**") provides that the consideration payable to the stockholders of the Corporation in such Deemed Liquidation Event shall be allocated to the holders of capital stock of the Corporation in accordance with <u>Section</u> <u>4.2(d</u><u>)</u> and <u>Section</u> <u>4.3</u><u>(b)</u>. The amount deemed paid or distributed to the holders of capital stock of the Corporation upon any such merger, consolidation, sale, transfer, exclusive license, other disposition or redemption shall be the cash or the value of the property, rights or securities to be paid or distributed to such holders pursuant to such Deemed Liquidation Event. The value of such property, rights or securities shall be determined in good faith by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event of a Deemed Liquidation Event, if any portion of the consideration payable to the stockholders of the Corporation is payable only upon satisfaction of contingencies (the "**Additional Consideration**"), the Merger Agreement shall provide that (A) the portion of such consideration that is not Additional Consideration (such portion, the "**Initial Consideration**") shall be allocated among the holders of capital stock of the Corporation in accordance with <u>Section</u> <u>4.2(d</u><u>)</u> and <u>Section</u> <u>4.3</u><u>(b)</u> as if the Initial Consideration were the only consideration payable in connection with such Deemed Liquidation Event; and (B) any Additional Consideration that becomes payable to the stockholders of the Corporation upon satisfaction of such contingencies shall be allocated among the holders of capital stock of the Corporation in accordance with <u>Section</u> <u>4.2(d</u><u>)</u> and <u>Section</u> <u>4.3</u><u>(b)</u> after taking into account the previous payment of the Initial Consideration as part of the same transaction. For the purposes of this <u>Section</u> <u>4.3(d)</u>, consideration placed into escrow or retained as a holdback to be available for satisfaction of indemnification or similar obligations in connection with such Deemed Liquidation Event shall be deemed to be Additional Consideration.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event of a Deemed Liquidation Event referred to in <u>Section</u> <u>4.3(c)(i)(B)</u> or <u>Section</u> <u>4.3(c)</u><u>(ii)</u>, if the Corporation does not effect a dissolution of the Corporation under the DGCL within ninety (90) days after such Deemed Liquidation Event, then (A) the Corporation shall send a written notice to each holder of Series B Preferred Stock and Series C Preferred Stock no later than the ninetieth (90<sup>th</sup>) day after the Deemed Liquidation Event advising such holders of their right (and the requirements to be met to secure such right) pursuant to the terms of the following <u>clause</u> <u>(B)</u> to require the redemption of such shares of Series B Preferred Stock and Series C Preferred Stock, and (B) if the Series B Requisite Holders and/or the Series C Requisite Holders, voting separately, so request in a written instrument delivered to the Corporation not later than one hundred twenty (120) days after such Deemed Liquidation Event, the Corporation shall use the consideration received by the Corporation for such Deemed Liquidation Event (net of any retained liabilities associated with the assets sold or technology licensed, the Series A Liquidation Amount, any other expenses reasonably related to such Deemed Liquidation Event and any other expenses incident to the dissolution of the Corporation as provided herein, in each case as determined in good faith by the Board)**,** together with any other assets of the Corporation available for distribution to its stockholders, all to the extent permitted by Delaware law governing distributions to stockholders (the "**Available Proceeds**"), on the one hundred fiftieth (150<sup>th</sup>) day after such Deemed Liquidation Event (the "**DLE Redemption Date**"), to redeem all outstanding shares of Series B Preferred Stock (if so requested by the Series B Requisite Holders) and the Series C Preferred Stock (if so requested by the Series C Requisite Holders), in each case at a price per share equal to the applicable Liquidation Amount; <u>provided</u>, that if the definitive agreements governing such Deemed Liquidation Event contain contingent indemnification obligations on the part of the Corporation and prohibit the Corporation from distributing all or a portion of the Available Proceeds while such indemnification obligations remain outstanding, then the DLE Redemption Date shall automatically be extended to the date that is ten (10) business days following the date on which such prohibition expires. Notwithstanding the foregoing, in the event of a redemption pursuant to the preceding sentence, if the Available Proceeds are not sufficient to redeem all outstanding shares of Series B Preferred Stock and/or Series C Preferred Stock, the Corporation shall redeem a pro rata portion of each holder's shares of Series B Preferred Stock and/or Series C Preferred Stock, as applicable, to the fullest extent of such net Available Proceeds, based on the respective amounts which would otherwise be payable in respect of such shares to be redeemed if the net Available Proceeds were sufficient to redeem all such shares, and shall redeem the remaining shares as soon as it may lawfully do so under Delaware law governing distributions to stockholders. The provisions of <u>Article VI</u> shall apply, with such necessary changes in the details thereof as are necessitated by the context, to the redemption of the Preferred Stock pursuant to this <u>Section</u> <u>4.3(d)(iii)</u>. Prior to the distribution or redemption provided for in this <u>Section</u> <u>4.3(d)(iii)</u>, the Corporation shall not expend or dissipate the consideration received for such Deemed Liquidation Event, except to discharge expenses incurred in connection with such Deemed Liquidation Event or in the ordinary course of business.

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Section 4.4 <u>Series A Perpetual Cumulative Preferred Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>D</u><u>ividends</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The record holders of then outstanding shares of Series A Perpetual Preferred Stock as of the applicable record dates shall be entitled to receive, when, as and if declared by the Board out of funds legally available for the purpose, quarterly dividends payable in cash on January 30, April 30, July 30, and October 30 of each year (the "**Dividend Payment Dates**"), commencing on January 30, 2022, payable in preference and priority to any payment of any dividend on Common Stock, at the rate of seven percent (7%) per annum from the date of issuance up to, but excluding October 30, 2026 (the "**First Reset Date**") and thereafter, at the rate equal to the sum of (i) the Five-Year Treasury Rate as of the most recent Reset Date and (ii) six percent (6%) per annum (the "**Reset Dividend Rate**") during each Reset Period (as defined below) from, and including the First Reset Date, in each case calculated as the applicable percentage of $25.00 per share of Series A Perpetual Preferred Stock held by such record holder. The "**Reset Date**" means the First Reset Date and each date falling on the fifth anniversary of the preceding Reset Date. The "**Reset Period**" means the period from and including the First Reset Date to, but excluding, the next following Reset Date, and thereafter each period from and including each Reset Date to, but excluding, the next following Reset Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) So long as any shares of Series A Perpetual Preferred Stock remain outstanding, no dividend or distribution shall be declared, paid or set aside for payment, and no distribution may be declared or made or set aside for payment, on any Series A Junior Securities (as hereinafter defined), other than (i) a dividend payable solely in Series A Junior Securities or (ii) any dividend in connection with the implementation of a stockholders' rights plan, or the issuance of rights, stock, or other property under any such plan, or the redemption or repurchase of any rights under any such plan, unless all accrued and unpaid dividends as of such date have been declared and paid or declared and a sum sufficient for the payment thereof has been set aside.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Whenever dividends on any shares of Series A Perpetual Preferred Stock are in arrears for six or more Dividend Periods (as defined below), whether or not consecutive (a "**Nonpayment Event**"), the authorized number of directors of the Corporation shall be increased by two and the holders of record of shares of Series A Perpetual Preferred Stock (along with holders of any outstanding Series A Parity Securities (as hereinafter defined) having voting rights on parity with the voting rights provided to the Series A Perpetual Preferred Stock (together, the "**Special Voting Preferred Stock**"), voting together as a class based on respective liquidation preferences) shall have the right to elect two directors (the "**Series A Preferred Directors**" and each, a "**Series A Preferred Director**") to fill such newly created directorships; <u>provided</u>, <u>however</u>, that at no time shall the Board include more than two Series A Preferred Directors; <u>provided</u> <u>further</u> that the election of any such Series A Preferred Directors may not cause the Corporation to violate any corporate governance requirement of any exchange on which the Corporation's securities may be listed. At the request of any holder of shares of Series A Perpetual Preferred Stock, unless the Corporation elects to have such action be taken by consent in writing or in an electronic transmission, a special meeting of the holders of shares of Special Voting Preferred Stock shall be called by the Corporation for the election of the Series A Preferred Directors; <u>provided</u>, <u>however</u>, that if such request for a special meeting is received less than 90 days before the date fixed for the next annual or special meeting of the Corporation's stockholders, such election of Series A Preferred Directors

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shall be held at such next annual or special meeting of stockholders, followed by such election of such Series A Preferred Directors at each subsequent annual meeting of stockholders until such time as there is no longer a Nonpayment Event, except as provided by law, subject to re-vesting in the event of each and every subsequent Nonpayment Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If and when there is no longer a Nonpayment Event, the right of the holders of shares of Special Voting Preferred Stock to elect the Series A Preferred Directors shall cease (but subject in any case to re-vesting of such voting rights in the case of each and every subsequent Nonpayment Event), and the Series A Preferred Directors shall cease to be qualified as directors, the holders of Series A Perpetual Preferred Stock and any Special Voting Preferred Stock shall be deemed to have removed the Series A Preferred Directors, the term of office of all Series A Preferred Directors then in office shall terminate immediately, and the Corporation's authorized number of directors shall be automatically reduced by the number of newly created directorships created pursuant to the preceding paragraph. Any Series A Preferred Director may be removed at any time, with or without cause, by the holders of a majority of the outstanding shares of Special Voting Preferred Stock then outstanding (voting together as a class based on respective liquidation preferences), given either at a special meeting of such stockholders duly called for that purpose or pursuant to a consent in writing or in an electronic transmission. If the holders of a majority of the outstanding shares of Special Voting Preferred Stock fail to elect a sufficient number of directors to fill the directorships for which they are entitled to elect directors, pursuant to this <u>Section</u> <u>4.4</u>, then any directorship not so filled shall remain vacant until such time as the holders of the Special Voting Preferred Stock elect a person to fill such directorship by vote or consent in writing or in an electronic transmission in lieu of a meeting, and no such directorship may be filled by stockholders of the Corporation other than the holders of the Special Voting Preferred Stock voting exclusively and as a separate class unless the office of any Series A Preferred Director becomes vacant for any reason other than removal from office and the other Series A Preferred Director remains in office, then the remaining Series A Preferred Director may choose, by means of consent in writing or in an electronic transmission, a successor who shall hold office for the unexpired term in respect of which such vacancy occurred; <u>provided</u> that the filling of any such vacancy may not cause the Corporation to violate any corporate governance requirement of any exchange on which the Corporation's securities may be listed. The Series A Preferred Directors shall each be entitled to one vote per director on any matter on which directors of the Corporation are entitled to vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Board will take such actions as may be necessary to effectuate the intent of this <u>Section</u> <u>4.4(a)</u> in accordance with this Certificate and the Bylaws of the Corporation. The rules and procedures for calling and conducting any meeting of the holders of Series A Perpetual Preferred Stock (including, without limitation, the fixing of a record date in connection therewith), the solicitation and use of proxies at such a meeting, the obtaining of consents in writing or in electronic transmissions, and any other aspect or matter with regard to such meeting or such consents shall be governed by any rules that the Board or any duly authorized committee of the Board, in its discretion, may adopt from time to time, which rules and procedures shall conform to the requirements of this Certificate (as then in effect), the Bylaws (as then in effect), and applicable law and the rules of any national securities exchange on which the Series A Perpetual Preferred Stock is listed or traded at the time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>Certain Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) "**Dividend Period**" means the period from and including a Dividend Payment Date to, but excluding, the next succeeding Dividend Payment Date or any earlier redemption date, except that the initial Dividend Period will commence on and include the original issue date of Series A Perpetual Preferred Stock and continue up to, but exclude, the next Dividend Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) "**Series A Junior Securities**" means any class or series of capital stock of the Corporation now or hereafter authorized, issued, or outstanding that, by its terms, does not expressly provide that such class or series ranks *pari passu* with, or senior to, the Series A Perpetual Preferred Stock as to dividends and liquidation preference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) "**Series A Parity Securities**" means any class or series of capital stock of the Corporation now or hereafter authorized, issued, or outstanding that, by its terms, expressly provides that such class or series ranks *pari passu* with the Series A Perpetual Preferred Stock as to dividends and liquidation preference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>V</u><u>oting</u><u> </u><u>Rights and Conversion Rights</u>. The Series A Perpetual Preferred Stock shall have no voting rights (other than those provided below) and shall not be convertible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each holder of record of Series A Perpetual Preferred Stock shall be entitled to one (1) vote for each share of Series A Perpetual Preferred Stock held of record by such holder on all matters on which stockholders generally are entitled to vote or holders of Series A Perpetual Preferred Stock as a separate class are entitled to vote, including the election or removal of directors (whether voting separately as a class or together with one or more other classes of the Corporation's capital stock).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) So long as any shares of the Series A Perpetual Preferred Stock remain outstanding, the affirmative vote or consent of the holders of at least two-thirds of all of the shares of Series A Perpetual Preferred Stock at the time outstanding, voting separately as a class, shall be required to amend, alter, or repeal the provisions of this Certificate, whether by merger, consolidation, or otherwise, so as to materially and adversely affect the powers, preferences, privileges, or rights of the Series A Perpetual Preferred Stock, taken as a whole; <u>provided</u>, <u>however</u>, that any amendment to authorize, create, or issue, or increase any class or series of capital stock of the Corporation, or any securities convertible into or exchangeable for such capital stock, will not be deemed to materially and adversely affect the powers, preferences, privileges, or rights of the Series A Perpetual Preferred Stock.

The foregoing voting provision will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required is effected, all outstanding shares of Series A Perpetual Preferred Stock have been redeemed or called for redemption upon proper notice and sufficient funds have been set aside by the Corporation for the benefit of the holders of Series A Perpetual Preferred Stock to effect such redemption.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Optional Redemption</u>. Except as set forth below, the Series A Perpetual Preferred Stock is not redeemable prior to the First Reset Date. Notwithstanding the foregoing, the Corporation is entitled, at its option, to redeem the Series A Perpetual Preferred Stock, in whole or in part, (i) in connection with a Change of Control (as defined below) occurring after October 20, 2021 and prior to the First Reset Date ("**Change of Control Redemption**"), or (ii) on any Dividend Payment Date on or after the First Reset Date ("**Ordinary Redemption**"). The redemption price in connection with a Change of Control Redemption shall be $25.50 per share of Series A Perpetual Preferred Stock and the redemption price in connection with an Ordinary Redemption shall be $25.00 per share, *plus*, in each of the foregoing cases, accrued but unpaid, whether declared or undeclared, dividends for the period ending on the date immediately preceding the date of redemption. Shares of Series A Perpetual Preferred Stock which are redeemed as provided herein shall not be reissued. For purposes herein, a "**Change of Control**" shall mean any of the following events, in one or a series of related transactions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any sale of 50% or more of the voting common stock of the Corporation (excluding any voting common stock that does not entitle its holder to share in dividends or proceeds of a liquidation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any merger, consolidation, share exchange, business combination, liquidation, dissolution or other similar transaction involving (A) the Corporation or (B) any of its subsidiaries whose assets, individually or in the aggregate, constitute 50% or more of the consolidated assets of the Corporation or to which 50% or more of the total revenue or operating income of the Corporation are attributable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any sale, exchange, transfer or other disposition of assets or businesses that constitute or represent 50% or more of the total revenue, operating income or assets of the Corporation and its subsidiaries, taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any sale, exchange, transfer or other disposition of 50% or more of the common units of Clear Street Holdings LLC, a Delaware limited liability company ("**CSH LLC**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any merger or other business combination between the Corporation and a special purpose acquisition company (a "**SPAC**") where the holders of the Corporation's outstanding common stock immediately prior to such merger or other business combination sell (i) 100% of such common stock or (ii) subsidiaries and/or assets representing 100% of the revenue or operating income of the Corporation (a "**Major SPAC Transaction**");

<u>provided</u>, <u>however</u>, that a "Change of Control" shall not include any merger or other business combination between the Corporation and a SPAC that is not a Major SPAC Transaction.

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Section 4.5 <u>Series B Preferred Stock and Series C Preferred Stock Generally</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Dividends</u>. The Corporation shall not declare, pay or set aside any dividends on shares of any other class or series of capital stock of the Corporation (other than dividends on shares of Class A Common Stock payable in shares of Class A Common Stock, and dividends payable on the Series A Perpetual Preferred Stock in accordance with the terms of this Certificate) unless (in addition to obtaining any consents required elsewhere in this Certificate) the holders of the Series B Preferred Stock and Series C Preferred Stock then outstanding first receive, or simultaneously receive, a dividend on each outstanding share of Series B Preferred Stock and Series C Preferred Stock in an amount at least equal to in the case of a dividend on Common Stock or any class or series that is convertible into Common Stock, that dividend per share of Series B Preferred Stock and Series C Preferred Stock as would equal the product of (A) the dividend payable on each share of such class or series determined, if applicable, as if all shares of such class or series had been converted into Common Stock and (B) the number of shares of Common Stock issuable upon conversion of such share of Series B Preferred Stock and Series C Preferred Stock, in each case calculated on the record date for determination of holders entitled to receive such dividend; <u>provided</u> that, if the Corporation declares, pays or sets aside, on the same date, a dividend on shares of more than one (1) class or series of capital stock of the Corporation (other than on the Series A Perpetual Preferred Stock in accordance with the terms of this Certificate), the dividend payable to the holders of Series B Preferred Stock and Series C Preferred Stock pursuant to this <u>Section</u> <u>4.5(a)</u> shall be calculated based upon the dividend on the class or series of capital stock that would result in the highest Series B Preferred Stock and Series C Preferred Stock dividend.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Voting In General</u>. On any matter presented to the stockholders of the Corporation for their action or consideration at any meeting of stockholders of the Corporation (or by consent in writing or in an electronic transmission of stockholders in lieu of meeting), each holder of outstanding shares of Series B Preferred Stock and Series C Preferred Stock shall be entitled to cast the number of votes equal to the number of whole shares of Class A Common Stock into which the shares of Series B Preferred Stock and Series C Preferred Stock held by such holder are convertible as of the record date for determining stockholders entitled to vote on such matter. Except as provided by law or by the other provisions of this Certificate, holders of Series B Preferred Stock and Series C Preferred Stock shall vote together with the holders of Class A Common Stock and Class B Common Stock as a single class and on an as converted to Class A Common Stock basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Election of Directors</u>. Until the Series B Board Reduction Date (as defined in that certain Amended and Restated Voting Agreement, in effect as of the date hereof, by and among the Corporation and the other parties thereto (as such agreement may be amended from time to time, the "**Voting Agreement**")), the holders of record of the shares of Series B Preferred Stock, exclusively and as a separate class, shall be entitled to elect two directors of the Corporation. At any time on or following the Series B Board Reduction Date but prior to the date that Prysm Capital, LLC collectively no longer holds at least 8,982,036 shares of Series B Preferred Stock, subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization (the "**Series B Board Elimination Date**"), the holders of record of the shares of Series B Preferred Stock shall be entitled to elect one director of the Corporation. A director elected pursuant to the foregoing sentences is referred to herein as a "**Series B Preferred Director**." Following the Series B Board Reduction Date or Series B Board Elimination Date, as applicable, one (1) (in the case of the Series B Board Reduction Date) or all (in the case of the Series B Board Elimination Date) of the Series B Preferred Directors then in office shall cease to

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be qualified as directors, the holders of Series B Preferred Stock shall be deemed to have removed such Series B Preferred Director(s) then in office (as applicable), the term of office of such Series B Preferred Director(s) then in office shall terminate immediately, and the Corporation's authorized number of directors shall be automatically reduced by the number of Series B Preferred Directors so removed. Any director constituting a Series B Preferred Director then in office may be removed with or without cause by, and only by, the affirmative vote of the holders of the shares of the class or series of capital stock entitled to elect such director or directors, given either at a special meeting of such stockholders duly called for that purpose or pursuant to a consent in writing or in an electronic transmission. If the holders of shares of Series B Preferred Stock fail to elect a sufficient number of directors to fill the directorships for which they are entitled to elect directors, voting exclusively and as a separate class, pursuant to this <u>Section</u> <u>4.5(c)</u>, then any directorship not so filled shall remain vacant until such time as the holders of the Series B Preferred Stock elect a person to fill such directorship by vote or consent in writing or in an electronic transmission in lieu of a meeting, and no such directorship may be filled by stockholders of the Corporation other than the holders of the Series B Preferred Stock voting exclusively and as a separate class. The holders of record of the shares of Class A Common Stock or Class B Common Stock, as applicable, and of any other class or series of voting stock (including the Series B Preferred Stock and the Series C Preferred Stock), exclusively and voting together as a single class, shall be entitled to elect the balance of the total number of directors of the Corporation. At any meeting held for the purpose of electing a director, the presence in person or by proxy of the holders of a majority of the outstanding shares of the class or series entitled to elect such director shall constitute a quorum for the purpose of electing such director. Except as otherwise provided in this <u>Section</u> <u>4.5(c)</u>, a vacancy in any directorship filled by the holders of any class or classes or series may be filled only by vote or consent in writing or in an electronic transmission in lieu of a meeting of the holders of such class or classes or series or by any remaining director or directors elected by the holders of such class or classes or series pursuant to this <u>Section</u> <u>4.5(c)</u>. The Series B Preferred Directors shall each be entitled to one vote per director on any matter on which directors of the Corporation are entitled to vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Definition of Affiliate</u>. For purposes of this <u>Section</u> <u>4.5</u>, an "**Affiliate**" of Prysm Capital, LLC means any entity which, directly or indirectly, controls, is controlled by, or is under common control with Prysm Capital, LLC, including, without limitation any venture capital fund, other investment fund, or other entity now or hereafter existing in which Prysm Capital, LLC is the controlling partner or member.

Section 4.6 <u>Series B Preferred Stock and Series C Preferred Stock Protective Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Series B Preferred Stock Protective Provisions</u>. In addition to any other vote required by the DGCL or this Certificate, so long as shares of Series B Preferred Stock are outstanding, the Corporation will not, without consent in writing or in an electronic transmission of the Series B Requisite Holders, either directly or indirectly by amendment, merger, consolidation, or otherwise do any of the following (and any such act or transaction entered into without such consent or vote shall be null and void ab initio, and of no force or effect):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) amend, alter, repeal, or waive any provision of this Certificate or the Corporation's Bylaws, or of any of the Corporation's or its subsidiaries' governing

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documents (including any operating agreement or other similar agreement relating to the organization and operation of the Corporation or any of its subsidiaries) (collectively, the "**Governing Documents**"), in a manner that adversely affects the powers, privileges, preferences, or rights of the Series B Preferred Stock, it being agreed that any amendment to authorize, create, or issue, or increase any class or series of capital stock of the Corporation or of any subsidiary of the Corporation, or any securities convertible into or exchangeable for such capital stock in compliance with the Governing Documents, in and of itself, will not be deemed to adversely affect the powers, privileges, preferences, or rights of the Series B Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) increase the authorized number of shares, or issue additional shares, of Series A Perpetual Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) create or authorize the creation of or issue any other security convertible into or exercisable for any equity security of the Corporation unless the same ranks junior to the Series B Preferred Stock with respect to its rights, preference and privileges, except for the Series A Perpetual Preferred Stock issued and outstanding as of the date hereof as provided in this Certificate as of the date of its effectiveness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) increase the authorized number of shares of Series B Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) purchase or redeem or pay any dividend on any capital stock (or stock options) prior to the Series B Preferred Stock, other than (i) the Series A Perpetual Preferred Stock as provided in and in accordance with this Certificate, and (ii) stock repurchased from former employees and consultants in connection with the cessation of their services at the lower of fair market value or cost (or as otherwise permitted pursuant to any Restricted Stock Agreement entered into by and between the Corporation and any former holder of Class B units or Class C units of Clear Street Members LLC) or as otherwise approved by the Series B Preferred Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) adopt, amend, terminate, or repeal any equity (or equity-linked) compensation plan or amend or waive any of the terms of any option or other grant pursuant to any such plan, other than acceleration of vesting of individual grants approved by the Board (<u>provided</u>, that acceleration in connection with the separation of employment of any non-executive employee shall be as determined by the Corporation's Chief Executive Officer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) create or authorize the creation of any debt security, other than (i) with respect to indebtedness incurred in the ordinary course of business or (ii) with approval of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) create or hold capital stock in any subsidiary (other than Clear Street Management LLC and other than pursuant to any joint back-office arrangements for a broker-dealer entity) that is not wholly owned, directly or indirectly, by the Corporation, except in the ordinary course of business or as otherwise approved by the Board;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) dispose of any capital stock in any subsidiary or permit or cause any subsidiary to dispose of all or substantially all of its assets, except (A) disposals to the Corporation or any of its subsidiaries, or (B) disposals of any subsidiary that has ceased, or never commenced, operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) increase or decrease the authorized number of directors constituting the Board or change the number of votes entitled to be cast by any director or directors on any matter; <u>provided</u> that any increase, or subsequent decrease, in the number of directors pursuant to the rights of the holders of Series A Perpetual Preferred pursuant to <u>Section</u> <u>4.4</u><u>(a)</u> will not be deemed to be an increase or decrease in the authorized number of directors for purposes of this paragraph and any decrease in the number of Series B Directors pursuant to <u>Section</u> <u>4.5(c</u><u>)</u> will not be deemed a decrease in the authorized number of directors for purposes of this paragraph;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) hire as an employee, or terminate the employment of, any individual as Chief Executive Officer, Chief Operating Officer or Chief Technology Officer of the Corporation, unless approved by the Board (including the approval of at least one Series B Preferred Director);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) [Reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) incur indebtedness in connection with, resulting in, or otherwise for the purpose of making, a leveraged dividend or distribution; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) enter into any affiliate transactions, except for the provision of brokerage and clearing services on arm's length terms or bona fide employment or service arrangements with affiliates and benefit programs in which affiliates participate, in each case which are unanimously approved by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Series C Preferred Stock Protective Provisions</u>. In addition to any other vote required by the DGCL or this Certificate, so long as shares of Series C Preferred Stock are outstanding, the Corporation will not, without the consent in writing or in an electronic transmission of the Series C Requisite Holders, either directly or indirectly by amendment, merger, consolidation, or otherwise do any of the following (and any such act or transaction entered into without such consent or vote shall be null and void ab initio, and of no force or effect):

amend or waive, as applicable to the Series C Preferred Stock, ((A), (B), (C) and (D) collectively, the "**Key Series C Protections**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any of the Corporation's Governing Documents in a manner that adversely affects the privileges, preferences or rights of the Series C Preferred Stock in a manner disproportionate to any adverse effect such amendment or waiver would have on the rights of a holder or holders of Series B Preferred Stock hereunder or thereunder (to the extent such holder or holders of Series B Preferred Stock hold the same rights),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <u>Section 4.3(b)</u> hereof; <u>provided</u>, that it is understood that (y) the issuance of a new series of capital stock with a liquidation preference senior,

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equal or junior to the Series C Preferred Stock and (z) any amendment made in connection with a Sale of the Company (as defined in the Voting Agreement) in which the consideration payable to stockholders in such a Sale of the Company or out of the Available Proceeds (as applicable) is distributed in accordance with <u>Section</u> <u>4.3(b)</u>, as such section is in effect as of immediately prior to such amendment, shall not, in and of themselves, be deemed amendments to <u>Section</u> <u>4.3(b)</u> for purposes hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) <u>Section 4.3(c)</u> hereof (relating to the treatment of a transaction as a Deemed Liquidation Event); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) <u>Section 4.7(g)</u> hereof (relating to the anti-dilution provisions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) other than the Key Series C Protections (the applicable consent requirements of which are addressed separately hereunder), amend, alter, repeal, or waive any provision of this Certificate or the Corporation's Bylaws, or of any of the Corporation's or its subsidiaries' Governing Documents, in a manner that adversely affects the powers, privileges, preferences, or rights of the Series C Preferred Stock (it being agreed that any amendment to authorize, create, or issue, or increase any class or series of capital stock of the Corporation or of any subsidiary of the Corporation (including any class or series of capital stock with a liquidation preference senior, equal or junior to the Series C Preferred Stock), or any securities convertible into or exchangeable for such capital stock in compliance with the Governing Documents, in and of itself, will be deemed not to adversely affect the powers, privileges, preferences, or rights of the Series C Preferred Stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) adopt, amend, terminate, or repeal any equity (or equity-linked) compensation plan or amend or waive any of the terms of any option or other grant pursuant to any such plan, other than acceleration of vesting of individual grants approved by the Board (<u>provided</u>, that acceleration in connection with the separation of employment of any non-executive employee shall be as determined by the Corporation's Chief Executive Officer) other than any equity (or equity-linked) compensation plan adopted, amended, terminated or repealed in connection with an IPO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) create or hold capital stock in any subsidiary (other than Clear Street Management LLC and other than pursuant to any joint back-office arrangements for a broker-dealer entity) that is not wholly owned, directly or indirectly, by the Corporation, except in the ordinary course of business or as otherwise approved by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) dispose of any capital stock in any subsidiary or permit or cause any subsidiary to dispose of all or substantially all of its assets, except (A) disposals to the Corporation or any of its subsidiaries, or (B) disposals of any subsidiary that has ceased, or never commenced, operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) enter into any affiliate transactions, except for the provision of brokerage and clearing services on arm's length terms or bona fide employment or service arrangements with affiliates and benefit programs in which affiliates participate, in each case which are approved unanimously by the Board;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) hire as an employee, or terminate the employment of, any individual as Chief Executive Officer, Chief Operating Officer or Chief Technology Officer of the Corporation, unless approved by the Board (including the approval of at least one Series B Preferred Director); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) purchase or redeem or pay any dividend on any capital stock (or stock options) prior to the Series C Preferred Stock, other than (i) the Series A Perpetual Preferred Stock as provided in and in accordance with this Certificate, and (ii) stock repurchased from former employees and consultants in connection with the cessation of their services at the lower of fair market value or cost (or as otherwise permitted pursuant to any Restricted Stock Agreement entered into by and between the Corporation and any former holder of Class B units or Class C units of Clear Street Members LLC) or as otherwise approved by a majority of the shares of Series C Preferred Stock beneficially owned, directly or indirectly, by Baillie Gifford (as defined in the Amended and Restated Investors' Rights Agreement, in effect as of the date hereof, by and among the Corporation and the other parties thereto) for so long as Baillie Gifford holds any shares of Series C Preferred Stock.

<u>provided</u> that, to the extent that the Corporation, directly or indirectly by amendment, merger, consolidation, or otherwise proposes to do any of the actions set forth in (ii)–(viii) above in furtherance of (1) an equity or debt financing, including a Deemed Liquidation Event, (2) an IPO (as defined herein) or (3) a Sale of the Company (any transaction or event set forth in (1), (2) and (3) hereof, a "**Major Transaction**"), such matters shall not require the consent of the Series C Requisite Holders.

Section 4.7 <u>Optional</u> <u>Conversion</u> <u>of Series B Preferred Stock and Series C Preferred Stock</u>. The holders of the Series B Preferred Stock and the Series C Preferred Stock shall have conversion rights as follows (the "**Conversion Rights**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Conversion Right</u>. Each share of Series B Preferred Stock and Series C Preferred Stock shall be convertible, at the option of the holder thereof, at any time and from time to time, and without the payment of additional consideration by the holder thereof, into such number of fully paid and non-assessable shares of Class A Common Stock as is determined by dividing the Applicable Original Issue Price of the Series B Preferred Stock or the Series C Preferred Stock by the applicable Conversion Price (as defined below) in effect at the time of conversion. The "**Conversion Price**" shall mean $8.35 per share for the Series B Preferred Stock and $40.06 per share for the Series C Preferred Stock. Such initial applicable Conversion Price, and the rate at which shares of Series B Preferred Stock or Series C Preferred Stock, as the case may be, may be converted into shares of Class A Common Stock, shall be subject to adjustment as provided below. No fractional shares of Class A Common Stock shall be issued upon conversion of the Series B Preferred Stock or Series C Preferred Stock. In lieu of any fractional shares to which the holder would otherwise be entitled, the number of shares of Class A Common Stock to be issued upon conversion of the Series B Preferred Stock or Series C Preferred Stock shall be rounded to the nearest whole share.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination of Conversion Rights</u>. In the event of a liquidation, dissolution or winding up of the Corporation or a Deemed Liquidation Event, the Conversion Rights shall terminate at the close of business on the last full day preceding the date fixed for the payment of any such amounts distributable on such event to the holders of Series B Preferred Stock and Series C Preferred Stock; <u>provided</u> that the foregoing termination of Conversion Rights shall not affect the amount(s) otherwise paid or payable in accordance with <u>Section</u> <u>4.5</u> to holders of Series B Preferred Stock and Series C Preferred Stock pursuant to such liquidation, dissolution or winding up of the Corporation or a Deemed Liquidation Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice of Conversion</u>. In order for a holder of Series B Preferred Stock or Series C Preferred Stock to voluntarily convert shares of Series B Preferred Stock or Series C Preferred Stock, respectively, into shares of Class A Common Stock, such holder shall (i) provide written notice to the Corporation's transfer agent at the office of the transfer agent for such Preferred Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent) that such holder elects to convert all or any number of such holder's shares of Series B Preferred Stock or Series C Preferred Stock, as applicable, and, if applicable, any event on which such conversion is contingent and (ii) if such holder's shares are certificated, surrender the certificate or certificates for such shares of Series B Preferred Stock or Series C Preferred Stock (or, if such registered holder alleges that such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate), at the office of the transfer agent for such Preferred Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent). Such notice shall state such holder's name or the names of the nominees in which such holder wishes the shares of Class A Common Stock to be issued. If required by the Corporation, any certificates surrendered for conversion shall be endorsed or accompanied by a written instrument or instruments of transfer, in form satisfactory to the Corporation, duly executed by the registered holder or his, her or its attorney duly authorized in writing. The close of business on the date of receipt by the transfer agent (or by the Corporation if the Corporation serves as its own transfer agent) of such notice and, if applicable, certificates (or lost certificate affidavit and agreement) shall be the time of conversion (the "**Conversion Time**"), and the shares of Common Stock issuable upon conversion of the specified shares shall be deemed to be outstanding of record as of such date. The Corporation shall, as soon as practicable after the Conversion Time (i) issue and deliver to such holder of Series B Preferred Stock or Series C Preferred Stock, or to his, her or its nominees, a notice of issuance of uncertificated shares and may, upon written request, issue and deliver a certificate for the number of full shares of Class A Common Stock issuable upon such conversion in accordance with the provisions hereof and, may, if applicable and upon written request, issue and deliver a certificate for the number (if any) of the shares of Series B Preferred Stock or Series C Preferred Stock, as applicable, represented by any surrendered certificate that were not converted into Class A Common Stock, and (ii) pay all declared but unpaid dividends on the shares of Series B Preferred Stock or Series C Preferred Stock converted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Effect of Conversion</u>. All shares of Series B Preferred Stock or Series C Preferred Stock which have been surrendered for conversion as herein provided shall no longer be deemed to be outstanding and all rights with respect to such shares shall immediately cease and terminate at the Conversion Time, except only the right of the holders thereof to receive shares of Class A Common Stock in exchange therefor and to receive payment of any dividends declared

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but unpaid thereon. Any shares of Series B Preferred Stock or Series C Preferred Stock so converted shall be retired and cancelled and may not be reissued as shares of such series, and the Corporation may thereafter take such appropriate action (without the need for stockholder action) as may be necessary to reduce the designated number of shares of Series B Preferred Stock or Series C Preferred Stock accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Further Adjustment</u>. Upon any such conversion, no adjustment to the applicable Conversion Price shall be made for any declared but unpaid dividends on the Series B Preferred Stock or Series C Preferred Stock, as applicable, surrendered for conversion or on the Class A Common Stock delivered upon conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Taxes</u>. The Corporation shall pay any and all issue and other similar taxes that may be payable in respect of any issuance or delivery of shares of Class A Common Stock upon conversion of shares of Series B Preferred Stock or Series C Preferred Stock pursuant to this <u>Section</u> <u>4.7</u> or <u>Section</u> <u>4.8</u>. The Corporation shall not, however, be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of shares of Class A Common Stock in a name other than that in which the shares of Series B Preferred Stock or Series C Preferred Stock so converted were registered, and no such issuance or delivery shall be made unless and until the person or entity requesting such issuance has paid to the Corporation the amount of any such tax or has established, to the satisfaction of the Corporation, that such tax has been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Adjustments to Conversion Price for Dilutive Issues</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Special Definitions</u>. For purposes of this <u>Article IV</u>, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) "**Additional Shares of Common Stock**" shall mean all shares of Common Stock issued (or, pursuant to <u>Section</u> <u>4.7(g)(iii)</u> below, deemed to be issued) by the Corporation after the filing of this Certificate, other than issuances or deemed issuances of (clauses (1) through (8), collectively, the "**Exempted Securities**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) shares of Class A Common Stock issued upon the conversion of Preferred Stock or Class B Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) as to any series of Preferred Stock, shares of Common Stock, Options or Convertible Securities (as defined herein) issued as a dividend or distribution on such series of Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) shares of Common Stock, Options or Convertible Securities issued by reason of a dividend, stock split, split-up or other distribution on shares of Common Stock that is covered by <u>Section</u> <u>4.7(h)</u>, <u>4.7(i)</u>, <u>4.7(j)</u>, or <u>4.7(k)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) shares of Common Stock or Options issued to employees or directors of, or consultants or advisors to, the Corporation or any of its subsidiaries pursuant to a plan, agreement or arrangement (which

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plan, agreement or arrangement, if established after the date hereof, is approved by the Board (including the approval of at least one (1) Series B Preferred Director, which approval shall not be unreasonably withheld, conditioned or delayed));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) shares of Common Stock or Convertible Securities actually issued upon the exercise of Options or shares of Common Stock actually issued upon the conversion or exchange of Convertible Securities, in each case provided such issuance is pursuant to the terms of such Option or Convertible Security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) shares of Common Stock, Options or Convertible Securities issued as acquisition consideration pursuant to the acquisition of another entity or business by the Corporation or any subsidiary thereof, whether by merger, share purchase, purchase of all or substantially all of the assets, other reorganization or otherwise or pursuant to a joint venture agreement or similar agreement, <u>provided</u> that such issuances are approved by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) shares of Common Stock, Options or Convertible Securities issued as an "equity kicker" to a lender or its designee that is not a stockholder or an Affiliate of any stockholder in connection with a *bona fide* third-party debt financing approved by the Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) shares of Common Stock, Options or Convertible Securities issued to suppliers or third party service providers in connection with the provision of goods or services pursuant to transactions approved by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) "**Convertible Securities**" shall mean any evidences of indebtedness, shares or other securities directly or indirectly convertible into or exchangeable for Common Stock, but excluding Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) "**Option**" shall mean rights, options or warrants to subscribe for, purchase or otherwise acquire Common Stock or Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>No Adjustment of Conversion Price</u>. No adjustment in the applicable Conversion Price shall be made as the result of the issuance or deemed issuance of Additional Shares of Common Stock if the Corporation receives written notice from the Series B Requisite Holders or Series C Requisite Holders, as applicable, agreeing that no such adjustment shall be made as the result of the issuance or deemed issuance of such Additional Shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Deemed Issue of Additional Shares of Common Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) If the Corporation at any time or from time to time after the Effective Time issues any Options or Convertible Securities (excluding Options or Convertible Securities which are themselves Exempted Securities) or fixes a record

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date for the determination of holders of any class of securities entitled to receive any such Options or Convertible Securities, then the maximum number of shares of Common Stock (as set forth in the instrument relating thereto, assuming the satisfaction of any conditions to exercisability, convertibility or exchangeability but without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall be deemed to be Additional Shares of Common Stock issued as of the time of such issue or, in case such a record date has been fixed, as of the close of business on such record date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) If the terms of any Option or Convertible Security, the issuance of which resulted in an adjustment to the applicable Conversion Price pursuant to the terms of <u>Section</u> <u>4.7(g)(iv)</u> determined in the manner provided, are revised as a result of an amendment to such terms or any other adjustment pursuant to the provisions of such Option or Convertible Security (but excluding automatic adjustments to such terms pursuant to anti-dilution or similar provisions of such Option or Convertible Security) to provide for either (1) any increase or decrease in the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any such Option or Convertible Security or (2) any increase or decrease in the consideration payable to the Corporation upon such exercise, conversion and/or exchange, then, effective upon such increase or decrease becoming effective, the applicable Conversion Price computed upon the original issue of such Option or Convertible Security (or upon the occurrence of a record date with respect thereto) shall be readjusted to such Conversion Price as would have applied had such revised terms been in effect upon the original date of issuance of such Option or Convertible Security. Notwithstanding the foregoing, no readjustment pursuant to this <u>clause</u> <u>(B)</u> shall have the effect of increasing the applicable Conversion Price for such series of Preferred Stock to an amount which exceeds the lower of (x) such applicable Conversion Price in effect immediately prior to the original adjustment made as a result of the issuance of such Option or Convertible Security, or (y) the Conversion Price for such series of Preferred Stock that would have resulted from any issuances of Additional Shares of Common Stock (other than deemed issuances of Additional Shares of Common Stock as a result of the issuance of such Option or Convertible Security) between the original adjustment date and such readjustment date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) If the terms of any Option or Convertible Security (excluding Options or Convertible Securities which are themselves Exempted Securities), the issuance of which did not result in an adjustment to the applicable Conversion Price for such series of Preferred Stock pursuant to the terms of <u>Section</u> <u>4.7(g)(iv)</u> (either because the consideration per share (determined pursuant to <u>Section</u> <u>4.7(g)(v)</u>) of the Additional Shares of Common Stock subject thereto was equal to or greater than the applicable Conversion Price for such series of Preferred Stock then in effect, or because such Option or Convertible Security was issued before the Effective Time), are revised after the Effective Time as a result of an amendment to such terms or any other adjustment pursuant to the provisions of

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such Option or Convertible Security (but excluding automatic adjustments to such terms pursuant to anti-dilution or similar provisions of such Option or Convertible Security) to provide for either (1) any increase in the number of shares of Common Stock issuable upon the exercise, conversion or exchange of any such Option or Convertible Security or (2) any decrease in the consideration payable to the Corporation upon such exercise, conversion or exchange, then such Option or Convertible Security, as so amended or adjusted, and the Additional Shares of Common Stock subject thereto (determined in the manner provided in <u>Section</u> <u>4.7(g)(iii)</u>) shall be deemed to have been issued effective upon such increase or decrease becoming effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Upon the expiration or termination of any unexercised Option or unconverted or unexchanged Convertible Security (or portion thereof) which resulted (either upon its original issuance or upon a revision of its terms) in an adjustment to the applicable Conversion Price for such series of Preferred Stock pursuant to the terms of <u>Section</u> <u>4.7(g)(iv)</u>, the applicable Conversion Price for such series of Preferred Stock shall be readjusted to such Conversion Price as would have applied had such Option or Convertible Security (or portion thereof) never been issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) If the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible Security, or the consideration payable to the Corporation upon such exercise, conversion and/or exchange, is calculable at the time such Option or Convertible Security is issued or amended but is subject to adjustment based upon subsequent events, any adjustment to the applicable Conversion Price for a series of Preferred Stock provided for in this <u>Section</u> <u>4.7(g)(iii)</u> shall be effected at the time of such issuance or amendment based on such number of shares or amount of consideration without regard to any provisions for subsequent adjustments (and any subsequent adjustments shall be treated as provided in <u>clauses</u> <u>(B)</u> and <u>(C)</u> of this <u>Section</u> <u>4.7(g)(iii)</u>). If the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible Security, or the consideration payable to the Corporation upon such exercise, conversion and/or exchange, cannot be calculated at all at the time such Option or Convertible Security is issued or amended, any adjustment to the Conversion Price for such series of Preferred Stock that would result under the terms of this <u>Section</u> <u>4.7(g)(iii)</u> at the time of such issuance or amendment shall instead be effected at the time such number of shares and/or amount of consideration is first calculable (even if subject to subsequent adjustments), assuming for purposes of calculating such adjustment to the Conversion Price that such issuance or amendment took place at the time such calculation can first be made. In the event an Option or Convertible Security contains alternative conversion terms, such as a cap on the valuation of the Corporation at which such conversion will be effected, or circumstances where the Option or Convertible Security may be repaid in lieu of conversion, then the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of such Option or Convertible Security shall be deemed not calculable until such time as the applicable conversion terms are determined.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Adjustment of Conversion Price Upon Issuance of Additional Shares of Common Stock</u>. In the event the Corporation at any time after the Original Issue Date issues Additional Shares of Common Stock (including Additional Shares of Common Stock deemed to be issued pursuant to <u>Section</u> <u>4.7(g)(iii)</u>), without consideration or for a consideration per share less than the applicable Conversion Price for a series of Preferred Stock in effect immediately prior to such issuance or deemed issuance, then the applicable Conversion Price shall be reduced, concurrently with such issue, to a price (calculated to the nearest one-hundredth of a cent) determined in accordance with the following formula:

CP<sub>2</sub> = CP<sub>1</sub>\* (X + Y) ÷ (X + Z)

For purposes of the foregoing formula, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) "**CP2**" shall mean the applicable Conversion Price for a series of Preferred Stock in effect immediately after such issuance or deemed issuance of Additional Shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) "**CP1**" shall mean the Conversion Price for a series of Preferred Stock in effect immediately prior to such issuance or deemed issuance of Additional Shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) "**X**" shall mean the number of shares of Common Stock outstanding immediately prior to such issuance or deemed issuance of Additional Shares of Common Stock (treating for this purpose as outstanding all shares of Common Stock issuable upon exercise of Options outstanding immediately prior to such issuance or deemed issuance or upon conversion or exchange of Convertible Securities (including the Series B Preferred Stock and Series C Preferred Stock) outstanding (assuming exercise of any outstanding Options therefor) immediately prior to such issue).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) "**Y**" shall mean the number of shares of Common Stock that would have been issued if such Additional Shares of Common Stock had been issued or deemed issued at a price per share equal to CP<sub>1</sub> (determined by dividing the aggregate consideration received by the Corporation in respect of such issue by CP<sub>1</sub>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) "**Z**" shall mean the number of such Additional Shares of Common Stock issued in such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Determination of Consideration</u>. For purposes of this <u>Section</u> <u>4.7(g)(v)</u>, the consideration received by the Corporation for the issuance or deemed issuance of any Additional Shares of Common Stock shall be computed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) <u>Cash and Property</u>. Such consideration shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) insofar as it consists of cash, be computed at the aggregate amount of cash received by the Corporation, excluding amounts paid or payable for accrued interest;<u> </u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) insofar as it consists of property other than cash, be computed at the fair market value thereof at the time of such issue, as determined in good faith by the Board; and<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) in the event Additional Shares of Common Stock are issued together with other shares or securities or other assets of the Corporation for consideration which covers both, be the proportion of such consideration so received, computed as provided in <u>clauses</u> <u>(1)</u> and <u>(2)</u> above, as determined in good faith by the Board.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <u>Options and Convertible Securities</u>. The consideration per share received by the Corporation for Additional Shares of Common Stock deemed to have been issued pursuant to <u>Section</u> <u>4.7(h</u><u>)</u>, relating to Options and Convertible Securities, shall be determined by dividing:<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The total amount, if any, received or receivable by the Corporation as consideration for the issue of such Options or Convertible Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Corporation upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities, by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the maximum number of shares of Common Stock (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) <u>Multiple Closing Dates</u>. In the event the Corporation issues on more than one date Additional Shares of Common Stock that are a part of one transaction or a series of related transactions and that would result in an adjustment to the applicable Conversion Price for a series of Preferred Stock pursuant to the terms of <u>Section</u> <u>4.7(g)(iv)</u>, then, upon the final such issuance, such Conversion Price shall be readjusted to give effect to all such issuances as if they occurred on the date of the first such issuance (and without giving effect to any additional adjustments as a result of any such subsequent issuances within such period).<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Adjustment for Stock Splits and Combinations</u>. If the Corporation at any time or from time to time after the Effective Time effects a subdivision of the outstanding Common Stock, the Conversion Price in effect immediately before that subdivision shall be proportionately decreased so that the number of shares of Common Stock issuable on conversion of each share of

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such series is increased in proportion to such increase in the aggregate number of shares of Common Stock outstanding. If the Corporation at any time or from time to time after the Original Issue Date combines the outstanding shares of Common Stock, the applicable Conversion Price for each series of Preferred Stock in effect immediately before the combination shall be proportionately increased so that the number of shares of Common Stock issuable on conversion of each share of such series is decreased in proportion to such decrease in the aggregate number of shares of Common Stock outstanding. Any adjustment under this Section shall become effective at the close of business on the date the subdivision or combination becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Adjustment for Certain Dividends and Distributions</u>. In the event the Corporation at any time or from time to time after the Effective Time makes or issues, or fixes a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable on the Common Stock in additional shares of Common Stock, then and in each such event the applicable Conversion Price for each series of Preferred Stock in effect immediately before such event shall be decreased as of the time of such issuance or, in the event such a record date has been fixed, as of the close of business on such record date, by multiplying the applicable Conversion Price for each series of Preferred Stock then in effect by a fraction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the numerator of which is the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the denominator of which is the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution.

Notwithstanding the foregoing, (A) if such record date has been fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the applicable Conversion Price for each series of Preferred Stock shall be recomputed accordingly as of the close of business on such record date and thereafter the Conversion Price for each series of Preferred Stock shall be adjusted pursuant to this Section as of the time of actual payment of such dividends or distributions; and (B) no such adjustment shall be made if the holders of Preferred Stock simultaneously receive a dividend or other distribution of shares of Class A Common Stock in a number equal to the number of shares of Class A Common Stock as they would have received if all outstanding shares of Series B Preferred Stock and Series C Preferred Stock had been converted into Class A Common Stock on the date of such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Adjustment for Other Dividends and Distributions</u>. In the event the Corporation at any time or from time to time after the Effective Time makes or issues, or fixes a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in securities of the Corporation (other than a distribution of shares of Common Stock in respect of outstanding shares of Common Stock) or in other property and the provisions of <u>Section</u> <u>4.5(b)</u> do not apply to such dividend or distribution, then and in each such event the holders of Series B Preferred Stock and the Series C Preferred Stock shall receive, simultaneously with the distribution to the holders of Common Stock, a dividend or other distribution of such securities or other property in an amount equal to the amount of such securities or other property as they would have received if all outstanding shares of Series B Preferred Stock and Series C Preferred Stock had been converted into Class A Common Stock on the date of such event.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Adjustment for Merger or Reorganization, etc</u>. Subject to the provisions of <u>Section</u> <u>4.3(d</u><u>)</u>, if there occurs any reorganization, recapitalization, reclassification, consolidation or merger involving the Corporation in which the Common Stock (but not the Preferred Stock) is converted into or exchanged for securities, cash or other property (other than a transaction covered by <u>Section</u> <u>4.7(g)</u>, <u>Section</u> <u>4.7(i)</u>, or <u>Section</u> <u>4.7(j)</u>), then, following any such reorganization, recapitalization, reclassification, consolidation or merger, each share of Series B Preferred Stock and Series C Preferred Stock shall thereafter be convertible in lieu of the Common Stock into which it was convertible prior to such event into the kind and amount of securities, cash or other property which a holder of the number of shares of Class A Common Stock of the Corporation issuable upon conversion of one (1) share of Series B Preferred Stock and (1) share of Series C Preferred Stock, respectively, immediately prior to such reorganization, recapitalization, reclassification, consolidation or merger would have been entitled to receive pursuant to such transaction; and, in such case, appropriate adjustment (as determined in good faith by the Board) shall be made in the application of the provisions in this <u>Section</u> <u>4.7</u> with respect to the rights and interests thereafter of the holders of the Series B Preferred Stock and Series C Preferred Stock, to the end that the provisions set forth in this <u>Section</u> <u>4.7</u> (including provisions with respect to changes in and other adjustments of the applicable Conversion Price for each series of Preferred Stock) shall thereafter be applicable, as nearly as reasonably may be, in relation to any securities or other property thereafter deliverable upon the conversion of the Series B Preferred Stock and Series C Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Certificate as to Adjustments</u>. Upon the occurrence of each adjustment or readjustment of the Conversion Price for a series of Preferred Stock pursuant to this <u>Section</u> <u>4.7</u>, the Corporation at its expense shall, as promptly as reasonably practicable but in any event not later than twenty (20) days thereafter, compute such adjustment or readjustment in accordance with the terms hereof and furnish to each holder of Series B Preferred Stock and Series C Preferred Stock a certificate setting forth such adjustment or readjustment (including the kind and amount of securities, cash or other property into which the Series B Preferred Stock and Series C Preferred Stock, respectively, is convertible) and showing in detail the facts upon which such adjustment or readjustment is based. The Corporation shall, as promptly as reasonably practicable after the written request at any time of any holder of Series B Preferred Stock or Series C Preferred Stock (but in any event not later than fourteen (14) days thereafter), furnish or cause to be furnished to such holder a certificate setting forth (i) the applicable Conversion Price for the series of Series B Preferred Stock or Series C Preferred Stock, as applicable, then in effect, and (ii) the number of shares of Class A Common Stock and the amount, if any, of other securities, cash or property which then would be received upon the conversion of Series B Preferred Stock and Series C Preferred Stock, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Notice of Record Date</u>. In the event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Corporation takes a record of the holders of its Common Stock (or other capital stock or securities at the time issuable upon conversion of the Series B Preferred Stock and Series C Preferred Stock) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of capital stock of any class or any other securities, or to receive any other security; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) of any capital reorganization of the Corporation, any reclassification of the Common Stock of the Corporation, or any Deemed Liquidation Event; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) of the voluntary or involuntary dissolution, liquidation or winding-up of the Corporation,

then, and in each such case, the Corporation will send or cause to be sent to the holders of the Series B Preferred Stock and Series C Preferred Stock a notice specifying, as the case may be, (A) the record date for such dividend, distribution or right, and the amount and character of such dividend, distribution or right, or (B) the effective date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up is proposed to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or such other capital stock or securities at the time issuable upon the conversion of the Series B Preferred Stock and Series C Preferred Stock) will be entitled to exchange their shares of Common Stock (or such other capital stock or securities) for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up, and the amount per share and character of such exchange applicable to the Series B Preferred Stock, Series C Preferred Stock and the Common Stock. Such notice shall be sent at least ten (10) days prior to the record date or effective date for the event specified in such notice.

Section 4.8 <u>Mandatory</u> <u>Conversion</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Trigger Events</u>. All outstanding shares of Series B Preferred Stock and Series C Preferred Stock shall be converted automatically (and shall not be reissued) into shares of Class A Common Stock, at the then effective conversion rate as calculated pursuant to <u>Section</u> <u>4.7(a)</u> (the time of completion of the event or the date and time specified or the time of the event specified in a consent in writing or in an electronic transmission, as described below, are referred to herein as the "**Mandatory Conversion Time**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At the date and time, or the occurrence of an event, specified by vote or consent in writing or in an electronic transmission of (A) with respect to each share of Series B Preferred Stock, the Series B Requisite Holders; and (B) with respect to each share of Series C Preferred Stock, the Series C Requisite Holders; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Upon the closing of the sale of shares of common stock of the Corporation to the public in a firm commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended (an "**IPO**"), resulting in at least $100 million of net proceeds after deducting underwriting discounts to the Corporation, and in connection with such offering the Common Stock is listed for trading on the Nasdaq Stock Market's National Market, the New York Stock Exchange or another exchange or marketplace approved the Board.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Procedural Requirements</u>. All holders of record of shares of Series B Preferred Stock and Series C Preferred Stock shall be sent written notice of the Mandatory Conversion Time and the place designated for mandatory conversion of all such shares of Series B Preferred Stock and Series C Preferred Stock pursuant to this <u>Section</u> <u>4.8</u>. Such notice need not be sent in advance of the occurrence of the Mandatory Conversion Time. Upon receipt of such notice, each holder of shares of Series B Preferred Stock and Series C Preferred Stock in certificated form shall surrender his, her or its certificate or certificates for all such shares (or, if such holder alleges that such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate) to the Corporation at the place designated in such notice. If so required by the Corporation, any certificates surrendered for conversion shall be endorsed or accompanied by written instrument or instruments of transfer, in form satisfactory to the Corporation, duly executed by the registered holder or by his, her or its attorney duly authorized in writing. All rights with respect to the Series B Preferred Stock and Series C Preferred Stock converted pursuant to <u>Section</u> <u>4.8(a)</u>, including the rights, if any, to receive notices and vote (other than as a holder of Class A Common Stock), will terminate at the Mandatory Conversion Time (notwithstanding the failure of the holder or holders thereof to surrender any certificates at or prior to such time), except only the rights of the holders thereof, upon surrender of any certificate or certificates of such holders (or lost certificate affidavit and agreement) for such shares of Series B Preferred Stock and Series C Preferred Stock, to receive the items provided for in the next sentence of this <u>Section</u> <u>4.8(b)</u>. As soon as practicable after the Mandatory Conversion Time and, if applicable, the surrender of any certificate or certificates (or lost certificate affidavit and agreement) for Series B Preferred Stock and Series C Preferred Stock, the Corporation shall (i) issue and deliver to such holder, or to his, her or its nominees, a notice of issuance of uncertificated shares and may, upon written request, issue and deliver a certificate for the number of full shares of Class A Common Stock issuable upon such conversion in accordance with the provisions hereof and (ii) pay any declared but unpaid dividends on the shares of Series B Preferred Stock and Series C Preferred Stock converted. Such converted Series B Preferred Stock and Series C Preferred Stock shall be retired and cancelled and may not be reissued as shares of such series, and the Corporation may thereafter take such appropriate action (without the need for stockholder action) as may be necessary to reduce the authorized number of shares of Series B Preferred Stock and Series C Preferred Stock accordingly.

Section 4.9 <u>Redeemed</u> <u>or Otherwise Acquired Shares</u>. Any shares of Preferred Stock that are redeemed, converted or otherwise acquired by the Corporation or any of its subsidiaries shall be automatically and immediately cancelled and retired and shall not be reissued, sold or transferred. Neither the Corporation nor any of its subsidiaries may exercise any voting or other rights granted to the holders of Preferred Stock following redemption, conversion or acquisition.

Section 4.10 <u>Waiver</u>. Except as otherwise set forth herein, (a) any of the rights, powers, preferences and other terms of the Series B Preferred Stock set forth herein may be waived on behalf of all holders of Series B Preferred Stock by the affirmative consent in writing or in an electronic transmission of the Series B Requisite Holders outstanding, (b) any of the rights, powers, preferences and other terms of the Series C Preferred Stock set forth herein may be waived on behalf of all holders of Series C Preferred Stock by the affirmative consent in writing or in an electronic transmission of the Series C Requisite Holders outstanding, and (c) at any time there is more than one (1) series of Preferred Stock that is issued and outstanding, any of the rights, powers,

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preferences and other terms of any series of Preferred Stock set forth herein may be waived on behalf of all holders of such series of Preferred Stock by the affirmative consent in writing or in an electronic transmission or vote of the holders of at least a majority of the shares of such series of Preferred Stock then outstanding.

Section 4.11 <u>Notices</u>. Any notice required or permitted by the provisions of this <u>Article IV</u> to be given to a holder of shares of Preferred Stock shall be mailed, postage prepaid, to the post office address last shown on the records of the Corporation, or given by electronic communication in compliance with the provisions of the DGCL, and shall be deemed sent upon such mailing or electronic transmission.

**ARTICLE V** 

**BYLAWS** 

Subject to any additional vote required by this Certificate or Bylaws, in furtherance and not in limitation of the powers conferred by statute (including without limitation the rights of the stockholders entitled to vote), the Board shall have the power and is expressly authorized to adopt, amend, alter or repeal the Bylaws. The affirmative vote of a majority of the Board shall be required to adopt, amend, alter or repeal the Bylaws.

**ARTICLE VI** 

**BOARD OF DIRECTORS** 

Section 6.1 <u>Board of Directors.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Board Powers</u>. Except as otherwise provided in this Certificate or the DGCL, the business and affairs of the Corporation shall be managed by or under the direction of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Number, Election and Term.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as otherwise provided for or fixed in this Certificate (including in any certificate of designations with respect to any series of Preferred Stock), the total number of directors constituting the whole Board shall be determined in accordance with the Bylaws. Each director shall be entitled to one (1) vote on each matter presented to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Subject to the rights granted to the holders of the Series A Perpetual Preferred Stock, the Series B Preferred Stock, and any other series of Preferred Stock then outstanding, the election of directors shall be determined by a plurality of the votes cast by the stockholders present in person or represented by proxy at the annual meeting of stockholders and entitled to vote thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Directors of the Corporation need not be elected by written ballot unless the Bylaws so provide.

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Section 6.2 <u>Newly-Created Directorships and Vacancies</u>. Subject to the rights granted to the holders of the Series A Perpetual Preferred Stock, the Series B Preferred Stock, and any other series of Preferred Stock then outstanding, any newly-created directorship on the Board that results from an increase in the number of directors and any vacancy occurring in the Board (whether by death, resignation, retirement, disqualification, removal or other cause) shall be filled by the affirmative vote of a majority of the directors then in office, although less than a quorum, or by a sole remaining director (and not by the stockholders). Any director elected to fill a vacancy or newly created directorship shall hold office until the later of the next succeeding annual meeting of stockholders and when his or her successor is elected and qualified, or his or her earlier death, resignation, retirement, disqualification or removal from office.

Section 6.3 <u>Resignation and Removal</u>. Any director may resign at any time upon notice to the Corporation given in writing or by any electronic transmission permitted by the <u>Bylaws</u>.

Section 6.4 <u>Preferred Stock Directors</u>. Whenever the holders of the Series A Perpetual Preferred Stock, the Series B Preferred Stock, or any other series of Preferred Stock issued by the Corporation have the right, voting separately as a series or separately as a class with one or more such other series, to select or elect directors at an annual or special meeting of stockholders, the election, term of office, removal and other features of such directorships shall be governed by the terms of this Certificate (including any certificate of designations relating to any series of Preferred Stock) applicable thereto. Notwithstanding <u>Section</u> <u>6.1(b)(i</u><u>)</u>, the number of directors that may be elected by the holders of Series A Perpetual Preferred Stock shall be in addition to the number fixed pursuant to <u>Section</u> <u>6.1(b)(i</u><u>)</u> hereof, and the total number of directors constituting the entire Board shall be automatically adjusted accordingly.

Section 6.5 <u>Quorum</u>. A quorum for the transaction of business by the directors shall be set forth in the <u>Bylaws</u>.<u> </u>

**ARTICLE VII** 

**CONSENT OF STOCKHOLDERS IN LIEU OF MEETING; ANNUAL AND SPECIAL** 

**MEETINGS OF STOCKHOLDERS** 

Section 7.1 <u>Consent of Stockholders in Lieu of Meeting</u>. For so long as Clear Street Global Corp., a U.S. Virgin Islands corporation ("**CSGC**") or a liquidating trust formed in connection with a complete liquidation of CSGC beneficially owns, in the aggregate, more than 50% of the total voting power of all the then-outstanding shares of capital stock of the Corporation entitled to vote at meetings of stockholders, any action required or permitted to be taken at any annual or special meeting of stockholders of the Corporation may be taken without a meeting, without prior notice to the stockholders and without a vote, if a consent or consents in writing, setting forth the action so taken, is signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted and is delivered to the Corporation, by hand or by certified mail, return receipt requested, at its registered office in the State of Delaware, its principal place of business, or to an officer or agent of the Corporation having custody of the books in which proceedings of meetings of stockholders are recorded, which action shall be effective on the earlier of (a) one (1) business day after receipt of such action by the Corporation or (b) receipt of <u>consent in writing or in an electronic transmission</u> from the requisite holders with respect to such action.

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Section 7.2 <u>Meetings of Stockholders; Corporate Books</u>. Except as otherwise required by law and subject to the rights of the holders of the Series A Perpetual Preferred Stock, the Series B Preferred Stock, the Series C Preferred Stock, or any other series of Preferred Stock, special meetings of the stockholders of the Corporation for any purpose or purposes may be called only by or at the direction of the Board, the Chairman of the Board or as otherwise provided in the <u>Bylaws</u>. An annual meeting of stockholders for the election of directors and for the transaction of such other business as may properly come before the meeting shall be held at such place, if any, on such date, and at such time as is fixed exclusively by resolution of the Board or a duly authorized committee thereof. Meetings of stockholders may be held within or without the State of Delaware, as the <u>Bylaws</u> of the Corporation may provide. The books of the Corporation may be kept outside the State of Delaware at such place or places as may be designated from time to time by the Board or in the <u>Bylaws</u> of the Corporation.

**ARTICLE VIII** 

**LIMITED LIABILITY; INDEMNIFICATION** 

Section 8.1 <u>Limited Liability of Directors and Officers</u>. To the fullest extent permitted by law, a director of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director or officer, if applicable. If the DGCL or any other law of the State of Delaware is amended after approval by the stockholders of this <u>Section</u> <u>8.1</u> to authorize corporate action further eliminating or limiting the personal liability of directors or officers, then the liability of a director or officer of the Corporation shall be eliminated or limited to the fullest extent permitted by the DGCL or such other law as so amended. Any repeal or modification of the foregoing provisions of this <u>Section</u> <u>8.1</u> by the stockholders of the Corporation shall not adversely affect any right or protection of a director or officer of the Corporation existing at the time of, or increase the liability of any director or officer of the Corporation with respect to any acts or omissions of such director or officer occurring prior to, such repeal or modification.

Section 8.2 <u>Indemnification and Advancement of Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Right to Indemnification of Directors and Officers</u>. The Corporation shall indemnify and hold harmless, to the fullest extent permitted by applicable law as it presently exists or may hereafter be amended, any person (an "**Indemnified Person**") who was or is made or is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (a "**Proceeding**"), by reason of the fact that such person, or a person for whom such person is the legal representative, is or was a director or officer of the Corporation or, while a director or officer of the Corporation, is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture, limited liability company, trust, enterprise or nonprofit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including attorneys' fees) reasonably incurred by such Indemnified Person in such Proceeding. Notwithstanding the preceding sentence, except as otherwise provided in <u>Section</u> <u>8.2(c)</u> the Corporation shall be required to indemnify an Indemnified Person in connection with a Proceeding (or part thereof) commenced by such Indemnified Person only if the commencement of such Proceeding (or part thereof) by the Indemnified Person was authorized in advance by the Board.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Prepayment of Expenses of Directors and Officers</u>. The Corporation shall pay the expenses (including attorneys' fees) incurred by an Indemnified Person in defending any Proceeding in advance of its final disposition, <u>provided</u>, <u>however</u>, that, to the extent required by law, such payment of expenses in advance of the final disposition of the Proceeding shall be made only upon receipt of an undertaking by the Indemnified Person to repay all amounts advanced if it should be ultimately determined that the Indemnified Person is not entitled to be indemnified under this <u>Section</u> <u>8.2</u> or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Claims by Directors and Officers</u>. If a claim for indemnification or advancement of expenses under this <u>Section</u> <u>8.2</u> is not paid in full within thirty (30) days after a written claim therefor by the Indemnified Person has been received by the Corporation, the Indemnified Person may file suit to recover the unpaid amount of such claim and, if successful in whole or in part, shall be entitled to be paid the expense of prosecuting such claim. In any such action the Corporation shall have the burden of proving that the Indemnified Person is not entitled to the requested indemnification or advancement of expenses under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification of Employees and Agents</u>. The Corporation may indemnify and advance expenses to any person who was or is made or is threatened to be made or is otherwise involved in any Proceeding by reason of the fact that such person, or a person for whom such person is the legal representative, is or was an employee or agent of the Corporation or, while an employee or agent of the Corporation, is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture, limited liability company, trust, enterprise or nonprofit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including attorneys' fees) reasonably incurred by such person in connection with such Proceeding. The ultimate determination of entitlement to indemnification of persons who are non-director or officer employees or agents shall be made in such manner as is determined by the Board in its sole discretion. Notwithstanding the foregoing sentence, the Corporation shall not be required to indemnify a person in connection with a Proceeding initiated by such person if the Proceeding was not authorized in advance by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Advancement of Expenses of Employees and Agents</u>. The Corporation may pay the expenses (including attorneys' fees) incurred by an employee or agent in defending any Proceeding in advance of its final disposition on such terms and conditions as may be determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Non-Exclusivity of Rights</u>. The rights conferred on any person by this <u>Section</u> <u>8.2</u> shall not be exclusive of any other rights which such person may have or hereafter acquire under any statute, provision of this Certificate, the Bylaws of the Corporation, or any agreement, or pursuant to any vote of stockholders or disinterested directors or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Other Indemnification</u>. The Corporation's obligation, if any, to indemnify any person who was or is serving at its request as a director, officer or employee of another Corporation, partnership, limited liability company, joint venture, trust, organization or other enterprise shall be reduced by any amount such person may collect as indemnification from such other Corporation, partnership, limited liability company, joint venture, trust, organization or other enterprise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Insurance</u>. The Board may, to the full extent permitted by applicable law as it presently exists, or may hereafter be amended from time to time, authorize an appropriate officer or officers to purchase and maintain at the Corporation's expense insurance: (i) to indemnify the Corporation for any obligation which it incurs as a result of the indemnification of directors, officers and employees under the provisions of this <u>Section</u> <u>8.2</u>; and (ii) to indemnify or insure directors, officers and employees against liability in instances in which they may not otherwise be indemnified by the Corporation under the provisions of this <u>Section</u> <u>8.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Amendment or Repeal</u>. Any repeal or modification of the foregoing provisions of this <u>Section</u> <u>8.2</u> shall not adversely affect any right or protection hereunder of any person in respect of any act or omission occurring prior to the time of such repeal or modification. The rights provided hereunder shall inure to the benefit of any Indemnified Person and such person's heirs, executors and administrators.

**ARTICLE IX** 

**DGCL SECTION 203** 

The Corporation hereby expressly elects not to be governed by Section 203 of the DGCL.

**ARTICLE X** 

**COMPETITION AND CORPORATE OPPORTUNITIES** 

Section 10.1 <u>Corporate Opportunities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In recognition and anticipation that (i) certain members of the Board, record and beneficial stockholders, and/or other representatives of the Corporation, its record and beneficial stockholders, and their respective Affiliates and Affiliated Entities (other than employees of the Corporation and any of its subsidiaries who are not members of the Board) and (ii) (A) a portfolio company in which any of such Persons may have made debt or equity investments (and vice versa) or (B) any of their respective limited partners, non-managing members or other similar direct or indirect investors (such Persons being referred to in clauses (i) and (ii), collectively, as "**Identified Persons**" and, individually, as an "**Identified Person**"), may now engage or may continue to engage or may engage in the future in the same or similar activities or related lines of business as those in which the Corporation, directly or indirectly, may engage and/or other businesses that overlap with or compete with those in which the Corporation, directly or indirectly, may engage, the provisions of this <u>Article X</u> are set forth to regulate and define the conduct of certain affairs of the Corporation with respect to certain classes or categories of business opportunities as they may involve any of such Persons and the powers, rights, duties and liabilities of the Corporation and its directors, officers and stockholders in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the fullest extent permitted by law, no Identified Person shall have any duty to refrain from directly or indirectly (i) engaging in and possessing interests in other business ventures of every type and description, including those engaged in the same or similar business activities or lines of business in which the Corporation or any of its subsidiaries now engages or proposes to engage or (ii) competing with the Corporation or any of its subsidiaries, on its own account, or in partnership with, or as an employee, officer, director or shareholder of any other Person, and, to the fullest extent permitted by law, no Identified Person shall be liable to the

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Corporation or its stockholders or to any Affiliate of the Corporation for breach of any fiduciary duty solely by reason of the fact that such Identified Person engages in any such activities. To the fullest extent permitted from time to time by the laws of the State of Delaware, the Corporation hereby renounces any interest or expectancy in, or right to be offered an opportunity to participate in, any business opportunity which may be a corporate opportunity for an Identified Person and the Corporation or any of its Affiliates, except as provided in <u>Section</u> <u>10.1(c)</u>. Subject to <u>Section</u> <u>10.1(c)</u>, in the event that any Identified Person acquires knowledge of a potential transaction or other business opportunity or matter which may be a corporate or other business opportunity for itself, herself or himself and the Corporation or any of its, his or her Affiliates, such Identified Person shall, to the fullest extent permitted by law, have no duty (fiduciary, contractual or otherwise) to communicate, present or offer such transaction or other business opportunity or matter to the Corporation or any of its subsidiaries or any stockholder, as the case may be, and, to the fullest extent permitted by law, shall not be liable to the Corporation or its stockholders or to any subsidiary of the Corporation for breach of any duty (fiduciary, contractual or otherwise) as a stockholder, director or officer of the Corporation solely by reason of the fact that such Identified Person pursues or acquires such corporate opportunity for itself, herself or himself, or offers or directs such corporate opportunity to another Person or does not present such opportunity to the Corporation or any of its subsidiaries or stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Corporation does not renounce its interest in any corporate opportunity offered to any employee of the Corporation, or to any member of the Board if such opportunity is expressly offered to such person solely and expressly in his or her capacity as a director of the Corporation, and such opportunity is one the Corporation is legally permitted to undertake and would otherwise be reasonable for the Corporation to pursue, in which case the provisions of <u>Section</u> <u>10.1(b)</u> shall not apply to any such corporate opportunity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In addition to and notwithstanding the foregoing provisions of this <u>Article X</u>, a corporate opportunity shall not be deemed to be a potential corporate opportunity for the Corporation if it is a business opportunity that (i) the Corporation is not financially able, legally able, or contractually permitted to undertake, (ii) from its nature, is not in the line of the Corporation's business or is of no practical advantage to the Corporation, (iii) is one in which the Corporation has no interest or reasonable expectancy, or (iv) is one presented to any account for the benefit of a member of the Board or such member's Affiliate over which such member of the Board has no direct or indirect influence or control, including, but not limited to, a blind trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For purposes of this <u>Article X</u>, (i) "**Affiliate**" means (A) in respect of any Person, any other Person that, directly or indirectly, is controlled by that first Person or representatives of such first Person; controls representatives of such first Person; or is under common control with a representative of such first Person and shall include any principal, member, director, partner, stockholder, officer, employee or other representative of any of the foregoing (other than the Corporation and any entity that is controlled by the Corporation), (B) in respect of a member of the Board, any Person that, directly or indirectly, is controlled by such member of the Board (other than the Corporation and any entity that is controlled by the Corporation) and (C) in respect of the Corporation, any Person that, directly or indirectly, is controlled by the Corporation; (ii) "**Affiliated Entity**" means (A) any Person of which a member of the Board serves as an officer, director, employee, agent or other representative (other than the Corporation and any entity that is controlled by the Corporation), (B) any direct or indirect partner, stockholder, member, manager or other representative of such Person or (C) any Affiliate of any of the foregoing; and (iii) "**Person**" means any individual, corporation, general or limited partnership, limited liability company, joint venture, trust, association or any other entity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the fullest extent permitted by law, any Person purchasing or otherwise acquiring any interest in any shares of capital stock of the Corporation shall be deemed to have notice of and to have consented to the provisions of this <u>Article X</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Any alteration, amendment, addition to or repeal of this <u>Article X</u> shall require the affirmative vote of at least 80% of the total voting power of all the then-outstanding shares of capital stock of the Corporation entitled to vote at meetings of stockholders, voting together as a single class. Neither the alteration, amendment, addition to or repeal of this <u>Article X</u>, nor the adoption of any provision of this Certificate (including any certificate of designations relating to any series of Preferred Stock) inconsistent with this <u>Article X</u>, shall eliminate or reduce the effect of this <u>Article X</u> in respect of any business opportunity first identified or any other matter occurring, or any cause of action, suit or claim that, but for this <u>Article X</u>, would accrue or arise, prior to such alteration, amendment, addition, repeal or adoption. This <u>Article X</u> shall not limit any protections or defenses available to, or indemnification or advancement rights of, any director or officer of the Corporation under this Certificate, the Bylaws or applicable law.

**ARTICLE XI** 

**SEVERABILITY; INTERPRETATION** 

If any provision of this Certificate is held to be invalid, illegal or unenforceable as applied to any circumstance for any reason whatsoever, the validity, legality and enforceability of such provision in any other circumstance and of the remaining provisions of this Certificate (including, without limitation, each portion of any paragraph of this Certificate containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby. For purposes of this Certificate, the term "subsidiary" shall be deemed to include CSH LLC and each of its subsidiaries.

**ARTICLE XII** 

**FORUM** 

Unless the Corporation consents in writing to the selection of an alternative forum, (a) any derivative action or proceeding brought on behalf of the Corporation, (b) any action asserting a claim of breach of a fiduciary duty owed by any current or former director, officer, other employee or stockholder of the Corporation to the Corporation or the Corporation's stockholders, or any claim for aiding and abetting such alleged breach, (c) any action asserting a claim against the Corporation or any director, officer, other employee or stockholder of the Corporation (i) arising pursuant to any provision of the DGCL, this Certificate (as it may be amended or restated) or the Bylaws or (ii) as to which the DGCL confers jurisdiction on the Delaware Court of Chancery or (d) any action asserting a claim against the Corporation or any current or former officer or director or other employee or stockholder of the Corporation governed by the internal affairs doctrine of the law of the State of Delaware shall, in each case, to the fullest extent permitted by law, be solely and exclusively brought in the Delaware Court of Chancery; <u>provided</u>, <u>however</u>, that, in the event that the Delaware Court of Chancery lacks subject matter jurisdiction over any such action or

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proceeding, the sole and exclusive forum for such action or proceeding shall be another state or federal court located within the State of Delaware, in each such case, unless the Court of Chancery (or such other state or federal court located within the State of Delaware, as applicable) has dismissed a prior action by the same plaintiff asserting the same claims because such court lacked personal jurisdiction over an indispensable party named as a defendant therein. Unless the Corporation consents in writing to the selection of an alternative forum, the federal district courts of the United States of America shall, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended. Failure to enforce the foregoing provisions would cause the Corporation irreparable harm and the Corporation shall be entitled to equitable relief, including injunctive relief and specific performance, to enforce the foregoing provisions. To the fullest extent permitted by law, any person or entity purchasing or otherwise acquiring or holding any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this <u>Article XII</u>.

**ARTICLE XIII** 

**SECTION 500 OF THE CALIFORNIA CORPORATIONS CODE** 

For purposes of Section 500 of the California Corporations Code (to the extent applicable), in connection with any repurchase of shares of Common Stock permitted under this Certificate from employees, officers, directors or consultants of the Corporation in connection with a termination of employment or services pursuant to agreements or arrangements approved by the Board (in addition to any other consent required under this Amended and Restated Certificate of Incorporation), such repurchase may be made without regard to any "preferential dividends arrears amount" or "preferential rights amount" (as those terms are defined in Section 500 of the California Corporations Code). Accordingly, for purposes of making any calculation under California Corporations Code Section 500 in connection with such repurchase, the amount of any "preferential dividends arrears amount" or "preferential rights amount" (as those terms are defined therein) shall be deemed to be zero (0).

[*Signature Page Follows*]

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**IN WITNESS WHEREOF**, Clear Street Group Inc. has caused this Seventh Amended and Restated Certificate of Incorporation to be duly executed in its name and on its behalf by an authorized officer as of December 18, 2025.

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| | |
|:---|:---|
| **Clear Street Group Inc.** | **Clear Street Group Inc.** |
| By: | /s/ Edward T. Tilly |
|  | Name: Edward T. Tilly |
|  | Title: President |

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**CERTIFICATE OF AMENDMENT OF SEVENTH AMENDED AND RESTATED** 

**CERTIFICATE OF INCORPORATION OF CLEAR STREET GROUP INC.** 

Clear Street Group Inc. (the "**Corporation**"), a corporation organized and existing under the General Corporation Law of the State of Delaware (the "**DGCL**"), hereby certifies as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Certificate of Amendment (this "**Certificate of Amendment")** amends the provisions of the Corporation's Seventh Amended and Restated Certificate of Incorporation filed with the Secretary of State of the State of Delaware on December 18, 2025 (the "**Certificate of Incorporation")**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Section 4.1(b) of Article IV of the Certificate of Incorporation is hereby amended and restated in its entirety as follows:

"(b) The total number of shares of all classes of stock which the Corporation shall have authority to issue is 555,061,056 shares, consisting of (i) 321,960,136 shares of Class A Common Stock, $0.00001 par value per share ("**Class A Common Stock");** (ii) 130,373,000 shares of Class B Common Stock $0.00001 par value per share ("**Class B Common Stock"** and, together with the Class A Common Stock, the "**Common Stock");** and (iii) 102,727,920 shares of Preferred Stock, par value $0.00001 per share ("**Preferred Stock");"**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Section 4.3(a) of Article IV of the Certificate of Incorporation is hereby amended and restated in its entirety as follows:

"(a) <u>Designation</u>. 1,400,000 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series A Perpetual Preferred Stock,"** 95,466,593 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series B-1 Preferred Stock,"** 2,406,757 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series B-2 Preferred Stock"** and 3,454,570 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series C Preferred Stock,"** each with the rights, preferences, powers, privileges and restrictions, qualifications and limitations set forth in this <u>Article IV</u>, as applicable."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The first sentence of Section 4.7(a) of Article IV of the Certificate of Incorporation is hereby amended and restated in its entirety as follows:

"Each share of Series B-1 Preferred Stock, Series B-2 Preferred Stock and Series C Preferred Stock shall be convertible, at the option of the holder thereof, at any time and from time to time, and without the payment of additional consideration by the holder thereof, into such number of fully paid and non-assessable shares of Class A Common Stock as is determined by dividing the Applicable Original Issue Price of the Series B-1 Preferred Stock, with respect to the Series B-1 Preferred Stock and the Series B-2 Preferred Stock, or the Applicable Original Issue Price of the Series C Preferred Stock, with respect to the Series C Preferred Stock, by the applicable Conversion Price (as defined below) in effect at the time of conversion."

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. This amendment was duly adopted in accordance with the provisions of Sections 228 and 242 of the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. All other provisions of the Certificate of Incorporation shall remain in full force and effect.

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**IN WITNESS WHEREOF,** Clear Street Group Inc. has caused this Certificate of Amendment to the Seventh Amended and Restated Certificate of Incorporation to be duly executed in its name and on its behalf by an authorized officer as of January 15, 2026.

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| | |
|:---|:---|
| **Clear Street Group Inc.** | **Clear Street Group Inc.** |
| By: | /s/ Ed Tilly |
| Name: Ed Tilly | Name: Ed Tilly |
| Title: President | Title: President |

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[*Certificate of Amendment to the Seventh Amended and Restated Certificate of Incorporation of Clear Street Group Inc.]*

## Exhibit 3.3

**Exhibit 3.3** 

<u>BYLAWS</u> 

<u>OF</u> 

<u>Clear Street Group Inc.</u> 

<u>(a Delaware corporation)</u> 

December 31, 2020

<u>ARTICLE I</u> 

<u>Provisions of Law</u> 

These Bylaws shall be subject to such provisions of the statutory and common laws of the State of Delaware as may be applicable to corporations organized under the laws of the State of Delaware. Subsequent references herein to provisions of law shall be deemed to be references to the aforesaid provisions of law. All references in these Bylaws to such provisions of law shall be construed to refer to such provisions as from time to time amended.

<u>ARTICLE II</u> 

<u>Certificate of Incorporation</u> 

These Bylaws shall be subject to the Certificate of Incorporation of the corporation. All references in these Bylaws to the Certificate of Incorporation shall be construed to mean the Certificate of Incorporation of the corporation as amended from time to time.

<u>ARTICLE III</u> 

<u>Stockholders</u> 

1. <u>Annual Meeting</u>: The annual meeting of stockholders shall be held on such date and time as shall be designated from time to time by the Board of Directors, the Chief Executive Officer or the President. Each annual meeting shall be held for the purpose of electing Directors of the corporation and for such other purposes and for the transaction of such other business as may properly be brought before the meeting.

If the election of Directors of the corporation shall not be held on the day designated in accordance with the foregoing, the Board of Directors shall cause such election to be held as soon thereafter as convenient. A special meeting of the stockholders of the corporation shall be held for such election and for such other purposes and for the transaction of such other business as might have been held or transacted at such annual meeting. Any election held, or any business transacted at such special meeting, shall have the same force and effect as if held or transacted at the annual meeting.

2. <u>Special Meetings</u>: Unless otherwise required by law or the Certificate of Incorporation, a special meeting of the stockholders may be called for any purpose or purposes by the Directors, by the Chief Executive Officer or by the President. Upon written request of one or more stockholders who own at least fifty percent (50%) of the capital stock issued and outstanding and entitled to vote at the meeting, a special meeting shall be called by the Secretary, or in the case of the death, absence, incapacity or refusal to act of the Secretary, by any other officer. Such request shall state the purpose or purposes of the proposed meeting.

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3. <u>Place of Meeting</u>: All meetings of the stockholders, annual or special, shall be held at such place within or without the State of Delaware as may be designated from time to time by the Board of Directors or the officer calling the meeting or if not so designated, at the registered office of the corporation.

4. <u>Notice of Meetings</u>: Except as otherwise provided by law, a written notice of every meeting of stockholders, annual or special, stating the place, date and hour thereof, and, in the case of special meetings, the purpose or purposes for which the meeting is to be held, shall be given by the person or persons calling the meeting or by any officer of the corporation acting at his or their direction not less than ten (10) nor more than sixty (60) days before the meeting to each stockholder, who by law, by the Certificate of Incorporation or by these Bylaws, is entitled to vote at or notice of such meeting. Such notice shall be given either personally, by leaving it with him or at his residence or place of business, or by telephone, telecopy or electronic mail or other equivalent electronic media. If mailed, such notice shall be deemed to be given when deposited in the United States mail, with postage prepaid, directed to the stockholder at his address as it appears on the records of the corporation. No notice of any adjourned meeting shall be required if (a) the time and place thereof are announced at the meeting at which the adjournment is taken, (b) the adjournment is for less than thirty (30) days, and (c) no new record date is fixed for the adjourned meeting.

5. <u>Waivers of Notice</u>: Whenever notice is required to be given to any stockholder by law, the Certificate of Incorporation or these Bylaws, a written waiver thereof, signed by the stockholder entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a stockholder at a meeting shall constitute a waiver of notice of such meeting, except when the stockholder attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the stockholders need be specified in any written waiver of notice.

6. <u>Voting List</u>: The officer who has charge of the stock ledger of the corporation shall prepare and make, at least ten days before every meeting of stockholders (provided, however, if the record date for determining the stockholders entitled to vote is less than ten days before the date of the meeting, the list shall reflect the stockholders entitled to vote as of the tenth day before the meeting date), a complete list of the stockholders entitled to vote at the meeting, arranged in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting, during ordinary business hours, for a period of at least ten days prior to the meeting, either at a place within the city or town where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held. The list shall also be produced and kept at the time and place of the meeting during the whole time thereof, and may be inspected by any stockholder who is present.

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7. <u>Quorum</u>: Except as may be otherwise provided by law, by the Certificate of Incorporation, or by these Bylaws, the holders of a majority of all stock issued and outstanding and entitled to vote at a meeting (or if there shall be more than one (1) class or series of stock issued and outstanding and entitled to vote separately at such meeting, and a separate vote by class or series shall be required by law, by the Certificate of Incorporation or by these Bylaws, then a majority of each such class or series) present in person or represented by proxy, shall constitute a quorum. The holders of a majority in interest of all stock issued and outstanding, entitled to vote and present in person or represented by proxy at any meeting of stockholders, including any adjourned meeting, whether or not a quorum is present, may adjourn such meeting to another time and place. At any adjourned meeting, any business may be transacted which might have been transacted at the meeting as originally called, provided a quorum shall be in attendance at such adjourned meeting.

8. <u>Voting and Proxies</u>: Unless otherwise provided by the Certificate of Incorporation, each stockholder shall have one (1) vote for each share of stock and a proportionate vote for each fractional share of stock entitled to vote, held by him of record according to the records of the corporation. Stockholders may vote either in person or by written proxy dated not more than three (3) years before such vote, unless the proxy provides for a longer period. A proxy with respect to stock held in the name of two (2) or more persons shall be valid if executed by one (1) of them unless at or prior to the exercise of the proxy, the corporation receives a specific written notice to the contrary from any one (1) of them. A proxy purporting to have been executed by or on behalf of a stockholder shall be deemed valid unless challenged at or prior to its exercise. All elections of Directors shall be by written ballot unless otherwise provided in the Certificate of Incorporation.

9. <u>Required Vote</u>: If a quorum is present, then, except as otherwise required by law, the Certificate of Incorporation or these Bylaws, the holders of a majority of the stock present in person or represented by proxy at the meeting and entitled to vote shall decide any such election or other matter to be voted upon by the stockholders.

10. <u>Action Without Meeting</u>: Unless otherwise required in the Certificate of Incorporation, any action required to be taken at any annual or special meeting of stockholders, or any action which may be taken at any annual or special meeting of such stockholders, may be taken without a meeting, without prior notice and without a vote, if a consent in writing, setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those stockholders who have not consented in writing.

11. <u>Record Date</u>: For the purpose of determining the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, or to express consent to corporate action in writing without a meeting, or for the purpose of determining stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the Directors may fix, in advance, a date as the record date for any such determination of stockholders. Such date shall not be more than sixty nor less than ten days before the date of such meeting, nor more than sixty days prior to any other action. If no such record date is fixed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 The record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 The record date for determining stockholders entitled to express consent to corporate action in writing without a meeting, when no prior action by the Directors is necessary, shall be the day on which the first written consent is expressed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 The record date for determining stockholders for any purpose other than those specified in Sections 11.1 and 11.2 shall be at the close of business on the day on which the Board adopts the resolution relating thereto.

When a determination of stockholders entitled to notice of or to vote at any meeting of stockholders has been made as provided in this Section 11 such determination shall apply to any adjournment thereof, unless the Board fixes a new record date for the adjourned meeting.

<u>ARTICLE IV</u> 

<u>Directors</u> 

1. <u>Powers</u>: The business and affairs of the corporation shall be managed by or under the direction of the Board of Directors, which may exercise all the powers of the corporation and do all such lawful acts and things as are not by law or by the Certificate of Incorporation or by these Bylaws directed or required to be exercised or done by the stockholders.

2. <u>Number; Qualification; Term of Office</u>: The Board of Directors shall consist of one or more members. The total number of Directors shall be fixed initially at six (6) and may thereafter be changed from time to time by action of the stockholders. Directors need not be stockholders. Each Director shall hold office until his successor is elected and qualified, or until his earlier death, resignation or removal.

3. <u>Election of Directors</u>: The Board of Directors shall be elected at the annual meeting, or in lieu thereof at any special meeting, of stockholders in the manner prescribed by law, by the Certificate of Incorporation and by these Bylaws.

4. <u>Newly Created Directorships and Vacancies</u>: Unless otherwise provided in the Certificate of Incorporation, vacancies and newly created directorships resulting from any increase in the authorized number of directors elected by all of the stockholders having the right to vote as a single class may be filled by vote of a majority of the directors then in office, although less than a quorum, or by a sole remaining director, or by the stockholders by a majority of the stock present or represented by proxy at a special meeting of stockholders called for that purpose. A Director elected to fill a vacancy shall be elected to hold office until his successor is elected and qualified, or until his earlier death, resignation or removal. If there are no Directors in office, then an election of Directors may be held in the manner provided by law. In the event of a vacancy in the Board of Directors, the remaining Directors, except as otherwise required by law or these Bylaws, may exercise the power of the full Board of Directors until the vacancy is filled.

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5. <u>Resignations and Removal of Directors</u>: Any Director may resign at any time by written notice to the Corporation. Such resignation shall be effective upon receipt unless it is specified to be effective at some other time or upon the happening of some other event. Any Director may be removed from office with or without cause by the stockholders upon the vote of the holders of a majority of stock then issued and outstanding and entitled to vote thereon or in such manner as may be provided in the Certificate of Incorporation.

6. <u>Regular Meetings</u>: Regular meetings of the Board of Directors may be held without notice at such times and places as the Directors may determine from time to time; provided that any Director who is absent when such a determination is made shall be given prompt notice of such determination. The first meeting of the Board of Directors following the annual meeting of the stockholders may be held without notice immediately after and at the same place as the annual meeting of the stockholders or the special meeting held in lieu thereof.

7. <u>Special Meetings and Notice</u>: Special meetings of the Board of Directors may be called at any time by the Chief Executive Officer, President or Treasurer or by any Director. Notice of a special meeting shall be given by the Secretary, an Assistant Secretary or the person calling the meeting to each Director in person or by telephone, telecopy or electronic mail, or other equivalent electronic media sent to his last known business or home address, at least twenty-four (24) hours in advance of the meeting, or by written notice mailed to his business or home address, at least forty-eight (48) hours in advance of the meeting. Notice of a meeting need not be given to any Director, if a written waiver of notice, executed by him before or after the meeting, is filed with the records of the meeting, or to any Director who attends the meeting without protesting prior thereto or at its commencement the lack of notice to him. Any notice given hereunder shall state the place, date and hour of the meeting, but need not specify the purposes of the meeting except that if an amendment to these Bylaws or any matter referred to in Article VII or Paragraphs 5 and 6 of Article VIII of these Bylaws shall be a purpose of the meeting, the same shall be so stated in the notice.

8. <u>Quorum; Voting and Adjournments</u>: Except as otherwise required by law, by the Certificate of Incorporation or by these Bylaws, a majority of the total number of Directors then in office shall constitute a quorum at any meeting of the Directors, and the act of a majority of the Directors present at a meeting at which a quorum shall be present shall be the act of the Board of Directors. Any meeting of Directors may be adjourned to any other time and place as a majority of those Directors present at such meeting and voting shall determine whether or not a quorum of Directors shall be present.

9. <u>Action Without Meeting</u>: Any action required or permitted to be taken at any meeting of the Directors may be taken without a meeting, if a written consent thereto is signed by all the Directors then in office and such written consent is filed with the records of the meetings of the Directors. Such consent shall be treated as a vote for all purposes.

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10. <u>Telephonic Meetings</u>: Unless otherwise restricted by the Certificate of Incorporation or these Bylaws, members of the Board of Directors or of any committee thereof may participate in a meeting of the Board of Directors or of any committee, as the case may be, by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at the meeting.

11. <u>Committees</u>: The Board of Directors may, in its discretion, by resolution passed by a majority of the total number of Directors then in office, designate one (1) or more committees, each committee to consist of one (1) or more of the Directors of the corporation and which shall have and may exercise, except as may be otherwise limited by law, such powers and authority, including those possessed by the Board of Directors itself, as shall be conferred or authorized by the resolutions appointing it. The Board of Directors shall have the power at any time to discharge, change the membership of, fill vacancies in, or designate one or more directors as alternate members of any such committee. Written minutes of all proceedings of any such committee shall be kept and made available to each Director, at his request. Except as the Board of Directors may otherwise determine, a majority of the Directors then constituting the membership of any such committee shall constitute a quorum for the transaction of business, except that when a committee shall have only one (1) Director, then one (1) Director shall constitute a quorum. When a quorum is present at any meeting of any such committee, a majority of those present and voting shall be requisite and sufficient to effect any action, or to decide any question or measure presented to the meeting, unless a larger vote shall be required by law or by other provisions of these Bylaws or by the Board of Directors.

Notice shall be provided to each committee member in accordance with Section 7 of this Article, as if such committee meeting were a special meeting of the Directors.

In the event of the absence or disqualification of any member of any committee designated by the Board of Directors, the member or members thereof present at any meeting and not disqualified from voting, whether or not he or they constitute a quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in the place of any such absent or disqualified member.

12. <u>Compensation</u>: The Board of Directors shall have the authority to fix the compensation of directors; provided, that any such compensation shall require prior approval by the holders of a majority of all stock issued and outstanding and entitled to vote at a meeting.

<u>ARTICLE V</u> 

<u>Officers</u> 

1. <u>Officers</u>: The officers of the corporation shall be elected by the Board of Directors and shall consist of a President, a Treasurer, a Secretary and such other officers, including without limitation a Chairman of the Board of Directors, a Chief Executive Officer and one or more Vice Presidents, Assistant Treasurers and Assistant Secretaries, as the Directors may from time to time determine. Such other officers shall have such duties and powers as shall be designated from time to time by the Board of Directors or the chief executive officer, and they shall be responsible to and shall report to the chief executive officer or to such other officer as the chief executive officer or the Board of Directors shall designate. If authorized by resolution of the Board of Directors, the chief executive officer may be empowered to appoint from time to time Assistant Secretaries and Assistant Treasurers. Any number of offices may be held by the same person, unless the Certificate of Incorporation or these Bylaws otherwise provide.

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2. <u>Tenure</u>: Each officer of the Corporation shall hold office until such Officer's successor is elected and qualified, unless a different term is specified in the vote electing or appointing such Officer, or until such Officer's earlier death, resignation or removal.

3. <u>Removal</u>: The Directors may remove any officer elected or appointed by them with or without cause upon the vote of the Directors then in office.

4. <u>Resignation</u>: Any officer may resign at any time by delivering his written resignation to the Corporation at its principal office or to the chief executive officer or Secretary. Such resignation shall be effective upon receipt unless it is specified to be effective at some other time or upon the happening of some other event.

5. <u>Vacancies</u>: Vacancies in any office may be filled by the Directors.

6. <u>Certain Duties and Powers</u>: The officers designated below, subject at all times to modification by and to the direction and control of the Directors, shall have and may exercise the respective duties and powers set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>The Chairman of the Board of Directors</u>: The Chairman of the Board of Directors, if there be one, shall, when present, preside at all meetings of the Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Chief Executive Officer</u>: The Chief Executive Officer, if there be one, shall be the chief executive officer of the corporation and, in such capacity, shall be devoted to the corporation's business and affairs under the basic policies set by the Board of Directors and shall from time to time report to the Board of Directors on matters within his or her knowledge that the interests of the corporation may require be brought to the Board of Directors' notice. In the absence of a President in office, unless otherwise provided by the Board of Directors, the Chief Executive Officer also shall have the duties and powers of the President. The Chief Executive Officer shall be responsible to the Board of Directors and shall perform such other duties as shall be assigned to him or her by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>President</u>: The President shall have general supervision and control of the business and, in the absence of a Chief Executive Officer in office, unless otherwise provided by the Board of Directors, shall be the chief executive officer of the corporation. In the absence of the Chief Executive Officer from any meeting, the President shall preside, when present, at meetings of stockholders, and, if a director, at meetings of Directors unless there be a Chairman of the Board of Directors who is present at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Treasurer</u>: The Treasurer shall be the chief financial officer of the corporation and shall have general charge of the financial affairs of the corporation and shall keep or cause to be kept accurate books of account. He shall have custody of all funds, securities and valuable documents of the corporation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Secretary</u>: The Secretary shall keep a true record of the proceedings of all meetings of the stockholders and Directors of the corporation. In the absence of the Secretary from any such meeting, an Assistant Secretary, if there be one, otherwise a temporary Secretary shall be chosen by the person presiding at the meeting, and he shall so record the proceedings thereof. Unless a transfer agent is appointed, the Secretary shall also keep or cause to be kept the stock transfer books of the corporation.

In addition, except as otherwise required by law, these Bylaws or the Certificate of Incorporation, and subject to modification by and to the direction and control of the Board of Directors, each officer shall have in addition to the above duties and powers, such duties and powers as are customarily incident to his office.

<u>ARTICLE VI</u> 

<u>Capital Stock</u> 

1. <u>Certificates of Stock; Uncertificated Shares</u>: Unless the Directors provide by resolution or resolutions that some or all of any or all classes or series of the corporation's stock shall be represented by certificates, the shares of the corporation shall be uncertificated. Following the adoption of such a resolution by the Directors, every holder of uncertificated shares, upon request, shall be entitled to one or more certificates signed by the Chairman or Vice-Chairman of the Board of Directors or by the President or a Vice President and by the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary representing the number of shares registered in certificate form. Any or all the signatures on the certificate may be a facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the corporation with the same effect, as if he were such officer, transfer agent or registrar at the date of issue.

2. <u>Legends</u>: Within a reasonable time after the issuance or transfer of uncertificated stock, the corporation shall send to the registered owners thereof a written notice containing the information required to be set forth or stated on certificates pursuant to law and these Bylaws, or with respect to uncertificated stock issued at a time when the corporation is authorized to issue more than one class or series of stock, a statement that the corporation will furnish without charge to each stockholder who so requests the powers, designations, preferences and relative participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights.

In the event the Directors have authorized certificated stock, every certificate issued for shares of stock at a time when such shares are subject to any restriction on transfer pursuant to the Certificate of Incorporation, these Bylaws or any agreement among any stockholders or among any such stockholders and the corporation shall have the restriction noted conspicuously on the certificate and shall also set forth on the face or back of the certificate either (i) the full text of the restriction or (ii) a statement of the existence of such restriction and a statement that the corporation will furnish a copy thereof to the holder of such certificate upon written request and without charge.

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Every certificate issued for shares of stock at a time when the corporation is authorized to issue more than one class or series of stock shall set forth on the face or back of the certificate either (i) the full text or a summary of the powers, designations, preferences, and relative, participating, optional or other special rights of the shares of each class and series, if any, authorized to be issued, or (ii) a statement of the existence of such powers, designations, preferences and relative, participating, optional or other special rights and a statement that the corporation will furnish a copy thereof to the holder of such certificate upon written request and without charge.

3. <u>Transfers</u>: The Directors may appoint a transfer agent and a registrar of transfers or either and require any stock certificates to bear their signatures. Transfers of shares of capital stock of the corporation shall be made only on the books of the corporation by the registered holder thereof or by his duly authorized attorney appointed by a power of attorney duly executed and filed with the Secretary of the corporation or a transfer agent, and on surrender of any certificate or certificates for such shares properly endorsed. The Directors may make such additional rules and regulations not inconsistent with law, with the Certificate of Incorporation or with these Bylaws as it deems expedient relative to the issue, transfer and registration of stock certificates.

4. <u>Pledges</u>: Transferees of certificated stock of the corporation transferred as collateral security shall be entitled to a new certificate therefor if the instrument of transfer substantially describes the debt or duty which is intended to be secured thereby. Whenever any transfer of shares shall be made for collateral security, and not absolutely, it shall be so expressed in the entry of transfer and on the face of any new certificate issued therefor if, when the certificates are presented to the corporation for transfer or uncertificated shares are requested to be transferred, both the transferor and the transferee request the corporation to do so.

5. <u>Replacement of Certificates</u>: In case of the alleged loss, destruction or mutilation of any certificate of stock issued by the corporation, a duplicate certificate may be issued in place thereof, upon such terms as the Directors may prescribe.

<u>ARTICLE VII</u> 

<u>Indemnification</u> 

1. <u>Indemnification of Directors and Officers</u>: The Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he is or was a director or officer of the Corporation, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding to the fullest extent and in the manner set forth in and permitted by the General Corporation Law, and any other applicable law, as from time to time in effect. Such rights of indemnification shall not be deemed exclusive of any other rights to which such director or officer may be entitled apart from the foregoing provisions. The foregoing provisions of this Article VII, Paragraph 1, shall be deemed to be a contract between the Corporation and each director or officer who serves in such capacity at any time while this Article VII and the relevant provisions of the General Corporation Law and other applicable law, if any, are in effect, and any repeal or modification thereof shall not affect any rights or obligations then existing with respect to any state of facts then or theretofore existing or any action, suit or proceeding thereto or thereafter brought or threatened based in whole or in part upon any such state of facts.

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2. <u>Indemnification of Other Persons</u>: The Corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that he is or was an employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding to the extent and in the manner set forth in and permitted by the General Corporation Law, and any other applicable law, as from time to time in effect. Such right of indemnification shall not be deemed exclusive of any other rights to which any such person may be entitled apart from the foregoing provisions.

3. <u>Miscellaneous</u>: Notwithstanding anything contained in and without limiting the generality of the foregoing provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The extent of the rights of indemnification, as hereinabove set forth, shall include, without limitation, all liabilities, costs and expenses of defending, compromising or settling any action, suit or other proceeding, and the satisfaction of any judgment or decree entered or rendered therein, including the payment of fines or penalties imposed in criminal actions or proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The termination of any action, suit or proceeding, civil or criminal, by judgment, order, settlement (whether with or without court approval), conviction, or upon a plea of guilty or nolo contendere, or its equivalent, shall not create a presumption that the person did not meet the standard of conduct required under the General Corporation Law, or any other applicable law, in order to be entitled to indemnification as hereinabove provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Expenses incurred by any person who may have a right of indemnification under this Article VII in defending a civil or criminal action, suit or proceeding may be paid by the corporation in advance of the final disposition of such action, suit or proceeding to the extent permitted by the General Corporation Law, and any other applicable law, as from time to time in effect, when approved by the Board of Directors.

<u>ARTICLE VIII</u> 

<u>Miscellaneous Provisions</u> 

1. <u>Fiscal Year</u>: The fiscal year of the Corporation shall be determined, and may be changed, by the Board of Directors.

2. <u>Seal</u>: The seal of the corporation shall, subject to alteration by the Directors, bear its name, the word "Delaware," and the year of its incorporation.

3. <u>Execution of Instruments</u>: Except as otherwise authorized by the Board of Directors, all deeds, mortgages, leases, transfers, contracts, bonds, notes, checks, drafts and other obligations authorized to be executed by an officer of the corporation in its behalf shall be signed by the Chairman of the Board, the Chief Executive Officer, the President, any Vice President or the Treasurer except as the Directors may generally or in particular cases otherwise determine.

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4. <u>Voting of Securities</u>: Except as the Directors may otherwise designate, the Chairman of the Board, the Chief Executive Officer or the President may waive notice of, and act, or appoint any other person or persons to waive notice of or act, as proxy or attorney in fact for this corporation (with or without power of substitution) at any meeting of stockholders or shareholders of any other corporation or organization, the securities of which may be held by this corporation, and may as such proxy or attorney for this corporation (with or without power of substitution), consent to, and sign in writing, any action in lieu of any such meeting.

5. <u>Amendments</u>: These Bylaws may be altered, amended or repealed by the stockholders or, if so authorized by the Certificate of Incorporation, by the Directors, at any meeting of the stockholders or of the Directors; provided, however, that notice of the substance of any such alteration, amendment or repeal be contained in the notice of such meeting.

6. <u>Ratification</u>: Any transaction may be ratified by the Board of Directors or by the stockholders, and if so ratified, shall have the same force and effect as if the questioned transaction had been originally duly authorized, and said ratification shall be binding upon the corporation and its stockholders and shall constitute a bar to any claim or execution of any judgment in respect of such questioned transaction.

7. <u>Reliance on Records</u>: Each officer, Director or member of any committee designated by the Board of Directors in the manner hereinbefore provided shall in the performance of his duties be fully protected in relying in good faith upon the books of account or reports made to the corporation by any of its officials, or by an independent certified public accountant, or by an appraiser selected with reasonable care by the Board of Directors or by any committee, or in relying in good faith upon other records of the corporation.

8. <u>Conflict with Applicable Law or Certificate of Incorporation</u>: These Bylaws are adopted subject to any applicable law and the Certificate of Incorporation. Whenever these Bylaws may conflict with any applicable law or the Certificate of Incorporation, such conflict shall be resolved in favor of such law or the Certificate of Incorporation.

Effective as of: December 31, 2020

/s/ Chris Pento

## Exhibit 10.1

**Exhibit 10.1** 

**CLEAR STREET GROUP INC.** 

**AMENDED AND RESTATED 2021 STOCK INCENTIVE PLAN** 

**(as amended and restated effective as of December 18, 2025)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. PURPOSE OF THE PLAN** 

This 2021 Stock Incentive Plan is intended to promote the interests of Clear Street Group Inc., a Delaware corporation, by providing eligible persons in the Corporation's employ or service with the opportunity to acquire a proprietary interest, or otherwise increase their proprietary interest, in the Corporation as an incentive for them to continue in such employ or service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**II. AWARDS** 

Awards under the Plan may consist of (i) options, (ii) stock awards and (iii) restricted stock units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**III. ADMINISTRATION OF THE PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Plan shall be administered by the Board. However, any or all administrative functions otherwise exercisable by the Board may be delegated to the Committee. Members of the Committee shall serve for such period of time as the Board may determine and shall be subject to removal by the Board at any time. Subject to compliance with applicable law, the Board may delegate authority to administer the Plan to an officer of the Company, with respect to Awards to Employees who are not officers, subject to such terms and conditions as deemed appropriate by the Board. The Board may at any time terminate the functions of the Committee or such officer, and reassume all powers and authority previously delegated to the Committee or the officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Plan Administrator shall have the authority to determine which eligible persons are to receive Awards, the time or times when those Awards are to be made, the number of shares of Common Stock to be covered by each such Award, the applicable exercise and/or vesting schedule, the exercise price or purchase price (if any) to be paid by the Participant, the status of a granted option as either an Incentive Option or a Non-Statutory Option, and the maximum term for which the option is to remain outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Plan Administrator shall have the authority (subject to the provisions of the Plan) to establish such rules and regulations as it may deem appropriate for proper administration of the Plan and to make such determinations under, and issue such interpretations of, the Plan and any outstanding Awards thereunder as it may deem necessary or advisable. Decisions of the Plan Administrator shall be final and binding on all parties who have an interest in the Plan or any Award thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV. ELIGIBILITY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The persons eligible to participate in the Plan are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) non-employee members of the Board and the non-employee members of the board of directors of any Parent or Subsidiary; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) consultants and other independent advisors who provide services to the Corporation (or any Parent or Subsidiary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V. STOCK SUBJECT TO THE PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The stock issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock. Subject to adjustment as provided in Section V.D, the maximum number of shares of Common Stock which may be issued over the term of the Plan shall not exceed 59,116,975 shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Shares of Common Stock subject to outstanding Awards shall be available for subsequent issuance under the Plan to the extent those Awards expire, terminate or are cancelled for any reason prior to the issuance of the underlying shares of Common Stock. Unvested shares issued under the Plan and subsequently forfeited to or repurchased by the Corporation, at a price per share not greater than the exercise or purchase price paid per share, pursuant to the Corporation's repurchase rights under the Plan, shall be added back to the number of shares of Common Stock reserved for issuance under the Plan and shall accordingly be available for reissuance through one or more subsequent Awards under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Subject to adjustment as provided in Section V.D, the maximum number of shares of Common Stock which may be issued under the Plan pursuant to Incentive Options shall not exceed 59,116,975 shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Should any change be made to the Common Stock by reason of any stock split, stock dividend, spin-off transaction, extraordinary distribution (whether in cash, securities or other property), recapitalization, combination of shares, exchange of shares or other similar transaction affecting the outstanding Common Stock without the Corporation's receipt of consideration or in the event of a substantial reduction to the value of the outstanding shares of Common Stock by reason of a spin-off transaction or extraordinary distribution or in the event of any merger, consolidation, reincorporation, or other reorganization, then equitable adjustments shall be made to (i) the maximum number and/or class of securities issuable under the Plan, (ii) the number and/or class of securities and the exercise or purchase price per share in effect under each outstanding Award, (iii) the number and/or class of securities subject to forfeiture or the Corporation's outstanding repurchase rights under the Plan and the repurchase price payable per share and (iv) the maximum number and/or class of securities that may be issued under the Plan pursuant to Incentive Options. In the event of a Change in Control, the provisions of Section XI shall apply. The adjustments shall be made by the Plan Administrator in such manner as the Plan Administrator deems appropriate, and those adjustments shall be final, binding and conclusive. In no event shall any such adjustments be made in connection with the conversion of one or more outstanding shares of the Corporation's preferred stock into shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VI. TERMS OF OPTIONS** 

The Plan Administrator may grant options to eligible persons upon such terms as it deems appropriate. Each option shall be evidenced by an Award Agreement in the form approved by the Plan Administrator; provided, however, that each such agreement shall comply with the terms and conditions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **<u>Type of Options</u>**. Each option shall be designated in the Award Agreement as either an Incentive Option or a Non-Statutory Option. Incentive Options may only be granted to Employees.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **<u>Exercise Price</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The exercise price per share shall be fixed by the Plan Administrator but shall not be less than one hundred percent (100%) of the Fair Market Value per share of Common Stock on the option grant date; provided, however, if any Employee to whom an Incentive Option is granted is a 10% Stockholder, then the exercise price per share shall not be less than one hundred ten percent (110%) of the Fair Market Value per share of Common Stock on the option grant date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The exercise price shall be payable in one or more of the following forms as determined by the Plan Administrator and specified in the Award Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) cash or check made payable to the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a promissory note payable to the Corporation having such recourse, interest, security and repayment terms as the Plan Administrator deems appropriate after taking into account the tax and accounting consequences of permitting the use of a promissory note and subject to the applicable requirements of Delaware General Corporation Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) by having the Corporation withhold a number of shares of Common Stock otherwise deliverable pursuant to the exercise of the option with such withheld shares valued at Fair Market Value on the Exercise Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) should the Common Stock be registered under Section 12 of the 1934 Act at the time the option is exercised, in shares of Common Stock valued at Fair Market Value on the Exercise Date and held for the period (if any) necessary to avoid a charge to the Corporation's earnings for financial reporting purposes; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) should the Common Stock be registered under Section 12 of the 1934 Act at the time the option is exercised and only to the extent the option is exercised for vested shares, through a special sale and remittance procedure pursuant to which the Participant shall concurrently provide irrevocable instructions (A) to a brokerage firm (with such brokerage firm reasonably satisfactory to the Corporation for purposes of administering such procedure in compliance with any applicable pre- clearance or pre-notification requirements) to effect the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased shares plus all applicable taxes required to be withheld by the Corporation by reason of such exercise and (B) to the Corporation to deliver the certificates for the purchased shares directly to such brokerage firm on the settlement date in order to complete the sale.

Except to the extent a sale and remittance procedure is utilized, payment of the exercise price for the purchased shares must be made on the Exercise Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Plan Administrator shall have the discretion (exercisable at any time) to permit the exercise price of an outstanding option to be paid in one or more of the forms specified in Section VI.B.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. **<u>Exercise and Term of Options</u>**. Each option shall be exercisable at such time or times, during such period and for such number of shares as shall be determined by the Plan Administrator. No option shall have a term in excess of ten (10) years measured from the option grant date. If any Employee to whom an Incentive Option is granted is a 10% Stockholder, then the option term shall not exceed five (5) years measured from the option grant date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. **<u>Effect of Termination of Service</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The following provisions shall govern the exercise of any options held by the Participant at the time of cessation of Service or death:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Should the Participant cease to remain in Service for any reason other than death, Disability or Misconduct, then the Participant shall have a period of three (3) months from the date of such cessation of Service during which to exercise each outstanding option held by such Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Should the Participant's Service terminate by reason of Disability, then the Participant shall have a period of twelve (12) months from the date of such cessation of Service during which to exercise each outstanding option held by such Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Participant dies while holding an outstanding option, then the personal representative of his or her estate or the person or persons to whom the option is transferred pursuant to the Participant's will or the laws of inheritance or, if beneficiary designations are permitted and have been validly made, the Participant's designated beneficiary or beneficiaries of that option shall have a twelve (12)-month period from the date of the Participant's death to exercise such option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Under no circumstances, however, shall any such option be exercisable after the specified expiration of the option term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) During the applicable post-Service exercise period, the option may not be exercised in the aggregate for more than the number of vested shares for which the option is exercisable at the time of cessation of the Participant's Service or death. No additional shares shall vest under the option following the Participant's cessation of Service, except to the extent (if any) specifically authorized by the Plan Administrator in its sole discretion pursuant to an express written agreement with the Participant. Upon the expiration of the applicable exercise period or (if earlier) upon the expiration of the option term, the option shall terminate and cease to be outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Should the Participant's Service be terminated for Misconduct or should the Participant otherwise engage in Misconduct while holding one or more outstanding options under the Plan, then all those options shall terminate immediately and cease to remain outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Plan Administrator shall have the discretion, exercisable either at the time an option is granted or at any time while the option remains outstanding, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) extend the period of time for which the option is to remain exercisable following the Participant's cessation of Service or death from the limited period otherwise in effect for that option to such greater period of time as the Plan Administrator shall deem appropriate, but in no event beyond the expiration of the option term, and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) permit the option to be exercised, during the applicable post- Service exercise period, not only with respect to the number of vested shares of Common Stock for which such option is exercisable at the time of the Participant's cessation of Service or death but also with respect to one or more additional installments in which the Participant would have vested under the option had the Participant continued in Service.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. **<u>Unvested Shares</u>**. The Plan Administrator shall have the discretion to grant options which are exercisable for unvested shares of Common Stock. Should the Participant cease Service while holding such unvested shares, the Corporation shall have the right to repurchase any or all of those unvested shares at a price per share equal to the lower of (i) the exercise price paid per share or (ii) the Fair Market Value per share of Common Stock at the time of the Participant's cessation of Service. The terms upon which such repurchase right shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares) shall be established by the Plan Administrator and set forth in the document evidencing such repurchase right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. **<u>Stockholder Rights</u>**. The holder of an option shall have no stockholder rights with respect to the shares subject to the option until such person shall have exercised the option, paid the exercise price and become the recordholder of the purchased shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. **<u>Limits on Incentive Options</u>**. The aggregate Fair Market Value of the shares of Common Stock (determined as of the respective date or dates of grant) for which one or more options granted to any Employee under the Plan (or any other option plan of the Corporation or any Parent or Subsidiary) may for the first time become exercisable as Incentive Options during any one (1) calendar year shall not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the Employee holds two (2) or more such options which become exercisable for the first time in the same calendar year, the foregoing limitation on the exercisability of such options as Incentive Options shall be applied on the basis of the order in which such options are granted, except to the extent otherwise provided under applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. **<u>Repricing Program</u>**. The Plan Administrator shall have the authority to effect, at any time and from time to time, with the consent of the affected option holders, the cancellation of any or all outstanding options under the Plan and to grant in substitution therefor new options covering the same or different number of shares of Common Stock but with an exercise price per share based on the Fair Market Value per share of Common Stock on the new option grant date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VII. TERMS OF STOCK AWARDS** 

The Plan Administrator may issue shares of Common Stock to eligible persons upon such terms as it deems appropriate. Each such stock issuance shall be evidenced by an Award Agreement in the form approved by the Plan Administrator; provided, however, that each such agreement shall comply with the terms and conditions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **<u>Consideration</u>**. Shares of Common Stock may be issued under the Plan for any of the following items of consideration which the Plan Administrator may deem appropriate in each individual instance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. cash or check made payable to the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. past services rendered to the Corporation (or any Parent or Subsidiary);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. a promissory note payable to the Corporation having such recourse, interest, security and repayment terms as the Plan Administrator deems appropriate after taking account the tax and accounting consequences of permitting the use of a promissory note and subject to the applicable requirements of Delaware General Corporation Law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. any other valid consideration under the Delaware General Corporation Law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **<u>Vesting Provisions</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Shares of Common Stock issued under the Plan may, in the discretion of the Plan Administrator, be fully and immediately vested upon issuance or may vest in one or more installments over the Participant's period of Service or upon attainment of specified performance objectives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Any new, substituted or additional securities or other property (including money paid other than as a regular cash dividend) which the Participant may have the right to receive with respect to the Participant's unvested shares of Common Stock by reason of any stock dividend, stock split, spin-off transaction, extraordinary distribution (whether in cash, securities or other property), recapitalization, reincorporation, combination of shares, exchange of shares or other similar change affecting the outstanding Common Stock as a class without the Corporation's receipt of consideration shall be issued subject to (i) the same vesting requirements applicable to the Participant's unvested shares of Common Stock and (ii) such escrow arrangements as the Plan Administrator shall deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Should the Participant cease to remain in Service while holding one or more unvested shares of Common Stock issued under the Plan or should the performance objectives not be attained with respect to one or more such unvested shares of Common Stock, then those shares shall be immediately surrendered to the Corporation for cancellation, and the Participant shall have no further stockholder rights with respect to those shares. To the extent the surrendered shares were previously issued to the Participant for consideration paid in cash or cash equivalent (including the Participant's purchase- money indebtedness), the Corporation shall repay to the Participant the lower of (i) the cash consideration paid for the surrendered shares or (ii) the Fair Market Value of those shares at the time of the Participant's cessation of Service and shall cancel the unpaid principal balance of any outstanding purchase-money note of the Participant attributable to such surrendered shares by the applicable clause (i) or (ii) amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Plan Administrator may in its discretion waive the surrender and cancellation of one or more unvested shares of Common Stock (or other assets attributable thereto) which would otherwise occur upon the non-completion of the vesting schedule applicable to those shares. Such waiver shall result in the immediate vesting of the Participant's interest in the shares of Common Stock as to which the waiver applies. Such waiver may be effected at any time, whether before or after the Participant's cessation of Service or the attainment or non-attainment of the applicable performance objectives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. **Stockholder Rights**. The Participant shall have full stockholder rights with respect to any shares of Common Stock issued to the Participant under a stock award, whether or not the Participant's interest in those shares is vested. Accordingly, the Participant shall have the right to vote such shares and to receive any regular cash dividends paid on such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VIII. TERMS OF RESTRICTED STOCK UNITS** 

The Plan Administrator may grant restricted stock units to eligible persons which entitle the Participants to receive the shares underlying those awards upon vesting or upon the expiration of a designated time period following the vesting of those awards. Each award of restricted stock units shall be evidenced by one or more Award Agreements in the form approved by the Plan Administrator; provided, however, that each such agreement shall comply with the terms and conditions of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **<u>Vesting Provisions</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Restricted stock units may, in the discretion of the Plan Administrator, vest in one or more installments over the Participant's period of Service or upon the attainment of specified performance objectives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Outstanding restricted stock units shall automatically terminate, and no shares of Common Stock shall actually be issued in satisfaction of those Awards, if the performance goals or Service requirements established for those awards are not attained or satisfied. The Plan Administrator, however, shall have the discretionary authority to issue vested shares of Common Stock under one or more outstanding awards of restricted stock units as to which the designated performance goals or Service requirements have not been attained or satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Stockholder Rights**. The Participant shall not have any stockholder rights with respect to the shares of Common Stock subject to a restricted stock units award until that award vests and the shares of Common Stock are actually issued thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IX. TRANSFERABILITY OF AWARDS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Except as provided below, Awards, together with the shares of Common Stock subject to the Awards, shall not be assignable or transferable other than by will or by the laws of inheritance following the Participant's death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. However, a Non-Statutory Option, together with the underlying unexercised shares of Common Stock, may to the extent permitted by the Plan Administrator be assigned in whole or in part during the Participant's lifetime by gift or pursuant to a domestic relations order to one or more of the Participant's Family Members or to a trust established exclusively for the Participant and/or one or more such Family Members. The assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the Non-Statutory Option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as those in effect for the option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Plan Administrator may deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Notwithstanding the foregoing, the Participant may also, to the extent permitted by the Plan Administrator and subject to applicable law, designate one or more Family Members as the beneficiary or beneficiaries of his or her outstanding Awards under the Plan, and those Awards shall, in accordance with such designation, automatically be transferred to such beneficiary or beneficiaries upon the Participant's death while holding those Awards. Such beneficiary or beneficiaries shall take the transferred Awards subject to all the terms and conditions of the applicable agreement evidencing each such transferred Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Prior to the date the Corporation first becomes subject to the reporting requirements of Section 13 or 15(d) of the 1934 Act, outstanding options under the Plan, together with the shares of Common Stock subject to those options during the period prior to exercise, shall not be the subject of any short position, put equivalent position (as such term is defined in Rule 16a-1(h) under the 1934 Act) or call equivalent position (as such term is defined Rule 16a-1(b) of the 1934 Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Except as otherwise provided above, until the date the Corporation first becomes subject to the reporting requirements of Section 13 or 15(d) of the 1934 Act, outstanding options under the Plan, together with the shares of Common Stock subject to those options during the period prior to exercise, shall not be the subject of any pledges, gifts, hypothecations or other transfers, other than pursuant to the Corporation's repurchase rights or in connection with a Change in Control in which such options shall terminate and cease to be outstanding.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**X. REPURCHASE RIGHT; RESTRICTIONS ON SHARES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Until such time as the Common Stock is first registered under Section 12 of the 1934 Act, the Corporation shall have the right to repurchase any or all vested shares of Common Stock issued to the Participant at a price per share equal to the Fair Market Value per share of Common Stock (or at such other price as may be established in the document evidencing such right).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Until such time as the Common Stock is first registered under Section 12 of the 1934 Act, the Corporation shall have the right of first refusal with respect to any proposed disposition by the Participant (or any successor in interest) of any shares of Common Stock issued under the Plan. Such right of first refusal shall be exercisable in accordance with the terms established by the Plan Administrator and set forth in the document evidencing such right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. In connection with any underwritten public offering by the Corporation of its equity securities, the Participant (or any successor in interest) shall be subject to transferability and market stand-off restrictions with respect to any shares of Common Stock issued under the Plan in accordance with the terms established by the Plan Administrator and set forth in the document evidencing the issuance of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The Plan Administrator may require that a Participant (or any successor in interest) execute a stockholders agreement, with such terms as the Plan Administrator deems appropriate, with respect to any shares of Common Stock issued to the Participant pursuant to the Plan**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Unvested shares may, in the Plan Administrator's discretion, be held in escrow by the Corporation until the Participant's interest in such shares vests or may be issued directly to the Participant with restrictive legends on the certificates evidencing those unvested shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XI. CHANGE IN CONTROL** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. In the event of a Change in Control, each outstanding Award, as determined by the Plan Administrator in its sole discretion, may be (i) assumed by the successor corporation (or parent thereof), (ii) canceled and substituted with an Award granted by the successor corporation (or parent thereof), (iii) otherwise continued in full force and effect pursuant to the terms of the Change in Control transaction, or (iv) replaced with a cash retention program of the Corporation or any successor corporation which preserves the spread existing on the unvested shares subject to the Award at the time of the Change in Control (the excess of the Fair Market Value of those shares over the aggregate purchase price payable for such shares) and, subject to Section XI.C, provides for subsequent payout of that spread in accordance with the same exercise/vesting schedule applicable to those unvested Award shares, but only if such replacement cash program would not result in the treatment of the Award as an item of deferred compensation subject to Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. To the extent an outstanding Award is not assumed, substituted, continued or replaced in accordance with Section XI.A, such Award shall automatically vest in full immediately prior to the effective date of the Change in Control, unless the acceleration of such Award is subject to other limitations imposed by the Plan Administrator at the time of the grant of the Award. The Plan Administrator in its sole discretion shall have the authority to provide that to the extent any such Award, as so accelerated, remains unexercised and outstanding on the effective date of the Change in Control, such Award shall be cancelled and terminated and the holder of such Award shall become entitled to receive, upon

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consummation of the Change in Control and subject to Section XI.C, a lump sum cash payment in an amount equal to the product of (i) the number of shares of Common Stock subject to such Award and (ii) the excess of (a) the Fair Market Value per share of Common Stock on the date of the Change in Control *over* (b) the per share exercise price or purchase price in effect for such Award. However, any such Award shall be subject to cancellation and termination, without cash payment or other consideration due the Award holder, if the Fair Market Value per share of Common Stock on the date of such Change in Control is less than the per share exercise price or purchase price in effect for such Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Plan Administrator shall have the authority to provide that any escrow, holdback, earn-out or similar provisions in the definitive agreement effecting the Change in Control shall apply to any cash payment made pursuant to Section XI.A(iv) or Section XI.B to the same extent and in the same manner as such provisions apply to a holder of a share of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Immediately following the consummation of the Change in Control, all outstanding Awards shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof) or otherwise continued in full force and effect pursuant to the terms of the Change in Control transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. In the event of any Change in Control, the Plan Administrator in its sole discretion may determine that all outstanding repurchase rights (i) are to be assigned to the successor corporation (or parent thereof) or otherwise continued in full force and effect pursuant to the terms of the Change in Control transaction or (ii) are to be terminated and the shares of Common Stock subject to those terminated rights are to immediately vest in full, unless such accelerated vesting is precluded by limitations imposed by the Plan Administrator at the time the repurchase right is issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Each Award which is assumed in connection with a Change in Control or otherwise continued in effect shall be appropriately adjusted, immediately after such Change in Control, to apply to the number and class of securities into which the shares of Common Stock subject to that Award would have been converted in consummation of such Change in Control had those shares actually been outstanding at that time. Appropriate adjustments shall also be made to (i) the number and class of securities available for issuance under the Plan following the consummation of such Change in Control and (ii) the exercise price or purchase price payable per share under each outstanding Award, provided the aggregate exercise price or purchase price payable for such securities shall remain the same. To the extent the actual holders of the Corporation's outstanding Common Stock receive cash consideration for their Common Stock in consummation of the Change in Control, the successor corporation (or parent thereof) may, in connection with the assumption or continuation of the outstanding Awards and subject to the Plan Administrator's approval, substitute one or more shares of its own common stock with a fair market value equivalent to the cash consideration paid per share of Common Stock in such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. The Plan Administrator shall have the discretion, exercisable either at the time an Award is granted or at any time while an Award remains outstanding, to structure such Award so that (i) all or a portion of the Award shall automatically accelerate and vest (and any repurchase rights of the Corporation with respect to the unvested shares subject to that Award that become vested on such accelerated basis shall immediately terminate) upon the occurrence of a Change in Control, whether or not such Award is to be assumed in the Change in Control or otherwise continued in effect or (ii) all or a portion of the shares subject to such Award will automatically vest on an accelerated basis should the Participant's Service terminate by reason of an Involuntary Termination within a designated period following the effective date of any Change in Control in which the Award is assumed or otherwise continued in effect and the repurchase rights applicable to those shares do not otherwise terminate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. The portion of any Incentive Option accelerated in connection with a Change in Control shall remain exercisable as an Incentive Option only to the extent the applicable One Hundred Thousand Dollar ($100,000) limitation is not exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable as a Non-Statutory Option under the Federal tax laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. The grant of Awards under the Plan shall in no way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XII. EFFECTIVE DATE, AMENDMENT AND TERMINATION OF PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Plan shall become effective when adopted by the Board, but no option granted under the Plan may be exercised, and no shares shall be issued under the Plan, until the Plan is approved by the Corporation's stockholders. If such stockholder approval is not obtained within twelve (12) months after the date of the Board's adoption of the Plan, then all Awards previously granted under the Plan shall terminate and cease to be outstanding, and no further Awards shall be granted and no shares shall be issued under the Plan. Subject to such limitation, the Plan Administrator may grant Awards and issue shares under the Plan at any time after the effective date of the Plan and before the date fixed herein for termination of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Board shall have complete and exclusive power and authority to amend or modify the Plan in any or all respects. However, no such amendment or modification shall adversely affect the rights and obligations with respect to Awards at the time outstanding under the Plan unless the Participant consents to such amendment or modification. In addition, certain amendments may require stockholder approval pursuant to applicable laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Awards may be granted under the Plan which are in excess of the number of shares of Common Stock then available for issuance under the Plan, provided any excess shares actually issued shall be held in escrow until there is obtained stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock available for issuance under the Plan. If such stockholder approval is not obtained within twelve (12) months after the date the first such excess Awards are made, then (i) any unexercised options and unvested restricted stock units granted on the basis of such excess shares shall terminate and cease to be outstanding and (ii) the Corporation shall promptly refund to the Participants the exercise price or purchase price paid for any excess shares issued under the Plan and held in escrow, together with interest (at the applicable Short Term Federal Rate) for the period the shares were held in escrow, and such shares shall thereupon be automatically cancelled and cease to be outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The Plan shall terminate upon the earliest of (i) the expiration of the ten (10)-year period measured from the date the Plan is adopted by the Board, (ii) the date on which all shares available for issuance under the Plan shall have been issued as vested shares or (iii) the termination of all outstanding Awards under the Plan in connection with a Change in Control. All Awards outstanding at the time of a clause (i) termination event shall continue to have full force and effect in accordance with the provisions of the documents evidencing those Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XIII. GENERAL** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Any cash proceeds received by the Corporation from the sale of shares of Common Stock under the Plan shall be used for general corporate purposes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Corporation's obligation to deliver shares of Common Stock upon the exercise of any options granted under the Plan or upon the issuance or vesting of any shares issued under the Plan shall be subject to the satisfaction of all applicable tax withholding requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The implementation of the Plan, the granting of any Awards under the Plan and the issuance of any shares of Common Stock under an Award shall be subject to the Corporation's procurement of all approvals and permits required by regulatory authorities having jurisdiction over the Plan, the Awards granted under it and the shares of Common Stock issued pursuant to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Nothing in the Plan shall confer upon the Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining such person) or of the Participant, which rights are hereby expressly reserved by each, to terminate such person's Service at any time for any reason, with or without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. In the event there are at any time two thousand (2,000) or more holders of outstanding options under the Plan or five hundred (500) or more holders of outstanding options under the Plan who are not accredited investors, the Corporation shall provide to each such option holder, at the time the outstanding options first become held by five hundred (500) or two thousand (2,000) holders, as applicable, and at successive six (6)-month intervals thereafter, financial statements that meet the requirements of Rule 701(e)(4) under the 1933 Act and that are at the time of distribution not more than one hundred and eighty (180) days old. Such obligation shall continue until such time as the Corporation becomes subject to the reporting requirements of Section 13 or 15(d) of the 1934 Act or (if earlier) no longer relies on the exemption from such reporting requirements provided by Rule 12h-1(f) under the 1934 Act. The Corporation may require that option holders agree to keep any financial information so provided confidential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XIV. DEFINITIONS** 

The following definitions shall be in effect under the Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **<u>Award</u>** shall mean an option, a stock award or a restricted stock unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **<u>Award Agreement</u>** shall mean the agreement entered into by the Corporation and the Participant evidencing the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. **<u>Board</u>** shall mean the Corporation's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. **<u>Change in Control</u>** shall have the meaning assigned to such term in the Award Agreement for the particular Award or in any other agreement incorporated by reference into the Award Agreement for purposes of defining such term, and in the absence of such a Change in Control definition shall mean a change in ownership or control of the Corporation effected through any of the following transactions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a merger, consolidation or other reorganization approved by the Corporation's stockholders, unless securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by the persons who beneficially owned the Corporation's outstanding voting securities immediately prior to such transaction; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a stockholder-approved sale, transfer or other disposition of all or substantially all of the Corporation's assets in liquidation or dissolution of the Corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the acquisition, directly or indirectly by any person or related group of persons (other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation), of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities pursuant to a tender or exchange offer made directly to the Corporation's stockholders.

In no event shall any public offering of the Corporation's securities be deemed to constitute a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. **<u>Code</u>** shall mean the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. **<u>Committee</u>** shall mean a committee of one (1) or more Board members appointed by the Board to exercise one or more administrative functions under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. **<u>Common Stock</u>** shall mean the Corporation's common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. **<u>Corporation</u>** shall mean Clear Street Group Inc., a Delaware corporation, and any successor corporation to all or substantially all of the assets or voting stock of Clear Street Group Inc..

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. **<u>Disability</u>** shall have the meaning assigned to such term in the Award Agreement for the particular Award or in any other agreement incorporated by reference into the Award Agreement for purposes of defining such term, and in the absence of such a definition shall mean the inability of the Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that is expected to result in death or has lasted or can be expected to last for a continuous period of twelve (12) months or more.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. **<u>Employee</u>** shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K. **<u>Exercise Date</u>** shall mean the date on which the Corporation shall have received written notice of the option exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L. **<u>Fair Market Value</u>** per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Common Stock is at the time traded on the Nasdaq Capital, Global or Global Select Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers for that particular Stock Exchange and published in *The Wall Street Journal*. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Common Stock is at the time listed on any other Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange and published in *The Wall Street Journal*. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Common Stock is not at the time listed on any Stock Exchange, then the Fair Market Value shall be determined by the Plan Administrator through the reasonable application of a reasonable valuation method that takes into account the applicable valuation factors set forth in the Treasury Regulations issued under Section 409A of the Code; provided, however, that with respect to an Incentive Option, such Fair Market Value shall be determined in accordance with the standards of Section 422 of the Code and the applicable Treasury Regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M. **<u>Family Member</u>** means, with respect to a particular Participant, any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N. **<u>Incentive Option</u>** shall mean an option which satisfies the requirements of Code Section 422.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;O. **<u>Involuntary Termination</u>** shall have the meaning assigned to such term in the Award Agreement for the particular Award or in any other agreement incorporated by reference into the Award Agreement for purposes of defining such term, and in the absence of such an Involuntary Termination definition shall mean the termination of the Service of any individual which occurs by reason of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such individual's involuntary dismissal or discharge by the Corporation for reasons other than Misconduct, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such individual's voluntary resignation following (A) a change in his or her position with the Corporation which materially reduces his or her duties and responsibilities or the level of management to which he or she reports, (B) a reduction in his or her level of compensation (including base salary, fringe benefits and target bonus under any corporate-performance based bonus or incentive programs) by more than fifteen percent (15%) or (C) a relocation of such individual's place of employment by more than fifty (50) miles, provided and only if such change, reduction or relocation is effected without the individual's consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;P. **<u>Misconduct</u>** shall have the meaning assigned to such term in the Award Agreement for the particular Award or in any other agreement incorporated by reference into the Award Agreement for purposes of defining such term, and in the absence of such a Misconduct definition shall mean the commission of any act of fraud, embezzlement or dishonesty by the Participant, any unauthorized use or disclosure by such person of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by such person adversely affecting the business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way preclude or restrict the right of the Corporation (or any Parent or Subsidiary) to discharge or dismiss any Participant or other person in the Service of the Corporation (or any Parent or Subsidiary) for any other acts or omissions, but such other acts or omissions shall not be deemed, for purposes of the Plan, to constitute grounds for termination for Misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Q. **<u>1933 Act</u>** shall mean the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R. **<u>1934 Act</u>** shall mean the Securities Exchange Act of 1934, as amended.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;S. **<u>Non-Statutory Option</u>** shall mean an option not intended to satisfy the requirements of Code Section 422.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T. **<u>Parent</u>** shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U. **<u>Participant</u>** shall mean any person to whom an Award is granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. **<u>Plan</u>** shall mean the Corporation's 2021 Stock Incentive Plan, as set forth in this document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W. **<u>Plan Administrator</u>** shall mean either the Board or the Committee, or the officer delegated authority under Section III.A, acting in its capacity as administrator of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. **<u>Service</u>** shall mean the performance of services for the Corporation (or any Parent or Subsidiary, whether now existing or subsequently established) by a person in the capacity of an Employee, a non-employee member of the board of directors or a consultant or independent advisor, except to the extent otherwise specifically provided in the documents evidencing the Award. For purposes of the Plan, a Participant shall be deemed to cease Service immediately upon the occurrence of either of the following events: (i) the Participant no longer performs services in any of the foregoing capacities for the Corporation or any Parent or Subsidiary or (ii) the entity for which the Participant is performing such services ceases to remain a Parent or Subsidiary of the Corporation, even though the Participant may subsequently continue to perform services for that entity. Service shall not be deemed to cease during a period of military leave, sick leave or other personal leave approved by the Corporation; provided, however, that for a leave which exceeds three (3) months, Service shall be deemed, for purposes of determining the period within which any outstanding option held by a Participant may be exercised as an Incentive Option, to cease on the first day immediately following the expiration of such three (3)-month period, unless such Participant is provided with the right to return to Service following such leave either by statute or by written contract. Except to the extent otherwise required by law or expressly authorized by the Plan Administrator or by the Corporation's written policy on leaves of absence, no Service credit shall be given for vesting purposes for any period the Participant is on a leave of absence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Y. **<u>Stock Exchange</u>** shall mean the American Stock Exchange, the Nasdaq Capital, Global or Global Select Market or the New York Stock Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Z. **<u>Subsidiary</u>** shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

AA **<u>10% Stockholder</u>** shall mean the owner of stock (as determined under Code Section 424(d)) possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation (or any Parent or Subsidiary).

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**CLEAR STREET GROUP INC.** 

**2021 STOCK INCENTIVE PLAN** 

**2022 SUB-PLAN FOR PARTICIPANTS IN ISRAEL** 

**1. SPECIAL PROVISIONS FOR PARTICIPANTS IN ISRAEL** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 This 2022 Sub-Plan for Participants in Israel (the "**Sub-Plan**") to the Clear Street Group Inc. 2021 Stock Incentive Plan (the "**Plan**") is made in accordance with Section III.C of the Plan. This Sub-Plan was approved by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 The provisions specified hereunder apply only to persons who are deemed to be residents of the State of Israel for tax purposes or are otherwise subject to taxation in Israel with respect to Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 This Sub-Plan applies with respect to Awards granted under the Plan. The purpose of this Sub-Plan is to establish certain rules and limitations applicable to Awards that may be granted or issued under the Plan from time to time, in compliance with the tax, securities and other applicable laws currently in force in the State of Israel. Except as otherwise provided by this Sub-Plan, all grants made pursuant to this Sub-Plan shall be governed by the terms of the Plan. This Sub-Plan is applicable only to grants made after the date of its adoption. This Sub- Plan complies with, and is subject to, the ITO and Section 102.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 The Plan and this Sub-Plan shall be read together. In any case of contradiction, whether explicit or implied, between the provisions of this Sub-Plan and the Plan, the provisions of this Sub-Plan shall govern.

**2. DEFINITIONS** 

Capitalized terms not otherwise defined herein shall have the meaning assigned to them in the Plan. The following additional definitions shall apply to grants made pursuant to this Sub-Plan:

"**3(i) Award**" means an Award, which is subject to taxation pursuant to Section 3(i) of the ITO, which has been granted to any person who is not an Eligible 102 Participant.

"**102 Capital Gains Track**" means the tax alternative set forth in Section 102(b)(2) and 102(b)(3) of the ITO pursuant to which all or a part of the income resulting from the sale of Shares is taxable as a capital gain.

"**102 Capital Gains Track Award**" means a 102 Trustee Award qualifying for the special tax treatment under the 102 Capital Gains Track.

"**102 Ordinary Income Track**" means the tax alternative set forth in Section 102(b)(1) of the ITO pursuant to which income resulting from the sale of Shares derived from Awards is taxed as ordinary income.

"**102 Ordinary Income Track Award**" means a 102 Trustee Award qualifying for the ordinary income tax treatment under the 102 Ordinary Income Track.

"**102 Trustee Award**" means an Award granted pursuant to Section 102(b) of the ITO and held in trust by a Trustee for the benefit of the Eligible 102 Participant, and includes both 102 Capital Gains Track Awards and 102 Ordinary Income Track Awards.

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"**Affiliate**" for the purpose of grants made under this Sub-Plan, means any affiliated entity of the Corporation that is an "employing company" within the meaning of Section 102(a) of the ITO.

"**Controlling Shareholder**" as defined in Section 32(9) of the ITO, currently defined as an individual who prior to the grant or as a result of the grant or exercise of any Award, holds or would hold, directly or indirectly, in his/her name or with a relative (as defined in the ITO) (i) 10% of the outstanding share capital of the Corporation, (ii) 10% of the voting power of the Corporation, (iii) the right to hold or purchase 10% of the outstanding equity or voting power, (iv) the right to obtain 10% of the "profits" of the Corporation (as defined in the ITO), or (v) the right to appoint a director of the Corporation.

"**Deposit Requirements**" shall mean with respect to a 102 Trustee Award, the requirement to evidence deposit of an Award with the Trustee, in accordance with Section 102, in order to qualify as a 102 Trustee Award. As of the time of approval of this Sub-Plan, the ITA guidelines regarding Deposit Requirements for 102 Capital Gains Track Awards require that the Trustee be provided with (a) the resolutions approving Awards intended to qualify as 102 Capital Gains Track Awards within 45 calendar days of the date of the Plan Administrator's approval of such Award, including full details of the terms of the Awards, and (b) a copy of the Award Agreement executed by the Eligible 102 Participant and/or Eligible 102 Participant's consent to the requirements of the 102 Capital Gains Track Award within 90 calendar days of the Plan Administrator's approval of such Award.

"**Election**" means the Corporation's or its Affiliate's choice of the type of 102 Trustee Awards it shall make under the Plan (as between 102 Capital Gains Track Awards or 102 Ordinary Income Track Awards), as filed with the ITA.

"**Eligible 102 Participant**" means a Participant who is a person employed by the Corporation or its Affiliates, including an individual who is serving as a director (as defined in the ITO) or an office holder (as defined in the ITO), who is not a Controlling Shareholder.

"**Israeli Fair Market Value**" shall mean with respect to 102 Capital Gains Track Awards only, for the sole purpose of determining tax liability pursuant to Section 102(b)(3) of the ITO, if at the date of grant the Corporation's shares are listed on any established stock exchange or a national market system, or if the Corporation's shares shall be registered for trading within ninety (90) days following the date of grant, the Fair Market Value of the Shares at the date of grant shall be determined in accordance with the average value of the Corporation's shares on the thirty (30) trading days preceding the date of grant or on the thirty (30) trading days following the date of registration for trading, as the case may be.

"**ITA**" means the Israel Tax Authority.

"**ITO**" means the Israeli Income Tax Ordinance (New Version), 1961, and the rules, regulations, orders or procedures promulgated thereunder and any amendments thereto, including specifically the Rules, all as may be amended from time to time.

"**Non-Trustee Award**" means an Award granted to an Eligible 102 Participant pursuant to Section 102(c) of the ITO and not held in trust by a Trustee.

"**Required Holding Period**" means the requisite period prescribed by the ITO and the Rules, or such other period as may be required by the ITA, with respect to 102 Trustee Awards, during which Awards granted by the Corporation must be held by the Trustee for the benefit of the person to whom it was granted. As of the date of the adoption of this Sub-Plan, the Required Holding Period for 102 Capital Gains Track Awards is 24 months from the date of grant of the Award.

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"**Rules**" means the Income Tax Rules (Tax Benefits in Share Issuance to Employees) 5763-2003.

"**Section 102**" shall mean the provisions of Section 102 of the ITO, as amended from time to time, including by the Law Amending the Income Tax Ordinance (Number 132), 2002, effective as of January 1, 2003 and by the Law Amending the Income Tax Ordinance (Number 147), 2005.

"**Shares**" shall mean shares of Common Stock (as such term is defined in the Plan).

"**Trust Agreement**" shall mean the trust agreement entered into between the Trustee and the Corporation.

"**Trustee**" means a person or entity designated by the Plan Administrator to serve as a trustee and approved by the ITA in accordance with the provisions of Section 102(a) of the ITO.

**3. TYPES OF AWARDS AND SECTION 102 ELECTION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Awards made as 102 Trustee Awards shall be made pursuant to either (a) Sections 102(b)(2) and 102(b)(3) of the ITO as 102 Capital Gains Track Awards or (b) Section 102(b)(1) of the ITO as 102 Ordinary Income Track Awards. The Corporation's Election regarding the type of 102 Trustee Award it chooses to make shall be filed with the ITA. Once the Corporation (or its Affiliate) has filed such Election, it may change the type of 102 Trustee Award that it chooses to make only after the passage of at least 12 months from the end of the calendar year in which the first grant was made in accordance with the previous Election, in accordance with Section 102. For the avoidance of doubt, such Election shall not prevent the Corporation from granting Non-Trustee Awards to Eligible 102 Participants at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Eligible 102 Participants may receive only 102 Trustee Awards or Non-Trustee Awards under this Sub-Plan. Participants who are not Eligible 102 Participants may be granted only 3(i) Awards under this Sub-Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 No 102 Trustee Awards may be made effective pursuant to this Sub-Plan until 30 days after the date the requisite filings required by the ITO and the Rules, including the filing of the Plan and Sub-Plan, have been made with the ITA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 The Award Agreement shall indicate whether the grant is a 102 Trustee Award, a Non-Trustee Award or a 3(i) Award; and, if the grant is a 102 Trustee Award, whether it is a 102 Capital Gains Track Award or a 102 Ordinary Income Track Award.

**4. TERMS AND CONDITIONS OF 102 TRUSTEE GRANTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 Each 102 Trustee Award shall be deemed granted on the date approved by the Plan Administrator and stated in a written or electronic notice by the Corporation, provided that its qualification as a 102 Trustee Award shall be dependent upon the Corporation's and the Trustee's compliance with any applicable requirements set forth by the ITA with regard to such grants.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Notwithstanding anything to the contrary in the Plan, each 102 Trustee Award granted to an Eligible 102 Participant and each Share acquired pursuant to a 102 Trustee Award shall be deposited with a Trustee in compliance with the Deposit Requirements and held in trust by the Trustee (or be subject to a supervisory trustee arrangement if approved by the ITA). After termination of the Required Holding Period, the Trustee may release such Awards and any Shares issued with respect to such Award, provided that (i) the Trustee has received an acknowledgment from the ITA that the Eligible 102 Participant has paid any applicable tax due pursuant to the ITO or (ii) the Trustee and/or the Corporation or its Affiliate withholds any applicable tax due pursuant to the ITO. The Trustee shall not release any 102 Trustee Awards or shares issued with respect to the 102 Trustee Awards prior to the full payment of the Eligible 102 Participant's tax liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 Each 102 Trustee Award shall be subject to the relevant terms of Section 102 and the ITO, which shall be deemed an integral part of the 102 Trustee Award and shall prevail over any term contained in the Plan, this Sub-Plan or Award Agreement that is not consistent therewith. Any provision of the ITO and any approvals of the ITA not expressly specified in this Sub-Plan or any document evidencing an Award that are necessary to receive or maintain any tax benefit pursuant to the Section 102 shall be binding on the Eligible 102 Participant. The Trustee and the Eligible 102 Participant granted a 102 Trustee Award shall comply with the ITO and the terms and conditions of the Trust Agreement entered into between the Corporation and the Trustee. For avoidance of doubt, it is reiterated that compliance with the ITO specifically includes compliance with the Rules. Further, the Eligible 102 Participant agrees to execute any and all documents which the Corporation or the Trustee may reasonably determine to be necessary in order to comply with the provision of any applicable law, and, particularly, Section 102. With respect to 102 Capital Gain Track Awards, to the extent that the Shares are listed on any established stock exchange or a national market system, the provisions of Section 102(b)(3) of the ITO and the Israeli Fair Market Value shall apply with respect to the Israeli tax rate applicable to such Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 During the Required Holding Period, the Eligible 102 Participant shall not require the Trustee to release or sell the Awards and Shares received subsequently following any realization of rights derived from Awards or Shares (including stock dividends) to the Eligible 102 Participant or to a third party, unless permitted to do so by applicable law. Notwithstanding the foregoing, the Trustee may, pursuant to a written request and subject to applicable law, release and transfer such Shares to a designated third party, provided that both of the following conditions have been fulfilled prior to such transfer: (i) all taxes required to be paid upon the release and transfer of the Shares have been withheld for transfer to the tax authorities and (ii) the Trustee has received written confirmation from the Corporation that all requirements for such release and transfer have been fulfilled according to the terms of the Corporation's corporate documents, the Plan, any applicable Award Agreement and applicable law. To avoid doubt such sale or release during the Required Holding Period shall result in different tax ramifications to the Eligible 102 Participant under Section 102 and the Rules and/or any other regulations or orders or procedures promulgated thereunder, which shall apply to and shall be borne solely by such Eligible 102 Participant (including tax and mandatory payments otherwise payable by the Corporation or its Affiliates, which would not apply absent a sale or release during the Required Holding Period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 In the event a stock dividend is declared and/or additional rights are granted with respect to Shares which derive from Awards granted as 102 Trustee Awards, such dividend and/or rights shall also be subject to the provisions of this Section 4 and the Required Holding Period for such stock dividend and/or rights shall be measured from the commencement of the Required Holding Period for the Award with respect to which the dividend was declared and/or rights granted. In the event of a cash dividend on Shares, the Trustee shall transfer the dividend proceeds to the Eligible 102 Participant in accordance with the Plan after deduction of taxes and mandatory payments in compliance with applicable withholding requirements, and subject to any other requirements imposed by the ITA.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 If an Award granted as a 102 Trustee Award is exercised/vests during the Required Holding Period, the Shares issued upon such exercise/vesting shall be issued in the name of the Trustee for the benefit of the Eligible 102 Participant (or be subject to a supervisory trustee arrangement if approved by the ITA). If such an Award is exercised or settled after the Required Holding Period ends, the Shares issued upon such exercise or settlement shall, at the election of the Eligible 102 Participant, either (i) be issued in the name of the Trustee (or be subject to a supervisory trustee arrangement if approved by the ITA), or (ii) be transferred to the Eligible 102 Participant directly, provided that the Eligible 102 Participant first complies with all applicable provisions of the Plan, this Sub-Plan and the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 To avoid doubt: (i) notwithstanding anything to the contrary in the Plan, including without limitation Sections VI.B and VII.A, payment upon exercise or purchase of Awards granted under the 102 Capital Gains Track, may only be paid by cash or check, and not by promissory notes, surrender of Shares, reduction of Shares pursuant to a cashless or net exercise or other forms of payment, unless and to the extent permitted under Section 102 and as authorized by the ITA (as applicable); (ii) notwithstanding anything to the contrary in the Plan, early exercise provisions shall not apply to Grants granted under the 102 Capital Gains Track; (iii) notwithstanding anything to the contrary in the Plan, including without limitation Sections V.D, VI.D(2) and VI.H thereof, certain adjustments and amendments to the terms of Awards granted under the 102 Capital Gains Track, including pursuant to recapitalization events, share exchange programs, repricing programs, dividend adjustments and so forth, may disqualify the Awards from benefitting from the tax benefits under the 102 Capital Gains Track, unless and to the extent permitted under Section 102 and as authorized by the ITA or the prior approval of the ITA is obtained (as applicable); (iv) notwithstanding anything to the contrary in the Plan, Awards granted under the 102 Capital Gains Track which are subject to performance criteria must include objective milestones as the performance criteria and must clearly define the maximum number of Shares to be issued upon vesting of the Award; (v) notwithstanding anything to the contrary in the Plan, including without limitation Section X thereof, repurchase rights shall not apply to Awards granted under the 102 Capital Gains Track; and (vi) notwithstanding anything to the contrary in the Plan, Awards granted under the 102 Capital Gains Track may only be settled in Shares and not in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 Any Award granted under the 102 Capital Gains Track is meant to comply in full with the terms and conditions of Section 102 and the requirements of the ITA, and therefore the Plan and the Sub-Plan are to be read such that they comply with the requirements of Section 102. Should any provision in the Plan and/or the Sub-Plan disqualify the Plan and/or the Sub-Plan and/or any Award granted under Section 102 Capital Gain Track granted thereunder from beneficial tax treatment pursuant to the provisions of Section 102, such provision shall not apply to such Awards and the underlying Shares unless the ITA provides approval of compliance with Section 102.

**5. ASSIGNABILITY** 

As long as Awards or Shares are held by the Trustee on behalf of the Eligible 102 Participant, all rights of the Eligible 102 Participant over the Shares are personal, cannot be transferred, assigned, pledged or mortgaged, other than by will or laws of descent and distribution.

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**6. TAX CONSEQUENCES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Any tax consequences arising from the grant, or vesting or exercise of any Award, from the payment for Shares or the acquisition of Shares issued upon the exercise or vesting (as applicable) of the Award, from the sale or disposition of any Shares covered by an Award, or from any other event or act (of the Corporation and/or its Affiliates and/or the Trustee and/or the Participant) hereunder (including without any limitation any taxes and compulsory payments, such as National Insurance Institute and health tax payments), shall be borne solely by the Participant. The Corporation and/or its Affiliates, and/or the Trustee shall withhold taxes according to the requirements under the applicable laws, rules, and regulations, including withholding taxes at source. Furthermore, the Participant shall agree to indemnify the Corporation and/or its Affiliates and/or the Trustee and hold them harmless against and from any and all liability for any such tax or interest or penalty thereon, including without limitation, liabilities relating to the necessity to withhold, or to have withheld, any such tax from any payment made to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 The Corporation or any of its Affiliates, and the Trustee may make such provisions and take such steps as it/they may deem necessary or appropriate for the withholding of all taxes required by law to be withheld with respect to Awards granted under the Plan and the exercise/vesting, sale, transfer or other disposition thereof, including, but not limited, to (i) deducting the amount so required to be withheld from any other amount (or Shares issuable) then or thereafter to be provided to the Participant, including by deducting any such amount from a Participant's salary or other amounts payable to the Participant, to the maximum extent permitted under law; and/or (ii) requiring the Participant to pay to the Corporation or any of its Affiliates the amount so required to be withheld; and/or (iii) withholding otherwise deliverable Shares having a Fair Market Value equal to the minimum amount statutorily required to be withheld; and/or (iv) causing the exercise and sale of any Awards or Shares held by on behalf of the Participant or selling a sufficient number of such Shares otherwise deliverable to the Participant through such means as the Corporation may determine in its sole discretion (whether through a broker or otherwise) equal to the amount required to be withheld either through a voluntary sale or through a mandatory sale arranged by the Corporation (on the Participant's behalf pursuant to the Participant's authorization as expressed by acceptance of the Award under the terms herein), to the extent permitted by applicable law or pursuant to the approval of the ITA. In addition, the Participant shall be required to pay any amount (including penalties) that exceeds the tax to be withheld and transferred to the tax authorities, pursuant to applicable tax laws, regulations and rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 The Corporation does not represent or undertake that an Award shall qualify for or comply with the requisites of any particular tax treatment (such as the 102 Capital Gains Track), nor shall the Corporation, its assignees or successors be required to take any action for the qualification of any Award under such tax treatment. The Corporation shall have no liability of any kind or nature in the event that, as a result of application of applicable law, actions by the Trustee or any position or interpretation of the ITA, or for any other reason whatsoever, an Award shall be deemed to not qualify for any particular tax treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 With respect to Non-Trustee Awards, if the Eligible 102 Participant ceases to be employed by the Corporation or any Affiliate, the Eligible 102 Participant shall extend to the Corporation and/or its Affiliate a security or guarantee for the payment of tax due at the time of sale of Shares to the satisfaction of the Corporation, all in accordance with the provisions of Section 102 and the Rules.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 The Corporation and/or when applicable, the Trustee shall not be required to release any Share certificate to an Israeli Participant until all required payments have been fully made. In the event that the Corporation, or its Affiliates, or the Trustee, as applicable, is uncertain as to the sum of the full tax payment due or which is subject to withholding, the Corporation or the Trustee, as applicable, may refuse to release the Shares until such time as the ITA verifies the sum of the full tax payment which is due, and the Participants shall not have any claims in connection with such refusal. In addition, the Corporation shall not be obligated to honor the exercise or vesting of an Award by or on behalf of a Participant until all tax consequences (if any) arising from the exercise or vesting of such Award and/or sale or disposition of Shares and/or Award are resolved in a manner reasonably acceptable to the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 THE PARTICIPANT IS STRONGLY ADVISED TO CONSULT WITH A TAX ADVISOR WITH RESPECT TO THE TAX CONSEQUENCES OF RECEIVING, EXERCISING OR DISPOSING ANY AWARD IN LIGHT OF HIS OR HER PARTICULAR CIRCUMSTANCES. THE CORPORATION DOES NOT ASSUME ANY RESPONSIBILITY TO ADVISE THE PARTICIPANT ON SUCH MATTERS, WHICH SHALL REMAIN THE SOLE RESPONSIBILITY OF THE PARTICIPANT.

**7. SECURITIES LAWS** 

All Awards hereunder shall be subject to compliance with the Israeli Securities Law, 1968, and the rules and regulations promulgated thereunder.

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**CLEAR STREET GROUP INC.** 

**2021 STOCK INCENTIVE PLAN (THE "<u>PLAN</u>")** 

**SUB-PLAN FOR U.K. EMPLOYEES (THE "<u>SUB-PLAN</u>")** 

This Sub-Plan is a sub-plan of the Plan and has been created and approved in accordance with the provisions of Section III of the Plan. Capitalized terms used but not defined in this Sub-Plan shall have the meanings ascribed thereto in the Plan.

**SECTION 1 Definitions.** As used in this Sub-Plan and/or any Award Agreement under this Sub-Plan, the following terms shall have the meanings set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Employer NIC</u>" means the amount of secondary Class 1 National Insurance contributions, including, where applicable, any employer's health and social care levy or similar payments in respect of any Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>FPO</u>" means the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 of the United Kingdom (as may be amended from time to time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>FSMA</u>" means the Financial Services and Markets Act 2000 of the United Kingdom (as may be amended from time to time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Group</u>" has the meaning given to that term under FSMA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>U.K. Employee</u>" means an employee or former employee of the Corporation or of any Parent or Subsidiary of the Corporation (provided that such Parent or Subsidiary is a member of the Corporation's Group) who is resident in the United Kingdom.

**SECTION 2 Purpose.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The purpose of this Sub-Plan is primarily to establish a sub-plan under the Plan that will apply to Awards to be made to U.K. Employees. As a result:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All Awards to U.K. Employees shall be made under this Sub-Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No Awards shall be made under this Sub-Plan to any person other than a U.K. Employee, and this Sub-Plan shall not apply to any Awards made under the Plan to any such other person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Section IV of the Plan shall be deemed amended accordingly insofar as it applies to this Sub-Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The provisions of the Sub-Plan vary from those applicable under the Plan so as to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) enable the Sub-Plan (and any Awards made or proposed to be made under the Sub-Plan, and communications concerning those Awards) to take advantage of certain exemptions available in the United Kingdom from certain prohibitions and restrictions which might otherwise apply to such grants and communications in the United Kingdom under the regulatory regime established under FSMA; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) take account of United Kingdom tax treatment of the Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Award shall be granted under this Sub-Plan unless such Award relates to a type of investment set out or referred to in Article 60(1) of the FPO. Section IV of the Plan shall be deemed amended accordingly insofar as it applies to this Sub-Plan.

**SECTION 3 Interaction with the Plan.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Sub-Plan should be read in conjunction with the Plan and is subject to the terms and conditions of the Plan except to the extent that the terms and conditions of the Plan differ from or conflict with the terms set out in this Sub-Plan, in which event, the terms set out in this Sub-Plan shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the other provisions of this Sub-Plan, the provisions of the Plan will apply to this Sub-Plan as if references therein to the Plan were references to this Sub-Plan.

**SECTION 4 Taxes** 

Section XIII.B of the Plan is hereby replaced with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Corporation's obligation to deliver shares of Common Stock upon the exercise of any options granted under the Plan or upon the issuance or vesting of any shares issued under the Plan shall be subject to the satisfaction of all applicable United Kingdom income taxes and employee national insurance contributions.

In accepting any relevant Award, the U.K. Employee shall, if so required by the Corporation and to the extent lawful, agree with and undertake to the Corporation and any relevant Parent or Subsidiary that is a "secondary contributor" in respect of Class I national insurance contributions (or otherwise liable for the employer's share of any health and social care levy) payable in respect of the Award (or any stock award in connection therewith) that the Corporation or relevant Parent or Subsidiary may recover from the U.K. Employee the whole or part of any Employer NIC; and the U.K. Employee shall either (A) (if so required the Corporation) join with the Corporation or relevant Parent or Subsidiary in making an election (in such terms and such form and subject to such approval by HMRC as provided in paragraph 3B of Schedule 1 to the Social Security Contributions and Benefits Act 1992 or similar provision in respect of any health and social care levy) for the whole or part of any liability of the Corporation or relevant Parent or Subsidiary for Employer NIC to be transferred to the U.K. Employee, or (B) enter into a joint agreement with the Corporation or relevant Parent or Subsidiary at the time of the Award for the reimbursement by the U.K. Employee to the Corporation or relevant Parent or Subsidiary for such Employer NIC.

The U.K. Employee may be required as a condition precedent to acquiring any shares of Common Stock to enter into a joint election under Section 431(1) of the United Kingdom Income Tax (Earnings and Pensions) Act 2003 for the full disapplication of Chapter 2 of Part 7 of that Act.

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**SECTION 5 General.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Sub-Plan, and any Awards granted hereunder, shall be governed, construed and administered in accordance with the laws of the State of Delaware, without reference to its conflict of laws provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The terms and conditions provided in this Sub-Plan are severable and if (despite the provisions of Section 5(a) of this Sub-Plan) any one or more provisions (or the effect of any such provision) are determined to be illegal or otherwise unenforceable under any applicable law, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

## Exhibit 10.2

**Exhibit 10.2** 

**CLEAR STREET GROUP INC.** 

**<u>RESTRICTED STOCK UNIT ISSUANCE AGREEMENT</u>**

THIS RESTRICTED STOCK UNIT ISSUANCE AGREEMENT (the "<u>Agreement</u>"), dated as of __________, ______ (the "<u>Grant Date</u>"), is made by and between Clear Street Group Inc., a Delaware corporation, and _____________ (the "<u>Participant</u>").

**<u>RECITALS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Board has adopted the Plan for the purpose of retaining the services of selected Employees, non-employee members of the Board or the board of directors of any Parent or Subsidiary and consultants and other independent advisors in the service of the Corporation (or any Parent or Subsidiary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Participant is to render valuable services to the Corporation (or a Parent or Subsidiary), and this Agreement is executed pursuant to, and is intended to carry out the purposes of, the Plan in connection with the Corporation's grant of restricted stock units to the Participant.

**NOW, THEREFORE**, it is hereby agreed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Grant of RSUs</u>**. The Corporation hereby grants to the Participant, as of the Grant Date, an award of restricted stock units ("<u>RSUs</u>") under the Plan (the "<u>Award</u>"). Each RSU represents the right to receive one Share on the specified issuance date following the vesting of that RSU. The number of RSUs subject to the Award, the applicable Vesting Schedule for those RSUs, the date on which Shares underlying those vested RSUs shall become issuable to the Participant and the remaining terms and conditions governing the Award shall be as set forth in this Agreement.

**AWARD SUMMARY** 

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| | |
|:---|:---|
| **Number of RSUs Subject to Award:** |  |
| **Expiration Date:** | The 11th anniversary of the Grant Date |
| **Vesting Commencement Date:** |  |
| **Issuance Schedule:** | The Shares underlying the RSUs in which the Participant vests in accordance with the Vesting Schedule set forth below (the "<u>Issued Shares</u>") shall be issued, subject to the Corporation's collection of all applicable Withholding Taxes, no later than 2 <sup>1</sup>⁄<sub>2</sub> months following the year in which the Vesting Date (as defined below in this Award Summary) occurs (the "<u>Issue Date</u>"). The issuance of the Shares shall be subject to the Corporation's collection of all applicable Withholding Taxes. The procedures pursuant to which the applicable Withholding Taxes are to be collected are set forth in Paragraph 10 of this Agreement. |

---

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| | |
|:---|:---|
| **Vesting Schedule:** | The RSUs shall be subject to two vesting requirements, which must be satisfied on or before the Expiration Date specified above in order for the RSUs to vest – the "Time Requirement" and the "Liquidity Event Requirement." The RSUs will not vest (in whole or in part) if only one (or if neither) of such vesting requirements is satisfied on or before the Expiration Date. The vesting date (the "<u>Vesting Date</u>") for each RSU shall be first date on which both the Time Requirement and the Liquidity Event Requirement are satisfied, provided that such date is prior to the Expiration Date. For the avoidance of doubt, if a Liquidity Event occurs prior to the Time Requirement having been satisfied for one or more RSUs, such RSUs shall continue to vest in accordance with the Time Requirement, subject to the Participant's continued Service. |
| **Time Requirement:** | The Time Requirement shall be as follows:<br>1/4 of the RSUs vest one year after the Vesting Commencement Date, and the balance of the RSUs vest in a series of thirty-six (36) successive equal monthly installments measured from the first anniversary of the Vesting Commencement Date, subject in each case to the Participant's continued Service. |
|  | <u>Cessation of Service</u>: In the event the Participant's Service is terminated for any reason, all RSUs with respect to which the Time Requirement has not been satisfied as of the date of the Participant's termination of Service shall automatically be forfeited upon such termination of Service and the Participant shall have no further rights with respect to such forfeited RSUs. Upon termination of the Participant's Service for any reason other than Misconduct, any RSUs with respect to which the Time Requirement has been satisfied shall (if a Liquidity Event has not previously occurred) remain outstanding until the first to occur of a Liquidity Event or the Expiration Date. |
|  | In the event the Participant's Service is terminated for Misconduct, all RSUs shall automatically be forfeited and the Participant shall have no further rights with respect to such forfeited RSUs, regardless of whether and the extent to which the Time Requirement has been satisfied as of such termination. The Plan Administrator shall have sole discretion to determine whether termination of Service has occurred, the effective date of such termination, and whether such termination was for Misconduct. Further, if a |

---

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---

| | |
|:---|:---|
|  | Liquidity Event does not occur on or before the Expiration Date, all RSUs (regardless of whether or not, or the extent to which, the Time Requirement has been previously satisfied as to such RSUs) shall automatically be forfeited upon the Expiration Date. Upon the forfeiture of any RSUs, the Participant shall have no further rights with respect to such RSUs. |
| **Liquidity Event Requirement:** | The Liquidity Event Requirement shall be satisfied on the first to occur of: (i) a Change in Control (excluding any initial public offering or business combination with a special purpose acquisition company (a "<u>SPAC</u>")); or (ii) (x) the consummation by the Corporation of an initial public offering or a business combination with a SPAC as a result of which, the common stock of the Corporation or of a direct or indirect parent entity of the Corporation become listed on a Stock Exchange and (y) expiration of the 180-day lock-up period following an event described in (ii) (or any such other lock-up period as may be imposed or requested by the Corporation's underwriters, SPAC sponsor, or other similar parties). |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Award Term</u>**. The Award shall have a term of eleven (11) years measured from the Grant Date and shall accordingly expire at the close of business on the Expiration Date, unless sooner terminated in accordance with Paragraph 1 or 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Restrictions on Transfer of Award</u>**. Prior to the actual issuance of the Shares pursuant to RSUs that vest hereunder, the Participant may not transfer any interest in the Award or the underlying Shares. Following the issuance of the Issued Shares upon vesting of the RSUs, such Issued Shares shall be subject to the Market Stand-Off and First Refusal Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Cessation of Service</u>**. Should the Participant cease Service for any reason prior to vesting in one or more RSUs subject to this Award, then the Award shall be treated as set forth in Paragraph 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Change in Control</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Should a Change in Control occur during the Participant's period of Service, then any RSUs subject to this Award at the time of the Change in Control may, as determined by the Plan Administrator in its sole discretion, be (i) assumed by the successor corporation (or parent thereof), (ii) canceled and substituted with an award granted by the successor corporation (or parent thereof), (iii) continued in full force and effect pursuant to the terms of the Change in Control transaction, or (iv) replaced with a cash retention program of the Corporation or any successor corporation (or parent thereof) that preserves the Fair Market Value of the underlying Shares at the time of the Change in Control and provides for subsequent payout of that value in accordance with the Vesting Schedule set forth in Paragraph 1.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent the Award is not assumed, substituted, continued or replaced in accordance with Paragraph 5(a), the RSUs then subject to this Award shall automatically vest in full upon the closing of the Change in Control. The Shares subject to those vested RSUs will be issued immediately at that time or as soon as administratively practicable thereafter, but in no event more than fifteen (15) business days after such closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Plan Administrator shall have the authority to provide that any escrow, holdback, earn-out or similar provisions in the definitive agreement effecting the Change in Control shall apply to any cash payment made under any cash retention program described in clause (a) above to the same extent and in the same manner as such provisions apply to a holder of a Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Immediately following the Change in Control, this Award shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof) or otherwise continued in full force and effect pursuant to the terms of the Change in Control transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Award is assumed in connection with a Change in Control or otherwise continued in effect, then the RSUs subject to the Award shall be appropriately adjusted, immediately after such Change in Control, to apply to the number and class of securities which the Shares subject to those RSUs immediately prior to the Change in Control would have been converted in consummation of such Change in Control had those Shares actually been issued and outstanding at that time. To the extent that the actual holders of the Corporation's outstanding Shares receive cash consideration for their Shares in consummation of the Change in Control, the successor corporation (or parent thereof) may in connection with the assumption or continuation of this Award and subject to the Plan Administrator's approval, substitute one or more shares of its own common stock with a fair market value equivalent to the cash consideration paid per Share in such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) This Agreement shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Adjustment to Award</u>**. In the event of any of the following transactions affecting the outstanding Common Stock as a class without the Corporation's receipt of consideration: any stock split, stock dividend, spin-off transaction, extraordinary distribution (whether in cash, securities or other property), recapitalization, combination of shares, exchange of shares or other similar transaction affecting the Common Stock without the Corporation's receipt of consideration or in the event of a substantial reduction to the value of the outstanding shares of Common Stock as a result of a spin-off transaction or extraordinary distribution or should there occur any merger, consolidation, reincorporation, or other reorganization, then equitable adjustments shall be made to the total number and/or class of securities issuable pursuant to this Award. The adjustments shall be made by the Plan Administrator in such manner as the Plan Administrator deems appropriate in order to reflect such change, and those adjustments shall be final, binding and conclusive.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Stockholder Rights</u>**. The Participant shall not have any stockholder rights with respect to the Shares underlying the RSUs subject to the Award until the Participant becomes the record holder of those Shares following their actual issuance upon the Corporation's collection of the applicable Withholding Taxes. In addition, in connection with the issuance of Shares underlying the RSUs, the Corporation may require the Participant to enter into a stockholders agreement in such form as provided by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>US Securities Law Compliance</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Restricted Securities</u>**. The Issued Shares may not be registered under the 1933 Act (or comparable foreign statute) in which case they will be issued to the Participant in reliance upon the exemption from such registration provided by SEC Rule 701 for share issuances under compensatory benefit plans such as the Plan (or an exemption from any applicable foreign statute). The Participant hereby confirms that the Participant has been informed that the Issued Shares will be restricted securities under the 1933 Act and may not be resold or transferred unless the Issued Shares are first registered under the US Federal securities laws (or comparable foreign statute) or unless an exemption from such registration is available. Accordingly, the Participant hereby acknowledges that the Participant will hold the Issued Shares for investment purposes only and not with a view to resale and is prepared to hold the Issued Shares for an indefinite period and that the Participant is aware that SEC Rule 144 issued under the 1933 Act, which exempts certain resales of unrestricted securities, is not presently available to exempt the resale of the Issued Shares from the registration requirements of the 1933 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Restrictions on Disposition of Issued Shares</u>**. The Participant shall make no disposition of the Issued Shares unless and until there is compliance with all of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Participant shall have provided the Corporation with a written summary of the terms and conditions of the proposed disposition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Participant shall have complied with all requirements of this Agreement applicable to the disposition of the Issued Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Participant shall have provided the Corporation with written assurances, in form and substance satisfactory to the Corporation, that (A) the proposed disposition does not require registration of the Issued Shares under the 1933 Act (or comparable foreign statute) or (B) all appropriate action necessary for compliance with the registration requirements of the 1933 Act (or comparable foreign statute) or any exemption from registration available under the 1933 Act including Rule 144 (or comparable foreign statute) has been taken.

The Corporation shall <u>not</u> be required (i) to transfer on its books any Issued Shares that have been sold or transferred in violation of the provisions of this Agreement <u>or</u> (ii) to treat as the owner of the Issued Shares, or otherwise to accord voting, dividend or liquidation rights to, any transferee to whom the Issued Shares have been transferred in contravention of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Restrictive Legends</u>**. The share certificates for the Issued Shares shall be endorsed with one or more of the following restrictive legends:

"The shares represented by this certificate have not been registered under the Securities Act of 1933 (or comparable foreign statute). The shares may not be sold or offered for sale in the absence of (a) an effective registration statement for the shares under such Act (or comparable foreign statute), (b) a 'no action' letter of the Securities and Exchange Commission (or comparable foreign governmental authority) with respect to such sale or offer or (c) satisfactory assurances to the Corporation that registration under such Act (or comparable foreign statute) is not required with respect to such sale or offer."

"The shares represented by this certificate are subject to certain repurchase rights and rights of first refusal granted to the Corporation and accordingly may not be sold, assigned, transferred, encumbered, or in any manner disposed of except in conformity with the terms of a written agreement dated ____________, 20___ between the Corporation and the registered holder of the shares (or the predecessor in interest to the shares). A copy of such agreement is maintained at the Corporation's principal corporate offices."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Transfer Restrictions for Issued Shares</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Market Stand-Off</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In connection with any underwritten public offering by the Corporation of its equity securities, including the Corporation's initial public offering, the Participant shall not, without the prior written consent of the Corporation or its underwriters in such public offering: (A) sell, make any short sale of, loan, hypothecate, pledge, grant any option for the purchase of, or otherwise dispose or transfer for value or otherwise agree to engage in any of the foregoing transactions with respect to, any Issued Shares; or (B) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of Issued Shares. Such restriction (the "<u>Market Stand-Off</u>") shall be in effect for such period of time from and after the effective date of the final prospectus for the offering as may be requested by the Corporation or such underwriters. In no event, however, shall such period exceed one hundred eighty (180) days, or such longer period as may be requested by the Corporation or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in the applicable rules of the Financial Industry Regulatory Authority, Inc. and any applicable Stock Exchange, or any successor provisions or amendments thereto. The Market Stand-Off shall in no event be applicable to any underwritten public offering effected more than two (2) years after the effective date of the Corporation's initial public offering. The managing underwriters in connection with any such public offering are intended third-party beneficiaries of this Paragraph 9(a) and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. The Participant further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such public offering that are consistent with this Paragraph 9(a) or that are necessary to give further effect thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any new, substituted or additional securities that are by reason of any Recapitalization or Reorganization distributed with respect to the Issued Shares shall be immediately subject to the Market Stand-Off, to the same extent such Issued Shares are at such time covered by such provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In order to enforce the Market Stand-Off, the Corporation may impose stop-transfer instructions with respect to the Issued Shares until the end of the applicable stand-off period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Right of First Refusal</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Grant</u>**. The Corporation is hereby granted the right of first refusal (the "<u>First Refusal Right</u>"), exercisable in connection with any proposed transfer of the Issued Shares. For purposes of this Paragraph 9(b), the term "transfer" shall include any sale, assignment, pledge, encumbrance or other disposition of the Issued Shares intended to be made by the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **<u>Notice of Intended Disposition</u>**. In the event the Participant desires to accept a bona fide third-party offer for the transfer of any or all of such Issued Shares (the Issued Shares subject to such offer to be hereinafter referred to as the "<u>Target Shares</u>"), the Participant shall promptly (A) deliver to the Corporation written notice (the "<u>Disposition Notice</u>") of the terms of the offer, including the purchase price and the identity of the third-party offeror, and (B) provide satisfactory proof that the disposition of the Target Shares to such third-party offeror would not be in contravention of the provisions set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **<u>Exercise of the First Refusal Right</u>**. The Corporation shall, for a period of twenty-five (25) days following receipt of the Disposition Notice, have the right to repurchase any or all of the Target Shares subject to the Disposition Notice upon the same terms as those specified therein or upon such other terms (not materially different from those specified in the Disposition Notice) to which the Participant consents. Such right shall be exercisable by delivery of written notice (the "<u>Exercise Notice</u>") to the Participant prior to the expiration of the twenty-five (25)-day exercise period. If such right is exercised with respect to all the Target Shares, then the Corporation shall effect the repurchase of such shares, including payment of the purchase price, not more than five (5) business days after delivery of the Exercise Notice; and at such time the certificates representing the Target Shares shall be delivered to the Corporation.

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Should the purchase price specified in the Disposition Notice be payable in property other than cash or evidences of indebtedness, the Corporation shall have the right to pay the purchase price in the form of cash equal in amount to the value of such property. If the Participant and the Corporation cannot agree on such cash value within ten (10) days after the Corporation's receipt of the Disposition Notice, the valuation shall be made by an appraiser of recognized standing selected by the Participant and the Corporation or, if they cannot agree on an appraiser within twenty (20) days after the Corporation's receipt of the Disposition Notice, each shall select an appraiser of recognized standing and the two (2) appraisers shall designate a third appraiser of recognized standing, whose appraisal shall be determinative of such value. The cost of such appraisal shall be shared equally by the Participant and the Corporation. The closing shall then be held on the later of (i) the fifth (5th) business day following delivery of the Exercise Notice or (ii) the fifth (5th) business day after such valuation shall have been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **<u>Non-Exercise of the First Refusal Right</u>**. In the event the Exercise Notice is not given to the Participant prior to the expiration of the twenty-five (25)-day exercise period, the Participant shall have a period of thirty (30) days thereafter in which to sell or otherwise dispose of the Target Shares to the third-party offeror identified in the Disposition Notice upon terms (including the purchase price) no more favorable to such third-party offeror than those specified in the Disposition Notice; provided, however, that any such sale or disposition must not be effected in contravention of the provisions of Paragraphs 8 and 9(a). The third-party offeror shall acquire the Target Shares subject to the First Refusal Right and the provisions and restrictions of Paragraph 8 and Paragraph 9(a), and any subsequent disposition of the acquired shares must be effected in compliance with the terms and conditions of such First Refusal Right and the provisions and restrictions of Paragraph 8 and Paragraph 9(a). In the event the Participant does not effect such sale or disposition of the Target Shares within the specified thirty (30)-day period, the First Refusal Right shall continue to be applicable to any subsequent disposition of the Target Shares by the Participant until such right lapses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **<u>Partial Exercise of the First Refusal Right</u>**. In the event the Corporation makes a timely exercise of the First Refusal Right with respect to a portion, but not all, of the Target Shares specified in the Disposition Notice, the Participant shall have the option, exercisable by written notice to the Corporation delivered within five (5) business days after the Participant's receipt of the Exercise Notice, to effect the sale of the Target Shares pursuant to either of the following alternatives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. sale or other disposition of all the Target Shares to the third-party offeror identified in the Disposition Notice, but in full compliance with the requirements of Paragraph 9(b)(iv), as if the Corporation did not exercise the First Refusal Right; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. sale to the Corporation of the portion of the Target Shares which the Corporation has elected to purchase, such sale to be effected in substantial conformity with the provisions of Paragraph 9(b)(iii). The First Refusal Right shall continue to be applicable to any subsequent disposition of the remaining Target Shares until such right lapses

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The Participant's failure to deliver timely notification to the Corporation shall be deemed to be an election by the Participant to sell the Target Shares pursuant to alternative (a) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) **<u>Recapitalization/Reorganization</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Any new, substituted or additional securities or other property which is by reason of any Recapitalization distributed with respect to the Issued Shares shall be immediately subject to the First Refusal Right, but only to the extent the Issued Shares are at the time covered by such right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. In the event of a Reorganization, the First Refusal Right shall remain in full force and effect and shall apply to the new capital stock or other property received in exchange for the Issued Shares in consummation of the Reorganization, but only to the extent the Issued Shares are at the time covered by such right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) **<u>Lapse</u>**. The First Refusal Right shall lapse upon the earliest to occur of (A) the first date on which Shares are held of record by more than two thousand (2,000) persons or more than five hundred (500) persons who are not accredited investors, (B) a determination made by the Board that a public market exists for the outstanding Shares or (C) a firm commitment underwritten public offering covering the offer and sale of the Shares in the aggregate amount of at least twenty million dollars ($20,000,000). However, the Market Stand-Off shall continue to remain in full force and effect following the lapse of the First Refusal Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Withholding of Taxes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the applicable Issue Date, the Corporation shall issue to or on behalf of the Participant a certificate (which may be in electronic form) for the applicable number of Shares, subject, however, to the Corporation's collection of the applicable Withholding Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation shall have the right to require the Participant to pay to the Corporation the amount of any Withholding Taxes in respect of the Shares or to take whatever action it deems necessary. The Corporation may, in its discretion, satisfy the Corporation's obligation for Withholding Taxes by withholding from the Shares otherwise deliverable to the Participant a number of whole Shares having a Fair Market Value as of the Issue Date, not in excess of the amount of such Withholding Taxes determined by using the applicable minimum statutory withholding rates, or such other amount or rate determined by the Corporation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the provisions of subparagraph (b) of this Paragraph 10, the employee portion of the federal, state and local employment taxes required to be withheld by the Corporation in connection with the vesting of the RSUs (the "<u>Employment Taxes</u>") shall in all events be collected from the Participant no later than the last business day of the calendar year in which the RSUs vest hereunder. Accordingly, to the extent the Issue Date for one or more vested RSUs is to occur in a year subsequent to the calendar year in which those RSUs vest, the Participant shall, on or before the last business day of the calendar year in which the RSUs vest, deliver to the Corporation a check payable to its order in the dollar amount equal to the Employment Taxes required to be withheld with respect to those RSUs. The provisions of this Paragraph 10(c) shall be applicable only to the extent necessary to comply with the applicable tax withholding requirements of Code Section 3121(v).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as otherwise provided in Paragraph 5, the settlement of all RSUs that vest under the Award shall be made solely in Shares. In no event, however, shall any fractional Shares be issued. Accordingly, the total number of Shares to be issued pursuant to the Award shall, to the extent necessary, be rounded down to the next whole Share in order to avoid the issuance of a fractional Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Compliance with Laws and Regulations</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The issuance of Shares pursuant to the Award shall be subject to compliance by the Corporation and the Participant with all applicable requirements of law relating thereto and with all applicable regulations of any Stock Exchange on which the Shares may be listed for trading at the time of such issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The inability of the Corporation to obtain approval from any regulatory body having authority deemed by the Corporation to be necessary to the lawful issuance and sale of any Shares pursuant to this Award shall relieve the Corporation of any liability with respect to the non-issuance or sale of the Shares as to which such approval shall not have been obtained. The Corporation, however, shall use its best efforts to obtain all such approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Successors and Assigns</u>**. Except to the extent otherwise provided in this Agreement, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Corporation and its successors and assigns and the Participant, the Participant's assigns and the legal representatives, heirs and legatees of the Participant's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Notices</u>**. Any notice required to be given or delivered to the Corporation under the terms of this Agreement shall be in writing and addressed to the Corporation at its principal corporate offices. Any notice required to be given or delivered to the Participant shall be in writing and addressed to the Participant at the address indicated below the Participant's signature line on this Agreement. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>Construction</u>**. This Agreement and the Award evidenced hereby are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. All decisions of the Plan Administrator with respect to any question or issue arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this Award. To the extent there is any ambiguity as to whether any provision of this Agreement would otherwise contravene one or more applicable requirements or limitations of Code Section 409A and the Treasury Regulations thereunder, such provision shall be interpreted and applied in a manner that complies with the applicable requirements of Code Section 409A and the Treasury

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Regulations thereunder. For purposes of Code Section 409A, each installment distribution of Shares (or other installment distribution hereunder) shall be treated as a separate payment, and the Participant's right to receive each such installment of shares (or other installment distribution hereunder) shall accordingly be treated as a right to receive a series of separate payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **<u>Governing Law</u>**. The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware without resort to that state's conflict-of-laws rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **<u>Stockholder Approval</u>**. If the Shares covered by this Agreement exceed, as of the Grant Date, the number of Shares that may be issued under the Plan as last approved by the stockholders, then this Award shall be void with respect to such excess Shares, unless stockholder approval of an amendment sufficiently increasing the number of Shares issuable under the Plan is obtained in accordance with the provisions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **<u>Employment at Will</u>**. Nothing in this Agreement or in the Plan shall confer upon the Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining the Participant) or of the Participant, which rights are hereby expressly reserved by each, to terminate the Participant's Service at any time for any reason, with or without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **<u>Electronic Delivery</u>**. The Corporation may, in its sole discretion, decide to deliver by email or other electronic means any documents related to the Participant's current or future participation in the Plan, this Award, the Shares, any other securities of the Corporation or any other Corporation-related documents, including notices to stockholders required by applicable law, the Corporation's Certificate of Incorporation and/or Bylaws. The Participant hereby (i) consents to receive such documents by email or other electronic means, (ii) consents to the use of electronic signatures, and (iii) if applicable, agrees to participate in the Plan and/or receive any such documents related to the Plan through an on-line or electronic system established and maintained by the Corporation or a third party designated by the Corporation. The Corporation may deliver the above-described documents to the Participant by sending a communication to the Participant's email address set forth under the Participant's signature below or, if no email address is set forth below, to the last email address for the Participant the Corporation has on file.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **<u>Definitions</u>**. The following definitions shall be in effect under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Agreement</u>** shall mean this Restricted Stock Unit Issuance Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Award</u>** shall mean the award of RSUs made to the Participant pursuant to the terms of this Agreement, as defined in Paragraph 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Board</u>** shall mean the Corporation's Board of Directors.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>Change in Control</u>** shall mean a change in ownership or control of the Corporation effected through any of the following transactions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a merger, consolidation or other reorganization approved by the Corporation's stockholders, <u>unless</u> securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by the persons who beneficially owned the Corporation's outstanding voting securities immediately prior to such transaction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a stockholder-approved sale, transfer or other disposition of all or substantially all of the Corporation's assets in liquidation or dissolution of the Corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the acquisition, directly or indirectly by any person or related group of persons (other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation), of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities pursuant to a tender or exchange offer made directly to the Corporation's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In no event shall any public offering of the Corporation's securities be deemed to constitute a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **<u>Code</u>** shall mean the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **<u>Common Stock</u>** shall mean the Corporation's common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **<u>Corporation</u>** shall mean Clear Street Group Inc., a Delaware corporation, and any successor corporation to all or substantially all of the assets or voting stock of Clear Street Group Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **<u>Disposition Notice</u>** shall have the meaning assigned to such term in Paragraph 9(b)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Employee</u>** shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **<u>Exercise Notice</u>** shall have the meaning assigned to such term in Paragraph 9(b)(iii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **<u>Expiration Date</u>** shall mean the date on which the Award expires as specified in Paragraph 1 of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **<u>Fair Market Value</u>** per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Common Stock is at the time traded on the Nasdaq Capital, Global or Global Select Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers for that particular Stock Exchange and published in <u>The Wall Street Journal</u>. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Common Stock is at the time listed on any other Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange and published in <u>The Wall Street Journal</u>. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Common Stock is not at the time listed on any Stock Exchange, then the Fair Market Value shall be determined by the Plan Administrator through the reasonable application of a reasonable valuation method that takes into account the applicable valuation factors set forth in the Treasury Regulations issued under Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **<u>First Refusal Right</u>** shall mean the right granted to the Corporation in accordance with Paragraph 9(b)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **<u>Grant Date</u>** shall mean the date of grant of the RSUs as specified in the introductory paragraph of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **<u>Issue Date</u>** shall have the meaning indicated in Paragraph 1 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **<u>Issued Shares</u>** shall have the meaning set forth in Paragraph 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **<u>Market Stand-Off</u>** shall mean the market stand-off restriction specified in Paragraph 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) **<u>Misconduct</u>** shall mean "Cause", as such term is defined in any employment agreement entered into between the Participant and the Corporation (or any Parent or Subsidiary), and in the absence of such a definition shall mean the commission of any act of fraud, embezzlement or dishonesty by the Participant, any unauthorized use or disclosure by the Participant of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by the Participant adversely affecting the business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way preclude or restrict the right of the Corporation (or any Parent or Subsidiary) to discharge or dismiss the Participant or any other person in the Service of the Corporation (or any Parent or Subsidiary) for any other acts or omissions, but such other acts or omissions shall not be deemed, for purposes of the Plan or this Agreement, to constitute grounds for termination for Misconduct.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) **<u>1933 Act</u>** shall mean the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) **<u>1934 Act</u>** shall mean the Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) **<u>Parent</u>** shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **<u>Participant</u>** shall mean the person to whom the Award is granted as specified in the introductory paragraph of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) **<u>Plan</u>** shall mean the Corporation's 2021 Stock Incentive Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) **<u>Plan Administrator</u>** shall mean either the Board or a committee of the Board acting in its capacity as administrator of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) **<u>Recapitalization</u>** shall mean any of the following transactions affecting the Corporation's outstanding Shares as a class without the Corporation's receipt of consideration: any share split, share dividend, spin-off transaction, extraordinary distribution (whether in cash, securities or other property), recapitalization, reincorporation, combination of shares, exchange of shares or other similar transaction affecting the Shares without the Corporation's receipt of consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) **<u>Reorganization</u>** shall mean any of the following transactions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a merger or consolidation in which the Corporation is not the surviving entity,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a sale, transfer or other disposition of all or substantially all of the Corporation's assets,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a reverse merger in which the Corporation is the surviving entity but in which the Corporation's outstanding voting securities are transferred in whole or in part to a person or persons different from the persons holding those securities immediately prior to the merger, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any transaction effected primarily to change the state in which the Corporation is incorporated or to create a holding Corporation structure.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) **<u>RSU</u>** shall have the meaning set forth in Paragraph 1 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) **<u>Service</u>** shall mean the Participant's performance of services for the Corporation (or any Parent or Subsidiary, whether now existing or subsequently established) in the capacity of an Employee, a non-employee member of the board of directors or a consultant or independent advisor. For purposes of this Agreement, the Participant shall be deemed to cease Service immediately upon the occurrence of either of the following events: (i) the Participant no longer performs services in any of the foregoing capacities for the Corporation or any Parent or Subsidiary or (ii) the entity for which the Participant is performing such services ceases to remain a Parent or Subsidiary of the Corporation, even though the Participant may subsequently continue to perform active services for that entity. Service shall not be deemed to cease during a period of military leave, sick leave or other personal leave approved by the Corporation. Except to the extent otherwise required by law or expressly authorized by the Plan Administrator or by the Corporation's written policy on leaves of absence, no Service credit shall be given for vesting purposes for any period the Participant is on a leave of absence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) **<u>Share</u>** shall mean a share of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) **<u>Stock Exchange</u>** shall mean the American Stock Exchange, the Nasdaq Capital, Global or Global Select Market or the New York Stock Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) **<u>Subsidiary</u>** shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) **<u>Target Shares</u>** shall have the meaning set forth in Paragraph 9(b)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) **<u>Vesting Schedule</u>** shall mean the vesting schedule specified in the Paragraph 1 of this Agreement pursuant to which the RSUs are to vest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) **<u>Withholding Taxes</u>** shall mean (i) the employee portion of the federal, state and local employment taxes required to be withheld by the Corporation in connection with the vesting of RSUs (or any other property) under the Award and (ii) the federal, state and local income taxes required to be withheld by the Corporation in connection with the issuance of the Shares underlying those vested RSUs (or any other property).

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**IN WITNESS WHEREOF**, the parties have executed this Agreement on the respective dates indicated below.

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| |
|:---|
| **CLEAR STREET GROUP INC.** |
| By: |

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Name:

Title:

Date:

**PARTICIPANT NAME:**

 <br> Date:    

 <br> Email:    

Address:

## Exhibit 10.3

**Exhibit 10.3** 

**CLEAR STREET GROUP INC.** 

**<u>STOCK OPTION AGREEMENT</u>**

**<u>RECITALS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Board has adopted the Plan for the purpose of retaining the services of selected Employees, non-employee members of the Board or the board of directors of any Parent or Subsidiary and consultants and other independent advisors in the service of the Corporation (or any Parent or Subsidiary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Optionee is to render valuable services to the Corporation (or a Parent or Subsidiary), and this Agreement is executed pursuant to, and is intended to carry out the purposes of, the Plan in connection with the Corporation's grant of an option to Optionee.

**NOW, THEREFORE**, it is hereby agreed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Grant of Option</u>**. The Corporation hereby grants to Optionee, as of the Grant Date, an option to purchase up to the number of Option Shares specified in the Grant Notice. The Option Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at the Exercise Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Option Term</u>**. This option shall have a term of ten (10) years measured from the Grant Date and shall accordingly expire at the close of business on the Expiration Date, unless sooner terminated in accordance with Paragraph 5 or 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Limited Transferability</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This option, together with the Option Shares during the period prior to exercise, shall be neither transferable nor assignable by Optionee other than by will or the laws of inheritance following Optionee's death and may be exercised, during Optionee's lifetime, only by Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Prior to the date the Corporation first becomes subject to the reporting requirements of Section 13 or 15(d) of the 1934 Act, this option, together with the underlying unexercised Option Shares, shall not be the subject of any short position, put equivalent position (as such term is defined in Rule 16a-1(h) under the 1934 Act) or call equivalent position (as such term is defined Rule 16a-1(b) of the 1934 Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as otherwise provided in Paragraph 3(a), until the date the Corporation first becomes subject to the reporting requirements of Section 13 or 15(d) of the 1934 Act, this option, together with the underlying unexercised Option Shares, shall not be the subject of any pledges, gifts, hypothecations or other transfers, other than pursuant to the Corporation's repurchase rights or in connection with a Change in Control in which this option shall terminate and cease to be outstanding.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Dates of Exercise</u>**. This option shall become exercisable in one or more installments as specified in the Grant Notice. As the option becomes exercisable for such installments, those installments shall accumulate and the option shall remain exercisable for the accumulated installments until the Expiration Date or sooner termination of the option term under Paragraph 5 or 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Cessation of Service</u>**. The option term specified in Paragraph 2 shall terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any of the following provisions become applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Involuntary Termination of Service other than for Misconduct</u>: Should Optionee cease to remain in Service for any reason (other than death, Disability, Misconduct or voluntary resignation) while this option is outstanding, then Optionee shall have a period of <u>[</u>___<u>]</u> months following the later of (i) the Vesting Date or (ii) Optionee's termination of Service during which to exercise this option, but in no event shall this option be exercisable at any time after the Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Death</u>: Should Optionee die while this option is outstanding, then the personal representative of Optionee's estate or the person or persons to whom the option is transferred pursuant to Optionee's will or the laws of inheritance following Optionee's death shall have the right to exercise this option. Any such right to exercise this option shall lapse, and this option shall cease to be outstanding, upon the expiration of the <u>[</u>___<u>]</u> month period measured from the later of (i) the Vesting Date or (ii) date of Optionee's death, but in no event shall this option be exercisable at any time after the Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Disability</u>: Should Optionee cease Service by reason of Disability while this option is outstanding, then Optionee shall have a period of <u>[</u>___<u>]</u> months following the later of (i) the Vesting Date or (ii) the date of such cessation of Service during which to exercise this option, but in no event shall this option be exercisable at any time after the Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Voluntary Resignation</u>: Should Optionee cease to remain in Service due to voluntary resignation while this option is outstanding, then Optionee shall have a period of <u>[</u>___<u>]</u> months following the later of (i) the Vesting Date or (ii) the date of such cessation of Service during which to exercise this option, but in no event shall this option be exercisable at any time after the Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Misconduct</u>: Should Optionee's Service be terminated for Misconduct or should Optionee otherwise engage in Misconduct while this option is outstanding, then this option shall terminate immediately and cease to remain outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) During the limited period of post-Service exercisability, this option may not be exercised in the aggregate for more than the number of Option Shares for which this option is vested and exercisable pursuant to the Vesting Schedule specified in the Grant Notice or the special vesting acceleration provisions of Paragraph 6. This option shall not become exercisable for any additional Option Shares following Optionee's cessation of Service, except to the extent set forth in the Vesting Schedule specified in the Grant Notice or as specifically authorized by the Plan Administrator pursuant to an express written agreement with Optionee. Upon the expiration of such limited exercise period or (if earlier) upon the Expiration Date, this option shall terminate and cease to be outstanding for any Option Shares for which the option has not been exercised.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Change in Control</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Should a Change in Control occur white this option is outstanding, then this option may, as determined by the Plan Administrator in its sole discretion, be (i) assumed by the successor corporation (or parent thereof), (ii) canceled and substituted with an option granted by the successor corporation (or parent thereof), (iii) continued in full force and effect pursuant to the terms of the Change in Control transaction, or (iv) replaced with a cash retention program of the Corporation or any successor corporation (or parent thereof) which preserves the spread existing on the unvested Option Shares at the time of the Change in Control (the excess of the Fair Market Value of those shares over the aggregate Exercise Price payable for such shares) and provides for subsequent payout of that spread in accordance with the same Vesting Schedule applicable to those unvested Option Shares. Notwithstanding the foregoing, no such cash retention program shall be established for this option (or any other option granted to Optionee under the Plan) to the extent such program would otherwise be deemed to constitute a deferred compensation arrangement subject to the requirements of Code Section 409A and the Treasury Regulations thereunder. The Plan Administrator shall have the authority to provide that any escrow, holdback, earn-out or similar provisions in the definitive agreement effecting the Change in Control shall apply to any cash payment made under any cash retention program described in clause (iv) above to the same extent and in the same manner as such provisions apply to a holder of a share of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent this option is not assumed, substituted, continued or replaced in accordance with Paragraph 6(a), this option shall automatically vest in full so that this option shall, immediately prior to the effective date of the Change in Control, become exercisable for all of the shares of Common Stock at the time subject to this option and may be exercised for any or all of those shares as fully-vested shares of Common Stock, unless the acceleration of this option is precluded pursuant to the provisions of Paragraph 5(f) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Immediately following the Change in Control, this option shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof) or otherwise continued in full force and effect pursuant to the terms of the Change in Control transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If this option is assumed in connection with a Change in Control or otherwise continued in effect, then this option shall be appropriately adjusted, immediately after such Change in Control, to apply to the number and class of securities which would have been issuable to Optionee in consummation of such Change in Control, had the option been exercised immediately prior to such Change in Control, and appropriate adjustments shall also be made to the Exercise Price, <u>provided</u> the aggregate Exercise Price shall remain the same. To the extent that the actual holders of the

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Corporation's outstanding Common Stock receive cash consideration for their Common Stock in consummation of the Change in Control, the successor corporation (or parent thereof) may in connection with the assumption or continuation of this option and subject to the Plan Administrator's approval, substitute one or more shares of its own common stock with a fair market value equivalent to the cash consideration paid per share of the class of Common Stock underlying this option in such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Agreement shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Adjustment to Option Shares</u>**. In the event of any of the following transactions affecting the outstanding Common Stock as a class without the Corporation's receipt of consideration: any stock split, stock dividend, spin-off transaction, extraordinary distribution (whether in cash, securities or other property), recapitalization, combination of shares, exchange of shares or other similar transaction affecting the Common Stock without the Corporation's receipt of consideration or in the event of a substantial reduction to the value of the outstanding shares of Common Stock as a result of a spin-off transaction or extraordinary distribution or should there occur any merger, consolidation, reincorporation, or other reorganization, then equitable adjustments shall be made to (i) the total number and/or class of securities subject to this option and (ii) the Exercise Price. The adjustments shall be made by the Plan Administrator in such manner as the Plan Administrator deems appropriate in order to reflect such change, and those adjustments shall be final, binding and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Stockholder Rights</u>**. The holder of this option shall not have any stockholder rights with respect to the Option Shares until such person shall have exercised the option, paid the Exercise Price and become the record holder of the purchased shares. In addition, the Corporation may condition the issuance of Option Shares on Optionee's execution of stockholders and/or similar agreements in such form as may be in effect between the Corporation and its significant stockholders immediately prior to such issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Manner of Exercising Option</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In order to exercise this option with respect to all or any part of the Option Shares, Optionee (or any other person or persons exercising the option) must take the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Execute and deliver to the Corporation a Notice of Exercise for the Option Shares for which the option is exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Pay the aggregate Exercise Price for the purchased shares in one or more of the following forms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) cash or check made payable to the Corporation;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) should the Common Stock underlying this option be registered under Section 12 of the 1934 Act at the time this option is exercised, in shares of such Common Stock valued at Fair Market Value on the Exercise Date and held for the period (if any) necessary to avoid a charge to the Corporation's earnings for financial reporting purposes; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) should the Common Stock underlying this option be registered under Section 12 of the 1934 Act at the time this option is exercised, through a special sale and remittance procedure pursuant to which Optionee shall concurrently provide irrevocable instructions (A) to a brokerage firm (with such brokerage firm reasonably satisfactory to the Corporation for purposes of administering such procedure in compliance with any applicable pre-clearance or pre-notification requirements) to effect the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise Price payable for the purchased shares plus all applicable taxes required to be withheld by the Corporation by reason of such exercise and (B) to the Corporation to deliver the certificates for the purchased shares directly to such brokerage firm on the settlement date in order to complete the sale.

Except to the extent the sale and remittance procedure is utilized in connection with the option exercise, payment of the Exercise Price must accompany the Notice of Exercise delivered to the Corporation in connection with the option exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Furnish to the Corporation appropriate documentation that the person or persons exercising the option (if other than Optionee) have the right to exercise this option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Execute and deliver to the Corporation such written representations as may be requested by the Corporation in order for it to comply with the applicable requirements of applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Execute and deliver to the Corporation stockholders and/or similar agreements in such form as may be in effect between the Corporation and its significant stockholders immediately prior to such issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Make appropriate arrangements with the Corporation (or Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all applicable tax withholding requirements applicable to the option exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) As soon as practical after the Exercise Date, the Corporation shall issue to or on behalf of Optionee (or any other person or persons exercising this option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In no event may this option be exercised for any fractional shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>RIGHTS OF FIRST REFUSAL</u>. ALL OPTION SHARES ACQUIRED UPON THE EXERCISE OF THIS OPTION SHALL BE SUBJECT TO CERTAIN RIGHTS OF THE CORPORATION AND ITS ASSIGNS TO REPURCHASE THOSE SHARES IN ACCORDANCE WITH THE TERMS SPECIFIED IN THE PLAN AND/OR THE NOTICE OF EXERCISE.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Compliance with Laws and Regulations</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Corporation and Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any Stock Exchange on which the Common Stock may be listed for trading at the time of such exercise and issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The inability of the Corporation to obtain approval from any regulatory body having authority deemed by the Corporation to be necessary to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Corporation of any liability with respect to the nonissuance or sale of the Common Stock as to which such approval shall not have been obtained. The Corporation, however, shall use its best efforts to obtain all such approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Successors and Assigns</u>**. Except to the extent otherwise provided in Paragraphs 3 and 6, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Corporation and its successors and assigns and Optionee, Optionee's assigns and the legal representatives, heirs and legatees of Optionee's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Notices</u>**. Any notice required to be given or delivered to the Corporation under the terms of this Agreement shall be in writing and addressed to the Corporation at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing and addressed to Optionee at the address indicated below Optionee's signature line on the Grant Notice. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>Construction</u>**. This Agreement and the option evidenced hereby are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. All decisions of the Plan Administrator with respect to any question or issue arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **<u>Governing Law</u>**. The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware without resort to that state's conflict-of- laws rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **<u>Stockholder Approval</u>**. If the Option Shares covered by this Agreement exceed, as of the Grant Date, the number of shares of Common Stock which may be issued under the Plan as last approved by the stockholders, then this option shall be void with respect to such excess shares, unless stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock issuable under the Plan is obtained in accordance with the provisions of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **<u>Code 409A Waiver and Release</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Optionee hereby agrees and acknowledges that the Board has taken reasonable steps to value the Common Stock underlying this option and to set the Exercise Price at (or above) the fair market value per share of Common Stock underlying this option on the Grant Date so that the option will not be treated as an item of deferred compensation subject to Code Section 409A. However, because the Common Stock is not readily tradable on an established securities market, there can be no assurance that the Exercise Price is at least equal to the fair market value per share of Common Stock underlying this option on the Grant Date. Were the Internal Revenue Service to conclude that the Exercise Price is in fact less than such fair market value and that the option is accordingly subject to Code Section 409A, then Optionee would be subject to the following adverse tax consequences:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As the option vests in accordance with the Vesting Schedule, Optionee would immediately recognize taxable income for federal income tax purposes equal to the amount by which the fair market value of the Option Shares which vest at that time exceeds the Exercise Price payable for those shares. The Corporation would also have to collect from Optionee the federal income and employment taxes which must be withheld on that income. Taxation would occur in this manner even though the option remains unexercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Optionee may also be subject to additional income taxation and withholding taxes on any subsequent increases to the fair market value of the Option Shares purchasable under the vested option until the option is exercised or cancelled as to those Option Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In addition to normal income taxes payable as the option vests, Optionee would also be subject to an additional tax penalty equal to 20% of the amount of income Optionee recognizes under Code Section 409A when the option vests and may also be subject to such penalty as the underlying Option Shares subsequently increase in fair market value over the period the option continues to remain outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) There will also be interest penalties if the resulting taxes are not paid on a timely basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Optionee hereby further agrees and acknowledges that Optionee may incur the same or similar tax consequences, including (without limitation) a second penalty tax, under state income tax laws. Optionee accepts the risk of any unfavorable tax consequences under applicable state laws to options granted with an Exercise Price less than the fair market value of the Option Shares on the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Optionee hereby agrees to bear the entire risk of such adverse federal and state tax consequences in the event the option is deemed to be subject to Code Section 409A and hereby knowingly and voluntarily, in consideration for the grant of the option, waives and releases any and all claims or causes of action that Optionee might otherwise have against the Corporation and/or its Board, the Corporation's affiliates and

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their governing bodies, and all of their respective officers, employees, stockholders or other equityholders arising from or relating to the tax treatment of the option under Code Section 409A and the corresponding provisions of any applicable state income tax laws and shall not seek any indemnification or other recovery of damages against the Corporation and/or its Board, the Corporation's affiliates and their governing bodies, and all of their respective officers, employees, stockholders or other equityholders with respect to any adverse federal and state tax consequences or other related costs and expenses Optionee may in fact incur under Code Section 409A (or the corresponding provisions of state income tax laws) as a result of the option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **<u>Additional Terms Applicable to an Incentive Option</u>**. In the event this option is designated an Incentive Option in the Grant Notice, the following terms and conditions shall also apply to the grant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This option shall cease to qualify for favorable tax treatment as an Incentive Option if (and to the extent) this option is exercised for one or more Option Shares: (i) more than three (3) months after the date Optionee ceases to be an Employee for any reason other than death or Disability or (ii) more than twelve (12) months after the date Optionee ceases to be an Employee by reason of Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No installment under this option shall qualify for favorable tax treatment as an Incentive Option if (and to the extent) the aggregate fair market value (determined at the Grant Date) of the Shares for which such installment first becomes exercisable hereunder would, when added to the aggregate value (determined as of the respective date or dates of grant) of any earlier installments of the Shares and any other securities for which this option or any other Incentive Options granted to Optionee prior to the Grant Date (whether under the Plan or any other option plan of the Corporation or any Parent or Subsidiary) first become exercisable during the same calendar year, exceed One Hundred Thousand Dollars ($100,000) in the aggregate. Should such One Hundred Thousand Dollar ($100,000) limitation be exceeded in any calendar year, this option shall nevertheless become exercisable for the excess shares in such calendar year as a Non-Statutory Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Should Optionee hold, in addition to this option, one or more other options to purchase Common Stock which become exercisable for the first time in the same calendar year as this option, then for purposes of the foregoing limitations on the exercisability of such options as Incentive Options, this option and each of those other options shall be deemed to become first exercisable in that calendar year on the basis of the chronological order in which they were granted, except to the extent otherwise provided under applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **<u>Electronic Delivery</u>**. The Corporation may, in its sole discretion, decide to deliver by email or other electronic means any documents related to Optionee's current or future participation in the Plan, this option, the Option Shares, any other securities of the Corporation or any other Corporation- related documents, including notices to stockholders required by applicable law, the Corporation's Certificate of Incorporation and/or Bylaws. Optionee hereby (i) consents to receive such documents by email or other

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electronic means, (ii) consents to the use of electronic signatures, and (iii) if applicable, agrees to participate in the Plan and/or receive any such documents related to the Plan through an on-line or electronic system established and maintained by the Corporation or a third party designated by the Corporation. The Corporation may deliver the above-described documents to Optionee by sending a communication to Optionee's email address set forth under Optionee's signature on the Grant Notice or, if no email address is set forth on the Grant Notice, to the last email address for Optionee the Corporation has on file.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **<u>Definitions</u>**. The following definitions shall be in effect under the Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Agreement</u>** shall mean this Stock Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Board</u>** shall mean the Corporation's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Change in Control</u>** shall mean a change in ownership or control of the Corporation effected through any of the following transactions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a merger, consolidation or other reorganization approved by the Corporation's stockholders, <u>unless</u> securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by the persons who beneficially owned the Corporation's outstanding voting securities immediately prior to such transaction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a stockholder-approved sale, transfer or other disposition of all or substantially all of the Corporation's assets in liquidation or dissolution of the Corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the acquisition, directly or indirectly by any person or related group of persons (other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation), of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities pursuant to a tender or exchange offer made directly to the Corporation's stockholders.

In no event shall any public offering of the Corporation's securities or a business combination of the corporation and a publicly-traded special purpose acquisition company (or a subsidiary thereof) be deemed to constitute a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>Code</u>** shall mean the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **<u>Common Stock</u>** shall mean the Corporation's common stock.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **<u>Corporation</u>** shall mean Clear Street Group Inc., a Delaware corporation, and any successor corporation to all or substantially all of the assets or voting stock of Clear Street Group Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **<u>Disability</u>** shall mean the inability of Optionee to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that is expected to result in death or has lasted or can be expected to last for a continuous period of twelve (12) months or more.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **<u>Employee</u>** shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Exercise Date</u>** shall mean the date on which the option shall have been exercised in accordance with Paragraph 9 of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **<u>Exercise Price</u>** shall mean the exercise price payable per Option Share as specified in the Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **<u>Expiration Date</u>** shall mean the date on which the option expires as specified in the Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **<u>Fair Market Value</u>** per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Common Stock is at the time traded on the Nasdaq Capital, Global or Global Select Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers for that particular Stock Exchange and published in <u>The Wall Street Journal</u>. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Common Stock is at the time listed on any other Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange and published in <u>The Wall Street Journal</u>. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Common Stock is not at the time listed on any Stock Exchange, then the Fair Market Value shall be determined by the Plan Administrator through the reasonable application of a reasonable valuation method that takes into account the applicable valuation factors set forth in the Treasury Regulations issued under Section 409A of the Code; provided, however, that if the option is designated as an Incentive Option in the Grant Notice, then such Fair Market Value shall be determined in accordance with the standards of Section 422 of the Code and the applicable Treasury Regulations thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **<u>Grant Date</u>** shall mean the date of grant of the option as specified in the Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **<u>Grant Notice</u>** shall mean the Notice of Grant of Stock Option accompanying the Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **<u>Incentive Option</u>** shall mean an option which satisfies the requirements of Code Section 422.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **<u>Misconduct</u>** shall mean "Cause", as such term is defined in any employment agreement entered into between Optionee and the Corporation (or any Parent or Subsidiary), and in the absence of such a definition shall mean the commission of any act of fraud, embezzlement or dishonesty by Optionee, any unauthorized use or disclosure by Optionee of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by Optionee adversely affecting the business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way preclude or restrict the right of the Corporation (or any Parent or Subsidiary) to discharge or dismiss Optionee or any other person in the Service of the Corporation (or any Parent or Subsidiary) for any other acts or omissions, but such other acts or omissions shall not be deemed, for purposes of the Plan or this Agreement, to constitute grounds for termination for Misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **<u>1934 Act</u>** shall mean the Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) **<u>Non-Statutory Option</u>** shall mean an option not intended to satisfy the requirements of Code Section 422.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) **<u>Notice of Exercise</u>** shall mean the notice of exercise and purchase agreement in substantially the form of Exhibit B to the Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) **<u>Option Shares</u>** shall mean the number of shares of Common Stock subject to the option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) **<u>Optionee</u>** shall mean the person to whom the option is granted as specified in the Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **<u>Parent</u>** shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) **<u>Plan</u>** shall mean the Corporation's Amended and Restated 2021 Stock Incentive Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) **<u>Plan Administrator</u>** shall mean either the Board or a committee of the Board acting in its capacity as administrator of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) **<u>Service</u>** shall mean Optionee's performance of services for the Corporation (or any Parent or Subsidiary, whether now existing or subsequently established) in the capacity of an Employee, a non-employee member of the board of directors or a consultant or independent advisor. For purposes of this Agreement, Optionee shall be deemed to cease Service immediately upon the occurrence of either of the following events: (i) Optionee no longer performs services in any of the foregoing capacities for the Corporation or any Parent or Subsidiary or (ii) the entity for which Optionee is performing such services ceases to remain a Parent or Subsidiary of the Corporation, even though Optionee may subsequently continue to perform active services for that entity. Service shall not be deemed to cease during a period of military leave, sick leave or other personal leave approved by the Corporation; provided, <u>however</u>, that should such leave of absence exceed three (3) months, then for purposes of determining the period within which the option (if designated as an Incentive Option in the Grant Notice) may be exercised as such an Incentive Option under the federal tax laws, Optionee's Service shall be deemed to cease on the first day immediately following the expiration of such three (3) month period, unless Optionee is provided with the right to return to Service following such leave either by statute or by written contract. Except to the extent otherwise required by law or expressly authorized by the Plan Administrator or by the Corporation's written policy on leaves of absence, no Service credit shall be given for vesting purposes for any period Optionee is on a leave of absence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) **<u>Stock Exchange</u>** shall mean the American Stock Exchange, the Nasdaq Capital, Global or Global Select Market or the New York Stock Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) **<u>Subsidiary</u>** shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) **<u>Vesting Schedule</u>** shall mean the vesting schedule specified in the Grant Notice pursuant to which this option is to vest and become exercisable for the Option Shares in a series of installments over Optionee's period of Service.

## Exhibit 10.16

**Exhibit 10.16**![LOGO](g39893g1224152144629.jpg)

DATE: February 6, 2025

Delivered via e-mail to:

Re: <u>Separation Agreement and General Release</u>

Dear Chris Pento:

Following the termination of your employment effective as of December 31, 2024, enclosed is a Separation Agreement and General Release ("**Agreement**").

In consideration for your signing the Agreement, Company will provide you with the consideration as provided in Section 2 of the Agreement. We advise you to consider this Agreement carefully and speak with legal counsel before signing it.

You have until 21 DAYS FROM DATE HEREOF to consider whether to sign and date this Agreement. If you choose to accept it, please sign it via the DocuSign link provided in the email you received, to which this notice is attached.

If you elect not to sign this Agreement by 21 DAYS FROM DATE HEREOF, it shall be considered expired.

Pursuant to the terms of your Employment Agreement you are required to return all Clear Street property in your possession no later than 7 DAYS FROM DATE HEREOF.

We wish you the best of luck in your future endeavors.

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| | |
|:---|:---|
| Very truly yours,<br>Clear Street Management LLC | Very truly yours,<br>Clear Street Management LLC |
| By: | /s/ Ed Tilly |
|  | Name: Ed Tilly |
|  | Title: Co-Chief Executive Officer |

---

150 Greenwich Street, 45th Floor, New York, NY 10007

Clear Street Management LLC

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**<u>SEPARATION AGREEMENT AND GENERAL RELEASE ("Agreement")</u>**

Clear Street Management LLC ("**Company**") and Chris Pento, and his heirs, executors, administrators, successors, and assigns (collectively referred to throughout this Agreement as "**Employee**"), agree that:

1.  **<u>Last Day of Employment</u>** . Employee's employment is terminated for Good Reason as such term is
defined in the Amended and Restated Employment Agreement, dated August 8, 2022, between Company and Employee (the "**Employment Agreement** "), effective as of December 31, 2024 ()"**Separation Date** ").
Employee received Employee's final paycheck (other than the payments described in Section 2 below), covering the period December 16, 2024 through December 31, 2024, on December 31, 2024. This Agreement shall not be valid if
signed prior to the Separation Date. This Agreement shall become effective on the day after the expiration of the revocation period; provided the Employee does not revoke.

2.  **<u>Consideration</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. In consideration for timely signing this Agreement and complying with its terms, Company agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1. In recognition of Employee's anticipated continued assistance with Clear Street's business in a
board, advisory, and/or other capacity, Employee's unvested RSUs will continue to time-vest as long as Employee remains employed at Highland Capital Group, LLC or any of its affiliates (collectively with its affiliates
" **Highland** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2. Employee's existing delayed compensation (from prior delayed bonuses) will continue to be paid out on the pre-existing schedule as long as Employee remains employed by Highland on each applicable payment date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.3. Employee will receive a Separation Payment in an amount equal to $2,000,000.00 USD. The Separation Payment will
be made at the earlier of 55 days from termination or at the time the Company makes its regular calendar year 2024 bonus payments to its standard employees and subject to customary withholding tax and other employment taxes and deductions as
required by law. Employee's Separation Payment will be partially delayed in accordance with standard Company bonus practice, in terms of both percentages and payment schedule, with the delayed payouts contingent on Employee's continued
employment at Highland (following Clear Street's regular delayed payout schedule, but with such payouts contingent on employment at Highland on the payout dates in lieu of employment at Clear Street on the payout dates). The parties agree that
the non-delayed portion of the Separation Payment shall be paid to Employee even if Employee is not employed by Highland on the payment date, except that the Company shall have no obligation to make such
payment to Employee if Employee voluntarily resigns from Employee's employment

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| | |
|:---|:---|
| ![LOGO](g39893g1224154301116.jpg) | 2.0 |

---

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at Highland (or from the Company prior to the termination date of his employment with the Company, as contemplated by the first paragraph of that certain Letter Agreement between Employee and the Company, dated as of September 23, 2024) or if Employee's employment with Highland (or the Company) terminates in connection with a "Cause" event (as defined under Employee's employment agreement with Highland or the Employment Agreement, respectively).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. Employee understands and agrees that Employee would not receive the benefits specified in this Section 2,
except for Employee's execution of this Agreement and the fulfillment of the promises contained herein.

3.  **<u>Survival of Undertakings</u>** . Without limitation, Employee acknowledges and affirms the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. **Proprietary Information**. The Employee's Proprietary Information undertakings set forth in
Section 1 of Exhibit A to the Employment Agreement (the "**Exhibit**") shall survive termination of the employment and shall continue in full force and effect in accordance with the terms thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. **Ownership of Inventions**. The Ownership of Inventions undertakings and acknowledgements set forth in
Section 2 of the Exhibit shall survive termination of the employment and shall continue in full force and effect in accordance with the terms thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. **Non-Solicitation and No Hire**. The Employee's non-solicitation set forth in Section 4 of the Exhibit shall (i) survive termination of the employment, and (ii) continue in full force and effect in accordance with the terms thereof. In addition,
the non-solicitation provision in Section 4 of the Exhibit is hereby amended to add the following as sub-clause (4): "(4) solicit, contact, attempt to
contact, or meet with Company's or its affiliates' current, former, or known prospective customers for purposes of offering or accepting goods or services similar to, or competitive with, those offered by Company and its affiliates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. **Non-Disparagement**. The Employee's non disparagement
undertakings set forth in Section 5 of the Exhibit shall survive termination of the employment and shall continue in full force and effect in accordance with the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. **Non-Competition**. The Employee's non-competition undertakings set forth in Section 3 of the Exhibit shall survive termination of the employment and shall continue in full force and effect in accordance with the terms thereof. Notwithstanding
the foregoing, in the event that the Employee is employed by Highland for 18 months or more, the Company will waive the last six months of the term of the Employee's non-competition undertakings set
forth in Section 3 of the Exhibit.

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| | |
|:---|:---|
| ![LOGO](g39893g1224154301116.jpg) | 3.0 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6. Notwithstanding the provisions set forth in Sections 3.3 and 3.5, Company will not enforce the non-competition and non-solicitation restrictions with respect to the work Employee performs for Highland.

**<u>ACKNOWLEDGED AND AGREED:</u>** <u>Nothing contained in this Agreement or the Exhibit shall limit Employee's rights afforded to Employee under the National Labor Relations Act Section</u> <u>7.</u>

---

| | | | |
|:---|:---|:---|:---|
| Company: | <u>/s/ Ed Tilly</u> | Employee: | <u>Chris Pento</u> |

---

4.  **<u>General Release; Claims Not Released; Related Provisions</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.  **<u>General Release of All Claims</u>** . Employee knowingly and voluntarily releases and forever discharges
Company, its parent corporation, affiliates, subsidiaries, divisions, predecessors, insurers, successors and assigns and their current and former employees, attorneys, officers, directors and agents thereof, both individually and in their business
capacities, and their employee benefit plans and programs and their administrators and fiduciaries (collectively referred to throughout the remainder of this Agreement as "**Releasees** "), of and from any and all claims, known and
unknown, asserted or unasserted, which Employee has or may have against Releasees as of the date of execution of this Agreement , including, but not limited to, any alleged violation of: Title VII of the Civil Rights Act of 1964; Sections 1981
through 1988 of Title 42 of the United States Code; The Employee Retirement Income Security Act of 1974 ("ERISA") (as modified below); The Immigration Reform and Control Act; The Americans with Disabilities Act of 1990; The Age
Discrimination in Employment Act of 1967; The Worker Adjustment and Retraining Notification Act; The Fair Credit Reporting Act; The Family and Medical Leave Act; The Equal Pay Act; The Genetic Information Nondiscrimination Act of 2008; The New York
State Human Rights Law; The New York City Human Rights Law; The New York Labor Law; any other federal, state or local law, rule, regulation, or ordinance; any public policy, contract, tort, or common law; or any basis for recovering costs, fees, or
other expenses including attorneys' fees incurred in these matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.  **<u>Claims Not Released</u>** . Employee is not waiving any rights Employee may have to:
(a) Employee's vested accrued employee benefits under Company's health, welfare, or retirement benefit plans as of the Separation Date; (b) benefits and/or the right to seek benefits under applicable workers' compensation
and/or unemployment compensation statutes; (c) pursue claims which by law cannot be waived by signing this Agreement; (d) enforce this Agreement; and/or (e) challenge the validity of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.  **<u>Governmental Agencies</u>** . Nothing in this Agreement or any other agreement Employee may have signed
or company policy, prohibits, prevents, or otherwise limits Employee from (1) reporting possible violations of federal or other law or regulations to any governmental agency, regulatory body, or law enforcement authority (e.g., EEOC, NLRB, SEC,
DOJ, CFTC, U.S. Congress, or an Inspector

---

| | |
|:---|:---|
| ![LOGO](g39893g1224154301116.jpg) | 4.0 |

---

------

General), (2) filing a charge or complaint with any such governmental agency, or (3) participating, testifying, or assisting in any investigation, hearing, or other proceeding brought by, in conjunction with, or otherwise under the authority of any such governmental agency. To the maximum extent permitted by law, Employee agrees that if such an administrative claim is made, Employee shall not be entitled to recover any individual monetary relief or other individual remedies related to any alleged adverse employment action(s), except nothing in this Agreement prohibits, prevents, or otherwise limits Employee's ability or right to seek or receive any monetary award or bounty from any such governmental agency in connection with protected "whistleblower" activity. Employee is also not required to notify or obtain permission from the Company when filing a governmental whistleblower charge or complaint or engaging or participating in protected whistleblower activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.  **<u>Arbitration and Waiver of Class</u> <u>Claims and Jury Trial</u>** . This
Agreement will be governed by and construed in accordance with the laws of the State of New York without giving effect to conflict of law principles thereof. The parties hereto agree that any dispute among Employee and Company which cannot be
amicably settled shall be submitted for binding arbitration administered by the American Arbitration Association (AAA), unless the dispute is required to be submitted to the Financial Industry Regulatory Authority, Inc. Arbitration shall be the
exclusive dispute resolution process, though this shall in no way limit Company from obtaining immediate injunctive relief for Employee's breach of any term hereof. Company and Employee further agree to waive their right to a jury trial.

5.  **<u>Acknowledgments and Affirmations</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. Employee affirms that Employee has not filed, caused to be filed, or presently is a party to any claim against
Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. Employee also affirms that Employee has been paid and/or has received all compensation, wages, bonuses,
commissions, and/or benefits which are due and payable as of the date Employee signs this Agreement. Employee affirms that Employee has been granted any leave to which Employee was entitled under the Family and Medical Leave Act or related state or
local leave or disability accommodation laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. Employee further affirms that Employee has no known workplace injuries or occupational diseases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. Employee also affirms that Employee has not divulged any proprietary or confidential information of Company and
will continue to maintain the confidentiality of such information consistent with Company's policies, the Employment Agreement, and/or common law. Under the federal Defend Trade Secrets Act of 2016, Employee shall not be held criminally or
civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (a) is made (i) in confidence to a federal, state, or local government official, either

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| | |
|:---|:---|
| ![LOGO](g39893g1224154301116.jpg) | 5.0 |

---

------

directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made to Employee's attorney in relation to a lawsuit against the Company for retaliation against Employee for reporting a suspected violation of law; or (c) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5. Employee further affirms that Employee has not been retaliated against for reporting any allegations of
wrongdoing by Company or its officers, including any allegations of corporate fraud.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6. Employee agrees that, if at any time in the future, Company fails, declines or refuses to enter into a business
relationship with Employee or to employ Employee, Employee will have no legal recourse for that action and will not bring any claim or seek damages in connection therewith. Employee acknowledges and affirms that this is a negotiated provision and
not evidence of retaliation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7. Employee affirms that all of Company's decisions regarding Employee's pay and benefits through the
date of Employee's Separation Date were not discriminatory based on age, disability, race, color, sex, religion, national origin or any other classification protected by law.

6.  **<u>Limited Disclosure and Return of Property</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Employee agrees not to disclose any information regarding the underlying facts leading up to or the existence
or substance of this Agreement, except to Employee's spouse, tax advisor, an attorney with whom Employee chooses to consult regarding Employee's consideration of this Agreement and/or to any federal, state or local government agency.

**<u>ACKNOWLEDGED AND AGREED:</u>** <u>Notwithstanding the foregoing, nothing shall limit Employee's rights afforded to Employee under the National Labor Relations Act Section</u> <u>7.</u>

---

| | | | |
|:---|:---|:---|:---|
| Company: | <u>/s/ Ed Tilly</u> | Employee: | <u>Chris Pento</u> |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. Employee acknowledges that Employee has an obligation to return all of Company's property, documents,
and/or any confidential information in Employee's possession or control. Any severance payment will be withheld until return of all Company property. Employee affirms that Employee is in possession of all of Employee's property that
Employee had at Company's premises and that Company is not in possession of any of Employee's property.

7.  **<u>Governing Law and Interpretation</u>** . This Agreement shall be governed and conformed in accordance
with the laws of the State of New York without regard to its conflict of laws provision. In the event of a breach of any provision of this Agreement, either party may institute an action specifically to enforce any term or terms of this Agreement
and/or to seek any damages for breach. Should any provision of this Agreement be declared illegal or unenforceable by any arbitrator or court of competent jurisdiction and cannot be modified to be enforceable, excluding the general release language,
such provision shall immediately become null and void, leaving the remainder of this Agreement in full force and effect.

---

| | |
|:---|:---|
| ![LOGO](g39893g1224154301116.jpg) | 6.0 |

---

------

8.  **<u>Nonadmission</u> <u>of Wrongdoing</u>** . The parties agree that neither this Agreement nor the
furnishing of the consideration for this Agreement shall be deemed or construed at any time for any purpose as an admission by Releasees of wrongdoing or evidence of any liability or unlawful conduct.

9.  **<u>Amendment</u>** . This Agreement may not be modified, altered or changed except in writing and signed by
both parties wherein specific reference is made to this Agreement.

10.  **<u>Entire Agreement</u>** . This Agreement, together with the Letter Agreement between Company and
Employee, dated September 23, 2024, sets forth the entire agreement between the Parties hereto, and fully supersede any prior agreements or understandings between the parties, except for any arbitration, intellectual property, restrictive
covenant, nondisclosure, or confidentiality agreements between the Company and Employee, including but not limited to the Employment Agreement, which shall remain in full force and effect according to their terms. Employee acknowledges that Employee
has not relied on any representations, promises, or agreements of any kind made to Employee in connection with Employee's decision to accept this Agreement, except for those set forth in this Agreement.

**EMPLOYEE IS ADVISED THAT EMPLOYEE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO CONSIDER THIS AGREEMENT. EMPLOYEE ALSO IS ADVISED TO CONSULT WITH AN ATTORNEY PRIOR TO EMPLOYEE'S SIGNING OF THIS AGREEMENT.** 

**EMPLOYEE MAY REVOKE THIS AGREEMENT FOR SEVEN (7) CALENDAR DAYS FOLLOWING THE DAY EMPLOYEE SIGNS THIS AGREEMENT. ANY REVOCATION WITHIN THIS PERIOD MUST BE SUBMITTED, IN WRITING, TO SCOTT GUTMANSTEIN AND STATE, "I HEREBY REVOKE MY ACCEPTANCE OF OUR AGREEMENT." THE REVOCATION MUST BE PERSONALLY DELIVERED TO SCOTT GUTMANSTEIN OR HIS DESIGNEE, OR MAILED/OVERNIGHT COURIER TO SCOTT GUTMANSTEIN AND POSTMARKED/SENT WITHIN SEVEN (7) CALENDAR DAYS AFTER EMPLOYEE SIGNS THIS AGREEMENT, IN EITHER CASE: 150 GREENWICH STREET, 45TH FL, NEW YORK, NY 10007.** 

**EMPLOYEE AGREES THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT, DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL UP TO TWENTY-ONE (21) CALENDAR DAY CONSIDERATION PERIOD.** 

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|:---|:---|
| ![LOGO](g39893g1224154301116.jpg) | 7.0 |

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**EMPLOYEE AGREES THAT THIS AGREEMENT SHALL NOT BE EFFECTIVE OR ENFORCEABLE, AND EMPLOYEE SHALL NOT BE ENTITLED TO ANY OF THE MONIES AND/OR BENEFITS SPECIFIED IN PARAGRAPH "2" ABOVE, UNTIL THE SEVEN (7) DAY REVOCATION PERIOD HAS EXPIRED, AND EMPLOYEE HAS NOT REVOKED.** 

**EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS EMPLOYEE HAS OR MIGHT HAVE AGAINST RELEASEES.** 

[SIGNATURE PAGE FOLLOWS]

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|:---|:---|
| ![LOGO](g39893g1224154301116.jpg) | 8.0 |

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*<u>To confirm Employee</u><u>'</u><u>s acceptance of this Agreement, Employee shall return a signed copy to Company by February</u> <u>27, 2025. If Employee does not return a signed copy to Company by February</u> <u>27, 2025, this Agreement will be considered expired. You can email our General Counsel at</u>* <u>[ ] *with any questions regarding this Separation Agreement and General Rele*</u>*<u>ase.</u>* 

The parties knowingly and voluntarily sign this Agreement as of the date(s) set forth below:

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| | | | |
|:---|:---|:---|:---|
| Clear Street Management LLC | Clear Street Management LLC |  |  |
| By: | /s/ Ed Tilly | By: | /s/ Chris Pento |
|  | Name: Ed Tilly |  | Name: Chris Pento |
|  | Title: Co-Chief Executive Officer |  | Title: 06 February 2025 \| 16:25:53 EST |
|  | Date: 07 February 2025 \| 8:23:48 EST |  |  |

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[Signature Page to Separation Agreement and General Release between Clear Street Management LLC

and Chris Pento Dated February 6, 2025]

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| | |
|:---|:---|
| ![LOGO](g39893g1224154301116.jpg) | 9.0 |

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## Exhibit 10.17

**Exhibit 10.17** 

**<u>EXECUTION VERSION</u>**

**CLEAR STREET GROUP INC.** 

**REGISTRATION RIGHTS AGREEMENT** 

This **REGISTRATION RIGHTS AGREEMENT** (this "***Agreement***") is made and entered into as of October 20, 2021 by and among Clear Street Group Inc., a Delaware corporation (the "***Company***"), and each of the purchasers identified on the signature pages to the Purchase Agreement (as defined below), together with their permitted transferees (each, an "***Investor***" and collectively, the "***Investors***").

**RECITALS:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** This Agreement is made pursuant to the Securities Purchase Agreement, dated as of the even date herewith, between the Company and the Investors (the "***Purchase Agreement***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** The Company and the Investors desire to be granted and to grant the rights created herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** The capitalized terms used herein and not otherwise defined have the meanings given them in Section 1 of this Agreement.

**AGREEMENT** 

In consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Investors (severally and not jointly) hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Definitions</u>**. Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

"***Affiliate***" means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act.

"***Agreement***" has the meaning set forth in the Preamble.

"***Allowable Grace Period***" has the meaning set forth in Section 4.

"***Business Day***" means a day, other than a Saturday or Sunday, on which banks in New York are open for the general transaction of business.

"***Commission***" means the United States Securities and Exchange Commission.

"***Common Stock***" means the Class A Common Stock of the Company, $0.00001 par value per share, the Class B Common Stock of the Company, $0.00001 par value per share, any other class of Common Stock as may be authorized in the Charter from time to time, and any securities into which such shares of Common Stock may hereinafter be reclassified.

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"***Company***" has the meaning set forth in the Preamble.

"***Effectiveness Period***" means the period of time commencing on the date when an applicable Registration Statement becomes effective and lasting until the earlier of (i) such time as all of the Registrable Securities covered by such Registration Statement have been publicly sold by the Holders thereof or (ii) the date that all Registrable Securities covered by such Registration Statement may be sold by the Holders without limitation under Rule 144 (other than the current public information requirement set forth in Rule 144(c) so long as the requirements in Rule 144(c)(1) are satisfied), as determined by counsel to the Company pursuant to a written opinion letter to such effect, addressed and reasonably acceptable to the Company's transfer agent.

"***Exchange Act***" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"***Filing Deadline***" means ninety (90) days following the completion of a Public Offering by the Company.

"***FINRA***" has the meaning set forth in the Financial Industry Regulatory Authority, Inc.

"***Grace Period***" has the meaning set forth in Section 4.

"***Holder***" or "***Holders***" means, the holder or holders, as the case may be, from time to time of Registrable Securities.

"***Indemnified Party***" has the meaning set forth in Section 6(b).

"***Indemnifying Party***" has the meaning set forth in Section 6(b).

"***Initial Public Offering***" means the first underwritten Public Offering of Common Stock to the general public.

"***Investor***" has the meaning set forth in the preamble.

"***Listing***" has the meaning set forth in Section 3.

"***Losses***" has the meaning set forth in Section 6(a).

"***Maximum Number of Securities***" has the meaning set forth in Section 2(b).

"***Non-Responsive Holder***" has the meaning set forth in Section 7(c).

"***Other Holders***" has the meaning set forth in Section 2(a).

"***Person***" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

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"***Piggyback Registration***" has the meaning set forth in Section 2(a).

"***Public Offering***" means an offering and sale of Common Stock pursuant to an effective registration statement filed under the Securities Act; provided that a Public Offering does not include an offering made in connection with a business acquisition or combination pursuant to a registration statement on Form S-4, or any successor or similar form, or an employee benefit plan pursuant to a registration statement on Form S-8, or any successor or similar form.

"***Principal Market***" means the Trading Market on which the Common Stock is primarily listed on and quoted for trading.

"***Proceeding***" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

"***Prospectus***" means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

"***Purchase Agreement***" has the meaning set forth in the Recitals.

"***Registrable Securities***" means all of the Shares and any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the Shares, provided that Shares shall cease to be Registrable Securities upon the earliest to occur of the following: (A) a sale pursuant to a Registration Statement or Rule 144 under the Securities Act (in which case, only such security sold shall cease to be a Registrable Security); (B) if such Shares have ceased to be outstanding; (C) the sale or transfer of such Shares in accordance with an effective Registration Statement including such shares; (D) such Shares shall be eligible to be sold to the public in reliance upon Rule 144 without limitation (other than the current public information requirement set forth in Rule 144(c) so long as the requirements in Rule 144(c)(1) are satisfied); provided, that if any such Shares shall cease to be eligible to be sold to the public in reliance upon Rule 144 without limitation due to the failure of Rule 144(c)(1) to be satisfied or otherwise, then such Shares shall become Registrable Securities again; or (E) if such Shares have been sold in a private transaction in which the Investors' rights under this Agreement have not been assigned to the transferee.

"***Registration***" means a registration effected by preparing and filing a registration statement or similar document in compliance with the requirements of the Securities Act, and the applicable rules and regulations promulgated thereunder, and such registration statement becoming effective.

"***Registration Expenses***" has the meaning set forth in Section 5.

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"***Registration Statement***" means any registration statement of the Company under the Securities Act which covers any of the Registrable Securities pursuant to the provisions of this Agreement, including the Prospectus, amendments and supplements to such registration statement, including post-effective amendments, all exhibits and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

"***Requested Information***" has the meaning set forth in Section 7(c).

"***Rule 144***" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any successor rule thereto.

"***Rule 415***" means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any successor rule thereto.

"***Rule 424***" means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any successor rule thereto.

"***Securities Act***" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"***Shares***" means shares of the Company's Series A Perpetual Cumulative Preferred Stock, with a $25.00 liquidation preference per share, issued or issuable to the Purchasers pursuant to the Purchase Agreement.

"***Trading Day***" means a day on which the Common Stock is listed or quoted and traded on its Principal Market; provided, that in the event that the Common Stock is not so listed or quoted, then Trading Day shall mean a Business Day.

"***Trading Market***" means the New York Stock Exchange, the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market.

"***Underwritten Registration***" or "***Underwritten Offering***" shall mean a Registration in which securities of the Company are sold to one or more underwriters in a firm commitment underwriting for distribution to the public.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Piggyback Registration</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Piggyback Rights</u>. If the Company proposes to file a Registration Statement under the Securities Act with respect to an offering of Common Stock, or securities or other obligations exercisable or exchangeable for, or convertible into Common Stock, for its own account or for the account of stockholders of the Company, other than a Registration Statement (i) filed in connection with any employee stock option or other benefit plan on Form S-8 (or other successor registration statement form thereof), (ii) for an exchange offer or offering of securities solely to the Company's existing stockholders, (iii) for an offering of debt that is convertible into Common Stock, (iv) for a dividend reinvestment plan, or (v) filed on Form S-4 (or any successor registration statement form thereof), then the Company shall give written notice of such proposed filing to all of the Holders of Registrable Securities and the holders of other equity securities that the Company is obligated to register in a Registration (collectively, the "***Other***

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 ***Holders***") pursuant to separate written contractual piggy-back registration rights as soon as practicable but not less than ten (10) days before the anticipated filing date of such Registration Statement, which notice shall (A) describe the amount and type of securities to be included in such offering, the intended method(s) of distribution, and the name of the proposed managing underwriter(s), if any, in such offering, and (B) offer to all of the Holders of Registrable Securities the opportunity to register, via inclusion in such Registration Statement or a separate Registration Statement filed concurrently therewith (*provided, however,* that if the Registration Statement proposed to be filed by the Company is for the Company's Initial Public Offering of its Common Stock, the Holders of Registrable Securities will not be offered the opportunity to register their Registrable Securities as part of such Initial Public Offering, but will be offered the opportunity to register their Registrable Securities in a separate Registration Statement to be filed under the Securities Act within 90 days after the effectiveness of the Registration Statement for the Initial Public Offering), the sale of such number of Registrable Securities as such Holders may request in writing within five (5) days after receipt of such written notice (such Registration, whether pursuant to the same Registration Statement or a separate Registration Statement in accordance with the foregoing, a "***Piggyback Registration***"). The Company shall, in good faith, use commercially reasonable efforts to cause such Registrable Securities and, subject to the provisions of Section 2(b), the securities of any Other Holders to be included in such Piggyback Registration and shall use its reasonable best efforts to cause the managing underwriter(s) of a proposed Underwritten Offering to permit the Registrable Securities and, subject to the provisions of Section 2(b), the securities of any Other Holders requested by the Holders or Other Holders, as applicable, pursuant to this Section 2(a) to be included in a Piggyback Registration on the same terms and conditions as any similar securities of the Company included in such Registration and to permit the sale or other disposition of such Registrable Securities in accordance with the intended method(s) of distribution thereof. All such Holders proposing to distribute their Registrable Securities through an Underwritten Offering under this Section 2(a) shall enter into an underwriting agreement in the form agreed to by the Company with the underwriter(s) selected for such Underwritten Offering by the Company and shall execute a customary lock-up agreement in favor of the underwriters (in each case on substantially the same terms and conditions as all such Holders participating in such Underwritten Offering).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Reduction of Piggyback Registration</u>. If the managing underwriter(s) in an Underwritten Registration that is to include a Piggyback Registration, in good faith, advises the Company and the Holders of Registrable Securities participating in the Piggyback Registration in writing that the dollar amount or number of the shares of Common Stock or other equity securities that the Company desires to sell, taken together with (i) the shares of Common Stock or other equity securities, if any, as to which Registration has been demanded pursuant to separate written contractual arrangements with any Other Holders, (ii) the Registrable Securities as to which registration has been requested pursuant to Section 2(a) hereof, and (iii) the shares of Common Stock or other equity securities, if any, as to which Registration has been requested pursuant to separate written contractual piggy-back registration rights of Other Holders, exceeds the maximum dollar amount or maximum number of equity securities that can be sold in the Underwritten Offering without adversely affecting the proposed offering price, the timing, the distribution method, or the probability of success of such offering (such maximum dollar amount or maximum number of such securities, as applicable, the "***Maximum Number of Securities***"), then:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Registration is undertaken for the Company's account, the Company shall include in any such Registration (A) first, the Common Stock or other equity securities that the Company desires to sell, which can be sold without exceeding the Maximum Number of Securities; and (B) second, to the extent that the Maximum Number of Securities has not been reached under the foregoing clause (A), the Registrable Securities of Holders exercising their rights to register their Registrable Securities pursuant to Section 2(a) hereof and the Common Stock or other equity securities, if any, as to which Registration has been requested by any Other Holders pursuant to separate written contractual piggy-back registration rights (pro rata based on the respective number of Registrable Securities, shares of Common Stock or other equity securities that such Holder or Other Holder, as applicable, has requested be included in such Piggyback Registration relative to the total number of Registrable Securities, shares of Common Stock and other equity securities that all Holders and Other Holders have requested be included in such Piggyback Registration) that can be sold without exceeding the Maximum Number of Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Registration is pursuant to a demand registration right, then the Company shall include in any such Registration (A) first, the Common Stock or other equity securities, if any, of such demanding persons or entities, which can be sold without exceeding the Maximum Number of Securities; (B) second, to the extent that the Maximum Number of Securities has not been reached under the foregoing clause (A), the Registrable Securities of Holders exercising their rights to register their Registrable Securities pursuant to Section 2(a) hereof and the Common Stock or other equity securities, if any, as to which Registration has been requested by any Other Holders (pro rata based on the respective number of Registrable Securities, shares of Common Stock or other equity securities that such Holder or Other Holder, as applicable, has requested be included in such Piggyback Registration relative to the total number of Registrable Securities, shares of Common Stock and other equity securities that all Holders and Other Holders have requested be included in such Piggyback Registration) that can be sold without exceeding the Maximum Number of Securities; and (C) third, to the extent that the Maximum Number of Securities has not been reached under the foregoing clauses (A) and (B), the Common Stock or other equity securities that the Company desires to sell and that can be sold without exceeding the Maximum Number of Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Piggyback Registration Withdrawal</u>. Any Holder of Registrable Securities shall have the right to withdraw from a Piggyback Registration for any or no reason whatsoever upon written notification to the Company and the underwriter or underwriters (if any) of its intention to withdraw from such Piggyback Registration prior to the effectiveness of the Registration Statement filed with the Commission with respect to such Piggyback Registration (or, in the case of an Underwritten Registration pursuant to Rule 415 under the Securities Act, at least two (2) business days prior to the time of pricing of the applicable offering). The Company (whether on its own good faith determination or as the result of a request for withdrawal by persons pursuant to separate written contractual obligations) may withdraw a Registration Statement filed with the Commission in connection with a Piggyback Registration at any time prior to the effectiveness of such Registration Statement. Notwithstanding anything to the contrary in this Agreement, the Company shall be responsible for the Registration Expenses incurred in connection with the Piggyback Registration prior to its withdrawal under this Section 2(c).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>Listing</u>**. The Company shall use commercially reasonable efforts to submit, no later than the later of (a) the Filing Deadline and (b) the date that is thirty (30) days following the listing for public trading of the Common Stock on a Trading Market, an initial listing application or equivalent application with a Trading Market requesting that all issued and outstanding Shares be listed for public trading on such Trading Market (the "***Listing***"). The Company will use its commercially reasonable efforts to satisfy all applicable listing standards and respond to any questions or inquiries from the applicable Trading Market, to permit the Listing to become effective as soon as reasonably practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Registration Procedures</u>**. If and whenever the Company is required to effect the registration of any Registrable Securities under the Securities Act as provided in Section 2 hereof, the Company shall use its reasonable best efforts to effect such registration to permit the sale of such Registrable Securities in accordance with the intended method or methods of disposition thereof, and pursuant thereto the Company shall cooperate in the sale of the securities and shall, as expeditiously as possible:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) prepare and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary to keep such Registration Statement continuously effective as to the applicable Registrable Securities for its Effectiveness Period (except during an Allowable Grace Period) and comply in all material respects with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement; (ii) cause the related Prospectus to be supplemented by any Prospectus supplement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of the securities covered by such Registration Statement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act (except during an Allowable Grace Period); (iii) respond as promptly as reasonably practicable to any comments received from the Commission with respect to each Registration Statement or any amendment thereto; and (iv) comply in all material respects with the applicable provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by a Registration Statement until such time as all of such Registrable Securities shall have been disposed of (subject to the terms of this Agreement) in accordance with the intended methods of disposition by the Holders thereof as set forth in such Registration Statement as so amended or in such Prospectus as so supplemented; provided, that each Holder shall be responsible for the delivery of the Prospectus to the Persons to whom such Holder sells any of the Registrable Securities (including in accordance with Rule 172 under the Securities Act), and each Holder agrees to dispose of Registrable Securities in compliance with applicable federal and state securities laws. In the case of amendments and supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section 4(a)) by reason of the Company filing a report on Form 10-K, Form 10-Q or Form 8-K or any analogous report under the Exchange Act, the Company shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements with the Commission as promptly as practicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) notify each selling Holder promptly, and (if requested by any such Person) confirm such notice in writing, (i) when a Prospectus or any Prospectus supplement or post-effective amendment has been filed, and, with respect to a Registration Statement or any post-effective amendment, when the same has become effective, (ii) of any request by the SEC or any

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other federal or state governmental authority for amendments or supplements to a Registration Statement or related Prospectus or for additional information, (iii) of the issuance by the SEC of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose, (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any proceeding for such purpose, and (v) if the Company has knowledge of the happening of any event that makes any statement made in such Registration Statement or related Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in such Registration Statement, Prospectus or documents so that, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, not misleading, and that in the case of the Prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading (which notice shall notify the selling Holders only of the occurrence of such an event and shall provide no additional information regarding such event to the extent such information would constitute material non-public information);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) use its commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement, or the lifting of any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction at the earliest date reasonably practical;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if requested by any Investor or the Holders of a majority of the then outstanding Registrable Securities being sold in connection with an underwritten offering, promptly include in a Prospectus supplement or post-effective amendment such information as such Investor or such Holders may reasonably request in order to permit the intended method of distribution of such securities and make all required filings of such Prospectus supplement or such post-effective amendment as soon as practicable after the Company has received such request; provided, however, that the Company shall not be required to take any actions under this Section 4(d) that are not, in the opinion of counsel for the Company, in compliance with applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) furnish or make available to each selling Holder, without charge, at least one conformed copy of the Registration Statement, the Prospectus and Prospectus supplements, if applicable, and each post-effective amendment thereto, including financial statements (but excluding schedules, all documents incorporated or deemed to be incorporated therein by reference, and all exhibits, unless requested in writing by such Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) promptly deliver to each selling Holder, without charge, as many copies of the Prospectus or Prospectuses (including each form of Prospectus) and each amendment or supplement thereto as such Persons may reasonably request from time to time in connection with the distribution of the Registrable Securities; and the Company, subject to the last paragraph of this Section 4, hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any such amendment or supplement thereto;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) prior to any Public Offering, use its commercially reasonable efforts to register or qualify or cooperate with the selling Holders and the underwriters, if any, in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or "Blue Sky" laws of such jurisdictions within the United States as any seller or underwriter reasonably requests in writing and to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to take any other action that may be necessary or advisable to enable such Holders to consummate the disposition of such Registrable Securities in such jurisdiction; *provided*, *however*, that the Company will not be required to (i) qualify generally to do business in any jurisdiction where it is not then so qualified or (ii) take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) cooperate with the selling Holders to facilitate the timely preparation and delivery of certificates (not bearing any legends) representing Registrable Securities to be sold after receiving written representations from each selling Holder that the Registrable Securities represented by the certificates so delivered by such Holder will be transferred in accordance with the Registration Statement, and enable such Registrable Securities to be in such denominations and registered in such names as the managing underwriters, if any, or such Holders may request at least two (2) Business Days prior to any sale of Registrable Securities in a firm commitment public offering, but in any other such sale, within ten (10) business days prior to having to issue the securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) upon the occurrence of, and its knowledge of, any event contemplated by Section 4(b)(ii)-(v) above, as promptly as practicable, as applicable: (i) use its commercially reasonable efforts to prevent the issuance of any stop order or obtain its withdrawal at the earliest possible moment if the stop order has been issued, or (ii) prepare a supplement or post-effective amendment to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, such Prospectus will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) prior to the effective date of the Registration Statement relating to the Registrable Securities, provide a CUSIP number for the Registrable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) provide and cause to be maintained a transfer agent and registrar for all Registrable Securities covered by such Registration Statement from and after a date not later than the effective date of such Registration Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) with respect to any sale of Registrable Securities pursuant to an Underwritten Offering, in connection with such agreements (including an underwriting agreement in form, scope and substance as is customary in underwritten offerings) as may be entered into by the Holders to expedite or facilitate the disposition of such Registrable Securities, (i) make such representations and warranties to the selling Holders and the underwriters, if any, with respect to the business of the Company and its subsidiaries, and the Registration Statement,

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Prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, in form, substance and scope as are customarily made by issuers to underwriters in underwritten offerings, and, if true, confirm the same if and when requested, (ii) use its commercially reasonable efforts to furnish to the selling Holders opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the managing underwriters, if any), addressed to each selling Holder of Registrable Securities and each of the underwriters, if any, covering the matters customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by such underwriters, (iii) use its commercially reasonable efforts to obtain "cold comfort" letters and updates thereof from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the Registration Statement) who have certified the financial statements included in such Registration Statement, addressed to each selling Holder of Registrable Securities (unless such accountants shall be prohibited from so addressing such letters by applicable standards of the accounting profession) and each of the underwriters, if any, such letters to be in customary form and covering matters of the type customarily covered in "cold comfort" letters in connection with underwritten offerings, and (iv) deliver such documents and certificates as may be reasonably requested by the Holders of a majority of the Registrable Securities being sold pursuant to such Registration Statement and the managing underwriters, if any, to evidence the continued validity of the representations and warranties made pursuant to Section 4(l)(i) above and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company. The above shall be done at each closing under such underwriting or similar agreement, or as and to the extent required thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) make available for inspection by a representative of the selling Holder of Registrable Securities, any underwriter participating in any such disposition of Registrable Securities, if any, and any attorneys or accountants retained by such selling Holders or underwriter, at the offices where normally kept, during reasonable business hours, all financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries, and cause the officers, directors and employees of the Company and its subsidiaries to supply all information in each case reasonably requested by any such representative, underwriter, attorney or accountant in connection with such Registration Statement; provided, however, that any information that is not generally publicly available at the time of delivery of such information shall be kept confidential by such Persons unless (i) disclosure of such information is required by court or administrative order, (ii) disclosure of such information, in the opinion of counsel to such Person, is required by law or applicable legal process, or (iii) such information becomes generally available to the public other than as a result of a non-permitted disclosure or failure to safeguard by such Person. In the case of a proposed disclosure pursuant to (i) or (ii) above, such Person shall be required to give the Company written notice of the proposed disclosure prior to such disclosure (to the extent permitted by law) and, if requested by the Company, assist the Company in seeking to prevent or limit the proposed disclosure. Without limiting the foregoing, no such information shall be used by such Person as the basis for any market transactions in securities of the Company or its subsidiaries in violation of law;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) cause its officers to use their commercially reasonable efforts to support the marketing of the Registrable Securities covered by the Registration Statement (including, without limitation, participation in "road shows"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) cooperate with each seller of Registrable Securities and each underwriter or agent participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with the FINRA.

The Company may require each Holder of Registrable Securities as to which any registration is being effected to furnish to the Company in writing such information required in connection with such registration regarding such seller and the distribution of such Registrable Securities as the Company may, from time to time, reasonably request in writing and the Company may exclude from such registration the Registrable Securities of any Holder who unreasonably fails to furnish such information within a reasonable time after receiving such request.

Each Holder agrees if such Holder has Registrable Securities covered by such Registration Statement that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 4(b)(ii)-(v) hereof, such Holder will forthwith discontinue disposition of such Registrable Securities covered by such Registration Statement or Prospectus until such Holder's receipt of the copies of the supplemented or amended Prospectus contemplated by Section 4(h) hereof, or until it is advised in writing by the Company that the use of the applicable Prospectus may be resumed, and has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus.

Notwithstanding anything to the contrary herein, at any time after the Registration Statement has been declared effective by the Commission, the Company may delay the disclosure of material non-public information concerning the Company if the disclosure of such information at the time is not, in the good faith judgment of the Company, in the best interests of the Company (such delay, a "***Grace Period***"). During the Grace Period, the Company shall not be required to maintain the effectiveness of any Registration Statement filed hereunder and, in any event, Holders shall suspend sales of Registrable Securities pursuant to such Registration Statements during the pendency of the Grace Period provided, the Company shall promptly (i) notify the Investors in writing of the existence of material non-public information giving rise to a Grace Period or the need to file a post-effective amendment, as applicable, and the date on which such Grace Period will begin, (ii) use commercially reasonable efforts to terminate a Grace Period as promptly as practicable provided that such termination is, in the good faith judgment of the Company, in the best interest of the Company and (iii) notify the Investors in writing of the date on which the Grace Period ends; provided, further, that no single Grace Period shall exceed forty-five (45) consecutive days, and during any three hundred sixty-five (365) day period, the aggregate of all Grace Periods shall not exceed an aggregate of ninety (90) days (each Grace Period complying with this provision being an "***Allowable Grace Period***"). For purposes of determining the length of a Grace Period, the Grace Period shall be deemed to begin on and include the date the Investors receive the notice referred to in clause (i) above and shall end on and include the later of the date the Investors receive the notice referred to in clause (iii) above and the date referred to in such notice; provided, that no Grace Period shall be longer than an

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Allowable Grace Period. Notwithstanding anything to the contrary, the Company shall use commercially reasonable efforts to cause its transfer agent to deliver unlegended Shares to a transferee of an Investor in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which an Investor has entered into an irrevocable contract for sale prior to the Investor's receipt of the notice of a Grace Period and for which the Investor has not yet settled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Registration Expenses</u>**. All fees and expenses incident to the Company's performance of or compliance with its obligations under this Agreement (excluding stock transfer taxes and, for the avoidance of doubt, any underwriting discounts and selling commissions) shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to in the foregoing sentence that are the Company's responsibility (the "***Registration Expenses***") shall include, without limitation, (a) all registration and filing fees (including, without limitation, fees and expenses (i) with respect to filings required to be made with any Trading Market on which the Common Stock is then listed for trading, and (ii) with respect to compliance with applicable state securities or Blue Sky laws (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or exemptions of the Registrable Securities and determination of the eligibility of the Registrable Securities for investment under the laws of such jurisdictions as requested by the Holders), (b) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities), (c) messenger, telephone and delivery expenses of the Company, (d) fees and disbursements of counsel for the Company, (e) Securities Act liability insurance, if the Company desires such insurance, and (f) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder.

The Company shall not be required to pay (i) fees and disbursements of any counsel retained by any Holder or by any underwriter, or (ii) any underwriter's fees (including discounts, commissions or fees of underwriters, selling brokers, dealer managers or similar securities industry professionals) relating to the distribution of the Registrable Securities (other than with respect to Registrable Securities sold by the Company or as otherwise set forth in this Section 5).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>Indemnification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Indemnification by the Company</u>. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless, to the fullest extent permitted by law, each Investor, Holder, the officers, directors, agents, general partners, managing members, managers, Affiliates, employees and investment advisers of such Investor or Holder, each Person who controls each such Investor or Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, general partners, managing members, managers, Affiliates, employees and investment advisers of each such controlling person, and each underwriter, if any, and each Person who controls (within the

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meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such underwriter, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, costs of preparation and reasonable attorneys' fees and any legal or other fees or expenses incurred by such party in connection with any investigation or Proceeding), expenses, judgments, fines, penalties, charges and amounts paid in settlement (collectively, "***Losses***"), as incurred, arising out of or based upon (i) any untrue statement (or alleged untrue statement) of a material fact contained in any Registration Statement, any preliminary, final or summary Prospectus, contained therein or related thereto, or any amendment or supplement thereto, together with the documents incorporated by reference therein, or any free writing prospectus utilized in connection therewith, incident to any such registration, qualification, or compliance, or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or (ii) any violation or alleged violation by the Company of the Securities Act, Exchange Act, or any state securities law or any rule or regulation thereunder, and (without limitation of the preceding portions of this Section 6(a)) will reimburse each such Investor or Holder and each Person who controls each such Investor or Holder, each such underwriter, and each person who controls any such underwriter, for any legal and any other expenses reasonably incurred in connection with investigating and defending or settling any such claim, loss, damage, liability, or action; provided that the Company will not be liable to an Investor, Holder or underwriter in any such case to the extent that any such Losses arise out of or are based on any untrue statement or omission by such Investor, Holder or underwriter, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such Registration Statement, preliminary, final or summary Prospectus, contained therein or related thereto, or any amendment or supplement thereto, together with the documents incorporated by reference therein, or any free writing prospectus utilized in connection therewith in reliance upon and in conformity with written information that is furnished to the Company by such Investor, Holder or underwriter for use therein and relates to such Investor, Holder or underwriter, as applicable. It is agreed that the indemnity agreement contained in this Section 6(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification by Investors and Holders</u>. Each Investor and Holder shall, notwithstanding any termination of this Agreement, indemnify and hold harmless, to the fullest extent permitted by law, severally and not jointly with any other Investors or Holders, the Company, its directors, its officers who sign the Registration Statement, and each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) and all other prospective sellers, from and against all Losses arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in such Registration Statement under which such Registrable Securities were registered under the Securities Act, any preliminary, final or summary Prospectus, contained therein or related thereto, or any amendment or supplement thereto, together with the documents incorporated by reference therein, or any free writing prospectus utilized in connection therewith, incident to any such registration, qualification, or compliance, or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will (without limitation of the portions of this Section 6(b)) reimburse the Company, its directors, its officers who sign the Registration Statement, and each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of

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the Exchange Act) and all other prospective sellers for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability, or action, in each case to the extent, but only to the extent, that such untrue statement or omission is made in such Registration Statement, preliminary, final or summary Prospectus, contained therein or related thereto, or any amendment or supplement thereto, together with the documents incorporated by reference therein, or any free writing prospectus utilized in connection therewith in reliance upon and in conformity with written information that is furnished to the Company by such Investor or Holder (or its agents or advisors) for inclusion therein and that relates to such Investor or Holder, as applicable; provided, however, that the obligations of such Investor or Holder hereunder shall not apply to amounts paid in settlement of any such claims, losses, damages, or liabilities (or actions in respect thereof) if such settlement is effected without the consent of such Investor or Holder, as applicable (which consent shall not be unreasonably withheld); and provided, further, that the liability of such Investor or Holder shall be limited to the net proceeds received by such selling Investor or Holder, as applicable, from the sale of Registrable Securities covered by such Registration Statement, except in the case of fraud, gross negligence or willful misconduct by such Investor or Holder, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Conduct of Indemnification Proceedings</u>. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an "***Indemnified Party***"), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the "***Indemnifying Party***") in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of one (1) counsel reasonably satisfactory to the Indemnified Party and the payment of all reasonable and documented fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such written notice within a reasonable time of commencement of any such Proceeding shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that such failure shall have materially and adversely prejudiced the Indemnifying Party in its ability to defend such Proceeding.

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (i) the Indemnifying Party has agreed in writing to pay such fees and expenses; (ii) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (iii) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel in writing that a conflict of interest exists if the same counsel were to represent such Indemnified Party and the Indemnifying Party; provided, that the Indemnifying Party shall not be liable for the fees and expenses of more than one separate firm of attorneys at any time for all Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld, delayed or unreasonably conditioned. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

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Subject to the terms of this Agreement, all documented fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section 6(b)) shall be paid to the Indemnified Party, as incurred, within twenty (20) Business Days of written notice thereof to the Indemnifying Party; provided, that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such actions for which such Indemnified Party is finally judicially determined to not be entitled to indemnification hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Contribution</u>. If a claim for indemnification under Section 6(a) or 6(b) is unavailable to an Indemnified Party (other than in accordance with its terms) or insufficient to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party, on the one hand, and Indemnified Party, on the other hand, in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party, on the one hand, and Indemnified Party, on the other hand, shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable attorneys' or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section 6(d) was available to such party in accordance with its terms. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 6(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 6(d), no Investor shall be required to contribute, in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such Investor from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Investor has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Non-Exclusive Remedies</u>. The indemnity and contribution agreements contained in this Section 6 are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties and are not in diminution or limitation of the indemnification provisions under the Purchase Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. <u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Remedies</u>. In the event of a breach by the Company, an Investor or a Holder of any of their obligations under this Agreement, each Investor, Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company and each Investor and Holder agree that monetary damages may not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Reporting Requirements</u>. The Company will use its commercially reasonable efforts to timely file with the Commission such reports and information required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the Commission thereunder and as the Commission may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Obligations of Holders and Others in a Registration</u>. Each Holder that has elected to include Registrable Securities in a Registration Statement pursuant to Section 2 agrees to timely furnish in writing such information regarding such Person, the securities sought to be registered and the intended method of disposition of the Registrable Securities held by it, as shall be reasonably be required to effect the registration of such Registrable Securities (the "***Requested Information***") and shall take such other action as the Company may reasonably request in connection with the registration, qualification or compliance or as otherwise provided herein. At least ten (10) Business Days prior to the first anticipated filing date of a Registration Statement, the Company shall notify each holder of the information the Company requires from such Holder if such Holder elects to have any of such Holder's Registrable Securities included in the Registration Statement. If at least five (5) Business Days prior to the filing date, the Company has not received the Requested Information from a Holder (a "***Non-Responsive Holder***"), then the Company may exclude from any Registration Statement the Registrable Securities of such Non- Responsive Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Compliance</u>. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant to the Registration Statement and shall sell the Registrable Securities only in accordance with a method of distribution described in the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Discontinued Disposition</u>. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Sections 4(b)(ii)-(iv), such Holder will forthwith discontinue disposition of such Registrable Securities under a Registration Statement until it is advised in writing by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company may provide appropriate stop orders to enforce the provisions of this paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Inconsistent Agreements</u>. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its Subsidiaries, on or after the date hereof, enter into any agreement with respect to its securities, that would have the effect of materially impairing the rights granted to the Investors in this Agreement or otherwise conflicts with the provisions hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Amendments and Waivers</u>. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, or waived unless the same shall be in writing and signed by the Company and Investors holding a majority of the then outstanding Shares; provided that any such amendment, modification, supplement or waiver that materially, adversely and disproportionately affects the rights or obligations of any Investor vis-à-vis the other Investors shall require the prior written consent of such Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Notices</u>. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via e-mail (provided the sender receives a machine-generated notification or confirmation of receipt of an e-mail transmission) at the e-mail address specified in this Section prior to 5:00 p.m., Eastern time, on a Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered via e-mail at the e-mail address specified in this Section on a day that is not a Business Day or later than 5:00 p.m., Eastern time, on any Business Day, (c) the Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service with next day delivery specified (receipt requested), or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as follows:

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| | |
|:---|:---|
| If to the <br>Company: | Clear Street Group Inc. <br>55 Broadway, 21st Floor <br>New York, New York 10006 <br>Attn: Chief Legal Officer <br>Email: [ ] |
| With a copy <br>(which shall <br>not <br>constitute <br>notice) to: | Goulston & Storrs <br>400 Atlantic Avenue <br>Boston, MA 02110 <br>Attention: Timothy B. Bancroft; Michael Hickey <br>Email: [ ]  |

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If to any Investor, to such Investor's address as set forth on the Investor's signature page hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Successors and Assigns</u>. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. The Company may not assign its rights (except by merger, a business combination (including one with a special purpose acquisition company), or in connection with another entity acquiring all or substantially all of the Company's assets) or obligations hereunder without the prior written consent of the

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Investors holding a majority of the then outstanding Registrable Securities. The rights to have the Company register Registrable Securities pursuant to this Agreement shall be automatically assigned by any Investor to any transferee of the Shares only if: (a) the transferee or assignee (i) acquires Shares of the Investor's Registrable Securities with an aggregate original value as of the Closing Date of $250,000; (b) the Investor agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the Company within a reasonable period of time after such assignment; (c) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of (i) the name and address of such transferee or assignee (for notices hereunder and for any other purposes as may arise) and (ii) the securities with respect to which such registration rights are being transferred or assigned; (d) immediately following such transfer or assignment, the further disposition of such securities by the transferee or assignee is restricted under the Securities Act and applicable state securities laws; and (e) at or before the time the Company received the written notice contemplated by clause (c) of this sentence, the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained herein with respect to a Holder or Investor. In the event of any delay in filing or effectiveness of the Registration Statement as a result of such assignment by the Investor or its transferee, the Company shall not be liable for any damages arising from such delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Execution and Counterparts</u>. This Agreement may be executed in two (2) or more counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together 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, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature were the original thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Governing Law; Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York applicable to contracts made and to be performed entirely within such State. Any legal proceeding arising out of or relating to this Agreement shall be brought exclusively in the state or federal courts located in New York County, New York, and each party hereto consents to the jurisdiction of such courts. All questions concerning the construction, validity, enforcement and interpretation of this Agreement, to the extent this Agreement is silent with respect to such matters, shall be determined in accordance with the provisions of the Purchase Agreement. **EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Cumulative Remedies</u>. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Severability</u>. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their good faith reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Headings</u>. The headings in this Agreement are for convenience only and shall not limit or otherwise affect the meaning hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Independent Nature of Investors' Obligations and Rights</u>. The obligations of each Investor under this Agreement are several and not joint with the obligations of any other Investor hereunder, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor hereunder. The decision of each Investor to purchase the Shares pursuant to the Purchase Agreement has been made independently of any other Investor. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Investor pursuant hereto or thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert with respect to such obligations or the transactions contemplated by this Agreement. Each Investor acknowledges that no other Investor has acted as agent for such Investor in connection with making its investment hereunder and that no Investor will be acting as agent of such Investor in connection with monitoring its investment in the Shares or enforcing its rights under the Purchase Agreement. Each Investor shall be entitled to protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, and it shall not be necessary for any other Investor to be joined as an additional party in any Proceeding for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Entire Agreement</u>. This Agreement and the Purchase Agreement constitute the entire agreement among the parties hereto with respect to the subject matter hereof. There are no restrictions, promises, warranties or undertakings, other than as set forth or referred to herein and in the Purchase Agreement. This Agreement supersedes all prior agreements and understandings among the parties hereto with respect to the subject matter hereof.

[*Signature Page Follows*]

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IN WITNESS WHEREOF, the parties hereto have caused this Registration Rights Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

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| | | |
|:---|:---|:---|
| <u>COMPANY:</u> | **CLEAR STREET GROUP INC**. | **CLEAR STREET GROUP INC**. |
|  | By: | /s/ Chris Pento |
|  |  | Name: Chris Pento |
|  |  | Title: Chief Executive Officer |

---

[Signature Page to Reg. Rights Agreement - Perpetual Preferred]

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**<u>INVESTORS:</u>**

---

| | |
|:---|:---|
| **INVESTOR** | **INVESTOR** |
| By: |  |
|  | Name: |
|  | Title: |

---

*Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series A*

*[Purchaser Signature Page to Registration Rights Agreement]* 

*Clear Street Group, Inc.*

## Exhibit 10.18

**Exhibit 10.18** 

***Execution Version*** 

**AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT** 

THIS AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT (this "**Agreement**"), is made as of December 18, 2025, by and among Clear Street Group Inc., a Delaware corporation (the "**Company**"), and each of the investors listed on <u>Schedule A</u> hereto, each of which is referred to in this Agreement as an "**Investor**," and each of the stockholders listed on <u>Schedule B</u> hereto, each of whom is referred to herein as a "**Key Holder**."

**RECITALS** 

**WHEREAS**, certain of the Investors and Key Holders (together the "**Existing Parties**") possess registration rights, information rights, rights of first offer and other rights pursuant to that certain Investors' Rights Agreement dated as of April 13, 2022 by and among the Company and such Existing Parties (as amended prior to the date hereof, the "**Prior Agreement**");

**WHEREAS**, the Existing Parties are holders of at least a majority of the Registrable Securities of the Company (as defined in the Prior Agreement), and desire to amend and restate the Prior Agreement in its entirety and to accept the rights created pursuant to this Agreement in lieu of the rights granted to them under the Prior Agreement;

**WHEREAS**, the Company and certain Investors are parties to that certain Series C Preferred Stock Purchase Agreement of even date herewith (the "**Purchase Agreement**"); under which certain of the Company's and such Investors' obligations are conditioned upon the execution and delivery of this Agreement by such Investors and the Existing Parties holding at least a majority of the Registrable Securities, and the Company; and

**WHEREAS,** the Existing Parties hereby agree that the Prior Agreement shall be amended and restated, as set forth herein.

**NOW, THEREFORE**, the parties hereby agree as follows:

1. <u>Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 "**Affiliate**" means, with respect to any specified Person, any other Person that directly or indirectly, controls, is controlled by or is under common control with such Person, including, without limitation, any general partner, managing member, officer, director or trustee of such Person, trustee of a trust settled by such Person, the settler and beneficiaries of a trust, or any private equity fund, venture capital fund or other investment fund now or hereafter existing that is controlled by one (1) or more general partners, managing members or investment advisers of, or shares the same management company or investment adviser with, such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 "**Baillie Gifford**" means The Schiehallion Fund Limited, Baillie Gifford Private Companies Fund II L.P., Baillie Gifford Private Companies Fund III Aggregator SCSp, Baillie Gifford Co-Invest (No.3) Fund LP and Baillie Gifford Co-Invest (No.4) Fund LP and each of their respective Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 "**Board of Directors**" means the board of directors of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 "**Class A Common Stock**" means shares of the Company's Class A Common Stock, par value $0.00001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 "**Class B Common Stock**" means shares of the Company's Class B Common Stock, par value $0.00001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 "**Common Stock**" means shares of the Class A Common Stock and Class B Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 "**Competitor**" means a Person engaged, directly or indirectly (including through any partnership, limited liability company, corporation, joint venture or similar arrangement (whether now existing or formed hereafter)), in the securities brokerage, clearing or trading business or any technology business facilitating the foregoing (a "**General Competitor**"), but shall not include any Person that, together with its Affiliates, holds less than twenty percent (20%) of the outstanding equity of any General Competitor and does not, nor do any of its Affiliates, have a right to designate any members of, and does not have any of its directors, officers or other representatives appointed by such Person serving on, the board of directors of any General Competitor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 "**CSGC**" means Clear Street Global Corp., a United States Virgin Islands company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 "**Damages**" means any loss, damage, claim or liability (joint or several) to which a party hereto may become subject under the Securities Act, the Exchange Act, or other federal or state law, insofar as such loss, damage, claim or liability (or any action in respect thereof) arises out of or is based upon: (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement of the Company, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto; (ii) an omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation by the indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 "**Deemed Liquidation Event**" shall have the meaning ascribed to it in the Restated Certificate (as defined herein), as in effect on the date of this Agreement and regardless of the date on which such event occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 "**Derivative Securities**" means any securities or rights convertible into, or exercisable or exchangeable for (in each case, directly or indirectly), Common Stock, including options and warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 "**Exempted Securities**" shall have the meaning ascribed to it in the Company's Restated Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 "**Exchange Act**" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 "**Excluded Registration**" means (i) a registration relating to the sale or grant of securities to employees of the Company or a subsidiary pursuant to a stock option, stock purchase, equity incentive or similar plan; (ii) a registration relating to an SEC Rule 145 transaction; (iii) a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities; (iv) a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered; (v) a registration of the Series A Perpetual Preferred or (vi) a registration in connection with an IPO (as defined herein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15 "**FOIA Party**" means a Person that, in the reasonable determination of the Board of Directors, may be subject to, and thereby required to disclose non-public information furnished by or relating to the Company under, the Freedom of Information Act, 5 U.S.C. 552 ("**FOIA**"), any state public records access law, any state or other jurisdiction's laws similar in intent or effect to FOIA, or any other similar statutory or regulatory requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 "**Form S-1**" means such form under the Securities Act as in effect on the date hereof or any successor registration form under the Securities Act subsequently adopted by the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17 "**Form S-3**" means such form under the Securities Act as in effect on the date hereof or any registration form under the Securities Act subsequently adopted by the SEC that permits forward incorporation of substantial information by reference to other documents filed by the Company with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 "**GAAP**" means generally accepted accounting principles in the United States as in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19 "**Holder**" means any holder of Registrable Securities who is a party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20 "**Immediate Family Member**" means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, life partner or similar statutorily-recognized domestic partner, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships of a natural person referred to herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21 "**Initiating Holders**" means, collectively, Holders who properly initiate a registration request under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22 "**Initiating Key Holders**" means, collectively, Key Holders who properly initiate a registration request under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23 "**IPO**" means the Company's first underwritten public offering of its Common Stock under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24 "**Key Employee**" means the chief executive officer, chief technology officer, chief operating officer, each individual serving in a substantially similar role to the foregoing, and each of their respective successors.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.25 "**Key Holder Registrable Securities**" means (i) the shares of Class A Common Stock issued or issuable upon conversion of shares of Class B Common Stock pursuant to the terms of the Restated Certificate, (ii) any Common Stock, or any Common Stock issued or issuable (directly or indirectly) upon conversion and/or exercise of any other securities of the Company, acquired by the Key Holder after the date hereof, and (iii) any shares of Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26 "**Major Investor**" means any Investor that, individually or together with such Investor's Affiliates, holds at least 5,000,000 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.27 "**New Securities**" means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever (including, without limitation, convertible debt securities) that are, or may become, convertible or exchangeable into or exercisable for such equity securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.28 "**Person**" means any individual, corporation, partnership, trust, limited liability company, association or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29 **"Preferred Director**" means any director of the Company that the holders of record of Series B Preferred Stock are entitled to elect, exclusively and as a separate class, pursuant to the Restated Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.30 "**Preferred Stock**" means, collectively, shares of the Company's Series B Preferred Stock and Series C Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.31 "**Prysm**" means (i) except as provided in clause (ii), all holders of Registrable Securities that are Affiliates of Prysm Capital, LLC, a Delaware limited liability company, and (ii) in <u>Sections</u> <u>3</u>, <u>5.9</u> and <u>6.6</u>, Prysm Capital, LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.32 "**Registrable Securities**" means (i) the Class A Common Stock issuable or issued upon conversion of the Preferred Stock; (ii) any Class A Common Stock, or any Class A Common Stock issued or issuable (directly or indirectly) upon conversion and/or exercise of any other securities of the Company acquired by the Investors after the date hereof; (iii) the Key Holder Registrable Securities, <u>provided</u>, <u>however</u>, that such Key Holder Registrable Securities shall not be deemed Registrable Securities and the Key Holders shall not be deemed Holders for the purposes of <u>Sections 2.10</u> and <u>6.6</u>; and (iv) any Class A Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares referenced in <u>clauses</u> <u>(i)</u> and <u>(ii)</u> above; excluding in all cases (other than the restrictions on transfer and legend requirements in <u>Section</u> <u>2.11</u>), however, any Registrable Securities sold by a Person in a transaction in which the applicable rights under this Agreement are not assigned pursuant to <u>Section</u> <u>6.1</u>, and excluding for purposes of <u>Section</u> <u>2</u> any shares for which registration rights have terminated pursuant to <u>Section</u> <u>2.12</u>. Holders of Registrable Securities will not be required to convert their Preferred Stock into Class A Common Stock in order to exercise the registration rights granted hereunder until immediately prior to the closing of the offering to which the registration relates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.33 "**Registrable Securities then outstanding**" means the number of shares determined by adding the number of shares of outstanding Common Stock that are Registrable Securities and the number of shares of Common Stock issuable (directly or indirectly) pursuant to then exercisable, exchangeable, and/or convertible securities that are Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.34 "**Restated Certificate**" means the Company's Seventh Amended and Restated Certificate of Incorporation, as amended and/or restated from time to time in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.35 "**Restricted Securities**" means the securities of the Company required to be notated with the legend set forth in <u>Section</u> <u>2.11(b)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.36 "**Sanctioned Party**" means any Person: (i) organized under the laws of, ordinarily resident in, or located in a country or territory that is the subject of comprehensive Sanctions (each, a "**Restricted Country**"); (ii) 50% or more owned or controlled by the government of a Restricted Country; or (iii)(A) designated on a sanctioned parties list administered by the United States, European Union, or United Kingdom, including, without limitation, the U.S. Department of the Treasury's Office of Foreign Assets Control's Specially Designated Nationals and Blocked Persons List, Foreign Sanctions Evaders List, and Sectoral Sanctions Identification List, the Consolidated List of Persons, Groups, and Entities Subject to EU Financial Sanctions, and the UK's Consolidated Sanctions List (each, a "**Designated Party**"); or (B) 50% or more owned or, where relevant under applicable Sanctions, controlled, individually or in the aggregate, by one or more Designated Party, in each case only to the extent that dealings with such Person are prohibited pursuant to applicable Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.37 "**Sanctions**" means applicable laws and regulations pertaining to trade and economic sanctions administered by the United States of America, European Union, or United Kingdom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.38 "**SEC**" means the Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.39 "**SEC Rule 144**" means Rule 144 promulgated by the SEC under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.40 "**SEC Rule 145**" means Rule 145 promulgated by the SEC under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.41 "**Securities Act**" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.42 "**Selling Expenses**" means all underwriting discounts, selling commissions, and stock transfer taxes applicable to the sale of Registrable Securities, and fees and disbursements of counsel for any Holder, except for the fees and disbursements of the Selling Holder Counsel borne and paid by the Company as provided in <u>Section</u> <u>2.6</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.43 "**Series A Perpetual Preferred**" means shares of the Company's Series A Perpetual Cumulative Preferred Stock, par value $0.00001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.44 "**Series B Board Elimination Date**" shall have the meaning ascribed to it in the Restated Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.45 "**Series B Preferred Stock**" means shares of the Company's Series B-1 Preferred Stock, par value $0.00001 per share and shares of the Company's Series B-2 Preferred Stock, par value $0.00001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.46 "**Series C Preferred Stock**" means shares of the Company's Series C Preferred Stock, par value $0.00001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.47 "**Voting Agreement**" means the Amended and Restated Voting Agreement dated on or about the date hereof among the Company and the Investors and Key Holders identified therein, as the same may be amended from time to time in accordance with its terms.

2. <u>Registration Rights. The Company covenants and agrees as follows:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Demand Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Form S-1 Demand</u>. If, at any time after one hundred eighty (180) days after the effective date of the registration statement for the IPO when Prysm holds at least 8,982,036 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof), the Company receives a request from Holders of not less than fifty percent (50%) of the Registrable Securities (excluding the Key Holder Registrable Securities) then outstanding that the Company file a registration statement on Form S-1 (including, if requested by such holders, a Shelf Registration) with respect to at least twenty percent (20%) of the Registrable Securities (excluding the Key Holder Registrable Securities) then outstanding (or a lesser percent if the anticipated aggregate offering price, net of Selling Expenses, would exceed $20,000,000), then the Company shall: (x) within ten (10) days after the date such request is given, give notice thereof (the "**Demand Notice**") to all Holders other than the Initiating Holders and (y) as soon as practicable, and in any event within ninety (90) days after the date such request is given by the Initiating Holders, file a registration statement on Form S-1 under the Securities Act covering all Registrable Securities that the Initiating Holders requested to be registered and, any additional Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given, and in each case, subject to the limitations of <u>Sections</u> <u>2.1(e)</u>, <u>2.1(f)</u>, and 2.3. Notwithstanding the foregoing provisions of this paragraph but subject to the provisions below, Holders of Registrable Securities (excluding Key Holder Registrable Securities) may only make one (1) request for the filing of a registration statement on Form S-1 that is ultimately "effected."

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Form S-3 Demand</u>. If at any time when it is eligible to use a Form S-3 registration statement, the Company receives a request from Holders (other than Key Holders) of at least thirty percent (30%) of the Registrable Securities (excluding the Key Holder Registrable Securities) then outstanding that the Company file a Form S-3 registration statement (including a Shelf Registration) with respect to outstanding Registrable Securities of such Holders having an anticipated aggregate offering price, net of Selling Expenses, of at least twenty-five million dollars ($25,000,000), then the Company shall (x) within ten (10) days after the date such request is given, give a Demand Notice to all Holders (other than the Initiating Holders) and to all Perpetual Preferred Holders; and (y) as soon as practicable, and in any event within sixty (60) days after the date such request is given by the Initiating Holders, file a Form S-3 registration statement under the Securities Act covering all Registrable Securities requested to be included in such registration by any other Holders (or Perpetual Preferred Holders), as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given, and in each case, subject to the limitations of <u>Sections</u> <u>2.1(e)</u>, <u>2.1(f)</u> and <u>2.3</u>. Notwithstanding the foregoing provisions of this paragraph but subject to the provisions below, Holders of Registrable Securities may only make one (1) request in any twelve month period for the filing of a registration statement on Form S-3 that is ultimately "effected."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Key Holders Form S-1 or Form S-3 Demand</u>. If, at any time after one hundred eighty (180) days after the effective date of the registration statement for the IPO, the Company receives a request from Key Holders of not less than twenty percent (20%) of the Key Holder Registrable Securities then outstanding that the Company file a registration statement on Form S-1 or, if it is then available, Form S-3 with respect to at least twenty percent (20%) of the Key Holder Registrable Securities then outstanding (or a lesser percent if the anticipated aggregate offering price, net of Selling Expenses, would exceed $50,000,000), then the Company shall: (x) within ten (10) days after the date such request is given, give notice thereof (the "**Key Holder Demand Notice**") to all other Holders and (y) as soon as practicable, and in any event within ninety (90) days after the date such request is given by the Initiating Key Holders, file a registration statement on Form S-1 or Form S-3 under the Securities Act covering all Key Holder Registrable Securities that the Initiating Key Holders requested to be registered, any additional Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Key Holder Demand Notice is given, and in each case, subject to the limitations of <u>Sections</u> <u>2.1(e)</u>, <u>2.1(f)</u> and <u>2.3</u>. Notwithstanding the foregoing provisions of this paragraph but subject to the provisions below, Key Holders may only make one (1) request for the filing of a registration statement on Form S-1 and may only make one (1) request in any twelve month period for the filing of a registration statement on Form S-3, in each case, that is ultimately "effected."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Shelf</u> <u>Registrations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Holders initially requesting registration pursuant to this <u>Section</u> <u>2.1</u> request that such registration be filed pursuant to Rule 415 (a "**Shelf Registration**"), and if the Company is qualified to do so, then the Company shall use its commercially reasonable efforts to cause the Shelf Registration to be declared effective under the Securities Act as soon as reasonably practicable after the filing thereof; <u>provided</u> that if the Company is a well-known seasoned issuer, as defined under Rule 405 (a "**WKSI**") at the time of such request, the Holders initially requesting registration pursuant to this <u>Section</u> <u>2.1(d)</u> may request that such Shelf Registration be an automatic shelf registration statement (as defined in Rule 405 under the Securities Act) (an "**Automatic Shelf Registration Statement**"). For so long as a registration

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statement for a Shelf Registration (a "**Shelf Registration Statement**") is and remains effective, the Holders (excluding Key Holders) of twenty percent (20%) or more of the Registrable Securities (excluding the Key Holder Registrable Securities) then outstanding or the Key Holders of twenty percent (20%) or more of the Key Holder Registrable Securities then outstanding, as applicable, will have the right at any time or from time to time to elect to sell pursuant to an underwritten offering Registrable Securities available for sale pursuant to such registration statement ("**Shelf Registrable Securities**"). The Holders of twenty percent (20%) or more of the Registrable Securities (excluding the Key Holder Registrable Securities) then outstanding or the Key Holders of twenty percent (20%) or more of the Key Holder Registrable Securities then outstanding, as applicable, may make such election by delivering to the Company written notice (an "**Underwritten Shelf Offering Notice**") specifying the number of Shelf Registrable Securities that such holders desire to sell pursuant to such offering (the "**Underwritten Shelf Offering**"). The Company shall (x) within two (2) business days after the date such request is given, give a Demand Notice to all other Holders that have been identified as selling stockholders in such Shelf Registration Statement and are otherwise permitted to sell in such Underwritten Shelf Offering; and (y) as soon as practicable (and in any event within twenty (20) days after the receipt of an Underwritten Shelf Offering Notice) facilitate such Underwritten Shelf Offering covering all Shelf Registrable Securities with respect to which the Company has received written requests for inclusion (which request will specify the maximum number of Shelf Registrable Securities intended to be disposed of by such holder) within seven days after the receipt of the Underwritten Shelf Offering Notice. Notwithstanding the foregoing provisions of this paragraph but subject to the provisions below, Holders (excluding Key Holders) of Registrable Securities and Key Holders of Key Holder Registrable Securities may only make one (1) request each in any twelve month period for an Underwritten Shelf Offering that is ultimately "effected."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Holders (excluding Key Holders) of twenty percent (20%) or more of the Registrable Securities (excluding the Key Holder Registrable Securities) then outstanding or the Key Holders of twenty percent (20%) or more of the Key Holder Registrable Securities then outstanding wish to engage in an underwritten block trade off of a Shelf Registration Statement (either through filing an Automatic Shelf Registration Statement or through a take-down from an already existing Shelf Registration Statement), then notwithstanding the time periods set forth in <u>Section</u> <u>2.1(d)(i)</u> such Holders (excluding Key Holders) of twenty percent (20%) or more of the Registrable Securities (excluding the Key Holder Registrable Securities) then outstanding or Key Holders of twenty percent (20%) or more of the Key Holder Registrable Securities then outstanding will notify the Company of the block trade Underwritten Shelf Offering not less than two (2) business days prior to the day such offering is to commence. If requested by the Holders (excluding the Key Holders) of twenty percent (20%) or more of the Registrable Securities (excluding the Key Holder Registrable Securities) or Key Holders of twenty percent (20%) or more of the Key Holder Registrable Securities then outstanding, the Company will promptly notify other Holders of such block trade Underwritten Shelf Offering and such other Holders may elect whether or not to participate no later than the next business day (*i.e.* one (1) business day prior to the day such offering is to commence) (unless a longer period is approved by the holders of a majority of the Preferred Stock or the holders of a majority of the Key Holder Registrable Securities, as applicable), and the Company will as expeditiously as possible use its commercially reasonable efforts to facilitate such offering (which may close as early as two (2) business days after the date it commences).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company will, at the request of the Holders (excluding the Key Holders) of twenty percent (20%) or more of the Registrable Securities (excluding the Key Holder Registrable Securities) then outstanding or Key Holders of twenty percent (20%) or more of the Key Holder Registrable Securities then outstanding, as applicable, file any prospectus supplement or any post-effective amendments and otherwise take any action necessary to include therein all disclosure and language deemed necessary or advisable by such Holders (excluding Key Holders) of twenty percent (20%) or more of the Registrable Securities (excluding the Key Holder Registrable Securities) then outstanding or Key Holders of twenty percent (20%) or more of the Key Holder Registrable Securities then outstanding, as applicable, to effect such Underwritten Shelf Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If (x) while Prysm holds at least 8,982,036 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof), the Company files any Automatic Shelf Registration Statement for the benefit of the holders of any of its securities other than the Holders of Registrable Securities, and Prysm does not request that Registrable Securities held by Prysm or its Affiliates be included in such Shelf Registration Statement, or (y) while Baillie Gifford holds at least 811,284 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof), the Company files any Automatic Shelf Registration Statement for the benefit of the holders of any of its securities other than the Holders of Registrable Securities, and Baillie Gifford does not request that Registrable Securities held by Baillie Gifford be included in such Shelf Registration Statement, the Company agrees that, at the request of Prysm or Baillie Gifford, as the case may be, it will include in such Automatic Shelf Registration Statement such disclosures as may be required by Rule 430B in order to ensure that the Registrable Securities held by Holders designated by Prysm or Baillie Gifford, as the case may be, may be added to such Shelf Registration Statement at a later time through the filing of a prospectus supplement rather than a post-effective amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding the foregoing obligations, if the Company furnishes to Holders requesting a registration pursuant to this <u>Section</u> <u>2.1</u> a certificate signed by the Company's chief executive officer stating that in the good faith judgment of the Board of Directors it would be materially detrimental to the Company and its stockholders for such registration statement to either become effective or remain effective for as long as such registration statement otherwise would be required to remain effective, because such action would (i) materially interfere with a significant acquisition, corporate reorganization, or other similar transaction involving the Company; (ii) require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; or (iii) render the Company unable to comply with requirements under the Securities Act or Exchange Act, then the Company shall have the right to defer taking action with respect to such filing, and any time periods with respect to filing or effectiveness thereof shall be tolled correspondingly or suspend the use of a prospectus that is part of a Shelf Registration Statement (and therefore suspend sales of the Shelf Registrable Securities), for a period of not more than ninety (90) days after the request of the Initiating Holders is given; <u>provided</u>, <u>however</u>, that the Company may not invoke this right more than once in any twelve (12) month period; and <u>provided further</u> that the Company shall not register any securities for its own account or that of any other stockholder during such ninety (90) day period other than an Excluded Registration.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to this <u>Section</u> <u>2.1</u>, during the period that is thirty (30) days before the Company's good faith estimate of the date of filing of, and ending on a date that is ninety (90) days after the effective date of, a Company-initiated registration, <u>provided</u> that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective. The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to <u>Section</u> <u>2.1(a)</u> or any registration on Form S-1 pursuant to <u>Section</u> <u>2.1(c)</u> if the Initiating Holders or Initiating Key Holders, respectively, propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to <u>Section</u> <u>2.1(b)</u> or <u>Section</u> <u>2.1(c)</u>, respectively. A registration shall not be counted as "effected" for purposes of this <u>Section</u> <u>2.1(f)</u> until such time as the applicable registration statement has been declared effective by the SEC or until the "pricing" of any offering relating to a Underwritten Shelf Offering Notice, unless the Initiating Holders or Initiating Key Holders, as applicable, (i) have withdrawn their request for such registration or Underwritten Shelf Offering and (ii) have not either (x) paid all registration expenses therefor or (y) forfeited their right to one demand registration statement pursuant to <u>Section</u> <u>2.6</u>, in which case such withdrawn registration statement or Underwritten Shelf Offering shall be counted as "effected" for purposes of this <u>Section</u> <u>2.1(f)</u>; <u>provided</u> that if such withdrawal is during a period the Company has deferred taking action pursuant to <u>Section</u> <u>2.1(e)</u> or <u>2.1(f)</u>, then the Initiating Holders or Initiating Key Holders, as applicable, may withdraw their request for registration or Underwritten Shelf Offering and such registration or Underwritten Shelf Offering will not be counted as "effected" for purposes of this <u>Section</u> <u>2.1(f)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Company Registration</u>. If the Company proposes to register (including for this purpose a registration effected by the Company for stockholders other than the Holders) any of its securities under the Securities Act in connection with the public offering of such securities solely for cash (other than in an Excluded Registration or a registration relating to a demand pursuant to <u>Section</u> <u>2.1</u>), the Company shall, at such time, promptly give each Holder and each Perpetual Preferred Holder notice of such registration. Upon the request of each Holder and each Perpetual Preferred Holder given within twenty (20) days after such notice is given by the Company, the Company shall, subject to the provisions of <u>Section</u> <u>2.3</u>, cause to be registered all of the Registrable Securities that each such Holder and all of the shares of Series A Perpetual Preferred that each such Perpetual Preferred Holder has requested to be included in such registration. The Company shall have the right to terminate or withdraw any registration initiated by it under this <u>Section</u> <u>2.2</u> before the effective date of such registration, whether or not any Holder has elected to include Registrable Securities in such registration. The expenses (other than Selling Expenses) of such withdrawn registration shall be borne by the Company in accordance with <u>Section</u> <u>2.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Underwriting Requirements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, pursuant to <u>Section</u> <u>2.1</u>, the Initiating Holders or Initiating Key Holders, as applicable, intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to <u>Section</u> <u>2.1</u>, and the Company shall include such information in the Demand Notice or Key Holder

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Demand Notice, as applicable. The underwriter(s) will be selected by the Board of Directors. In such event, the right of any Holder to include such Holder's Registrable Securities in such registration shall be conditioned upon such Holder's participation in such underwriting and the inclusion of such Holder's Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in <u>Section</u> <u>2.4(e)</u>) enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting; <u>provided</u>, <u>however</u>, that no Holder (nor any of its assignees) shall be required to make any representations, warranties or indemnities except as they relate to such Holder's ownership of shares and authority to enter into the underwriting agreement and to such Holder's intended method of distribution, and the liability of such Holder shall be several and not joint, and limited to an amount equal to the net proceeds from the offering actually received by such Holder. Notwithstanding any other provision of this <u>Section</u> <u>2.3</u>, if the managing underwriter(s) advise(s) the Initiating Holders in writing that marketing factors require a limitation on the number of shares to be underwritten, then the Company shall so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of Registrable Securities and shares of Series A Perpetual Preferred that may be included in the underwriting shall be allocated among such Holders of Registrable Securities, including the Initiating Holders, and any holders of shares of Series A Perpetual Preferred entitled to be included in such underwriting pursuant to a Registration Rights Agreement, dated as of October 20, 2021 (the "**Perpetual Preferred RRA**"), among the Company and the holders of Series A Perpetual Preferred identified therein ("**Perpetual Preferred Holders**") who requested to be included in such underwriting, in proportion (as nearly as practicable) to the number of Registrable Securities and shares of Series A Perpetual Preferred owned by each selling Holder and selling Perpetual Preferred Holder or in such other proportion as is mutually agreed to by all such selling Holders and is not prohibited under the Perpetual Preferred RRA; <u>provided</u>, <u>however</u>, that the number of Registrable Securities held by the Holders to be included in such underwriting shall not be reduced unless all other securities (other than shares of Series A Perpetual Preferred to the extent such reduction is prohibited under the Perpetual Preferred RRA) are first entirely excluded from the underwriting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with any offering involving an underwriting of shares of the Company's capital stock pursuant to <u>Section 2.2</u>, the Company shall not be required to include any of the Holders' Registrable Securities in such underwriting unless such Holder accepts the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in such quantity as the underwriters in their sole discretion determine will not jeopardize the success of the offering by the Company. If the total number of securities, including Registrable Securities and shares of Series A Perpetual Preferred, requested by stockholders to be included in such offering exceeds the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities and shares of Series A Perpetual Preferred, which the underwriters and the Company in their sole discretion determine will not jeopardize the success of the offering. If the underwriters reasonably determine based on market factors that less than all of the Registrable Securities to be registered, together with any shares of Series A Perpetual Preferred requested to be registered pursuant to the Perpetual Preferred RRA, can be included in such offering, then the Registrable Securities and shares of Series A Perpetual Preferred that are included in such offering shall be allocated among the selling Holders and selling Perpetual

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Preferred Holders in proportion (as nearly as practicable) to the number of Registrable Securities and shares of Series A Perpetual Preferred owned by each selling Holder and Perpetual Preferred Holder or in such other proportion as is mutually agreed to by all such selling Holders and is not prohibited under the Perpetual Preferred RRA. Notwithstanding the foregoing, in no event shall (i) the number of Registrable Securities included in the offering be reduced unless all other securities (other than securities to be sold by the Company and shares of Series A Perpetual Preferred to the extent such reduction is prohibited under the Perpetual Preferred RRA) are first entirely excluded from the offering, or (ii) the combined total of the number of Registrable Securities and shares of Series A Perpetual Preferred (if and to the extent that Perpetual Preferred Holders are entitled under the Perpetual Preferred RRA to include such shares of Series A Perpetual Preferred in the offering) included in the offering be reduced below twenty percent (20%) of the total number of securities included in such offering, unless such offering is the IPO, in which case the number of securities included may be reduced to zero. For purposes of the provision in this <u>Section</u> <u>2.3(b)</u> concerning apportionment, for any selling Holder that is a partnership, limited liability company, or corporation, the partners, members, retired partners, retired members, stockholders, and Affiliates of such Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired members and any trusts for the benefit of any of the foregoing Persons, shall be deemed to be a single "selling Holder," and any pro rata reduction with respect to such "selling Holder" shall be based upon the aggregate number of Registrable Securities owned by all Persons included in such "selling Holder," as defined in this sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of <u>Section</u> <u>2.1</u>, a registration shall not be counted as "effected" if, as a result of an exercise of the underwriter's cutback provisions in <u>Section</u> <u>2.3(a)</u>, fewer than fifty percent (50%) of the total number of Registrable Securities that Holders have requested to be included in such registration statement are actually included.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Obligations of the Company</u>. Whenever required under this <u>Section</u> <u>2</u> to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable efforts to cause such registration statement to become effective and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to one hundred twenty (120) days or, if earlier, until the distribution contemplated in the registration statement has been completed; <u>provided</u>, <u>however</u>, that (i) such one hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder refrains, at the request of an underwriter of Common Stock (or other securities) of the Company, from selling any securities included in such registration, and (ii) in the case of any registration of Registrable Securities on Form S-3 that are intended to be offered on a continuous or delayed basis, subject to compliance with applicable SEC rules, such one hundred twenty (120) day period shall be extended for up to sixty (60) days, if necessary, to keep the registration statement effective until all such Registrable Securities are sold;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) prepare and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection with such registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities covered by such registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) furnish to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the Securities Act, and such other documents as the Holders may reasonably request in order to facilitate their disposition of their Registrable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) use its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; <u>provided</u> that the Company shall not be required to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the underwriter(s) of such offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) use its commercially reasonable efforts to cause all such Registrable Securities covered by such registration statement to be listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities issued by the Company are then listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) promptly make available for inspection by the selling Holders, any managing underwriter(s) participating in any disposition pursuant to such registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the selling Holders, all financial and other records, pertinent corporate documents, and properties of the Company, and cause the Company's officers, directors, employees, and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant, or agent, in each case, as necessary or advisable to verify the accuracy of the information in such registration statement and to conduct appropriate due diligence in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) notify each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been declared effective or a supplement to any prospectus forming a part of such registration statement has been filed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) after such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or supplement such registration statement or prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) if the Company files an Automatic Shelf Registration Statement covering any Registrable Securities, use its commercially reasonable efforts to remain a WKSI (and not become an ineligible issuer (as defined in Rule 405 under the Securities Act)) during the period during which such Automatic Shelf Registration Statement is required to remain effective;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) if the Company does not pay the filing fee covering the Registrable Securities at the time an Automatic Shelf Registration Statement is filed, pay such fee at such time or times as the Registrable Securities are to be sold; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) if the Automatic Shelf Registration Statement has been outstanding for at least three (3) years, at the end of the third year, refile a new Automatic Shelf Registration Statement covering the Registrable Securities, and, if at any time when the Company is required to re-evaluate its WKSI status the Company determines that it is not a WKSI, use its commercially reasonable efforts to refile the Shelf Registration Statement on Form S-3 and, if such form is not available, Form S-1 and keep such registration statement effective during the period during which such registration statement is required to be kept effective.

In addition, the Company shall ensure that, at all times after any registration statement covering a public offering of securities of the Company under the Securities Act has become effective, its insider trading policy shall provide that the Company's directors may implement a trading program under Rule 10b5-1 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Furnish Information</u>. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this <u>Section</u> <u>2</u> with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as is reasonably required to effect the registration of such Holder's Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Expenses of Registration</u>. All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or qualifications pursuant to this <u>Section</u> <u>2</u>, including all registration, filing, and qualification fees; printers' and accounting fees; fees and disbursements of counsel for the Company; the reasonable fees and disbursements, not to exceed seventy-five thousand dollars ($75,000) per registration, of one counsel for the selling Holders (excluding the Key Holder requesting inclusion in such registration) selected by Holders of a majority of the Registrable Securities (excluding the Key Holder Registrable Securities) to be registered ("**Selling Holder Counsel**"); and the reasonable fees and disbursements, not to exceed seventy-five thousand dollars ($75,000) per registration, of one counsel for the selling Key Holders selected by Key Holders of a majority of the Key Holder Registrable Securities to be registered ("**Selling Key Holder Counsel**"), shall be borne and paid by the Company; <u>provided</u>, <u>however</u>, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to <u>Section</u> <u>2.1</u> if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all selling Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn registration), unless the Holders of a majority of the Registrable Securities to be registered agree to forfeit their right to registration pursuant to <u>Section</u> <u>2.1(a)</u> (or if they have no additional rights under <u>Section</u> <u>2.1(a)</u>, one registration under <u>Section</u> <u>2.1(b)</u>); <u>provided</u> <u>further</u> that if, at the time of such withdrawal, the selling Holders shall have learned of a material adverse change in the condition, business, or prospects of the Company from that known to the Holders at the time of their request and have withdrawn the request with reasonable promptness after learning

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of such information then the Holders shall not be required to pay any of such expenses and shall not forfeit their right to registration as provided above pursuant to <u>Section</u> <u>2.1(a)</u> or <u>2.1(b)</u>. All Selling Expenses relating to Registrable Securities registered pursuant to this <u>Section</u> <u>2</u> (other than fees and disbursements of counsel to any Holder, which shall be borne solely by the Holder engaging such counsel, other than the Selling Holder Counsel and the Selling Key Holder Counsel, which shall be borne as provided above) shall be borne and paid by the Holders pro rata on the basis of the number of Registrable Securities registered on their behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Delay of Registration</u>. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation of this <u>Section</u> <u>2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Indemnification</u>. If any Registrable Securities are included in a registration statement under this <u>Section</u> <u>2</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, and the partners, members, officers, directors, and stockholders of each such Holder; legal counsel and accountants for each such Holder; any underwriter (as defined in the Securities Act) for each such Holder; and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any Damages, and the Company will pay to each such Holder, underwriter, controlling Person, or other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; <u>provided</u>, <u>however</u>, that the indemnity agreement contained in this <u>Section</u> <u>2.8(a)</u> shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the Company be liable for any Damages to the extent that they arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of any such Holder, underwriter, controlling Person, or other aforementioned Person expressly for use in connection with such registration except to the extent such information has been corrected in a subsequent writing prior to or concurrently with the sale of Registrable Securities to the Person asserting the claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless the Company, and each of its directors, each of its officers who has signed the registration statement, each Person (if any), who controls the Company within the meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter (as defined in the Securities Act), any other Holder selling securities in such registration statement, and any controlling Person of any such underwriter or other Holder, against any Damages, in each case only to the extent that such Damages arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such selling Holder expressly for use in connection with such registration and has not been corrected in a subsequent writing prior to or concurrently with the sale of Registrable Securities to the Person asserting the claim; and each such selling Holder will pay to the Company and each other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; <u>provided</u>, <u>however</u>, that the indemnity agreement contained

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in this <u>Section</u> <u>2.8(b)</u> shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; and <u>provided</u> <u>further</u> that in no event shall the aggregate amounts payable by any Holder by way of indemnity or contribution under this <u>Section</u> <u>2.8(b)</u> and <u>Section</u> <u>2.8(d)</u> exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of fraud or willful misconduct by such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after receipt by an indemnified party under this <u>Section</u> <u>2.8</u> of notice of the commencement of any action (including any governmental action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this <u>Section</u> <u>2.8</u>, give the indemnifying party notice of the commencement thereof. The indemnifying party shall have the right to participate in such action and, to the extent the indemnifying party so desires, participate jointly with any other indemnifying party to which notice has been given, and to assume the defense thereof with counsel mutually satisfactory to the parties; <u>provided</u>, <u>however</u>, that an indemnified party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such action. The failure to give notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of any liability to the indemnified party under this <u>Section</u> <u>2.8</u>, only to the extent that such failure materially prejudices the indemnifying party's ability to defend such action. The failure to give notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this <u>Section</u> <u>2.8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To provide for just and equitable contribution to joint liability under the Securities Act in any case in which either: (i) any party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this <u>Section</u> <u>2.8</u> but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding the fact that this <u>Section</u> <u>2.8</u> provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any party hereto for which indemnification is provided under this <u>Section</u> <u>2.8</u>, then, and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of each of the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions that resulted in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates to information supplied by the indemnifying party or by the indemnified party and the parties' relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission; <u>provided</u>, <u>however</u>, that, in any such case (x) no Holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by such Holder pursuant to such registration statement, except in the case of willful misconduct or fraud by such

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Holder, and (y) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation; and <u>provided</u> <u>further</u> that in no event shall a Holder's liability pursuant to this <u>Section</u> <u>2.8(d)</u>, when combined with the amounts paid or payable by such Holder pursuant to <u>Section</u> <u>2.8(b)</u>, exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of willful misconduct or fraud by such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control; <u>provided</u>, <u>however</u>, that any matter expressly provided for or addressed by the foregoing provisions that is not expressly provided for or addressed by the underwriting agreement shall be controlled by the foregoing provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Unless otherwise superseded by an underwriting agreement entered into in connection with the underwritten public offering, the obligations of the Company and Holders under this <u>Section</u> <u>2.8</u> shall survive the completion of any offering of Registrable Securities in a registration under this <u>Section</u> <u>2</u>, and otherwise shall survive the termination of this Agreement or any provision(s) of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <u>Reports Under Exchange Act</u>. With a view to making available to the Holders the benefits of SEC Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) make and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144, at all times after the effective date of the registration statement filed by the Company for the IPO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) to the extent accurate, a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days after the effective date of the registration statement filed by the Company for the IPO), the Securities Act, and the Exchange Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after the Company so qualifies); (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company; and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration (at any time after the Company has become subject to the reporting requirements under the Exchange Act) or pursuant to Form S-3 (at any time after the Company so qualifies to use such form).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <u>Limitations on Subsequent Registration Rights</u>. From and after the date of this Agreement while any Registrable Securities remain outstanding, the Company shall not, nor shall it permit any of its subsidiaries to, without the prior written consent of the Holders (excluding the Key Holders) of fifty percent (50%) of the Registrable Securities (excluding the Key Holder Registrable Securities) then outstanding, enter into any agreement with any holder or prospective holder of any securities of the Company or its subsidiaries that would allow such holder or prospective holder to include such securities in any registration unless, under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that the inclusion of such securities will not reduce the maximum number of the Registrable Securities of the Holders that could otherwise be included pursuant to such a registration statement as contemplated herein; <u>provided</u> that this limitation shall not apply to Registrable Securities acquired by any additional Investor that becomes a party to this Agreement in accordance with <u>Section</u> <u>6.9</u> solely to the extent provided for in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 <u>Restrictions on Transfer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Preferred Stock and the Registrable Securities shall not be sold, pledged, or otherwise transferred, and the Company shall not recognize and shall issue stop-transfer instructions to its transfer agent with respect to any such sale, pledge, or transfer, except upon the conditions specified in this Agreement, which conditions are intended to ensure compliance with the provisions of the Securities Act and all other applicable U.S. laws and regulations. A transferring Holder will cause any proposed purchaser, pledgee, or transferee of the Preferred Stock and the Registrable Securities held by such Holder to agree to take and hold such securities subject to the provisions and upon the conditions specified in this Agreement. Notwithstanding the foregoing, the Company shall not require any transferee of shares pursuant to an effective registration statement or, following the IPO, SEC Rule 144, in each case, to be bound by the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each certificate, instrument, or book entry representing (i) the Preferred Stock, (ii) the Registrable Securities, and (iii) any other securities issued in respect of the securities referenced in <u>clauses (i)</u> and <u>(ii)</u>, upon any stock split, stock dividend, recapitalization, merger, consolidation, or similar event, shall (unless otherwise permitted by the provisions of <u>Section</u> <u>2.11(c)</u>) be notated with a legend substantially in the following form:

THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.

THE SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN INVESTORS' RIGHTS AGREEMENT BETWEEN THE COMPANY, THE STOCKHOLDER AND THE OTHER PARTIES THERETO, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

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The Holders consent to the Company making a notation in its records and giving instructions to any transfer agent of the Restricted Securities in order to implement the restrictions on transfer set forth in this <u>Section</u> <u>2.11</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The holder of such Restricted Securities, by acceptance of ownership thereof, agrees to comply in all respects with the provisions of this <u>Section</u> <u>2.11</u>. Before any proposed sale, pledge, or transfer of any Restricted Securities, unless there is in effect a registration statement under the Securities Act covering the proposed transaction or following the IPO, the transfer is made pursuant to SEC Rule 144, the Holder thereof shall give notice to the Company of such Holder's intention to effect such sale, pledge, or transfer. Each such notice shall describe the manner and circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the Company, shall be accompanied at such Holder's expense by either (i) a written opinion of legal counsel who shall, and whose legal opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction may be effected without registration under the Securities Act; (ii) a "no action" letter from the SEC to the effect that the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result in a recommendation by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel to the Company to the effect that the proposed sale, pledge, or transfer of the Restricted Securities may be effected without registration under the Securities Act, whereupon the Holder of such Restricted Securities shall be entitled to sell, pledge, or transfer such Restricted Securities in accordance with the terms of the notice given by the Holder to the Company. The Company will not require such a notice, legal opinion or "no action" letter (x) in any transaction in compliance with SEC Rule 144; or (y) in any transaction in which such Holder distributes Restricted Securities to an Affiliate of such Holder for no consideration; <u>provided</u> that each transferee agrees in writing to be subject to the terms of this <u>Section</u> <u>2.11</u>. Each certificate, instrument, or book entry representing the Restricted Securities transferred as above provided shall be notated with, except if such transfer is made pursuant to SEC Rule 144, the appropriate restrictive legend set forth in <u>Section</u> <u>2.11(b)</u>, except that such certificate instrument, or book entry shall not be notated with such restrictive legend if, in the opinion of counsel for such Holder and the Company, such legend is not required in order to establish compliance with any provisions of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 <u>Termination and Suspension of Registration Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The right of any Holder to request registration or inclusion of Registrable Securities in any registration pursuant to <u>Section</u> <u>2.1</u> or <u>2.2</u> shall terminate, as to such Holder, upon the earliest to occur of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the closing of a Deemed Liquidation Event in which the consideration received by the Investors in such Deemed Liquidation Event is in the form of cash and/or publicly traded securities, or if the Investors receive registration rights from the acquiring company or other successor to the Company reasonably comparable to those set forth in this <u>Section</u> <u>2</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such time after consummation of the IPO as SEC Rule 144 or another similar exemption under the Securities Act is available for the sale of all of such Holder's shares (x) during a three (3)-month period without registration and such Holder (together with its "affiliates" determined under SEC Rule 144) holds less than one percent (1%) of the outstanding capital stock of the Company; or (y) without the requirement for the Company to be in compliance with the current public information required under subsection (c)(1) of SEC Rule 144; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the fourth anniversary of the IPO (or such later date that is one hundred eighty (180) days following the expiration of all deferrals of the Company's obligations pursuant to <u>Section</u> <u>2</u> that remain in effect as of the third anniversary of the consummation of the IPO); <u>provided</u>, that the rights of a Key Holder pursuant to <u>Section</u> <u>2.1(c)</u>, <u>2.1(d)</u>, or <u>2.2</u> shall not terminate until the later of such date described above in this <u>Section</u> <u>2.12(a)(iii)</u> and the date that such Key Holder holds less than 25% of the Key Holder Registrable Securities held by such Key Holder as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The right of any Holder to request registration or inclusion of Registrable Securities in any registration pursuant to <u>Section</u> <u>2.1</u> or <u>2.2</u> shall be suspended during any time as such Holder is a Sanctioned Party.

3. <u>Information and Observer Rights.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Delivery of Financial Statements</u>. The Company shall deliver to each Major Investor, with respect to the Company and its subsidiaries (if any), <u>provided</u> that the Board of Directors has not reasonably determined that such Major Investor is a Competitor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As soon as practicable, but in any event within one hundred twenty (120) days after the end of each fiscal year of the Company, (i) a consolidated balance sheet as of the end of such year, (ii) consolidated statements of income and of cash flows for such year, and (iii) a consolidated statement of stockholders' equity as of the end of such year, all such financial statements audited and certified by independent public accountants of nationally recognized standing selected by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as soon as practicable, but in any event within ninety (90) days after the end of each quarter of each fiscal year of the Company, unaudited consolidated statements of income and cash flows for such fiscal quarter, and an unaudited consolidated balance sheet and a consolidated statement of stockholders' equity as of the end of such fiscal quarter, all prepared in accordance with GAAP (except that such financial statements may (i) be subject to normal year-end audit adjustments; and (ii) not contain all notes thereto that may be required in accordance with GAAP).

If, for any period, the Company has any subsidiary whose accounts are consolidated with those of the Company, then in respect of such period the financial statements delivered pursuant to the foregoing sections shall be the consolidated and consolidating financial statements of the Company and all such consolidated subsidiaries.

Notwithstanding anything else in this <u>Section</u> <u>3.1</u> to the contrary, the Company may cease providing the information set forth in this <u>Section</u> <u>3.1</u> during the period starting with the date sixty (60) days before the Company's good-faith estimate of the date of filing of a registration statement if it reasonably concludes, based on the advice of outside counsel, it must do so to comply with the SEC rules applicable to such registration statement and related offering; <u>provided</u> that the Company's covenants under this <u>Section</u> <u>3.1</u> shall be reinstated at such time as the Company is no longer actively employing its commercially reasonable efforts to cause such registration statement to become effective.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Inspection</u>. The Company shall permit, and shall cause each of its subsidiaries to permit, each Major Investor (<u>provided</u> that the Board of Directors has not reasonably determined that such Major Investor is a Competitor), at such Major Investor's expense, to visit and inspect the Company's and its subsidiaries' properties; examine its books of account and records; and discuss the Company's and its subsidiaries' affairs, finances, and accounts with its officers and other members of the Company's and its subsidiaries' management teams, during normal business hours of the Company or such subsidiary (as applicable) as may be reasonably requested by the Major Investor; <u>provided</u>, <u>however</u>, that none of the Company or any such subsidiary shall be obligated pursuant to this <u>Section</u> <u>3.2</u> to provide access to any information that the Company reasonably and in good faith considers to be a trade secret or the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Observer Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Commencing from the Series B Board Reduction Date (as defined in the Voting Agreement), the Company shall invite a representative designated by Prysm to attend all meetings of the Board of Directors in a nonvoting observer capacity (the "<u>Prysm Observer</u>") and, in this respect, shall give such representative copies of all notices, minutes, consents, and other materials that it provides to its directors at the same time and in the same manner as provided to such directors; <u>provided</u>, <u>however</u>, that such representative shall agree to hold in confidence all information so provided; and <u>provided further</u>, that the Company reserves the right to withhold any information and to exclude such representative from any meeting or portion thereof if (i) access to such information or attendance at such meeting would be reasonably likely to adversely affect the attorney-client privilege between the Company and its counsel or result in disclosure of trade secrets or a conflict of interest, (ii) Prysm or its representative is a Competitor or (iii) Prysm or its representative is a Sanctioned Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall invite two representatives designated by CSGC to attend all meetings of the Board of Directors in a nonvoting observer capacity and, in this respect, shall give such representatives copies of all notices, minutes, consents, and other materials that it provides to its directors at the same time and in the same manner as provided to such directors; <u>provided</u>, <u>however</u>, that such representatives shall agree to hold in confidence all information so provided; and <u>provided</u> <u>further</u>, that the Company reserves the right to withhold any information and to exclude such representatives from any meeting or portion thereof if access to such information or attendance at such meeting would be reasonably likely to adversely affect the attorney-client privilege between the Company and its counsel or result in disclosure of trade secrets or a conflict of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall invite a representative designated by Baillie Gifford to attend all meetings of the Board of Directors in a nonvoting observer capacity (together with the Prysm Observer, the "**Investor Observers**") and, in this respect, shall give such representative copies of all notices, minutes, consents, and other materials that it provides to its directors at the same time and in the same manner as provided to such directors; <u>provided</u>, <u>however</u>, that such representative shall agree to hold in confidence all information so provided; and <u>provided</u> <u>further</u>,

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that the Company reserves the right to withhold any information and to exclude such representative from any meeting or portion thereof if (i) access to such information or attendance at such meeting would be reasonably likely to adversely affect the attorney-client privilege between the Company and its counsel or result in disclosure of trade secrets or a conflict of interest, (ii) Baillie Gifford or its representative is a Competitor, (iii) Baillie Gifford or its representative is a FOIA Party or (iv) Baillie Gifford or its representative is a Sanctioned Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Termination of Information and Observer Rights</u>. The covenants set forth in <u>Section</u> <u>3.1</u> and <u>Section</u> <u>3.2</u> shall terminate and be of no further force or effect (a) immediately prior to the consummation of the IPO, (b) with respect to any Investor or Person that is or becomes a Sanctioned Party, for so long as such Investor or Person is a Sanctioned Party, (c) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act, or (d) upon the closing of a Deemed Liquidation Event whichever occurs first. The covenants set forth in <u>Section</u> <u>3.3(a)</u> shall terminate and be of no further force or effect upon the Series B Board Elimination Date (as defined in the Restated Certificate). The covenants set forth in <u>Section</u> <u>3.3(c)</u> shall terminate and be of no further force or effect upon the date that Baillie Gifford no longer holds, in the aggregate, more than fifty percent (50%) of the Registrable Securities held as of the date of the date hereof (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof). The covenants set forth in <u>Sections</u> <u>3.3(a)</u>, <u>3.3(b)</u> and <u>3.3(c)</u> shall terminate and be of no further force or effect (i) immediately prior to the consummation of the IPO or (ii) upon the closing of a Deemed Liquidation Event, whichever event occurs first; <u>provided</u> that, with respect to <u>clause (ii)</u>, the covenants set forth in <u>Section</u> <u>3.1</u> shall only terminate if the consideration received by the Investors in such Deemed Liquidation Event is in the form of cash and/or publicly traded securities or if the Investors receive financial information from the acquiring company or other successor to the Company comparable to those set forth in <u>Section</u> <u>3.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Confidentiality</u>. Each Investor agrees that such Investor will keep confidential and will not disclose, divulge, or use for any purpose (other than to monitor or make decisions with respect to its investment in the Company) any confidential information obtained from the Company and/or its subsidiaries (including notice of the Company's intention to file a registration statement), unless such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of this <u>Section</u> <u>3.5</u> by such Investor), (b) is or has been independently developed or conceived by such Investor without use of the Company's and/or its subsidiaries' confidential information, or (c) is or has been made known or disclosed to such Investor by a third party without a breach of any obligation of confidentiality such third party may have to the Company and/or its subsidiaries; <u>provided</u>, <u>however</u>, that an Investor may disclose confidential information (i) to its attorneys, accountants, consultants, and other professionals to the extent reasonably necessary to obtain their services in connection with monitoring its investment in the Company; (ii) to any prospective purchaser, other than a Competitor, of any Registrable Securities from such Investor, if such prospective purchaser agrees to be bound by the provisions of this <u>Section</u> <u>3.5</u>; (iii) to any existing or prospective Affiliate, partner, member, stockholder, or wholly owned subsidiary of such Investor in the ordinary course of business, <u>provided</u> that (x) such Person to whom disclosure is made is not a Competitor and (y) such Investor informs such Person that such information is confidential and directs such Person to maintain the confidentiality of such information; or (iv) as may otherwise be required by law, regulation, rule, court order or subpoena, <u>provided</u> that such Investor promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure.

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4. <u>Rights to Future Stock Issuances.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Right of First Offer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions of this <u>Section</u> <u>4.1</u> and applicable securities laws, if the Company and/or any of its subsidiaries proposes to offer or sell any New Securities, the Company shall, or shall cause its applicable subsidiary to, first offer such New Securities to each Major Investor and Key Holder. A Major Investor (or Key Holder, as applicable) shall be entitled to apportion the right of first offer hereby granted to it in such proportions as it deems appropriate, among (i) itself, (ii) its Affiliates and (iii) its beneficial interest holders, such as limited partners, members or any other Person having "beneficial ownership," as such term is defined in Rule 13d-3 promulgated under the Exchange Act, of such Major Investor and/or its Affiliates (or Key Holder and/or its Affiliates, as applicable) (whether in the case of a Major Investor or a Key Holder, as applicable, collectively, "**Investor Beneficial Owners**" and each, an "**Investor Beneficial Owner**"); <u>provided</u> that each such Affiliate or Investor Beneficial Owner (x) is not a Competitor or FOIA Party, unless such party's purchase of New Securities is otherwise consented to by the Board of Directors, (y) agrees to purchase at least 30% of such number of New Securities as are allocable hereunder to the Major Investor (or Key Holder, as applicable) that apportioned his, her or its right of first offer to such Affiliate or Investor Beneficial Owner and (z) enters into this Agreement and each of the Voting Agreement and Right of First Refusal and Co-Sale Agreement of even date herewith among the Company, the Investors and the other parties named therein, as an "**Investor**" under each such agreement, in each case, if not already a party thereto (<u>provided</u> that any Competitor or FOIA Party shall not be entitled to any rights as a Major Investor under <u>Sections</u> <u>3.1</u>, <u>3.2</u> and <u>4.1</u> hereof), and <u>provided</u> that the Company shall not be obligated to offer or sell any New Securities to any person or entity that is a Sanctioned Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall give notice (the "**Offer Notice**") to each Major Investor and Key Holder, stating (i) its or its subsidiary's bona fide intention to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon which it or its subsidiary proposes to offer such New Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) By notification to the Company within fifteen (15) days after the Offer Notice is given, each Major Investor and Key Holder may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New Securities which equals the proportion that the Common Stock then held by such Major Investor or Key Holder (including all shares of Common Stock then issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Series B Preferred Stock and any other Derivative Securities then held by such Major Investor or Key Holder) bears to the total Common Stock of the Company then outstanding (assuming full conversion and/or exercise, as applicable, of all Preferred Stock and any other Derivative Securities then outstanding). At the expiration of such fifteen (15) day period, the Company shall promptly notify each Major Investor and Key Holder that elects to purchase or acquire all the shares available to it (each, a "**Fully Exercising Investor**") of any other Major Investor's and/or Key Holder's failure to do likewise. During the ten (10) day period commencing after the Company has given such notice, each Fully Exercising Investor may,

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by giving notice to the Company, elect to purchase or acquire, in addition to the number of shares specified above, up to that portion of the New Securities for which Major Investors and Key Holders were entitled to subscribe but that were not subscribed for by the Major Investors and Key Holders which is equal to the proportion that the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of Preferred Stock and any other Derivative Securities then held, by such Fully Exercising Investor bears to the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Series B Preferred Stock and any other Derivative Securities then held, by all Fully Exercising Investors who wish to purchase such unsubscribed shares. The closing of any sale pursuant to this <u>Section</u> <u>4.1(c)</u> shall occur within the later of ninety (90) days of the date that the Offer Notice is given and the date of initial sale of New Securities pursuant to <u>Section</u> <u>4.1(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in <u>Section</u> <u>4.1(c)</u>, the Company or its subsidiary (as applicable) may, during the ninety (90) day period following the expiration of the periods provided in <u>Section</u> <u>4.1(c)</u>, offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company or its subsidiary (as applicable) does not enter into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within forty five (45) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Major Investors and Key Holders in accordance with this <u>Section</u> <u>4.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The right of first offer in this <u>Section</u> <u>4.1</u> shall not be applicable to (i) Exempted Securities; (ii) shares of Common Stock issued in the IPO; or (iii) the issuance of Series C Preferred Stock to Additional Purchasers pursuant to Section 1.3 of the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding any provision hereof to the contrary, in lieu of complying with the provisions of this <u>Section</u> <u>4.1</u>, the Company may elect to give notice to the Major Investors and Key Holders within thirty (30) days after the issuance of New Securities. Such notice shall describe the type, price, and terms of the New Securities. Each Major Investor and Key Holder shall have twenty (20) days from the date notice is given to elect to purchase up to the number of New Securities that would, if purchased by such Major Investor or Key Holder, maintain such Major Investor's or Key Holder's (as applicable) percentage-ownership position, calculated as set forth in <u>Section</u> <u>4.1(c)</u> before giving effect to the issuance of such New Securities. Notwithstanding anything in this <u>Section</u> <u>4.1(f)</u> or otherwise to the contrary, should such Major Investor or Key Holder elect to purchase such New Securities, such Major Investor or Key Holder (as applicable) shall be entitled to retroactively receive the economics with respect to such New Securities accruing from and after the date of the initial issuance, and the Company will pay (subject to any appropriate withholding) the amount of any dividends, distributions and/or liquidation amounts that the Major Investor or Key Holder (as applicable) would have received (if any) had it exercised its right of first offer pursuant to this <u>Section</u> <u>4.1</u> in full on the date of such issuance, until the date that such Major Investor or Key Holder (as applicable) has actually received such New Securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding any provision hereof to the contrary, if a Person other than the Company is issuing New Securities, the Company may cause each Major Investor and Key Holder to hold such New Securities indirectly through a security interest in the Company and such purchase shall be effected by way of a cash contribution by such Major Investor and Key Holder to the Company of the applicable purchase price contemplated above, and the Company shall immediately (i) use such contribution to purchase such number of New Securities as is elected by such Major Investor and Key Holder in accordance with this <u>Section</u> <u>4.1</u> and (ii) issue additional security interests of the Company to such Major Investor and Key Holder in respect thereof. The intent of this <u>Section</u> <u>4.1(g)</u> is to provide such Major Investor and Key Holder the benefit of any economic rights in respect of any New Securities indirectly issued by way of the cash contributed to the Company by such Major Investor and Key Holder, including, without limitation, to the extent such economic rights result in dividends, distributions and/or liquidation amounts actually paid to holders of New Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Termination</u>. The covenants set forth in <u>Section</u> <u>4.1</u> shall terminate and be of no further force or effect (i) immediately prior to the consummation of the IPO, or (ii) upon the closing of a Deemed Liquidation Event in which the consideration received by the Investors in such Deemed Liquidation Event is in the form of cash and/or publicly traded securities, or if the Investors receive participation rights from the acquiring company or other successor to the Company reasonably comparable to those set forth in this <u>Section</u> <u>4</u>, whichever event occurs first.

5. <u>Additional Covenants.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Insurance</u>. The Company shall maintain from financially sound and reputable insurers Directors and Officers liability insurance, in an amount and on terms and conditions satisfactory to the Board of Directors, and will cause such insurance policies (or an equivalent or better renewal or replacement policy) to be maintained until such time as the Board of Directors (including, for as long as there is a Preferred Director, at least one (1) Preferred Director) determines that such insurance should be discontinued. Such insurance shall not be cancelable by the Company without prior approval by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Employee Agreements</u>. Unless otherwise approved by the Board of Directors, including the approval of at least one (1) Preferred Director, the Company shall cause (a) each Person now or hereafter employed by it or by any of its subsidiaries (or engaged by the Company and/or any of its subsidiaries as an individual consultant/independent contractor who provides services to the Company, its subsidiaries or its affiliates as its primary occupation) with access to confidential information and/or trade secrets to enter into a nondisclosure and proprietary rights assignment agreement, and (b) each Key Employee to enter into a noncompetition and nonsolicitation agreement designed with the advice of counsel. In addition, the Company shall not, nor shall it permit any of its subsidiaries to, enter into, amend, modify, terminate, waive, or otherwise alter, in whole or in part, any of the above-referenced agreements and/or any employment agreement or any restricted stock agreement between the Company and/or any of its subsidiaries and any Key Employee without the consent of the Board of Directors, including the approval of at least one (1) Preferred Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Employee Stock</u>. Unless otherwise approved by the Board of Directors, including the approval of at least one (1) Preferred Director, the Company shall not, and shall not permit any of its subsidiaries to, offer or allow any acceleration of vesting of incentive awards representing 300,000 or more shares per grantee or related grantees.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Expenses of Counsel</u>. In the event of a transaction which is a Sale of the Company (as defined in the Voting Agreement), the reasonable fees and disbursements, not to exceed $100,000, of one counsel for the Major Investors, in their capacities as stockholders, shall be borne and paid by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Board Matters</u>. The Company shall reimburse each Investor Observer and the directors that are not employees of the Company or any of its subsidiaries for all reasonable out-of-pocket travel expenses incurred (consistent with the Company's travel policy) in connection with attending meetings of the Board of Directors. The Company shall consider causing the Board of Directors to establish and maintain an audit and compensation committee. In the event that the Board of Directors establishes committees of the Board of Directors, the Preferred Directors shall, collectively, be entitled to proportionate representation on such committees (and in no event less than one Preferred Director on each such committee for so long as there is at least one Preferred Director).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Successor Indemnification</u>. If the Company or any of its successors or assignees transfers all or substantially all of its assets to any other Person or consolidates with or merges into any other Person and is not the continuing or surviving corporation or entity of such consolidation or merger, then to the extent necessary, proper provision shall be made so that the transferees, successors and assignees of the Company assume the obligations of the Company with respect to indemnification of members of the Board of Directors as in effect immediately prior to such transaction, whether such obligations are contained in the Company's Bylaws, the Restated Certificate, or elsewhere, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Matters Requiring Consent of Prysm</u> <u>Capital, LLC</u>. Notwithstanding anything to the contrary in this Agreement or otherwise, for so long as any Registrable Securities (other than Key Holder Registrable Securities) are held by the Investors and for so long as Prysm holds at least 4,491,018 shares of Series B Preferred Stock (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof), the Company shall not enter into or otherwise permit any amendment or other modification to the Perpetual Preferred RRA entered into as of October 20, 2021 if such amendment or modification would adversely affect the rights of the holders of Registrable Securities (other than Key Holder Registrable Securities), without first obtaining the consent of Prysm Capital, LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Indemnification Matters</u>. The Company hereby acknowledges that one (1) or more of the Preferred Directors nominated to serve on the Board of Directors by one (1) or more Investors may have certain rights to indemnification, advancement of expenses and/or insurance provided by one (1) or more of the Investors and certain of their Affiliates (collectively, the "**Investor Indemnitors**"). The Company hereby agrees (a) that it is the indemnitor of first resort (*i.e.*, its obligations to any such Preferred Director are primary and any obligation of the Investor Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by such Preferred Director are secondary), (b) that it shall be required to advance the full amount of expenses incurred by such Preferred Director and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement by or on behalf of any such Preferred Director to the extent legally permitted and as required by the Restated Certificate or the Company's Bylaws (or any agreement between the Company and such Preferred Director), without regard to any rights such Preferred Director may have against the Investor Indemnitors,

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and, (c) that it irrevocably waives, relinquishes and releases the Investor Indemnitors from any and all claims against the Investor Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof. The Company further agrees that no advancement or payment by the Investor Indemnitors on behalf of any such Preferred Director with respect to any claim for which such Preferred Director has sought indemnification from the Company shall affect the foregoing and the Investor Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of such Preferred Director against the Company. The Preferred Directors and the Investor Indemnitors are intended third-party beneficiaries of this <u>Section</u> <u>5.8</u> and shall have the right, power and authority to enforce the provisions of this <u>Section</u> <u>5.8</u> as though they were a party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <u>Right to Conduct Activities</u>. The Company hereby agrees and acknowledges that each of Prysm, CSGC and Baillie Gifford (together with their respective Affiliates and/or shareholders, an "**Institutional Holder**") is a professional investment organization, and as such reviews the business plans and related proprietary information of many enterprises, some of which may compete directly or indirectly with the Company's and its subsidiaries' businesses (as currently conducted or as currently propose to be conducted). Nothing in this Agreement shall preclude or in any way restrict an Institutional Holder from evaluating or purchasing securities, including publicly traded securities, of a particular enterprise, or investing or participating in any particular enterprise whether or not such enterprise has products or services which compete with those of the Company and/or its subsidiaries; and the Company hereby agrees that, to the extent permitted under applicable law, an Institutional Holder shall not be liable to the Company or any other Person for any claim arising out of, or based upon, (a) the investment by an Institutional Holder in any Competitor or (b) actions taken by any partner, officer, employee or other representative of an Institutional Holder to assist any such Competitor, whether or not such action has a detrimental effect on the Company and/or its subsidiaries; <u>provided</u>, <u>however</u>, that an Institutional Holder shall not be permitted to be, or designate, a member of the board of directors of any such Competitor unless any director(s) of the Company designated by such Institutional Investor resign(s) from their positions on the Board of Directors or the board of directors of any of the Company's subsidiaries; and <u>further</u> <u>provided</u>, <u>however</u>, that the foregoing shall not relieve (x) any Institutional Investor from liability associated with the unauthorized disclosure of the Company's and/or its subsidiaries' confidential information obtained pursuant to this Agreement, or (y) any director or officer of the Company from any liability associated with his or her fiduciary duties to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <u>Preferred Stock Tax Matters</u>. For U.S. federal income and applicable state and local income tax purposes, the Investors and Company agree that (a) the Preferred Stock shall be treated as equity (and not indebtedness) and as participating in corporate growth to a significant extent and not as "preferred stock" (within the meaning of Treasury Regulations Section 1.305-5(a)), and (b) the holders of the Preferred Stock will not be deemed to receive a taxable dividend unless either (i) they actually receive cash or property treated as distributed by the Company out of current or accumulated earnings and profits; or (ii) holders of another class of equity receive cash or property treated as paid out of current or accumulated earnings and profits and the holders of the Preferred Stock receive stock or there is an adjustment to the conversion ratio of the Preferred Stock. The Investors and Company shall take all actions consistent with the foregoing tax treatment, including the filing of all applicable tax returns and in connection with any tax audit, investigation, examination or other proceeding. In the event that there is a distribution of cash or other property

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by the Company in respect of the Preferred Stock, the Company shall cooperate with the Investors to provide any tax information reasonably requested by them, including, but not limited to, calculations of current and accumulated earnings and profits for U.S. federal income tax purposes. Notwithstanding anything to the contrary in this Agreement, this <u>Section</u> <u>5.10</u> shall survive until the expiration of the applicable statute of limitations for assessment (plus any extensions) with respect to any applicable tax returns on which such intended tax treatment is reported or required to be reported.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <u>Termination of Covenants</u>. The covenants set forth in this <u>Section</u> <u>5</u>, except for Section <u>5.6</u>, <u>5.7</u> and <u>5.8</u>, shall terminate and be of no further force or effect (a) immediately prior to the consummation of the IPO or (b) upon a Deemed Liquidation Event, whichever event occurs first. Notwithstanding the foregoing, the aforementioned covenants will be no further force or effect with respect to any obligation to an Investor that is or becomes a Sanctioned Party, for so long as such Holder is a Sanctioned Party.

6. <u>Miscellaneous.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Successors and Assigns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The rights under this Agreement may be assigned (but only with all related obligations) by a Holder to a transferee of Registrable Securities that (i) is an Affiliate of a Holder; (ii) is a Holder's Immediate Family Member or trust for the benefit of an individual Holder or one (1) or more of such Holder's Immediate Family Members; or (iii) after such transfer, together with its Affiliates, would be a Major Investor; <u>provided</u>, <u>however</u>, that (A) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee and the Registrable Securities with respect to which such rights are being transferred; (B) such transferee agrees in a written instrument delivered to the Company to be bound by and subject to the terms and conditions of this Agreement, including the provisions of <u>Section</u> <u>2.11</u><u>; and</u> (C) such assignee is not a Sanctioned Party. For the purposes of determining the number of shares of Registrable Securities held by a transferee, the holdings of a transferee (1) that is an Affiliate or stockholder of a Holder; (2) who is a Holder's Immediate Family Member; or (3) that is a trust for the benefit of an individual Holder or such Holder's Immediate Family Member shall be aggregated together and with those of the transferring Holder; <u>provided</u> <u>further</u> that all transferees who would not qualify individually for assignment of rights shall, as a condition to the applicable transfer, establish a single attorney-in-fact for the purpose of exercising any rights, receiving notices, or taking any action under this Agreement. The terms and conditions of this Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein. Any successor or permitted assignee of any Key Holder that is not a party to this Agreement, including any transferee who purchases or otherwise acquires a Key Holder's Key Holder Registrable Securities, shall deliver to the Company, the Investors and the Key Holders, as a condition to any transfer or assignment, a counterpart signature page hereto pursuant to which such successor or permitted assignee shall confirm their agreement to be subject to and bound by all of the provisions set forth in this Agreement that were applicable to the predecessor or assignor of such successor or permitted assignee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Governing Law</u>. This Agreement and all claims and controversies arising out of or otherwise related to this Agreement shall be governed by and construed in accordance with the internal law of the State of Delaware (including its statute of limitations), without regard to conflict of law principles or other rules that would result in the application of any law or statute of limitations other than the law and statute of limitations of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Counterparts</u>. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, *e.g.*, www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Titles and Subtitles</u>. The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing (including electronic mail as permitted in this Agreement) and shall be deemed effectively given upon the earlier of actual receipt or (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail during the recipient's normal business hours, and if not sent during normal business hours, then on the recipient's next business day; or (iii) upon delivery by a nationally recognized overnight courier, freight prepaid, with written verification of receipt. All communications shall be sent to the respective parties at their addresses as set forth on <u>Schedule A</u> or <u>Schedule B</u> (as applicable) hereto, or as to the Company to the principal office of the Company and to the attention of the Chief Executive Officer, or in any case to such email address or address as subsequently modified by written notice given in accordance with this <u>Section</u> <u>6.5</u>. If notice is given to the Company, a copy (which copy shall not constitute notice) shall also be sent to 4 World Trade Center, 150 Greenwich Street, 45th Floor, New York, NY 10007, Attention: Kenneth A. Sicklick, Esq. and an e-mail shall be sent to legal@clearstreet.io, and if notice is given to Investors, a copy (which copy shall not constitute notice) shall also be given to such Investor's counsel that appears with such Investor's name on <u>Schedule A</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consent to Electronic Notice</u>. Each party to this Agreement consents to the delivery of any stockholder notice pursuant to the Delaware General Corporation Law (the "**DGCL**"), as amended or superseded from time to time, by electronic mail pursuant to Section 232 of the DGCL (or any successor thereto) at the electronic mail address set forth below such party's name on the Schedules hereto, as updated from time to time by notice to the Company, or as on the books of the Company. To the extent that any notice given by means of electronic mail is returned or is undeliverable for any reason, the foregoing consent shall be deemed to have been revoked until a new or corrected electronic mail address has been provided, and such attempted electronic notice shall be ineffective and deemed to not have been given. Each party to this Agreement agrees to promptly notify the Company of any change in such stockholder's electronic mail address, and that failure to do so shall not affect the foregoing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Amendments and Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any term of this Agreement may be amended, modified or terminated and the observance of any term of this Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Company and the holders of at least a majority of the Registrable Securities then outstanding; <u>provided</u> that the Company may in its sole discretion waive compliance with <u>Section</u> <u>2.11(c)</u> (and the Company's failure to object promptly in writing after notification of a proposed assignment allegedly in violation of <u>Section</u> <u>2.11(c)</u> shall be deemed to be a waiver); and <u>provided</u> <u>further</u> that any provision hereof may be waived by any waiving party on such party's own behalf, without the consent of any other party. For the avoidance of doubt, for purposes of this <u>Section</u> <u>6.6</u>, Registrable Securities shall not include any shares held by a person or entity that is a Sanctioned Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything in this Agreement to the contrary, (i) this Agreement may not be amended, modified or terminated and the observance of any term hereof may not be waived with respect to any Investor without the written consent of (A) such Investor, unless such amendment, modification, termination, or waiver applies to all Investors in the same fashion (it being agreed that a waiver of the provisions of <u>Section</u> <u>4</u> with respect to a particular transaction shall be deemed to apply to all Investors in the same fashion if such waiver does so by its terms, notwithstanding the fact that certain Investors may nonetheless, by agreement with the Company, purchase securities in such transaction), (B) the Series B Requisite Holders, if such amendment, modification, waiver or termination would adversely alter the rights, preferences, privileges or obligations of a holder or holders of Series B Preferred Stock, (C) Prysm, if such amendment, modification, termination, or waiver amends, modifies, waives or otherwise terminates any rights hereunder specific or providing a right to a Preferred Director or Prysm (including any definitions used herein and applicable thereto), (D) the Series C Requisite Holders (as defined in the Restated Certificate) if such amendment, modification, waiver or termination would adversely alter the rights, preferences, privileges or obligations of a holder or holders of Series C Preferred Stock in a manner disproportionate to any adverse effect such amendment, modification, termination or waiver would have on the rights of a holder or holders of Series B Preferred Stock hereunder (to the extent such holder or holders of Series B Preferred Stock hold the same rights), and (E) Baillie Gifford, if such amendment, modification, termination, or waiver amends, modifies, waives or otherwise terminates any rights hereunder specific or providing a right to Baillie Gifford (including any definitions used herein and applicable thereto), and (ii) <u>Sections</u> <u>3.1</u><u>,</u> <u>3.2</u>, <u>4</u> and any other section of this Agreement applicable to the Major Investors (including this Section 6.6(b)) may be amended, modified, terminated or waived with only the written consent of the Company and the holders of at least a majority of the Registrable Securities then outstanding and held by the Major Investors. Further, this Agreement may not be amended, modified or terminated, and no provision hereof may be waived, in each case, in any way which would adversely affect the rights of the Key Holders hereunder in a manner disproportionate to any adverse effect such amendment, modification, termination or waiver would have on the rights of the Investors hereunder (to the extent such Key Holders and Investors hold the same rights), without also the written consent of the holders of at least a majority of the Registrable Securities held by the Key Holders. Notwithstanding the foregoing, <u>Schedule A</u> or <u>Schedule</u> B, as the case

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may be, hereto may be amended by the Company from time to time to add transferees of any Registrable Securities in compliance with the terms of this Agreement without the consent of the other parties; and <u>Schedule A</u> hereto may also be amended by the Company after the date of this Agreement without the consent of the other parties to add information regarding any additional Investor who becomes a party to this Agreement in accordance with <u>Section</u> <u>6.9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall give prompt written notice of any amendment, modification or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, modification, termination, or waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any amendment, modification, termination, or waiver effected in accordance with this <u>Section</u> <u>6.6</u> shall be binding on all parties hereto, regardless of whether any such party has consented thereto or received notice thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one (1) or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term, condition, or provision. Notwithstanding anything herein to the contrary, any provision hereof may be waived by any waiving party solely on such party's own behalf, without the consent of any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Severability; Interpretation</u>. In case any one (1) or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent permitted by law. For purposes of this Agreement, the term "subsidiary" shall be deemed to include each direct and indirect subsidiary of the Company. To the extent of any conflict between this Agreement and the Perpetual Preferred RRA with respect to the rights, obligations and limitations of the Series A Perpetual Preferred and Perpetual Preferred Holders set forth in the Perpetual Preferred RRA, the Perpetual Preferred RRA will control but solely with respect to the Series A Perpetual Preferred and Perpetual Preferred Holders and not, for the avoidance of doubt, the Investors, Key Holders or the Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Aggregation of Stock; Apportionment</u>. All shares of Registrable Securities held or acquired by Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement and such Affiliates may apportion such rights as among themselves in any manner they deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <u>Additional Investors</u>. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of Series C Preferred Stock after the date hereof, pursuant to the Purchase Agreement, any purchaser of such shares of Series C Preferred Stock may become a party to this Agreement by executing and delivering a counterpart signature page to this Agreement, and thereafter shall be deemed an "Investor" for all purposes hereunder. No action or consent by the Investors shall be required for such joinder to this Agreement by such additional Investor, so long as such additional Investor has agreed in writing to be bound by all of the obligations as an "Investor" hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 <u>Entire Agreement; Circumvention</u>. This Agreement (including any Schedules hereto) together with the other Transaction Agreements (as defined in the Purchase Agreement) constitute the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <u>Dispute Resolution</u>. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of New York and to the jurisdiction of the United States District Court for the Southern District of New York for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of New York or the United States District Court for the Southern District of New York, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 <u>WAIVER OF JURY TRIAL</u>: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION AGREEMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

Each party will bear its own costs in respect of any disputes arising under this Agreement. Each of the parties to this Agreement consents to personal jurisdiction for any equitable action sought in the U.S. District Court for the Southern District of New York or any court of the State of New York having subject matter jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 <u>Delays or Omissions</u>. No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or non-defaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties have executed this Investors' Rights Agreement as of the date first written above.

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| | |
|:---|:---|
| **COMPANY:**<br>**CLEAR STREET GROUP INC.** | **COMPANY:**<br>**CLEAR STREET GROUP INC.** |
| By: | /s/ Ed Tilly |
|  Name: | Ed Tilly |
|  Title: | President |

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| | |
|:---|:---|
| **KEY HOLDER:**<br>**CLEAR STREET GLOBAL CORP.** | **KEY HOLDER:**<br>**CLEAR STREET GLOBAL CORP.** |
| By: | /s/ Uriel Cohen |
|  Name: | Uriel Cohen |
|  Title: | President |

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SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

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IN WITNESS WHEREOF, the parties have executed this Investors' Rights Agreement as of the date first written above.

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| |
|:---|
| **INVESTOR:** |
| By: |
| Name: |
| Title: |

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SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

## Exhibit 10.20

**Exhibit 10.20** 

**LOAN AUTHORIZATION AGREEMENT** 

This Loan Authorization Agreement (the *"Agreement"*) is dated as of November 12, 2024, between CLEAR STREET LLC, a Delaware limited liability company (*"Borrower"*), and BMO BANK N.A. (*"Bank"*). The Borrower has applied for, and the Bank has approved the establishment of, a loan account (*"Loan Account"*) from which the Borrower may from time to time request loans in the aggregate amount of credit shown below (the *"Maximum Credit"*). This Agreement, and the Loan Account established hereunder, represents an uncommitted credit facility, and each Loan (as hereinafter defined) is made available to the Borrower subject to the Bank's approval on a loan-by-loan basis as and when such Loan is requested by the Borrower. The Borrower may make principal payments at any time and in any amount. The request by the Borrower for, and the making by the Bank of, any loan against the Loan Account shall constitute an agreement between the Borrower and the Bank as follows:

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| | | |
|:---|:---|:---|
| Type of Loan Account: | X | Revolving, which means as principal is repaid, the Borrower may reborrow subject to this Agreement. |
| Amount of Maximum Credit: |  | $200000000.00 |
| Each Loan Requested Shall Be At Least: |  | $500000 |

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Maturity Date: The Loan Account terminates, and Loans are payable, ON DEMAND.

*Section 1. Using the Account.* All loans and advances from the Loan Account are referred to in this Agreement as *"Loans"*. The Borrower shall give the Bank an executed Notice of Borrowing (which notice shall be irrevocable once given) by no later than 3:30 p.m. (Chicago time) on the date the Borrower requests the Bank to make a Loan hereunder. Each such notice shall specify the date of the Loan requested (which must be a Business Day) and the amount of such Loan. The Borrower agrees that the Bank may rely upon any written notice given by any person the Bank in good faith believes is an Authorized Representative without the necessity of independent investigation. The proceeds of such Loan shall be made available to the Borrower at the principal office of the Bank in Chicago, Illinois, in immediately available funds by deposit to the Settlement Account or as otherwise agreed upon by the Borrower and the Bank.

The amount of each Loan requested shall be at least the minimum amount shown above; and the Bank shall have the right to refuse to honor any Loan requested by the Borrower, even if the Bank has previously honored a Loan. Without limiting the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Borrower shall not request any Loan if, giving effect to such Loan, the aggregate principal amount of Loans then outstanding shall exceed the Maximum Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower shall not request any Margin Loan if, giving effect to such Margin Loan, the aggregate principal amount of Margin Loans then outstanding shall exceed the Margin Borrowing Base, as then determined and computed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Borrower shall not request any Clearinghouse Margin Loan if, giving effect to such Clearinghouse Margin Loan, the aggregate principal amount of Clearinghouse Margin Loans then outstanding shall exceed the lesser of (i) the Clearinghouse Borrowing Base, as then determined and computed and (ii) the Applicable Sublimit;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Borrower shall not request any Clearinghouse Margin Loan or Overnight Loan if, giving effect to such Clearinghouse Margin Loan or Overnight Loan, the aggregate principal amount of the Clearinghouse Margin Loans and Overnight Loans then outstanding shall exceed the Applicable Sublimit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Borrower shall not request any Overnight Loan if, giving effect to such Overnight Loan, the aggregate principal amount of the Overnight Loans then outstanding shall exceed the Applicable Sublimit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Borrower shall not request a Clearinghouse Margin Loan or an Overnight Loan during any calendar month if such Clearinghouse Margin Loan or Overnight Loan would cause the number of Zero Loan Days during such calendar month to be less than eight (8).

All Loans shall be made against and evidenced by the Borrower's promissory note payable to the order of the Bank in the principal amount of $200,000,000, such note to be in the form of Exhibit A attached hereto (the *"Note"*). The Bank agrees that, notwithstanding the principal amount of the Note stated on its face, the Note shall evidence only the actual unpaid principal balance of Loans made under the Loan Account. The Borrower agrees that in any action or proceeding instituted to collect or enforce collection of the Note, the amount shown as owing the Bank on its records shall be *prima facie* evidence of the unpaid balance of principal and interest on the Note.

*Section 2. Interest.* The outstanding principal balance of the Loans shall bear interest (which the Borrower hereby promises to pay) at the Applicable Interest Rate, *provided* that if the Loans or any part thereof are not paid when due (whether by demand or otherwise), the Loans shall bear interest, whether before or after judgment, until payment in full thereof at the rate per annum determined by adding 2.0% to the interest rate which would otherwise be applicable thereto. Interest on the Loans shall be payable monthly in arrears on the last day of each calendar month in each year; and interest shall also be due and payable upon demand. Interest on the Loans shall be computed on the basis of a year of 360 days for the actual number of days elapsed. The interest rate payable under this Agreement shall be subject, however, to the limitation that such interest rate shall never exceed the highest rate that the Borrower may contract to pay under applicable law.

*Section 3. Fees.* For the period from and including the date hereof to but not including the date that the Loan Account is terminated, the Borrower shall pay to the Bank a facility fee at the rate of one eighth of one percent (0.125%) per annum (computed on the basis of a year of 360 days for the actual number of days elapsed) on the amount (calculated on a daily basis) equal to the amount of the Maximum Credit less the Loans outstanding on each such date. Such facility fee shall be payable quarterly in arrears on the last day of each March, June, September and December in each year (commencing on December 31, 2024) and on the date that the Loan Account has been terminated and all Loans have been paid in full.

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*Section 4. Payments.* All payments shall be made to the Bank at its office at 320 South Canal Street, Chicago, Illinois (or at such other place as the Bank may specify) no later than 3:30 p.m. (Chicago time) on the date any such payment is due and payable. All such payments shall be made in lawful money of the United States of America, in immediately available funds at the place of payment, without set-off or counterclaim and without reduction for, and free from, any and all present or future taxes, levies, imposts, duties, fees, charges, deductions, withholdings, restrictions, and conditions of any nature imposed by any government or any political subdivision or taxing authority thereof (but excluding any taxes imposed on or measured by the net income of the Bank). The Borrower hereby irrevocably authorizes the Bank to charge from time to time any of the Borrower's deposit accounts with the Bank and/or make Loans from time to time hereunder, in each case for payment of any amounts then due and payable hereunder (whether for interest then due or otherwise); *provided* that the Bank shall not be under any obligation to charge any such deposit account or make any such Loan, and the Bank shall incur no liability to the Borrower or any other person or entity for its failure to do so. Payments received by the Bank shall be applied first to accrued interest then due and then to the principal balance of outstanding Loans unless otherwise directed, *provided* that after demand all payments received shall be applied in such order and manner as the Bank shall determine. If any payment from the Borrower under this Agreement becomes due on a day that is not a Business Day, such payment shall be made on the next Business Day and any such extension shall be included in computing interest under this Agreement.

*Section 5. Representation and Warranties.* In consideration of establishing and maintaining the Loan Account, the Borrower hereby represents and warrants to the Bank on the date of this Agreement, and on each date that credit is to be extended hereunder, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Borrower is duly organized, validly existing, and in good standing under the laws of its state of organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the execution, delivery, and performance by the Borrower of this Agreement and the Note are within its powers, have been duly authorized by all necessary action, and do not contravene the Borrower's organizational documents (*e.g.,* charter, articles of incorporation and by-laws, articles of association and operating agreement, partnership agreement or any similar organizational documents) or any law or contractual restriction binding on or affecting the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the Borrower's due execution, delivery, and performance of this Agreement or the Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) this Agreement is, and the Note when executed and delivered by the Borrower will be, the Borrower's legal, valid, and binding obligation enforceable against the Borrower in accordance with its terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Borrower's balance sheet as of September 30, 2024 the Borrower's FOCUS Part 2 as at September 30, 2024, and the Borrower's related statements of income and retained earnings for the fiscal year and the fiscal quarter then ended, copies of which have been furnished to the Bank, fairly present Borrower's financial condition as at such date and result of the operations for the period ending on such date, all in accordance with GAAP consistently applied;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) since December 31, 2023, there has been no material adverse change in the Borrower's condition or operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Borrower (i) has been duly registered with the SEC as a registered broker dealer, is approved as a clearing corporation of DTC and the National Securities Clearing Corporation, (ii) is an "exempted borrower" within the meaning of Regulation U of the Board of Governors of the Federal Reserve System, and (iii) is excluded as a "Legal Entity Customer" for purposes of the beneficial ownership rule under 31 CFR 1010.230;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all regulatory approvals necessary for the execution and delivery by the Borrower of this Agreement and the other Loan Documents have been obtained and are in full force and effect. The Borrower is not in arrears with respect to any assessment made upon it by the SIPC, and no application or announcement has been made by the SIPC for a decree adjudicating that customers of the Borrower are in need of protection under SIPA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Financial Industry Regulatory Authority (*"FINRA"*) has been designated as the Designated Examining Authority for the Borrower, and the Borrower's Designated Self-Regulatory Organizations are FINRA, the New York Stock Exchange, the National Futures Association, and CME Group, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) there is no pending or threatened action or proceeding affecting the Borrower before any court, governmental agency or arbitrator, which, if adversely determined, would reasonably be expected to have a material adverse effect on the Borrower's financial condition or operations or which purports to affect the legality, validity, or enforceability of this Agreement or the Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) none of the Borrower, any of its subsidiaries (if any) or, to the knowledge of the Borrower, any director, officer, employee, agent, or affiliate of the Borrower or any of its subsidiaries is an individual or entity (*"Person"*) that is, or is owned or controlled by Persons that are (i) the subject or target of any sanctions administered or enforced by the U.S. Department of the Treasury's Office of Foreign Assets Control, the U.S. Department of State or other relevant sanctions authority (collectively, *"Sanctions"*), or (ii) located, organized or resident in a country or territory that is, or whose government is, the subject of Sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the information included in the most recent beneficial ownership certification executed and delivered by the Borrower to the Bank for the purposes of the Bank's compliance with applicable anti-money laundering laws, rules and regulations is true and correct in all respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) no Termination Event shall have occurred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) after giving effect to any such Clearinghouse Margin Loan or Overnight Loan, the number of Zero Loan Days during the current calendar month shall not be less than eight (8); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) the Borrower has not failed to be in compliance with the capital requirements of the SEC for a period of more than five (5) Business Days.

*Section 6. Additional Terms.* So long as this Agreement and the Loan Account established hereunder remain in effect, the Borrower further agrees with the Bank as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Financial Information.* The Borrower shall maintain a standard system of accounting in accordance with GAAP and shall furnish to Bank and its duly authorized representatives such information respecting the Borrower's business and financial condition as the Bank may reasonably request; and without any request, the Borrower shall furnish to Bank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) as soon as available, and in any event within 45 days after the last day of each calendar month, a copy of the form FOCUS-Part 2 prepared by the Borrower as of the end of the month which shall consist of a balance sheet and a profit and loss statement of the Borrower in accordance with GAAP (except for the absence of footnotes and subject to year-end audit adjustments) and certified by its chief financial officer or such other officer acceptable to the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as soon as available, and in any event within 90 days after the last day of each fiscal year of the Borrower, a copy of the Borrower's balance sheet as of the last day of such year and the Borrower's statements of income, retained earnings, and cash flows for the fiscal year then ended, each in reasonable detail, prepared by the Borrower in accordance with GAAP and accompanied by an unqualified audit report on such financial statements prepared by the Borrower's independent public accountants acceptable to Bank,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promptly after knowledge thereof shall have come to the attention of the Borrower, (A) written notice of any threatened or pending litigation or governmental or arbitration proceeding or labor action against the Borrower which, if adversely determined, would reasonably be expected to materially and adversely affect the Borrower's condition (financial or otherwise) or operations, (B) the occurrence or existence of a Termination Event, (C) the occurrence of existence of any Event of Default; or (D) the failure to be in compliance with the provisions set forth herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) promptly after receipt thereof, and in any event within five (5) Business Days after receipt thereof, a copy of any financial audit or review performed or required to be performed by any Designated Examining Authority of the Borrower and permitted to be disclosed under applicable law to the extent that such audit or review provides a material finding or results in a fine or other penalty that could reasonably be expected to have a material adverse effect on the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) as soon as available, and in any event within five (5) days after the close of each fiscal month, a certificate in the form of Exhibit C attached hereto from the Borrower indicating the Eligible NSCC Margin Deposits of the Borrower in effect for each Business Day in the most recently ended fiscal month.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Mandatory Prepayments*. Without limiting the right of the Bank to demand repayment of the Loan at any time hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower covenants and agrees that it shall immediately and without notice or demand prepay the applicable Loan in an amount by which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the unpaid principal amount of the Margin Loans then outstanding exceeds the Margin Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the unpaid principal amount of the Customer Loans then outstanding exceeds the Customer Loan Limit as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the unpaid principal amount of the Firm Loans then outstanding exceeds the Firm Loan Limit as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the unpaid principal amount of the Clearinghouse Margin Loans then outstanding exceeds Clearinghouse Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) the unpaid principal amount of the Clearinghouse Margin Loans then outstanding exceeds the Applicable Sublimit,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) the sum of the unpaid principal amount of the Clearinghouse Margin Loans and Overnight Loans then outstanding exceeds the Applicable Sublimit, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) the unpaid principal amount of the Overnight Loans then outstanding exceeds the Applicable Sublimit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower shall, without notice or demand, prepay any Clearinghouse Margin Loan in full on the earlier to occur of (a) the date upon which the NSCC Margin Deposits or the OCC Excess Margin Deposits funded from the proceeds of such Clearinghouse Margin Loan are returned to the Borrower, and (b) the date which is the next Business Day after the date such Clearinghouse Margin Loan was advanced; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Borrower shall, without notice or demand, prepay any Overnight Loan in full on the next Business Day after the date such Overnight Loan was advanced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Use of Proceeds.* The Borrower shall use the proceeds of (i) the Margin Loans solely to finance the purchase and settlement of securities and for the Borrower's general working capital purposes, (ii) the Clearinghouse Loans solely to finance NSCC Deposit Requirements (other than an Adequate Assurance Deposit) and the OCC Deposit Requirements, and (iii) the Overnight Loans for the Borrower's general working capital purposes. Without limiting the foregoing, the Borrower will not request any Loan, and the

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Borrower shall not use and its or their respective directors, officers, employees and agents not use, the proceeds of any Loan, directly or indirectly, (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any person in violation of any Anti-Corruption Laws, (ii) to fund, finance or facilitate any activities, business or transaction of or with any Sanctioned Person or in any Designated Jurisdiction, or (iii) in any other manner that would result in the violation of any Sanctions applicable to any party hereto.

*Section 7. DEMAND OBLIGATION; ENFORCEMENT*. The Borrower shall pay to the Bank the principal balance of outstanding Loans together with any accrued interest ON DEMAND. The Bank can demand payment in full of the Loans at any time in its sole discretion even if the Borrower has complied with all of the terms of this Agreement.

No delay by the Bank in the exercise of any right or remedy shall operate as a waiver thereof, and no single or partial exercise by the Bank of any right or remedy shall preclude any other or further exercise thereof or the exercise of any other right or remedy. The Borrower agrees to pay to the Bank all costs and expenses incurred or paid by the Bank in connection with the establishment and maintenance of the Loan Account and the collection of the Loans and any other amounts due under this Agreement and the enforcement of rights to any security therefor, including, without limitation, reasonable attorneys' fees and court costs (including, without limitation, all such costs and expenses incurred in connection with any proceeding under the United States Bankruptcy Code involving the Borrower or any guarantor). The Bank shall have the right, at any time, to set-off the balance of any deposit account, other than any Excluded Account, that the Borrower may at any time maintain with the Bank or any of its affiliates against any amounts at any time owing under this Agreement, whether or not the balance of Loans under this Agreement is then due.

*Section 8. Termination.* The availability of additional Loans under this Agreement will automatically terminate ON DEMAND. The Bank reserves the right at any time without notice to refuse any Loan request even though the Borrower has complied with all of the terms of this Agreement. No termination under this Section shall affect the Bank's rights or the Borrower's obligations regarding payment or default under this Agreement. Such termination shall not affect the Borrower's obligation to pay all Loans and the interest accrued through the date of final payment. The Bank may also elect to honor Loan requests after termination of this Agreement, and the Borrower agrees that any such payment by the Bank shall constitute a Loan to Borrower under this Agreement.

*Section 9. Notices.* The Bank may rely on instructions from the Borrower with respect to any matters relating to this Agreement or the Loan Account, including, without limitation, telephone loan requests which are made by a person whom the Bank believes to be the Borrower or its authorized representative. Except as otherwise specified herein, all notices hereunder shall be in writing (including, without limitation, notice by telecopy) and shall be given to the relevant party at its address or telecopier number set forth below, or such other address or telecopier number as such party may hereafter specify by notice to the other given by courier, by United States certified or registered mail, by telecopy or by other telecommunication device capable of creating a written record of such notice and its receipt. Notices hereunder shall be addressed:

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| | | | |
|:---|:---|:---|:---|
| to the Borrower at: | to the Borrower at: | to the Bank at: | to the Bank at: |
| Clear Street, LLC | Clear Street, LLC | BMO Bank N.A. | BMO Bank N.A. |
| Four World Trade Center 45th Floor | Four World Trade Center 45th Floor | 320 South Canal Street | 320 South Canal Street |
| 150 Greenwich Street | 150 Greenwich Street | Chicago, Illinois 60606 | Chicago, Illinois 60606 |
| New York, New York 10007 | New York, New York 10007 | Attention: Futures and Securities | Attention: Futures and Securities |
| Attention: | Steve Bisgay | Telephone: | (312) 461-2491 |
| Email: | [ ] | Telecopy: | (312) 765-8201 |
| With a copy to | With a copy to |  |  |
| Clear Street, LLC | Clear Street, LLC |  |  |
| Four World Trade Center 45th Floor | Four World Trade Center 45th Floor |  |  |
| 150 Greenwich Street | 150 Greenwich Street |  |  |
| New York, New York 10007 | New York, New York 10007 |  |  |
| Attention: | Kenneth A. Sicklick |  |  |
| Email: | legal@clearstreet.io |  |  |

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Each such notice, request or other communication shall be effective (i) if given by telecopier, when such telecopy is transmitted to the telecopier number specified in this Section and a confirmation of such telecopy has been received by the sender, (ii) if given by mail, five (5) days after such communication is deposited in the mail, certified or registered with return receipt requested, addressed as aforesaid, or (iii) if given by any other means (including, without limitation, via recognized overnight courier), when delivered at the addresses specified in this Section; *provided* that any notice given pursuant to Section 1 above shall be effective only upon receipt.

*Section 10. Governing Law, Etc.* The Borrower waives presentment and notice of dishonor. This Agreement constitutes the entire understanding of the parties with respect to the subject matter hereof and any prior agreements, whether written or oral, with respect thereto are superseded hereby. No amendment or waiver of any provision of this Agreement or the Note, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Bank. If any part of this Agreement is unenforceable, that will not make any other part unenforceable. This Agreement may be executed in counterparts and by different parties on separate counterpart signature pages, each of which constitutes an original and all of which taken together constitute one and the same instrument. Delivery of executed counterparts of this Agreement by telecopy shall be effective as an original. This Agreement shall be governed by the laws of the State of New York (including Section 5-1401 and Section 5-1402 of the General Obligations law of the State of New York) without regard to conflicts of law principles that would require application of the laws of another jurisdiction.

*Section 11. Consent to Jurisdiction.* The Borrower submits to the non-exclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State Court sitting in New York County, New York, for purposes of all legal proceedings arising out of or relating to this Agreement or the transactions contemplated hereby.

*Section 12. Jury Trial Waiver.* The Borrower and the Bank waive any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

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*Section 13. Time is of the Essence.* Time is of the essence of this Agreement.

*Section 14. USA Patriot Act.* The Bank hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the *"Act"*), it is required to obtain, verify, and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow the Bank to identify the Borrower in accordance with the Act. Without limiting the general uncommitted, demand nature of this Agreement, the Bank hereby notifies the Borrower, and the Borrower hereby acknowledges, that if the Borrower does not deliver to the Bank, promptly following any request by the Bank therefor, information and documentation from time to time requested by the Bank for purposes of compliance with applicable "know your customer" requirements under the Act (or other applicable anti-money laundering laws, rules, regulations or internal policies), the Bank may be required under applicable laws, rules, regulations or internal policies to deny requests for Loans hereunder and/or make demand on the Loans outstanding hereunder.

*Section 15. Collateral.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Collateral.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Margin Collateral.* To secure the payment and performance of the Margin Obligations, the Borrower hereby grants to the Bank a continuing lien on and security interest in, and right of set-off against, all right, title, and interest of the Borrower, whether now owned or existing or hereafter created, acquired or arising, in and to all of the Margin Collateral. All of the Margin Collateral shall be credited to one or more of the Accounts and shall be held by the Bank. No later than the close of business in Chicago, Illinois on the date of each request for a Margin Loan hereunder, the Borrower shall transfer into one or more of the Accounts Margin Collateral having a Market Value such that after giving effect to the requested Margin Loan the aggregate principal amount of all Margin Loans shall not exceed the Margin Borrowing Base as then determined and computed by the Bank. All of the Margin Collateral shall be at all times subject to the exclusive dominion and control of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Clearinghouse Margin Collateral.* To secure the payment and performance of the Clearinghouse Margin Obligations, the Borrower hereby grants to the Bank, for the benefit of the Lenders, a continuing lien on and security interest in, and right of set-off against, all right, title, and interest of the Borrower, whether now owned or existing or hereafter created, acquired or arising, in and to all of the Clearinghouse Margin Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Delivery of Collateral; Inspection*. The Bank shall have the right to notify any third party holding any of the Collateral of the pledge thereof hereunder and require delivery thereof to the Bank and may take such steps with respect to any Collateral to insure that the lien of the Bank is fully perfected and protected in compliance with the Uniform Commercial Code and applicable Federal rules and regulations. The Borrower shall permit the Bank or its representatives to inspect and make copies of the books and records relating to the Collateral of the Borrower and of the DTC or any other party holding the Collateral and to conduct an audit or inventory of the Collateral at any reasonable time or times either with or without prior notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All cash proceeds of the Margin Collateral shall be promptly remitted to the Bank to be held as additional Margin Collateral in one of the Accounts and shall be subject to release in accordance with Section 10.5. All cash proceeds of the Clearinghouse Margin Collateral shall be promptly remitted to the Bank to be held as additional Clearinghouse Margin Collateral in the Settlement Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Voting Rights and Income.* Unless and until notified by the Bank that the Borrower is not in compliance with the terms of this Agreement, (i) the Borrower shall be entitled to exercise all voting and/or consensual powers pertaining to the Margin Collateral or any part thereof, for all purposes not inconsistent with the terms of this Agreement; and (ii) the Borrower shall be entitled to receive and retain all cash interest and other distributions paid upon or in respect of the Margin Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Release of Collateral*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Borrower shall at any time desire the release of any item of Margin Collateral (including any Margin Collateral consisting of cash), the Borrower shall deliver to the Bank a written request for such release and on the day the Bank receives such request (if such request is received prior to 3:00 p.m. (Chicago time) on such day), the Bank may cause such item of Margin Collateral to be released from the relevant Account to an account of the Borrower maintained with DTC or another securities intermediary, *provided* that (A) the Borrower shall be in compliance with this Agreement both before and immediately after giving effect to such release, and (B) the aggregate principal amount of all Margin Loans outstanding as of 5:00 p.m. (Chicago time) shall not exceed the Margin Borrowing Base, as determined and computed by the Bank at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding anything contained herein to the contrary, in the event that the Bank releases the Margin Collateral in accordance with clause (i) above (the *"Released Collateral"*) but the aggregate principal amount of all Loans exceed the Margin Borrowing Base at the time of such release, the Borrower hereby acknowledges and agrees that (A) the Bank continues to have a security interest in such Released Collateral and every portion or part thereof and in all proceeds thereof, (B) the Borrower shall hold such Released Collateral and the proceeds thereof in trust for the Bank separate from all other Property of the Borrower and free and clear of all liens and claims other than the Bank's security interest herein, and (C) the Borrower shall promptly (but no later than the next Business Day) and without notice or demand return such Released Collateral or the proceeds thereof to the Bank as a mandatory prepayment of the Loans in the event that the Borrower has failed to comply with clause (i) above.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Settlement Account*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower hereby agrees that during any period when it may itself make withdrawals, transfers or other dispositions of funds in the Settlement Account it shall do so only (A) to the extent that immediately after such withdrawal, transfer or other disposition, the sum of (x) the aggregate amount of cash in the Settlement Account (other than with respect to amounts on deposit therein that can fairly be identified by the Borrower as being attributable to the Settlement Bank Obligations) plus (y) an amount equal to 80% of the Eligible NSCC Margin Deposits plus 90% of the OCC Excess Margin Deposits are at least equal to the aggregate principal amount of Clearinghouse Margin Loans outstanding at such time or (B) to make payments on account of the Loans. On or prior to the date of this Agreement, the Borrower shall direct NSCC and the OCC to return any NSCC Margin Deposits and OCC Excess Margin Deposits, as the case may be, to be returned to the Borrower to the Settlement Account. The Borrower shall cause such direction to be in full force and effect at all times until all obligations hereunder are paid in full and the Loan Account is terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower agrees that the Settlement Account shall be at all times subject to the "control" (within the meaning of Section 9-104 of the UCC) of and held by the Bank as the depositary bank during the term of this Agreement. The Borrower shall have the right to transfer or otherwise dispose of any funds in the Settlement Account to finance the ordinary course operations of the Borrower's business unless and until the Borrower has received notice from the Bank the Borrower is not in compliance with the provisions of this Agreement. The Settlement Account shall be deemed to be a "deposit account" (within the meaning of Section 9-102(a)(29) of the UCC). For the purposes of this Agreement and Section 9-304 of the UCC, the Bank's jurisdiction shall be deemed to be the State of Illinois.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Further Acts*. The Borrower hereby appoints the Bank, its nominee, and any other person whom the Bank may designate, as the Borrower's attorney-in-fact, with full power to liquidate the Collateral or any part thereof prior to its stated maturity, if any, without thereby incurring any liability whatsoever to the Borrower and, in the name of the Borrower or in the Bank's own name or both, to demand, collect, withdraw, receipt for or sue for all amounts due or to become due and payable in respect of the Collateral, to execute any withdrawal receipts respecting the Collateral, to endorse the name of the Borrower on any and all commercial paper given in payment thereof, and to take any other action, including, without limitation, transfer any certificate evidencing the Collateral into the Bank's own name or the name of its nominee, which the Bank deems necessary or appropriate to preserve or protect its interest in the Collateral. The Borrower hereby ratifies and approves all acts of any such attorney and agrees that neither the Bank nor any such attorney will be liable for any acts or omissions nor for any error of judgment or mistake of fact or law other than such person's gross negligence or willful misconduct. The foregoing power of attorney, being coupled with an interest, is irrevocable until the Obligations have been fully paid and satisfied and the commitment to extend additional credit to the Borrower has terminated.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Remedies.* The Bank shall have such rights and remedies with respect to the Collateral or any part thereof and the proceeds thereof as are provided by the UCC and such other rights and remedies with respect thereto which it may have at law or in equity or under this Agreement, including without limitation, to the extent not inconsistent with the provisions of the UCC or other applicable law, the right to (a) transfer into the Bank's name or into the name of its nominee or nominees or into an account at DTC in the name of, and for the benefit of, the Bank all or any portion of the Collateral and thereafter receive, for the benefit of the Bank, all cash payments made thereon, vote the same, give all consents, waivers and ratifications in respect thereof and otherwise act with respect thereto as though it was the outright owner thereof, and (b) sell all or any portion of the Collateral at any broker's board or at public or private sale, without prior notice to the Borrower or any other person, except as otherwise required by law (and if notice is required by law, after 5 (five) days' prior written notice), at such place or places and at such time or times and in such manner and for such consideration as the Bank may determine, and remit all amounts realized from the Collateral to the Bank for application to the repayment of the obligations under this Agreement, whether on account of principal, interest, fees, charges, advances or expenses (to the extent the Borrower is obligated to reimburse the Bank and the Lenders for such expenses hereunder) or otherwise as the Bank in its sole discretion may elect, and then to pay the balance, if any, to the Borrower or as otherwise required by law; and if such proceeds are insufficient to pay the obligations hereunder in full, the Borrower shall be liable for the deficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Rights of Bank With Respect to Calculations.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Schedules, Notices, Reports, etc.* The Bank shall calculate the Margin Borrowing Base on each Business Day (or with respect to the Margin Collateral consisting of Corporate Bonds, each week), and in connection with such calculations, the Bank shall (A) obtain all necessary pricing and other market data from the Reporting Service in the determination of the Margin Borrowing Base, (B) be entitled to rely on the information provided by the Borrower in any notice of a pledge of securities with respect to ratings of, and any restrictions on resale of, the securities described therein, (C) not give effect to any increase in either Margin Borrowing Base as a result of the transfer by the Borrower of additional Margin Collateral unless it has received and verified the pricing information applicable to such additional Margin Collateral, (D) not give effect to any decrease in the Margin Borrowing Base as a result of a request by the Borrower for release of Collateral unless it has verified the satisfaction of the conditions set forth in clause (f) above and (E) be entitled to rely on the information provided by the Bank or the Borrower pursuant to the other provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In no event shall the Bank be liable to the Borrower or any other Person for the accuracy of the value of any item of the Margin Collateral, for any determinations regarding the eligibility of any securities for inclusion in the Margin Collateral or for determinations regarding the amount of any Obligation, except in the case of its gross negligence or willful misconduct. In furtherance of the foregoing, the parties hereto acknowledge and agree that the obligations of the Bank hereunder, including without limitation, to make determinations of the Margin

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Borrowing Base and to provide reports and notices hereunder, are based upon information provided to the Bank as set forth herein. In no event shall the Bank have any duty or obligation to independently verify the information so provided to it (or the accuracy or completeness thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *Waiver of Bank's Rights Against Collateral*. The Bank hereby acknowledges and agrees that any right it may now have or hereafter acquire against any item of Collateral (prior to its release pursuant to clause (f) hereof), by way of right of set-off, Bank's lien, by enforcement of any rights under any security agreement or otherwise, shall be used solely to satisfy outstanding obligations hereunder in the manner provided for herein until all obligations hereunder have been repaid in full and this Agreement has been terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Agreement Regarding Customers Securities and Firm Securities.* To ensure that the Borrower is in compliance with applicable law, the Borrower and the Bank hereby agree that, notwithstanding anything to the contrary contained herein or in any other Loan Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) None of the Firm Obligations shall be secured by or be any charge against any Customer Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) None of the Customer Obligations shall be secured by or be any charge against securities other than Customer Securities and Firm Securities unless (A) the Borrower agrees such Customer Securities as it is informed by the Borrower, pursuant to and in compliance with the applicable laws, are securities for account of one or more of the Borrower's customers, will be segregated by the Bank from any other securities (and the Bank hereby agrees to make such segregation), and (B) only Customer Securities are identified by the Bank as substitutes for other Customer Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In consequence of (i) above, all Customer Securities shall be security for any and all Customer Obligations, *provided, however,* that any part of such Customer Obligations secured by Customer Securities may be treated as a separate Customer Loan if, and only if, upon the creation of such part the Bank approves a notation in the Notice of Borrowing to the effect that such part is to be treated as a separate Customer Loan and that the Customer Securities specifically pledged therefor are carried for the account of a single customer of the Borrower whereupon (without prejudice to the rights of the Bank in connection with any other Customer Securities) the Customer Securities specifically pledged therefor shall be held separate and apart from all other Customer Securities and shall not be security for any other part of such Customer Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) No rehypothecation, assignment or other transfer of any Customer Securities or any interest therein shall be made by the Bank except subject to the limitations and restrictions contained herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) For the purposes of this Agreement, and in addition, wherever used herein or any other Loan Document, (i) the term "Customer Securities" shall be deemed to mean securities (A) which, according to a Notice of Borrowing received by the Bank from the Borrower pursuant to and in compliance with the Rules, are securities for the account of one or more of its customers, or (B) which are securities carried for one or more of the Borrower's customers and hypothecated to secure a Customer Loan made and to be repaid on the same calendar day, and (ii) a Customer Loan shall be deemed to be a "Loan against Customer Securities" if only Customer Securities are identified by the Bank as security used for the purpose of obtaining or increasing such Customer Loan

*Section 16. Definitions*. The following terms when used herein shall have the following meanings:

*"Adequate Assurance Deposit"* means an NSCC deposit requirement, in excess of ordinary course NSCC deposit requirements, pursuant to NSCC Rule 15, section 2(b).

*"Account(s)"* means one or more pledged accounts (i) maintained by the Bank with the DTC and (ii) in the name of and maintained with the Bank.

*"Applicable Interest Rate"* means, at any time the same is to be determined, the rate per annum equal to (i) the Overnight Base Rate plus 1.50% with respect to Margin Loans and (ii) the rate of interest announced or otherwise established by Bank from time to time as its prime commercial rate as in effect on such day with respect to Clearinghouse Loans and Overnight Loans, it being acknowledged and agreed that such rate may not be Bank's best or lowest rate (the *"Prime Rate"*). Any change in the Applicable Interest Rate resulting from a change in the Overnight Base Rate or the Prime Rate to be effective as of the date of the relevant change in said Overnight Base Rate or Prime Rate.

*"Applicable Sublimit"* means (i) $150,000,000 with respect to Clearinghouse Margin Loans only, (ii) $10,000,000 with respect to Overnight Loans only, and (iii) $150,000,000 with respect to Clearinghouse Margin Loans and Overnight Loans.

*"Anti-Corruption Laws"* means all laws, rules, and regulations of any jurisdiction applicable to the Borrower from time to time concerning or relating to bribery or corruption.

*"Authorized Representative"* means those persons shown on the list of officers provided by the Borrower pursuant to Section 1 hereof or on any update of any such list provided by the Borrower to the Bank, or any further or different officer of the Borrower so named by any Authorized Representative of the Borrower in a written notice to the Bank.

*"Bank"* is defined in the introductory paragraph hereto.

*"Borrower"* is defined in the introductory paragraph hereto.

*"Business Day"* means any day (other than a Saturday or Sunday) on which banks are not authorized or required to close in New York, New York or, with respect to calculating Term SOFR, any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

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*"Clearinghouse Borrowing Base"* means, as of any time it is to be determined, an amount equal to the lesser of (i) 80% of the excess, if any, of the Eligible NSCC Margin Deposits of the Borrower at such time over the Eligible NSCC Margin Deposits of the Borrower in effect as at the close of business on the day in the prior calendar month (or if the certificate for such prior calendar month with respect to the Borrower's Eligible NSCC Margin Deposit has not been delivered pursuant to Section 6(a) hereof, the preceding calendar month) that was the day having the 10th lowest Eligible NSCC Margin Deposits of the Borrower during such calendar month; *provided,* that the amount in this clause (i) (after giving effect to the advance rate) shall not, at any time, exceed the amount of the Eligible NSCC Margin Deposits of the Borrower at such time, and (ii) 90% of the OCC Excess Margin Deposits at such time.

*"Clearinghouse Margin Collateral"* means all of the Borrower's right, title and interest in (i) the right to the return from NSCC of NSCC Margin Deposits pursuant to the terms of the rules and procedures of the NSCC in effect from time to time, (ii) the right to the return from OCC of OCC Excess Margin Deposits pursuant to the terms of the rules and procedures of the OCC in effect from time to time, (iii) the Settlement Account, all balances in the Settlement Account, and all income, distributions, and sums distributable or payable from, upon, or in respect of the foregoing, and (iv) any and all proceeds thereof (including cash and non-cash proceeds and all income payable on any of the foregoing items (i), (ii), (iii) or (iv), whether now owned or held or hereafter acquired.

*"Clearinghouse Margin Loans"* means Loans the proceeds of which are used to finance NSCC Deposit Requirements and the OCC Excess Margin Deposits.

*"Clearinghouse Margin Obligations"* means all obligations of the Borrower to pay principal and interest on the Clearinghouse Margin Loans, all fees and charges payable hereunder, and all other payment obligations of the Borrower arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held, or acquired

*"Collateral"* means the Margin Collateral and Clearinghouse Margin Collateral, as the case may be.

*"Credit Agreement"* means that certain Credit Agreement dated as of December 4, 2020, by and among the Borrower, the Lenders from time to time party thereto, and BMO Bank N.A., as administrative agent, as the same has been and may be amended, modified, supplemented or restated from time to time.

*"Customer Loan"* means any Margin Loan that has been designated by the Borrower in the Notice of Borrowing as a "Customer Loan".

*"Customer Loan Limit"* means the Margin Borrowing Base as determined and computed with Customer Securities only.

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*"Customer Obligations"* means all obligations of the Borrower hereunder with respect to Customer Loans.

*"Customer Securities"* means, at any time, Collateral that is pledged at such time to the Bank to secure Customer Obligations.

*"Designated Examining Authority"* means an exchange that has been designated as the Borrower's securities designated examining authority, as defined in Rule 15c3-1(c)(12) of the SEC.

"*Designated Jurisdiction*" means, at any time, any country, region or territory which is itself the subject or target of any Sanctions.

*"Designated Self-Regulatory Organization"* shall have the meaning assigned to such term in Section 3(a)(26) of the Securities Exchange Act of 1934, as amended.

*"DTC"* means The Depository Trust Company and its successors and assigns.

*"Eligible Bond Security"* means an Eligible Security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is either (i) a bond issued by a corporation, partnership or limited liability company with a maturity date not less than one year from the date of issuance, or (ii) a marketable obligation of a State of the United States of America or any political subdivision, agency or instrumentality of any of the foregoing, or the District of Columbia, or (iii) a marketable obligation of any territory or local government of a State of the United States or any political subdivision, agency, or instrumentality of such territory or local government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has a Market Value of not less than $5.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the issuer of such security has not defaulted in the payment when due of any principal of or interest on any debt securities issued by it or loans or other extensions of credit made to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the issuer of such security (i) is not the subject of any bankruptcy, arrangement, receivership, conservatorship, reorganization proceeding or other proceeding for relief of debtors, (ii) is not insolvent, and (iii) has not admitted its inability to pay its debts generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it is Investment Grade;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) would not cause the Market Value of such security issued by any one issuer and its Affiliates to exceed 15% of all of the Collateral; *provided,* that only the excess Market Value shall be excluded for purposes of determining the Margin Borrowing Base; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the issuer of such security is not an Affiliate of the Bank.

------

*"Eligible Equity Security"* means an Eligible Security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is a security consisting of common stock and other equity securities of an issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has a Market Value of at least $5.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the issuer of such security (i) is not the subject of any bankruptcy, arrangement, receivership, conservatorship, reorganization proceeding or other proceeding for relief of debtors, (ii) is not insolvent, and (iii) has not admitted its inability to pay its debts generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it would not cause the Market Value of such security to exceed 15% of the Market Value of all of the Collateral; *provided,* that only the excess Market Value shall be excluded for purposes of determining the Margin Borrowing Base; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the issuer of such security is not an Affiliate of the Bank.

*"Eligible Federal Government Security"* means an Eligible Security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is a direct obligation of the United States of America or of any agency or instrumentality thereof whose obligations constitute the full faith and credit obligations of the United States of America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the issuer of such security has not defaulted in the payment when due of any principal of or interest on any debt securities issued by it or loans or other extensions of credit made to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the issuer of such security (i) is not the subject of any bankruptcy, arrangement, receivership, conservatorship, reorganization proceeding or other proceeding for relief of debtors, (ii) is not insolvent, and (iii) has not admitted its inability to pay its debts generally; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it is Investment Grade.

*"Eligible NSCC Margin Deposits"* means those NSCC Margin Deposits of the Borrower, excluding such portions of NSCC Margin Deposits that (a) relate to losses incurred by the Borrower for its own account or the account of any of its Subsidiaries or (b) as reasonably determined by the Borrower, acting in good faith, are subject to any counterclaim, deduction, defense, setoff or similar rights by NSCC or DTC other than to the extent constituting or arising out of the obligations for which such deposit was delivered (but only to the extent of any such counterclaim, deduction, defense, setoff or similar rights); *provided, however*, that the value of Eligible NSCC Margin Deposits shall not at any time exceed the NSCC Deposit Requirements applicable to the Borrower at such time.

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*"Eligible Security"* means a security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is traded on an Exchange and is not subject to any restriction on transfer (including without limitation Rule 144 and Rule 144A promulgated by the SEC) and (ii) is not a security that is a crypto currency or where the value of such security is derived from the value of any crypto currency, including exchange traded funds and trust for Bitcoin, Ether, and any other crypto currency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is not a security that has been held in the Borrower's inventory for more than thirty (30) consecutive days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it is available to be pledged, repledged, hypothecated, rehypothecated, or otherwise transferred by the Borrower in favor the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it is subject to a perfected first priority Lien in favor of the Bank and is free of all other Liens, adverse claims and other encumbrances of every type or nature whatsoever, including without limitation any of the foregoing in favor of any brokers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it is held in an Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Market Value of such security is readily available through the Reporting Service or is otherwise available to the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if such security is a callable or convertible security it has not matured or been called prior to its stated maturity date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) it is not an option, warrant, put, call, strip, repurchase agreement, reverse repurchase agreement, mutual fund share or interest, derivative or similar security; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is not otherwise deemed to be ineligible in the reasonable judgment of the Bank (it being acknowledged and agreed that with five (5) Business Days prior written notice any such security or categories thereof may be deemed ineligible by the Bank acting in its reasonable judgment).

*"Event of Default"* shall have the meaning ascribed to it in the Credit Agreement.

*"Exchange"* means (i) a nationally recognized securities exchange located in the United States of America or Canada, or (ii) on a recognized over-the-counter market located in the United States of America or Canada.

*"Excluded Accounts"* means each of the Borrower's deposit accounts maintained with the Bank as a "Special Reserve Account For the Exclusive Benefit of Customers" pursuant to Rule 15c3-3 of the rules and regulations of the SEC under the Securities Exchange Act of 1934, as amended concerning the hypothecation of Customer Securities, including Rule 8c-1, Rule 15c2-1, and Rule 15c3-3.

*"Firm Loan"* means any Margin Loan that has been designated by the Borrower in the Notice of Borrowing as a "Firm Loan".

------

*"Firm Loan Limit"* means the Margin Borrowing Base as determined and computed with Firm Securities only.

*"Firm Obligations"* means all obligations of the Borrower hereunder with respect to Firm Loans to the Borrower.

*"Firm Securities"* means at any time, Collateral that is pledged at such time to the Bank to secure Firm Obligations with respect to Firm Loans.

*"GAAP"* means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting profession), which are applicable to the circumstances as of the date of determination.

*"Investment Grade"* means a security having a long-term rating of BBB or better by S&P, Baa or better by Moody's, or BBB or better by Fitch; *provided* that if more than one long-term rating applies to such security, then the lowest rating shall apply.

*"Loan"* is defined in Section 1 hereof, and as so defined, includes a Margin Loan, an Clearinghouse Margin Loan and an Overnight Loan, each of which is a *"type"* of Loan hereunder.

*"Loan Account"* is defined in the introductory paragraph hereto.

*"Margin Borrowing Base"* means, as of any time it is to be determined, the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 90% of the Market Value of Eligible Federal Government Securities; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 90% of the Market Value of Eligible Bond Securities; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 80% of the Market Value of Eligible Equity Securities;

*provided,* that the Bank may waive concentration limits and advance for up to five (5) Business Days for (i) Eligible Equity Securities a market capitalization of Cdn $25 Billion or greater at a 70% advance rate so long as the position pledged to the Bank will not exceed one times the average daily trading volume, measured over the past 3 months (i.e. the position cannot exceed one day of trading volume) or (ii) 70% advance if the position of such Eligible Equity Securities is fully pre-sold or hedged in a manner that is acceptable to the Bank; *provided,* concentrations to a single issuer of such Eligible Equity Securities in may not exceed $75 million in the aggregate. Agreements to pledge are permitted.

*"Margin Collateral"* means and includes (a) the Accounts, (b) all securities and other Property described in each borrowing request (including a Notice of Borrowing) delivered to the Bank pursuant to this Agreement, (c) all other securities or Property delivered or deliverable on the sale, exchange, collection, reclassification, conversion, merger or consolidation and other dispositions of or distributions on any of the foregoing, and (d) any and all proceeds thereof (including all income payable thereon), both cash and non-cash.

------

*"Margin Loans"* means Loans the proceeds of which are used to finance the purchase and settlement of securities and for the Borrower's general working capital purposes.

*"Margin Obligations"* means all obligations of the Borrower to pay principal and interest on the Margin Loans, all fees and charges payable hereunder, and all other payment obligations of the Borrower arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held, or acquired.

*"Market Value"* means, for each unit of a security of any class at a particular time, the closing price for such security for the immediately preceding Business Day reported by the Reporting Service, but excluding accrued and unpaid interest on interest-bearing securities from such determination.

*"Maximum Credit"* is defined in the introductory paragraph hereto.

*"NSCC"* means the National Securities Clearing Corporation.

*"NSCC Deposit Requirements"* means cash collateral requirements established by NSCC in connection with the net assignment of options market making business provided by NSCC, as such requirements may be amended, supplemented or otherwise modified from time to time.

*"NSCC Margin Deposits"* means deposits made by the Borrower with NSCC in connection with securities clearing services provided to it by NSCC.

*"Note"* is defined in Section 1 hereof.

*"Notice of Borrowing"* means the notice in the form attached hereto as Exhibit B.

*"OCC"* means the Options Clearing Corporation.

*"OCC Deposit Requirements"* means cash collateral requirements established by the OCC in connection with the net assignment of options market making business provided by OCC, as such requirements may be amended, supplemented or otherwise modified from time to time.

*"OCC Excess Margin Deposits"* means deposits made by the Borrower with OCC in excess of the OCC Deposit Requirements.

*"OFAC"* means the United States Department of Treasury Office of Foreign Assets Control.

*"Overnight Base Rate"* means, for any day, the rate per annum equal to the greatest of: (a) Term SOFR for such day plus 0.11448%, (b) the Target Rate for such day, and (c) 0.25%.

*"Overnight Loan"* means unsecured Loan that must be repaid on the day following the date upon which such Loan is advanced hereunder.

------

*"Reporting Service"* means ISDI-Interactive Data or, to the extent pricing and other market data is not available, any other independent pricing service selected by the Administrative Agent in accordance with its ordinary and customary business practices.

*"Sanctioned Person"* means, at any time, (a) any person listed in any Sanctions-related list of designated Persons maintained by OFAC (including the OFAC SDN List), the United States Department of State, the United Nations Security Council, the European Union, any European Union member state, Her Majesty's Treasury of the United Kingdom, or any other relevant sanctions authority, (b) any person located, organized or resident in a Designated Jurisdiction or (c) any Person owned or controlled by any such person or persons described in clauses (a) or (b) above.

*"Sanctions"* means all economic or financial sanctions, sectoral sanctions, secondary sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the United States government (including those administered by OFAC or the United States Department of State), or (b) the United Nations Security Council, the European Union, any European Union member state, Her Majesty's Treasury of the United Kingdom], or any other relevant sanctions authority with jurisdiction over the Borrower.

*"SEC"* means the Securities and Exchange Commission.

*"Settlement Account"* means that certain account of the Borrower (account number 265-6387) maintained with the Bank together with any account established in connection with any extension, renewal or substitution thereof, in each case as such Settlement Account may be renumbered or re-titled from time to time.

*"SIPC"* means the Securities Investor Protection Corporation established pursuant to the Securities Investor Protection Act of 1970, as amended, or any other corporation that succeeds to the functions thereof.

*"Target Rate"* means, for any day, the rate per annum equal to the Federal Funds Target Range – Upper Limit as announced by the Federal Open Market Committee of the Federal Reserve Board.

*"Term SOFR"* means the Term SOFR Reference Rate for a tenor of one month on the day (such day, the *"Term SOFR Determination Day"*) that is two (2) Business Days prior to such day, as such rate is published by the Term SOFR Administrator; *provided, however*, that if as of 5:00 p.m. (New York City time) on any Term SOFR Determination Day, the Term SOFR Reference Rate for a tenor of one month has not been published by the Term SOFR Administrator, then Term SOFR will be the Term SOFR Reference Rate for a tenor of one month as published by the Term SOFR Administrator on the first preceding Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding Business Day is not more than three (3) Business Days prior to such Term SOFR Determination Day.

*"Term SOFR Administrator"* means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Bank in its reasonable discretion).

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*"Term SOFR Reference Rate"* means the forward-looking term rate based on the secured overnight financing rate as administered by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

*"Termination Event"* shall have the meaning ascribed to it in the Credit Agreement whether or not the Credit Agreement is in effect.

*"UCC"* means the Uniform Commercial Code of the State of New York.

*"Zero Loan Day"* means, at any time, a Business Day in which no principal amount of the Clearinghouse Margin Loans and Overnight Loans is outstanding.

[SIGNATURE PAGE FOLLOWS]

------

THIS LOAN AUTHORIZATION AGREEMENT IS ENTERED INTO AS OF THE DATE AND YEAR FIRST ABOVE WRITTEN.

---

| | |
|:---|:---|
| CLEAR STREET, LLC | CLEAR STREET, LLC |
| By: | /s/ Brian Oliveira |
|  | Brian Oliveira, Chief Financial Officer |

---

---

| | |
|:---|:---|
| BMO BANK N.A. | BMO BANK N.A. |
| By: |  |
|  | Name: |
|  | Title: |

---

Signature Page to Loan Authorization Agreement – Clear Street

------

THIS LOAN AUTHORIZATION AGREEMENT IS ENTERED INTO AS OF THE DATE AND YEAR FIRST ABOVE WRITTEN.

---

| | |
|:---|:---|
| CLEAR STREET, LLC | CLEAR STREET, LLC |
| By: |  |
|  | Brian Oliveira, Chief Financial Officer |

---

---

| | | |
|:---|:---|:---|
| BMO BANK N.A. | BMO BANK N.A. | BMO BANK N.A. |
| By: | /s/ Krupa Tantuwaya | /s/ Krupa Tantuwaya |
|  | Name: | Krupa Tantuwaya |
|  | Title: | Managing Director |

---

Signature Page to Loan Authorization Agreement – Clear Street

------

**EXHIBIT A** 

**DEMAND NOTE** 

---

| | |
|:---|:---|
| $200000000.00 | November 12, 2024 |

---

ON DEMAND, for value received, the undersigned CLEAR STREET LLC, a Delaware limited liability company, promises to pay to the order of BMO BANK N.A. (the *"Bank"*) at its offices at 320 South Canal Street, Chicago, Illinois (or at such other place as the Bank may specify), the principal sum of Two Hundred Million and No/100 Dollars ($200,000,000) or, if less, the amount outstanding under the Loan Authorization Agreement referred to below together with interest payable at the times and at the rates and in the manner set forth in the Loan Authorization Agreement referred to below.

This Note evidences borrowings by the undersigned under that certain Loan Authorization Agreement dated as of November 12, 2024, between the undersigned and the Bank; and this Note and the holder hereof are entitled to all the benefits provided for under the Loan Authorization Agreement, to which reference is hereby made for a statement thereof. The undersigned hereby waives presentment and notice of dishonor. The undersigned agrees to pay to the holder hereof all expenses incurred or paid by such holder, including reasonable attorneys' fees and court costs, in connection with the collection of this Note. It is agreed that this Note and the rights and remedies of the holder hereof shall be construed in accordance with and governed by the laws of the State of New York (including Section 5-1401 and Section 5-1402 of the General Obligations law of the State of New York) without regard to conflicts of law principles that would require application of the laws of another jurisdiction.

---

| | |
|:---|:---|
| CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

------

**EXHIBIT B** 

**NOTICE OF BORROWING** 

Date: ____________, ____

To: BMO Bank N.A

Ladies and Gentlemen:

The undersigned, ___________________ (add name of Borrower) (the *"Borrower"*), refers to that certain Loan Agreement dated as of November 12, 2024 (the *"Loan Agreement"*), the terms defined therein being used herein as therein defined, and hereby gives you notice irrevocably, pursuant to Section 1 of the Loan Agreement, of the Loan specified below:

(1) The date of the Loan

(2) Dollar Amount of the requested Loan

---

| | | |
|:---|:---|:---|
| (3) | Dollar Amount of the requested Loan and type of Loan (check all the apply): | Dollar Amount of the requested Loan and type of Loan (check all the apply): |
|  | $___________ | Margin Loan - Customer Loan secured by Customer Securities |
|  | $___________ | Margin Loan - Firm Loan secured by Firm Securities |
|  | $___________ | Clearinghouse Margin Loan |
|  | $___________ | Overnight Loan |

---

Annex I attached hereto sets forth data and computations evidencing the Margin Borrowing Base and Clearinghouse Borrowing Base, as the case may be, and all of such data and computations are true, correct and complete and have been made in accordance with the relevant sections of the Credit Agreement.

For new value received the undersigned hereby pledges and grants to the Bank a security interest in the securities and other Property listed on the schedule(s) attached hereto as Annex II and made a part hereof and confirms a pledge of and security interest in the same now in effect in favor of the Bank, together with all rights related thereto and all proceeds thereof pursuant to the terms of the Loan Agreement.

The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed Loan, before and after giving effect thereto and to the application of the proceeds therefrom:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) after giving effect to the Loan, the Borrower is in compliance with Section 1 of the Loan Agreement.

(4) With respect to Clearinghouse Margin Loans and Overnight Loans, the Number of Zero Loan Days during the
current month: ___________. **[Number of Zero Loan Days during any calendar month cannot be less than 8]** 

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| | |
|:---|:---|
| CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

------

**ANNEX I** 

**TO** 

**NOTICE OF BORROWING** 

---

| | | | |
|:---|:---|:---|:---|
|  **A - BORROWING BASE (MARGIN LOANS)<sup>\*</sup><sup>\*</sup>** | **A - BORROWING BASE (MARGIN LOANS)<sup>\*</sup><sup>\*</sup>** | **A - BORROWING BASE (MARGIN LOANS)<sup>\*</sup><sup>\*</sup>** | **A - BORROWING BASE (MARGIN LOANS)<sup>\*</sup><sup>\*</sup>** |
| (1) | Market Value of Eligible Federal Government Securities | x 90% | $_______________ |
| (2) | Market Value of Eligible Bond Securities | x 90% | $_______________ |
| (3) | the Market Value of Eligible Equity Securities | x 80% | $_______________ |
| (4) | Sum of Lines (1), (2) and (3) |  | $_______________ |
| (5) | Outstanding Margin Loans |  | $_______________ |
| (6) | Availability (Line (4) minus Line (5)) |  | $_______________ |
|  **B - BORROWING BASE (CLEARINGHOUSE MARGIN LOANS)** | **B - BORROWING BASE (CLEARINGHOUSE MARGIN LOANS)** | **B - BORROWING BASE (CLEARINGHOUSE MARGIN LOANS)** | **B - BORROWING BASE (CLEARINGHOUSE MARGIN LOANS)** |
| (1) | Previous month 10th lowest Eligible NSCC Margin Deposits |  | $_______________ |
| (2) | Current Eligible NSCC Margin Deposits |  | $_______________ |
| (3) | Line (2) minus Line (1) |  | $_______________ |
| (4) | Line (3) multiplied by 80% (to the extent positive) |  | $_______________ |
| (5) | OCC Excess Margin Deposits |  | $_______________ |
| (6) | Line (5) multiplied by 90% (to the extent positive) |  | $_______________ |
| (7) | Lesser of Line (4) and Line (6) |  | $_______________ |
| (8) | Outstanding Clearinghouse Margin Loans |  | $_______________ |
| (9) | Availability (Line (7) minus Line (8)) |  | $_______________ |
|  **LIMITATIONS ON AVAILABILITY** | **LIMITATIONS ON AVAILABILITY** | **LIMITATIONS ON AVAILABILITY** | **LIMITATIONS ON AVAILABILITY** |
| A. | Outstanding Loans after giving effect to such requested Loan (sum of Lines (A)(5) and (B)(9) plus the Overnight Loans) |  | $_______________ |
| B. | The lesser of (i) $200,000,000 and (ii) Line A |  | $_______________ |
| C. | Outstanding Clearinghouse Margin Loans |  | $_______________ |
| D. | The lesser of (i) $150,000,000 and (ii) Line C |  | $_______________ |
|  E | Outstanding Overnight Loans |  | $_______________ |
|  F | The lesser of (i) $10,000,000 and (ii) Line E |  | $_______________ |
|  G | Outstanding Clearinghouse Margin Loans and Overnight Loans |  | $_______________ |
|  H | The lesser of (i) $150,000,000 and (ii) Line G |  | $_______________ |

---

---

| | |
|:---|:---|
| <sup>\*\*</sup> | (i) Eligible Securities shall exclude securities held in the Borrower's inventory for more than thirty (30) consecutive days and (ii) Eligible Bond Securities and Eligible Equity Securities of an issuer and its Affiliates of such Eligible Bond Security or Eligible Equity Security shall be excluded if the Market Value of such Eligible Bond Securities or Eligible Equity Securities exceeds 15% of all of the Collateral; provided, that only the excess Market Value shall be excluded for purposes of determining the Margin Borrowing Base  |

---

------

**ANNEX II** 

**TO** 

**NOTICE OF BORROWING** 

------

**EXHIBIT C** 

**CERTIFICATE RE: MARGIN DEPOSITS** 

To: BMO Bank N.A.

This Certificate re: Eligible Margin Deposits is furnished to the Bank pursuant to that certain Loan Agreement dated as of November 12, 2024 between Clear Street LLC and BMO Bank N.A. (as extended, renewed, amended or restated from time to time, the *"Loan Agreement"*). The undersigned hereby certifies that the Eligible NSCC Margin Deposits in effect for each Business Day in the most recently ended calendar month were as described on the schedule attached hereto.

Unless otherwise defined herein, the terms used in this Certificate have the meanings ascribed thereto in the Credit Agreement.

IN WITNESS WHEREOF, the undersigned has hereunto set my name as of the date set forth below.

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| | |
|:---|:---|
| CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |
| Date: | __________, 202__ |

---

------

**SCHEDULE** 

**ELIGIBLE NSCC MARGIN DEPOSITS** 

---

| | |
|:---|:---|
| DATE OF BUSINESS DAY | ELIGIBLE NSCC MARGIN DEPOSITS |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  | $__________ |
|  10th Lowest Eligible NSCC Margin Deposits during the calendar month | $__________ |

---

## Exhibit 10.21

**Exhibit 10.21** 

**CREDIT AGREEMENT** 

**DATED AS OF DECEMBER 4, 2020,** 

**AMONG** 

**CLEAR STREET LLC,** 

**THE LENDERS FROM TIME TO TIME PARTY HERETO,** 

**AND** 

**BMO HARRIS BANK N.A.,** 

**AS ADMINISTRATIVE AGENT** 

**BMO HARRIS BANK N.A.,** 

**AS SOLE LEAD ARRANGER AND SOLE BOOK RUNNER** 

------

**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
| SECTION | HEADING | PAGE |
|  SECTION 1. DEFINITIONS; INTERPRETATION | SECTION 1. DEFINITIONS; INTERPRETATION |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.1. | Definitions | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.2. | Interpretation | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.3. | Change in Accounting Principles | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.4. | Divisions | 22 |
|  SECTION 2. THE FACILITIES  | SECTION 2. THE FACILITIES  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.1. | Revolving Facility | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.2. | Applicable Interest Rates | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.3. | Minimum Borrowing Amounts; Maximum Eurodollar Loans | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.4. | Manner of Borrowing Eoans and Designating Applicable Interest Rates | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.5. | Maturity of Loans | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.6. | Prepayments | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.7. | Default Rate | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.8. | Evidence of Indebtedness | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.9. | Fees | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.10. | Place and Application of Payments | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.11. | Non-Business Days | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.12. | Payments Set Aside | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.13. | Account Debit | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.14. | Commitment Terminations | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.15. | Replacement of Lenders | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.16. | Defaulting Lenders | 29 |
|  SECTION 3. TAXES; CHANGE IN CIRCUMSTANCES , INCREASED COSTS , AND FUNDING INDEMNITY | SECTION 3. TAXES; CHANGE IN CIRCUMSTANCES , INCREASED COSTS , AND FUNDING INDEMNITY |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.1. | Taxes | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.2. | Increased Costs | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.3. | Discretion of Lender as to Manner of Funding | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.4. | Lending Offices; Mitigation Obligations | 35 |
|  SECTION 4. CONDITIONS PRECEDENT | SECTION 4. CONDITIONS PRECEDENT |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.1. | Initial Credit Event | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.2. | All Credit Events | 38 |
|  SECTION 5. REPRESENTATIONS AND WARRANTIES  | SECTION 5. REPRESENTATIONS AND WARRANTIES  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.1. | Organization and Qualification | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.2. | Subsidiaries | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.3. | Authority and Validity of Obligations | 39 |

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---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.4. | Use of Proceeds | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.5. | Financial Reports | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.6. | No Material Adverse Change | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.7. | Full Disclosure | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.8. | Trademarks, Franchises, and Licenses | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.9. | Governmental Authority and Licensing | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.10. | Good Title | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.11. | Litigation and Other Controversies | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.12. | Taxes | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.13. | Approvals | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.14. | Ajfiliate Transactions | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.15. | Investment Company | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.16. | ERISA | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.17. | Compliance with Laws | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.18. | Sanctions; Anti-Money Laundering Laws and Anti-Corruption Laws | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.19. | EEA Financial Institution | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.20. | Other Agreements | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.21. | Solvency | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.22. | No Default or Termination Event | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.23. | Registration; Qualifications | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.24. | S1PC Assessments | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.25. | Designated Examining Authority | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.26. | Perfection of Security Interest | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.27. | Ownership, No Liens, etc | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.28. | Valid Security Interest | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.29. | Broker Fees | 44 |
| SECTION 6. AFFIRMATIVE COVENANTS | SECTION 6. AFFIRMATIVE COVENANTS |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.1. | Maintenance of Business | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.2. | Maintenance of Properties | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.3. | Taxes and Assessments | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.4. | Insurance | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.5. | Financial Reports; Notices | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.6. | Inspection | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.7. | ERISA | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.8. | Compliance with Laws | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.9. | Compliance with Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.10. | Formation of Subsidiaries | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.11. | Use of Proceeds | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.12. | Settlement Account | 48 |
| SECTION 7. NEGATIVE COVENANTS AND FINANCIAL COVENANTS | SECTION 7. NEGATIVE COVENANTS AND FINANCIAL COVENANTS |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.1. | Borrowings and Guaranties | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.2. | Liens | 49 |

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ii

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---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.3. | Investments, Acquisitions, Loans and Advances | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.4. | Mergers, Consolidations, Divisions and Sales | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.5. | Maintenance of Subsidiaries | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.6. | Dividends and Certain Other Restricted Payments | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.7. | Burdensome Contracts With Affiliates | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.8. | No Changes in Fiscal Year | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.9. | Change in the Nature of Business | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.10. | No Restrictions | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.11. | Use of Proceeds | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.12. | Financial Covenants | 53 |
| SECTION 8. EVENTS OF DEFAULT AND REMEDIES | SECTION 8. EVENTS OF DEFAULT AND REMEDIES |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.1. | Events of Default | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.2. | Non-Bankruptcy Defaults | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.3. | Bankruptcy Defaults | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.4. | Post-Default Collections | 56 |
| SECTION 9. THE ADMINISTRATIVE AGENT | SECTION 9. THE ADMINISTRATIVE AGENT |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.1. | Appointment and Authority | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.2. | Rights as a Lender | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.3. | Action by Administrative Agent; Exculpatory Provisions | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.4. | Reliance by Administrative Agent | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.5. | Delegation of Duties | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.6. | Resignation of Administrative Agent | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.7. | Non-Reliance on Administrative Agent and Other Lenders | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.8. | Designation of Additional Agents | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.9. | Erforcement of the Loan Documents; Possession of Collateral | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.10. | Authorization to Release or Limit Liens | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.11. | Authorization of Administrative Agent to File Proofs of Claim | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.12. | Certain ERISA Matters | 62 |
| SECTION 10. THE COLLATERAL AND GUARANTIES | SECTION 10. THE COLLATERAL AND GUARANTIES |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.1. | Collateral and Collateral Accounts | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.2. | Delivery of Collateral; Inspection | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.3. | Payments and Other Proceeds | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.4. | Voting Rights and Income | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.5. | Release of Collateral | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.6. | Settlement Account | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.7. | Further Acts | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.8. | Remedies on Default | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.9. | Rights of Administrative Agent With Respect to Calculations | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.10. | Waiver of Administrative Agent's Rights Against Collateral | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.11. | Agreement Regarding Customers Securities and Firm Securities | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.12. | Guaranties | 67 |

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| | | |
|:---|:---|:---|
| SECTION 11. MISCELLANEOUS | SECTION 11. MISCELLANEOUS |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.1. | Notices | 68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.2. | Successors and Assigns | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.3. | Amendments | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.4. | Costs and Expenses; Indemnification | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.5. | No Waiver, Cumulative Remedies | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.6. | Right of Setcjf | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.7. | Sharing of Payments by Lenders | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.8. | Survival of Representations | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.9. | Survival of Indemnities | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.10. | Counterparts; Integration; Effectiveness. | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.11. | Headings | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.12. | Severability of Provisions | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 11.13. | Construction | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.14. | Excess Interest | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.15. | Lender's Obligations Several | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.16. | No Advisory or Fiduciary Responsibility | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 11.17. | Governing Law; Jurisdiction; Consent to Service of Process | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 11.18. | Waiver of Jury Trial | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.19. | USA Patriot Act | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.20. | Confidentiality | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.21. | Acknowledgement and Consent to Bail-ln of Affected Financial Institutions | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.22. | Acknowledgement Regarding Any Supported QFCs | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.23. | Time is of the Essence | 84 |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EXHIBIT A | Notice of Borrowing |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EXHIBIT B | Revolving Note |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EXHIBIT C | Compliance Certificate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EXHIBIT D | Eligible NSCC Margin Deposits |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EXHIBIT E | Assignment and Assumption |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SCHEDULE 2.1 | Commitments |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SCHEDULE 5.2 | Subsidiaries |

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iv

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**CREDIT AGREEMENT** 

This Credit Agreement is entered into as of December 4, 2020, by and among Clear Street LLC, a Delaware limited liability company (the *"Borrower"),* the several financial institutions from time to time party to this Agreement, as Lenders, and BMO Harris Bank N.A., as Administrative Agent as provided herein.

**PRELIMINARY STATEMENT** 

The Borrower has requested, and the Lenders have agreed to extend, certain credit facilities on the terms and conditions of this Agreement.

Now, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

Section 1. DEFINITIONS; INTERPRETATION.

*Section 1.1. Definitions.* The following terms when used herein shall have the following meanings:

*"Account(s)"* means one or more pledged accounts (i) maintained by the Administrative Agent with the DTC and (ii) in the name of and maintained with the Administrative Agent.

*"Adequate Assurance Deposit"* means an NSCC deposit requirement, in excess of ordinary course NSCC deposit requirements, pursuant to NSCC Rule 15, section 2(b).

*"Administrative Agent"* means BMO Harris Bank N.A., in its capacity as administrative agent hereunder, and any successor in such capacity pursuant to Section 9.6.

*"Administrative Questionnaire"* means an Administrative Questionnaire in a form supplied by the Administrative Agent.

*"Affected Financial Institution"* means (a) any EEA Financial Institution or (b) any UK Financial Institution.

*"Affiliate"* means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified; *provided that,* in any event for purposes of this definition, any Person that owns, directly or indirectly, 20% or more of the securities having the ordinary voting power for the election of directors or governing body of a corporation or 20% or more of the partnership or other ownership interest of any other Person (other than as a limited partner of such other Person) will be deemed to control such corporation or other Person.

*"Agreement"* means this Credit Agreement, as the same may be amended, modified, restated or supplemented from time to time in accordance with the terms hereof.

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*"Anti-Corruption Laws"* means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or any of its Subsidiaries from time to time concerning or relating to bribery or corruption.

*"Anti-Money Laundering Laws"* means any and all laws, statutes, regulations or obligatory government orders, decrees, ordinances or rules applicable to the Borrower or its Subsidiaries related to terrorism financing or money laundering, including any applicable provision of the Patriot Act.

*"Applicable Interest Rate"* means (i) a rate per annum equal to Overnight Base Rate in effect from time to time plus 1.50% for the Margin Loans, and (ii) a rate per annum equal to Overnight Base Rate in effect from time to time plus 2.50% for the NSCC Loans, in each case with any change in the Applicable Interest Rate resulting from a change in the Overnight Base Rate to be effective as of the date of the relevant change in said Overnight Base Rate.

*"Approved Fund"* means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

*"Assignment and Assumption"* means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 11.2(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit E or any other form approved by the Administrative Agent.

*"Authorized Representative"* means those persons shown on the list of officers provided by the Borrower pursuant to Section 4.1 or on any update of any such list provided by the Borrower to the Administrative Agent, or any further or different officers of the Borrower so named by any Authorized Representative of the Borrower in a written notice to the Administrative Agent.

*"Bail-In Action"* means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an Affected Financial Institution.

*"Bail-In Legislation"* means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

*"Beneficial Ownership Certification"* means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

*"Beneficial Ownership Regulation"* means 31 C.F.R. § 1010.230.

*"Benefit Plan"* means any of (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA, (b) a "plan" as defined in Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such "employee benefit plan" or "plan".

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*"Borrower"* is defined in the introductory paragraph of this Agreement.

*"Borrowing"* means the total of Loans of a single type advanced by the Lenders. Borrowings of Loans are made and maintained ratably from each of the Lenders according to their Percentages. A Borrowing is *"advanced"* on the day Lenders advance funds comprising such Borrowing to the Borrower.

*"Business Day"* means any day (other than a Saturday or Sunday) on which banks are not authorized or required to close in Chicago, Illinois and, if the applicable Business Day relates to the advance or payment of a Loan, on which banks are dealing in U.S. Dollar deposits in the interbank eurodollar market in London, England.

*"Capital Lease"* means any lease of Property which in accordance with GAAP is required to be capitalized on the balance sheet of the lessee.

*"Capitalized Lease Obligation"* means, for any Person, the amount of the liability shown on the balance sheet of such Person in respect of a Capital Lease determined in accordance with GAAP.

*"Change in Law"* means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority, or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; *provided* that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, regulations, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted or issued.

*"Change of Control"* means any of (a) the Cohen Affiliates ceases at any time and for any reason (including death or incapacity) to own, legally and beneficially, at least 50.1% of the Voting Stock of the Parent, (b) the failure of the Parent to own, directly or indirectly, less than 100% of the Voting Stock of the Borrower, (c) the failure of individuals who are members of the board of directors (or similar governing body) of the Borrower or the Parent on the Closing Date (together with any new or replacement directors whose initial nomination for election was approved by a majority of the directors who were either directors on the on date hereof or previously so approved) to constitute a majority of the board of directors (or similar governing body) of the Borrower or the Parent, as applicable, or (d) any "Change of Control" (or words of like import), as defined in any agreement or indenture relating to any issue of Indebtedness of the Parent or the Borrower shall occur.

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*"Closing Date"* means the date of this Agreement or such later Business Day upon which each condition described in Section 4.1 shall be satisfied or waived in a manner acceptable to the Administrative Agent in its discretion.

*"Code"* means the Internal Revenue Code of 1986, as amended, and any successor statute thereto.

*"Cohen Affiliates"* means collectively (i) Uriel Cohen, (ii) any Family Member of Uriel Cohen, (iii) any trust or estate planning vehicle established for the benefit of Uriel Cohen or his Family Members, and (iv) any charitable trust controlled by any Person in clause (i), (ii) or (iii) above.

*"Collateral"* means the Margin Collateral and NSCC Margin Collateral, as the case may be.

*"Commitment"* means, as to any Lender, the obligation of such Lender to make Loans in an aggregate principal at any one time outstanding not to exceed the amount set forth opposite such Lender's name on Schedule 2.1attached hereto and made a part hereof, as the same may be reduced or modified at any time or from time to time pursuant to the terms hereof. The Borrower and the Lenders acknowledge and agree that the aggregate Commitments of the Lenders is $75,000,000 on the Closing Date.

*"Commodity Exchange Act"* means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

*"Connection Income Taxes"* means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profit Taxes.

*"Control"* means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling" and "Controlled" have meanings correlative thereto.

*"Credit Event"* means the advancing of any Loan.

*"Credit Exposure"* means, as to any Lender at any time, the aggregate principal amount at such time of its outstanding Loans at such time.

*"Customer Loan"* means any Margin Loan that has been designated by the Borrower in the Notice of Borrowing as a "Customer Loan".

*"Customer Loan Limit"* means the Margin Borrowing Base as determined and computed with Customer Securities only.

*"Customer Obligations"* means all Obligations of the Borrower with respect to Customer Loans.

*"Customer Securities"* means, at any time, Collateral that is pledged at such time to the Administrative Agent to secure Customer Obligations.

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*"Debt Subordination Agreement"* means that certain Debt Subordination Agreement dated as of December 4, 2020 from WBI, LP in favor of the Administrative Agent and the Lenders, as such Debt Subordination Agreement may be amended, modified, supplemented or restated from time to time.

*"Debtor Relief Laws"* means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.

*"Default"* means any event or condition which constitutes an Event of Default or any event or condition the occurrence of which would, with the passage of time or the giving of notice, or both, constitute an Event of Default.

*"Defaulting Lender"* means, subject to Section 2.16(b), any Lender that (a) has failed to (i) fund all or any portion of its Loans within two (2) Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender's determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two (2) Business Days of the date when due, (b) has notified the Borrower or the Administrative Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender's obligation to fund a Loan hereunder and states that such position is based on such Lender's determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder *(provided* that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, at any time after the Closing Date (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity or (iii) become the subject of a Bail-in Action; *provided* that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.16(b)) upon delivery of written notice of such determination to the Borrower and each Lender.

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*"Designated Disbursement Account"* means the account of the Borrower maintained with the Administrative Agent or its Affiliate and designated in writing to the Administrative Agent as the Borrower's Designated Disbursement Account (or such other account as the Borrower and the Administrative Agent may otherwise agree from time to time).

*"Designated Examining Authority"* means the exchange that has been designated as the Borrower's securities designated examining authority, as defined in Rule 15c3-l(c)(12) of the SEC.

*"Designated Jurisdiction"* means, at any time, any country, region or territory which is itself the subject or target of any Sanctions.

*"Designated Seif-Regulatory Organization"* shall have the meaning assigned to such term in Section 3(a)(26) of the Securities Exchange Act of 1934, as amended.

*"DTC"* means The Depository Trust Company and its successors and assigns.

*"EEA Financial Institution"* means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

*"EEA Member Country"* means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

*"EEA Resolution Authority"* means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

*"Eligible Assignee''* means any Person that meets the requirements to be an assignee under Section 11,2(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 11,2(b)(iii)).

*"Eligible Bond Security"* means an Eligible Security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is either (i) a bond issued by a corporation, partnership or limited liability company with a maturity date not less than one year from the date of issuance, or (ii) a marketable obligation of a State of the United States of America or any political subdivision, agency or instrumentality of any of the foregoing, or the District of Columbia, or (iii) a marketable obligation of any territory or local government of a State of the United States or any political subdivision, agency, or instrumentality of such territory or local government;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has a Market Value of not less than $5.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the issuer of such security has not defaulted in the payment when due of any principal of or interest on any debt securities issued by it or loans or other extensions of credit made to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the issuer of such security (i) is not the subject of any bankruptcy, arrangement, receivership, conservatorship, reorganization proceeding or other proceeding for relief of debtors, (ii) is not insolvent, and (iii) has not admitted its inability to pay its debts generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it is Investment Grade;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) would not cause the Market Value of such security issued by any one issuer and its Affiliates to exceed 15% of all of the Collateral; *provided,* that only the excess Market Value shall be excluded for purposes of determining the Margin Borrowing Base; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the issuer of such security is not an Affiliate of the Administrative Agent.

*"Eligible Equity Security"* means an Eligible Security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is a security consisting of common stock and other equity securities of an issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has a Market Value of at least $5.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the issuer of such security (i) is not the subject of any bankruptcy, arrangement, receivership, conservatorship, reorganization proceeding or other proceeding for relief of debtors, (ii) is not insolvent, and (iii) has not admitted its inability to pay its debts generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it would not cause the Market Value of such security to exceed 15% of the Market Value of all of the Collateral; *provided,* that only the excess Market Value shall be excluded for purposes of determining the Margin Borrowing Base; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the issuer of such security is not an Affiliate of the Administrative Agent.

*"Eligible Federal Government Security"* means an Eligible Security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is a direct obligation of the United States of America or of any agency or instrumentality thereof whose obligations constitute the full faith and credit obligations of the United States of America;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the issuer of such security has not defaulted in the payment when due of any principal of or interest on any debt securities issued by it or loans or other extensions of credit made to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the issuer of such security (i) is not the subject of any bankruptcy, arrangement, receivership, conservatorship, reorganization proceeding or other proceeding for relief of debtors, (ii) is not insolvent, and (iii) has not admitted its inability to pay its debts generally; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it is Investment Grade.

*"Eligible NSCC Margin Deposits"* means those NSCC Margin Deposits of the Borrower, excluding such portions of NSCC Margin Deposits that (a) relate to losses incurred by the Borrower for its own account or the account of any of its Subsidiaries or (b) as reasonably determined by the Borrower, acting in good faith, are subject to any counterclaim, deduction, defense, setoff or similar rights by NSCC or DTC other than to the extent constituting or arising out of the obligations for which such deposit was delivered (but only to the extent of any such counterclaim, deduction, defense, setoff or similar rights); *provided, however,* that the value of Eligible NSCC Margin Deposits shall not at any time exceed the NSCC Deposit Requirements applicable to the Borrower at such time.

*"Eligible Security"* means a security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is traded on an Exchange and is not subject to any restriction on transfer (including without limitation Rule 144 and Rule 144A promulgated by the SEC);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is not a security that has been held in the Borrower's inventory for more than thirty (30) consecutive days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it is available to be pledged, repledged, hypothecated, rehypothecated, or otherwise transferred by the Borrower in favor the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it is subject to a perfected first priority Lien in favor of the Administrative Agent and is free of all other Liens, adverse claims and other encumbrances of every type or nature whatsoever, including without limitation any of the foregoing in favor of any brokers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it is held in an Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Market Value of such security is readily available through the Reporting Service or is otherwise available to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if such security is a callable or convertible security it has not matured or been called prior to its stated maturity date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) it is not an option, warrant, put, call, strip, repurchase agreement, reverse repurchase agreement, mutual fund share or interest, derivative or similar security; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is not otherwise deemed to be ineligible in the reasonable judgment of the Administrative Agent (it being acknowledged and agreed that with five (5) Business Days prior written notice any such security or categories thereof may be deemed ineligible by the Administrative Agent acting in its reasonable judgment).

*"ERISA"* means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

*"ERISA Affiliate"* means any trade or business (whether or not incorporated) under common control with the Borrower within the meaning of section 414(b) or (c) of the Code (and sections 414(m) and (o) of the Code for purposes of provisions relating to section 412 of the Code and section 302 of ERISA).

*"ERISA Event"* means (a) a Reportable Event with respect to a Plan; (b) the withdrawal of the Borrower or any ERISA Affiliate from a Plan subject to Section 4063 of ERISA during a plan year in which such entity was a "substantial employer" as defined in Section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate under, or the treatment of a Plan amendment as a termination under, Section 4041 or 4041A of ERISA; (e) the institution by the PBGC of proceedings to terminate a Plan; (f) any event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan; (g) the determination that any Plan is considered an at-risk plan or a plan in endangered or critical status within the meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304 and 305 of ERISA; or (h) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate.

*"EU Bail-In Legislation Schedule"* means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

*"Eurodollar Reserve Percentage"* means the maximum reserve percentage, expressed as a decimal, at which reserves (including, without limitation, any emergency, marginal, special, and supplemental reserves) are imposed by the Board of Governors of the Federal Reserve System (or any successor) on *"eurocurrency liabilities",* as defined in such Board's Regulation D (or any successor thereto), subject to any amendments of such reserve requirement by such Board or its successor, taking into account any transitional adjustments thereto. For purposes of this definition, the relevant Loans shall be deemed to be *"eurocurrency liabilities"* as defined in Regulation D without benefit or credit for any prorations, exemptions or offsets under Regulation D. The Eurodollar Reserve Percentage shall be adjusted automatically on and as of the effective date of any change in any such reserve percentage.

*"Event of Default"* means any event or condition identified as such in Section 8.1.

*"Excess Net Capital"* means, as of any date the same is to be determined, the Borrower's net capital as shown on line 3910 of the Borrower's most recent FOCUS Part 2 report.

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*"Exchange"* means a nationally recognized securities exchange located in the United States of America or on a recognized over-the-counter market located in the United States of America.

*"Excluded Accounts"* means each of the Borrower's deposit accounts maintained with the Administrative Agent as a "Special Reserve Account For the Exclusive Benefit of Customers" pursuant to Rule 15c3-3 of the Rules.

*"Excluded Taxes"* means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 2.15) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 3.1 amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient's failure to comply with Section 3.1(g), and (d) any U.S. federal withholding Taxes imposed under FATCA.

*"Family Member"* means a Person who is a spouse, child, parent, brother, sister, brother- in-law or sister-in-law.

*"FATCA"* means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code, and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.

*"Federal Funds Rate"* means, for any day, the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; *provided* that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to the Administrative Agent on such day on such transactions as determined by the Administrative Agent; *provided* that if the Federal Funds Rate as so determined would be less than one percent (1.00%), the Federal Funds Rate will be deemed to be one percent (1.00%) for purposes of this Agreement.

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*"Fee Letter"* means that certain letter agreement dated as of August 21, 2020, between the Administrative Agent and the Borrower.

*"Financial Officer"* of any Person means the chief financial officer, principal accounting officer, treasurer or controller of such Person.

*"Firm Loan"* means any Margin Loan that has been designated by the Borrower in the Notice of Borrowing as a "Firm Loan".

*"Firm Loan Limit"* means the Margin Borrowing Base as determined and computed with Firm Securities only.

*"Firm Obligations"* means all Obligations of the Borrower with respect to Firm Loans to the Borrower.

*"Firm Securities"* means at any time, Collateral that is pledged at such time to the Administrative Agent to secure Obligations with respect to Firm Loans.

*"Fitch"* means Fitch, Inc.

*"Foreign Lender"* means a Lender that is not a U.S. Person.

*"Fund"* means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business.

*"GAAP"* means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting profession), which are applicable to the circumstances as of the date of determination.

*"Governmental Authority"* means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

*"Guarantee"* of or by any Person (the *"guarantor")* means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the *"primary obligor")* in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain

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working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; *provided* that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business.

*"Guaranty Agreement"* means the guaranty agreement executed and delivered by the Parent in order to guarantee the Obligations or any part thereof in form and substance acceptable to the Administrative Agent, as such agreement may be amended, modified, or supplemented from time to time.

*"Indebtedness"* means for any Person (without duplication) (a) all indebtedness created, assumed or incurred in any manner by such Person representing money borrowed (including by the issuance of debt securities), (b) all indebtedness for the deferred purchase price of property or services (other than trade accounts payable arising in the ordinary course of business which are not more than ninety (90) days past due), (c) all indebtedness secured by any Lien upon Property of such Person, whether or not such Person has assumed or become liable for the payment of such indebtedness, (d) all Capitalized Lease Obligations of such Person, (e) all obligations of such Person on or with respect to letters of credit, bankers' acceptances and other extensions of credit whether or not representing obligations for borrowed money, (f) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any equity interest in such Person or any other Person or any warrant, right or option to acquire such equity interest, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends, (g) all net obligations (determined as of any time based on the termination value thereof) of such Person under any interest rate, foreign currency, and/or commodity swap, exchange, cap, collar, floor, forward, future or option agreement, or any other similar interest rate, currency or commodity hedging arrangement; and (h) all Guarantees of such Person in respect of any of the foregoing. For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse to such Person.

*"Indemnified Taxes''* means (a) all Taxes other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

*"Interest Payment Date"* means the last day of every calendar month and on the maturity date (whether by acceleration or otherwise).

*"IRS"* means the United States Internal Revenue Service.

*"Investment Grade"* means a security having a long-term rating of BBB or better by S&P, Baa or better by Moody's, or BBB or better by Fitch; *provided* that if more than one long-term rating applies to such security, then the lowest rating shall apply.

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*"Legal Requirement"* means any treaty, convention, statute, law, common law, rule, regulation, ordinance, license, permit, governmental approval, injunction, judgment, order, consent decree or other requirement of any Governmental Authority, whether federal, state, or local.

*"Lenders"* means and includes BMO Harris Bank N.A. and the other Persons listed on Schedule 2.1 and any other Person that shall have become party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.

*"Lending Office"* is defined in Section 3.4.

*"LIBOR Quoted Rate"* means, for any day, the rate per annum equal to the quotient of (i) the rate per annum (rounded upwards, if necessary, to the next higher one hundred-thousandth of a percentage point) for deposits in U.S. Dollars for a one month interest period as reported on the applicable Bloomberg screen page (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) as of 11:00 a.m. (London, England time) on such day (or, if such day is not a Business Day, on the immediately preceding Business Day) divided by (ii) one (1) minus the Eurodollar Reserve Percentage, provided that in no event shall the "LIBOR Quoted Rate" be less than 0.00%.

*"Lien"* means any mortgage, lien, security interest, pledge, charge or encumbrance of any kind in respect of any Property, including the interests of a vendor or lessor under any conditional sale, Capital Lease or other title retention arrangement.

*"Loan"* is defined in Section 2.1, and as so defined, includes a Margin Loan and NSCC Loan, each of which is a *"type"* of Loan hereunder.

*"Loan Documents"* means this Agreement, the Notes (if any), the Guaranty Agreement, the Debt Subordination Agreement, and each other instrument or document to be delivered hereunder or thereunder or otherwise in connection therewith.

*"Margin Borrowing Base"* means, as of any time it is to be determined, the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 90% of the Market Value of Eligible Federal Government Securities; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 90% of the Market Value of Eligible Bond Securities; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 80% of the Market Value of Eligible Equity Securities.

*"Margin Collateral"* means and includes (a) the Accounts, (b) all securities and other Property described in each borrowing request (including a Notice of Borrowing) delivered to the Administrative Agent pursuant to this Agreement, (c) all other securities or Property delivered or deliverable on the sale, exchange, collection, reclassification, conversion, merger or consolidation and other dispositions of or distributions on any of the foregoing, and (d) any and all proceeds thereof (including all income payable thereon), both cash and non-cash.

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*"Margin Loans"* means Loans the proceeds of which are used to finance the purchase and settlement of securities and for the Borrower's general working capital purposes.

*"Margin Obligations"* means all obligations of the Borrower to pay principal and interest on the Margin Loans, all fees and charges payable hereunder, and all other payment obligations of the Borrower arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held, or acquired.

*"Market Value"* means, for each unit of a security of any class at a particular time, the closing price for such security for the immediately preceding Business Day reported by the Reporting Service, but excluding accrued and unpaid interest on interest-bearing securities from such determination.

*"Material Adverse Effect"* means (a) a material adverse change in, or material adverse effect upon, the operations, business, Property, or condition (financial or otherwise) of the Borrower or of the Borrower and its Subsidiaries taken as a whole, (b) a material impairment of the ability of the Borrower to perform its obligations under any Loan Document or (c) a material adverse effect upon (i) the legality, validity, binding effect or enforceability against the Borrower of any Loan Document or the rights and remedies of the Administrative Agent and the Lenders thereunder or (ii) the perfection or priority of any Lien granted under any Loan Document.

*"Moody's"* means Moody's Investors Service, Inc.

*"Multiemployer Plan"* means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five (5) plan years, has made or been obligated to make contributions.

*"Multiple Employer Plan"* means a Plan which has two or more contributing sponsors (including the Borrower or any ERISA Affiliate) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.

*"Non-Consenting Lender"* means any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all affected Lenders in accordance with the terms of Section 11.3 and (b) has been approved by the Required Lenders.

*"Non-Defaulting Lender"* means, at any time, each Lender that is not a Defaulting Lender at such time.

*"Note"* and *"Notes"* each is defined in Section 2.8.

*"Notice of Borrowing"* means that certain Notice of Borrowing in the form of Exhibit A attached hereto or in such other form acceptable to the Administrative Agent.

*"NSCC"* means the National Securities Clearing Corporation.

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*"NSCC Borrowing Base"* means, as of any time it is to be determined, an amount equal to 80% of the excess, if any, of the Eligible NSCC Margin Deposits of the Borrower at such time over the Eligible NSCC Margin Deposits of the Borrower in effect as at the close of business on the day in the prior calendar month (or if the certificate for such prior calendar month with respect to the Borrower's Eligible NSCC Margin Deposit has not been delivered pursuant to Section 6.5 hereof, the preceding calendar month) that was the day having the 10th lowest Eligible NSCC Margin Deposits of the Borrower during such calendar month; *provided,* that the NSCC Borrowing Base (after giving effect to the advance rate) shall not, at any time, exceed the amount of the Eligible NSCC Margin Deposits of the Borrower at such time.

*"NSCC Deposit Requirements"* means cash collateral requirements established by NSCC in connection with securities clearing services provided by NSCC, as such requirements may be amended, supplemented or otherwise modified from time to time.

*"NSCC Margin Collateral"* means all of the Borrower's right, title and interest in (i) the right to the return from NSCC of NSCC Margin Deposits pursuant to the terms of the rules and procedures of the NSCC in effect from time to time, (ii) the Settlement Account, all balances in the Settlement Account, and all income, distributions, and sums distributable or payable from, upon, or in respect of the foregoing, and (iii) any and all proceeds thereof (including cash and noncash proceeds and all income payable on any of the foregoing items (i), (ii) or (iii), whether now owned or held or hereafter acquired.

*"NSCC Margin Deposits "* means deposits made by the Borrower with NSCC in connection with securities clearing services provided to it by NSCC.

*"NSCC Margin Loans"* means Loans the proceeds of which are used to finance NSCC Deposit Requirements.

*"NSCC Margin Obligations"* means all obligations of the Borrower to pay principal and interest on the NSCC Margin Loans, all fees and charges payable hereunder, and all other payment obligations of the Borrower arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held, or acquired.

*"Obligations"* means all obligations of the Borrower to pay principal and interest on the Loans, all fees and charges payable hereunder, and all other payment obligations of the Borrower arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held or acquired.

*"OFAC"* means the United States Department of Treasury Office of Foreign Assets Control.

*"OFAC SDN List"* means the list of the Specially Designated Nationals and Blocked Persons maintained by OFAC.

*"Organizational Documents"* means the certificate of organization, limited liability company agreement, operating agreement, or such other agreement under which the Borrower or such Subsidiary is organized, as each of the same may be amended, amended and restated, supplemented or otherwise modified from time to time in accordance with this Agreement.

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*"Other Connection Taxes "* means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

*"Other Taxes"* means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.15).

*"Overnight Base Rate"* means, for any day, the rate per annum equal to the greatest of: (a) LIBOR Quoted Rate for such day, (b) the Target Rate for such day and (c) 0.25%; *provided,* that in the event that the LIBOR Quoted Rate is not available for any reason, then the Overnight Base Rate shall be the greater of clause (b) and (c) above without reference to clause (a) above.

*"Parent"* means Clear Street Holdings, LLC, a Delaware limited liability company.

*"Participant"* has the meaning assigned to such term in clause (d) of Section 11.2.

*"Participant Register"* has the meaning specified in clause (d) of Section 11.2.

*"Patriot Act"* means the USA Patriot Act (Title III of Pub. L. 107 56 (signed into law October 26, 2001)).

*"PBGC"* means the Pension Benefit Guaranty Corporation or any Person succeeding to any or all of its functions under ERISA.

*"Pension Funding Rules"* means the rules of the Code and ERISA regarding minimum required contributions (including any installment payment thereof) to Plans and Multiemployer Plans and set forth in, with respect to plan years ending prior to the effective date of the Pension Act, Section 412 of the Code and Section 302 of ERISA, each as in effect prior to the Pension Act and, thereafter, Section 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA, and any sections of the Code or ERISA related thereto that are enacted after the date of this Agreement.

*"Percentage"* means, for each Lender, the percentage of the total Commitments represented by such Lender's Commitment or, if the Commitments have been terminated or expired, the percentage of the total Credit Exposure then outstanding held by such Lender.

*"Person"* means any natural Person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

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*"Plan"* means any employee pension benefit plan (including a Multiple Employer Plan, but excluding a Multiemployer Plan) that is maintained or is contributed to by the Borrower or any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code.

*"Property"* means, as to any Person, all types of real, personal, tangible, intangible or mixed property owned by such Person whether or not included in the most recent balance sheet of such Person and its subsidiaries under GAAP.

*"PPE"* means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

*"Recipient"* means (a) the Administrative Agent, and (b) any Lender, as applicable.

*"Reg U"* means Regulation U of the Board of Governors of the Federal Reserve System.

*"Regulatory Authority"* means Designated Examining Authority, Designated Self- Regulatory Organization, the SEC and all other examining and regulating authorities with jurisdiction over the Borrower or any Subsidiary.

*"Related Parties"* means, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

*"Reportable Event"* means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day notice period has been waived.

*"Reporting Service "* means ISDI-Interactive Data or, to the extent pricing and other market data is not available, any other independent pricing service selected by the Administrative Agent in accordance with its ordinary and customary business practices.

*"Required Lenders"* means, at any time, two or more Lenders having Total Credit Exposures representing more than 66.0% of the Total Credit Exposures of all Lenders. To the extent provided in the last paragraph of Section 11.3, the Total Credit Exposure of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.

*"Resolution Authority"* means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

*"Responsible Officer"* of any person means any executive officer or Financial Officer of such Person and any other officer, general partner or managing member or similar official thereof with responsibility for the administration of the obligations of such person in respect of this Agreement whose signature and incumbency shall have been certified to the Administrative Agent on or after the Closing Date pursuant to an incumbency certificate of the type contemplated by Section 4.1.

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*"Rules "* means the rules and regulations of the SEC under the Securities Exchange Act of 1934, as amended concerning the hypothecation of Customer Securities, including Rule 8c-1, Rule 15c2-l, and Rule 15c3-3.

*"Sanctioned Person"* means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC (including the OFAC SDN List), the United States Department of State, the United Nations Security Council, the European Union, any European Union member state, Her Majesty's Treasury of the United Kingdom, or any other relevant sanctions authority, (b) any Person located, organized or resident in a Designated Jurisdiction or (c) any Person owned or controlled by any such Person or Persons described in clauses (a) or (b) above.

*"Sanctions"* means all economic or financial sanctions, sectoral sanctions, secondary sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the United States government (including those administered by OFAC or the United States Department of State) or (b) the United Nations Security Council, the European Union, any European Union member state, Her Majesty's Treasury of the United Kingdom, or any other relevant sanctions authority with jurisdiction over the Borrower or any of its Subsidiaries or Affiliates.

*"SEC"* means the Securities and Exchange Commission.

*"Settlement Account"* means that certain account of the Borrower (account number 265- 6387) maintained with the Administrative Agent together with any account established in connection with any extension, renewal or substitution thereof, in each case as such Settlement Account may be renumbered or re-titled from time to time.

*"Settlement Bank Obligations"* means obligations of the Borrower owing to the Administrative Agent, in its capacity as the settlement bank, solely in connection with the settlement of securities.

*"SIPA"* means Securities Investor Protection Act of 1970, as amended.

*"S1PC"* means the Securities Investor Protection Corporation established pursuant to SIPA, or any other corporation that succeeds to the functions thereof.

*"S&P"* means Standard & Poor's Ratings Services Group, a Standard & Poor's Financial Services LLC business.

*"Subordinated Debt"* means Indebtedness which (i) qualifies as the Borrower's regulatory capital calculated in accordance with Exchange Act Rule 15c3-l, (ii) is unsecured, and (iii) is subordinated in right of payment to the prior payment of the Obligations pursuant to subordination provisions reasonably acceptable to the Administrative Agent (which shall include the subordination provisions required pursuant to Appendix D to the Exchange Act Rule 15c3-1).

*"Subsidiary"* means, any corporation or other Person more than 50% of the ordinary voting shares or other equity interests of which is at the time directly or indirectly owned by such parent corporation or organization or by one or more other entities which are themselves subsidiaries of such parent corporation or organization. Unless otherwise expressly noted herein, the term *"Subsidiary"* means a Subsidiary of the Borrower or of any of its direct or indirect Subsidiaries.

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*"Tangible Net Worth"* means, at any time the same is to be determined, the difference between total assets of the Borrower, *less* the sum of (i) the aggregate book value of all assets which would be classified as intangible assets under GAAP, including, without limitation, goodwill, patents, trademarks, trade names, copyrights, franchises and deferred charges (including, without limitation, unamortized debt discount and expense, organization costs and deferred research and development expense) and similar assets, (ii) the write-up of assets above cost and (iii) total liabilities and reserves of the Borrower, all as determined in accordance with GAAP.

*"Target Rate"* means, for any day, the rate per annum equal to the Federal Funds Target Range - Upper Limit as announced by the Federal Open Market Committee of the Federal Reserve Board; *provided* that in no event shall Target Rate be less than 0.00%.

*"Taxes"* means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

*"Termination Date"* means (i) December 3, 2021, (ii) the date upon which a Termination Event occurs, or (iii) or such earlier date on which the Commitment is terminated in whole pursuant to Section 2.14, 8.2 or 8.3.

*"Termination Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the NSCC requires the Borrower to make an Adequate Assurance Deposit or any other clearinghouse imposes a similar requirement on the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) one or more Regulatory Authorities imposes fines, levies, or other monetary penalties (including the disgorgement of profits) against the Borrower in excess of $500,000 individually or in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Regulatory Authority requires that a material portion of the Borrower's business be suspended or otherwise prohibited from operating for a period of five (5) or more Business Days, including, as applicable, the suspension, revocation or termination of the Borrower as a broker-dealer with the SEC or as a member of a Regulatory Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Borrower enters into a settlement with any Person (including any Regulatory Authority), and the Borrower is obligated to pay an amount in excess of $500,000 as part of such settlement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) one or more Regulatory Authorities imposes a fine, levy or other monetary penalty against the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer in excess of $100,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer enters into a settlement with any Person (including any Regulatory Authority), and such Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer is obligated to pay an amount in excess of $100,000 as part of such settlement; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer is suspended in any capacity for any reason for a period of five (5) or more Business Days or expelled by a Regulatory Authority.

*"Total Credit Exposure"* means, as to any Lender at any time, the unused Commitments and Credit Exposure of such Lender at such time.

*"Threshold Amount"* means $1,500,000.

*"Total Assets to Total Equity Ratio"* means, at any time the same is to be determined, the ratio of (i) total assets of the Borrower and its Subsidiaries at such time, *less* assets constituting matched repos and matched securities loans to (ii) the difference between total assets of the Borrower and its Subsidiaries, *less* total liabilities and reserves of the Borrower and its Subsidiaries at such time, all as determined on a consolidated basis in accordance with GAAP.

*"UK Financial Institution"* means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

*"UK Resolution Authority"* means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

*"U.S. Dollars"* and "$" each means the lawful currency of the United States of America.

*"U.S. Person"* means any Person that is a "United States Person" as defined in Section 7701(a)(30) of the Code.

*"U.S. Tax Compliance Certificate"* has the meaning assigned to such term in subsection (f) of Section 3.1.

*"Voting Stock"* of any Person means capital stock or other equity interests of any class or classes (however designated) having ordinary power for the election of directors or other similar governing body of such Person, other than stock or other equity interests having such power only by reason of the happening of a contingency.

*"Wholly-owned Subsidiary"* means a Subsidiary of which all of the issued and outstanding shares of capital stock (other than directors' qualifying shares as required by law) or other equity interests are owned by the Borrower and/or one or more Wholly-owned Subsidiaries within the meaning of this definition.

*"Withholding Agent"* means the Borrower and the Administrative Agent.

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*"Write-Down and Conversion Powers"* means (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

*"Zero Loan Day"* means, at any time, a Business Day in which no principal amount of the NSCC Margin Loans is outstanding.

*Section 1.2. Interpretation.* The foregoing definitions are equally applicable to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation." The word "will" shall be construed to have the same meaning and effect as the word "shall." Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person's successors and assigns, (c) the words "herein," "hereof' and "hereunder," and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (f) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. All references to time of day herein are references to Chicago, Illinois, time unless otherwise specifically provided. Where the character or amount of any asset or liability or item of income or expense is required to be determined or any consolidation or other accounting computation is required to be made for the purposes of this Agreement, it shall be done in accordance with GAAP except where such principles are inconsistent with the specific provisions of this Agreement.

*Section 1.3. Change in Accounting Principles.* If, after the date of this Agreement, there shall occur any change in GAAP from those used in the preparation of the financial statements referred to in Section 5.5 and such change shall result in a change in the method of calculation of any financial covenant, standard or term found in this Agreement, either the Borrower or the Required Lenders may by notice to the Lenders and the Borrower, respectively, require that the Lenders and the Borrower negotiate in good faith to amend such covenants, standards, and terms so as equitably to reflect such change in accounting principles, with the desired result being that the criteria for evaluating the financial condition of the Borrower and its Subsidiaries shall be the

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same as if such change had not been made. No delay by the Borrower or the Required Lenders in requiring such negotiation shall limit their right to so require such a negotiation at any time after such a change in accounting principles. Until any such covenant, standard, or term is amended in accordance with this Section, financial covenants shall be computed and determined in accordance with GAAP in effect prior to such change in accounting principles. Without limiting the generality of the foregoing, the Borrower shall neither be deemed to be in compliance with any financial covenant hereunder nor out of compliance with any financial covenant hereunder if such state of compliance or noncompliance, as the case may be, would not exist but for the occurrence of a change in accounting principles after the date hereof. Notwithstanding anything to the contrary contained herein or in the definition of "Capital Lease" or "Capitalized Lease Obligation", in the event of an accounting change requiring all leases to be capitalized, only those leases (assuming for purposes hereof that such leases were in existence on the date hereof) that would constitute Capital Leases in conformity with GAAP on the date hereof shall be considered Capital Leases, and all calculations and deliverables under this Agreement or any other Loan Document shall be made or delivered, as applicable, in accordance therewith.

*Section 1.4. Divisions.* For all purposes under the Loan Documents, in connection with any division or plan of division (whether under Delaware law or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its equity interests at such time.

Section 2. THE FACILITIES.

*Section 2.1. Revolving Facility.* (a) Subject to the terms and conditions hereof, each Lender, by its acceptance hereof, severally agrees to make a loan or loans (individually a "Loan" and collectively for all the Lenders the "Loans") in U.S. Dollars to the Borrower from time to time on a revolving basis up to the amount of such Lender's Commitment, subject to any reductions thereof pursuant to the terms hereof, before the Termination Date. Revolving Loans may be repaid and the principal amount thereof reborrowed before the Termination Date, subject to the terms and conditions hereof. Each Borrowing of Loans shall be made ratably by the Lenders in proportion to their respective Percentages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The foregoing notwithstanding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate principal amount of Loans at any time outstanding shall not exceed the Commitments in effect at such time,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the aggregate principal amount of Margin Loans at any time outstanding shall not exceed the Margin Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate principal amount of NSCC Margin Loans at any time outstanding shall not exceed the NSCC Borrowing Base as then determined and computed,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the aggregate principal amount of Customer Loans at any time outstanding shall not exceed the Customer Loan Limit,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the aggregate principal amount of Firms Loans at any time outstanding shall not exceed the Firm Loan Limit, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Lenders shall not be obligated to make a NSCC Margin Loan during any calendar month if such NSCC Margin Loan would cause the number of Zero Loan Days during such calendar month to be less than eight (8).

*Section 2.2. Applicable Interest Rates.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Loan made or maintained by a Lender shall bear interest (computed on the basis of a year of 360 days and the actual days elapsed on the unpaid principal amount thereof from the date such Loan is advanced until maturity (whether by acceleration or otherwise) at the Applicable Interest Rate, payable by the Borrower on each Interest Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Rate Determinations.* The Administrative Agent shall determine each interest rate applicable to the Loans hereunder, and its determination thereof shall be conclusive and binding except in the case of manifest error.

*Section 2.3. Minimum Borrowing Amounts; Maximum Eurodollar Loans.* Each Borrowing advanced hereunder shall be in an amount not less than $100,000.

*Section 2.4. Manner of Borrowing Loans and Designating Applicable Interest Rates.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Notice to the Administrative Agent.* The Borrower shall give notice to the Administrative Agent by no later than 2:30 p.m. (Chicago time) on the date the Borrower requests the Lenders to advance a Borrowing of a Loan. The Borrower shall give all such notices requesting the advance of a Borrowing to the Administrative Agent by telephone, telecopy, or other telecommunication device acceptable to the Administrative Agent (which notice shall be irrevocable once given and, if by telephone, shall be promptly confirmed in writing in a manner acceptable to the Administrative Agent), substantially in the form the Notice of Borrowing. Each such notice shall specify the date of the Loan requested (which must be a Business Day), the amount of such Loan, whether such Loan is a Customer Loan, Firm Loan, or NSCC Margin Loan, and, with respect to a Margin Loan, shall describe all Margin Collateral being transferred into the Account with such detail as the Administrative Agent may require, including which such securities delivered (including any securities that are listed on a schedule to be delivered) pursuant hereto are Customer Securities or Firm Securities. The Borrower shall be deemed to warrant to the Administrative Agent with each such delivery of securities that it has full legal power and authority to grant to the Administrative Agent a first security interest in the Margin Collateral consisting of Customer Securities. All Customer Loans shall be secured by Customer Securities and no Customer Securities will be substituted hereunder for Firm Securities. No Customer Securities shall be pledged hereunder to secure Firm Obligations. The Borrower agrees that the Administrative Agent may rely on any such telephonic, telecopy or other telecommunication notice given by any person the Administrative Agent in good faith believes is an Authorized Representative without the necessity of independent investigation, and in the event any such notice by telephone conflicts with any written confirmation such telephonic notice shall govern if the Administrative Agent has acted in reliance thereon.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Notice to the Renders.* The Administrative Agent shall give prompt telephonic, telecopy or other telecommunication notice to each Lender of any notice from the Borrower received pursuant to Section 2.4(a) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Disbursement of Loans.* Not later than 3:30 p.m. (Chicago time) on the date of any requested advance of a Borrowing, subject to Section 4, each Lender shall make available its Loan comprising part of such Borrowing in funds immediately available at the principal office of the Administrative Agent in Chicago, Illinois (or at such other location as the Administrative Agent shall designate). The Administrative Agent shall make the proceeds of each new Borrowing available to the Borrower at the Administrative Agent's principal office in Chicago, Illinois (or at such other location as the Administrative Agent shall designate), by depositing or wire transferring such proceeds to the credit of the Borrower's Designated Disbursement Account or as the Borrower and the Administrative Agent may otherwise agree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Administrative Agent Reliance on Lender Funding.* Unless the Administrative Agent shall have been notified by a Lender prior to 3:30 p.m. (Chicago time) on) the date on which such Lender is scheduled to make payment to the Administrative Agent of the proceeds of a Loan (which notice shall be effective upon receipt) that such Lender does not intend to make such payment, the Administrative Agent may assume that such Lender has made such payment when due and the Administrative Agent may in reliance upon such assumption (but shall not be required to) make available to the Borrower the proceeds of the Loan to be made by such Lender and, if any Lender has not in fact made such payment to the Administrative Agent, such Lender shall, on demand, pay to the Administrative Agent the amount made available to the Borrower attributable to such Lender together with interest thereon in respect of each day during the period commencing on the date such amount was made available to the Borrower and ending on (but excluding) the date such Lender pays such amount to the Administrative Agent at a rate per annum equal to: (i) from the date the related advance was made by the Administrative Agent to the date two (2) Business Days after payment by such Lender is due hereunder, the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation for each such day and (ii) from the date two (2) Business Days after the date such payment is due from such Lender to the date such payment is made by such Lender, the Base Rate in effect for each such day. If such amount is not received from such Lender by the Administrative Agent immediately upon demand, the Borrower will, on demand, repay to the Administrative Agent the proceeds of the Loan attributable to such Lender with interest thereon at a rate per annum equal to the interest rate applicable to the relevant Loan. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

*Section 2.5. Maturity of Loans.* Each Loan, both for principal and interest not sooner paid, shall mature and be due and payable by the Borrower on the Termination Date.

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*Section 2.6. Prepayments.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Optional.* The Borrower shall have the privilege of prepaying the Loans in whole or in part (but, if in part, then in an amount not less than $100,000), at any time upon prior notice to the Administrative Agent (such notice if received subsequent to 2:30 p.m. (Chicago time) on a given day to be treated as though received at the opening of business on the next Business Day) by paying to the Administrative Agent the principal amount to be prepaid and if such a prepayment prepays the Note in full and is accompanied by the termination of the Commitment in whole, accrued interest thereon to the date of prepayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Mandatory,* (i) (A)The Borrower covenants and agrees that if at any time the sum of the principal amount of the Margin Loans then outstanding shall be in excess of the Margin Borrowing Base as then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Administrative Agent as and for a mandatory prepayment on such Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) The Borrower covenants and agrees that if at any time the sum of the principal amount of the NSCC Margin Loans then outstanding shall be in excess of the NSCC Borrowing Base as then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Administrative Agent as and for a mandatory prepayment on such Obligations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If at any time the sum of the unpaid principal balance of the Customer Loans then outstanding shall be in excess of the Customer Loan Limit then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Administrative Agent as and for a mandatory prepayment on such Customer Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If at any time the sum of the unpaid principal balance of the Firm Loans then outstanding shall be in excess of the Firm Loan Limit then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Administrative Agent as and for a mandatory prepayment on such Firm Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Borrower shall, without notice or demand, prepay any NSCC Margin Loan in full on the earlier to occur of (a) the date upon which the NSCC Margin Deposits funded from the proceeds of such NSCC Margin Loan are returned to the Borrower, and (b) the date which is five (5) days after the date of such NSCC Margin Loan was advanced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Without limiting the Borrower's obligation to repay the NSCC Margin Loans pursuant to any other provision of this Section 2.6(b), on any Business Day in a calendar month (other than the last Business Day in a calendar month), if (A) the sum of (x) the number of Business Days remaining in such calendar month (not including such Business Day) plus (y) the number of Zero Loan Days occurring in such calendar month on or prior to such Business Day is less than (B) eight (8), then the Borrower shall not later than 3:00 pan. on such Business Day, without notice or demand, prepay over the full amount of all outstanding NSCC Margin Loans to the Administrative Agent as and for a mandatory prepayment on the Obligations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any amount of Loans paid or prepaid before the Termination Date may, subject to the terms and conditions of this Agreement, be borrowed, repaid and borrowed again.

*Section 2.7. Default Rate.* Notwithstanding anything to the contrary contained herein, while any Event of Default exists or after acceleration, the Borrower shall pay interest (after as well as before entry of judgment thereon to the extent permitted by law) on the principal amount of all Loans and other amounts at a rate per annum equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any Loan, the sum of 2.0% *plus* the Applicable Interest Rate from time to time in effect with respect to such Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any other amount owing hereunder not covered by clause (a) above, the sum of 2% *plus* the Applicable Interest Rate from time to time in effect;

*provided, however,* that in the absence of acceleration pursuant to Section 8.2 or 8.3, any adjustments pursuant to this Section shall be made at the election of the Administrative Agent, acting at the request or with the consent of the Required Lenders, with written notice to the Borrower (which election may be retroactively effective to the date of such Event of Default). While any Event of Default exists or after acceleration, interest shall be paid on demand of the Administrative Agent at the request or with the consent of the Required Lenders.

*Section 2.8. Evidence of Indebtedness.* (a) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall also maintain accounts in which it will record (i) the amount of each Loan made hereunder, the type thereof and the Interest Period with respect thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder from the Borrower and each Lender's share thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The entries in the accounts maintained pursuant to subsections (a) and (b) above shall be *prima facie* evidence of the existence and amounts of the Obligations therein recorded; *provided, however,* that the failure of the Administrative Agent or any Lender to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Obligations in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any Lender may request that its Loans be evidenced by a promissory note or notes in the forms of Exhibit B (such promissory notes being hereinafter referred to collectively as the *"Notes"* and individually as a *"Note").* In such event, the Borrower shall prepare, execute and deliver to such Lender a Note payable to such Lender or its registered assigns in the amount of the Commitment. Thereafter, the Loans evidenced by such Note or Notes and interest thereon shall at all times (including after any assignment pursuant to Section 11.2) be represented by one or more Notes payable to the order of the payee named therein or any assignee pursuant to Section 11.2, except to the extent that any such Lender or assignee subsequently returns any such Note for cancellation and requests that such Loans once again be evidenced as described in subsections (a) and (b) above.

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*Section 2.9 Fees.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Commitment Fee.* The Borrower shall pay to the Administrative Agent for the ratable account of the Lenders in accordance with their Percentages a commitment fee at the rate per annum equal to 0.50% (computed on the basis of a year of 360 days and the actual number of days elapsed) times the daily amount by which the aggregate Commitments exceeds the principal amount of Loans then outstanding. Such commitment fee shall be payable quarterly in arrears on the last day of each March, June, September, and December in each year (commencing on the first such date occurring after the Closing Date) and on the Termination Date, unless the Commitments are terminated in whole on an earlier date, in which event the commitment fee for the period to the date of such termination in whole shall be paid on the date of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Administrative Agent Fees.* The Borrower shall pay to the Administrative Agent, for its own use and benefit, the fees agreed to between the Administrative Agent and the Borrower in the Fee Letter.

*Section 2.10. Place and Application of Payments.* All payments of principal of and interest on the Loans and all other Obligations payable by the Borrower under this Agreement and the other Loan Documents, shall be made by the Borrower to the Administrative Agent by no later than 3:00 p.m. (Chicago time) on the due date thereof at the office of the Administrative Agent in Chicago, Illinois (or such other location as the Administrative Agent may designate to the Borrower), for the benefit of the Lender(s) entitled thereto. Any payments received after such time shall be deemed to have been received by the Administrative Agent on the next Business Day. All such payments shall be made in U.S. Dollars, in immediately available funds at the place of payment, in each case without set-off or counterclaim. The Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest on Loans ratably to the Lenders and like funds relating to the payment of any other amount payable to any Lender to such Lender, in each case to be applied in accordance with the terms of this Agreement. Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender, with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at a rate per annum equal to: (i) from the date the distribution was made to the date two (2) Business Days after payment by such Lender is due hereunder, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation for each such day and (ii) from the date two (2) Business Days after the date such payment is due from such Lender to the date such payment is made by such Lender, the Base Rate in effect for each such day.

*Section 2.11. Non-Business Days.* If any payment hereunder becomes due and payable on a day which is not a Business Day, the due date of such payment shall be extended to the next succeeding Business Day on which date such payment shall be due and payable. In the case of any payment of principal falling due on a day which is not a Business Day, interest on such principal amount shall continue to accrue during such extension at the rate per annum then in effect, which accrued amount shall be due and payable on the next scheduled date for the payment of interest.

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*Section 2.12. Payments Set Aside.* To the extent that any payment by or on behalf of the Borrower is made to the Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation for each such day.

*Section 2.13. Account Debit.* The Borrower hereby irrevocably authorizes the Administrative Agent to charge any of the Borrower's deposit accounts maintained with the Administrative Agent (other than the Excluded Accounts) for the amounts from time to time necessary to pay any then due Obligations; provided that the Borrower acknowledges and agrees that the Administrative Agent shall not be under an obligation to do so and the Administrative Agent shall not incur any liability to the Borrower or any other Person for the Administrative Agent's failure to do so.

*Section 2.14. Commitment Terminations.* The Borrower shall have the right at any time and from time to time, upon five (5) Business Days' prior written notice to the Administrative Agent (or such shorter period of time agreed to by the Administrative Agent), to terminate the Commitments without premium or penalty and in whole or in part, any partial termination to be (i) in an amount not less than $1,000,000 and (ii) allocated ratably among the Lenders in proportion to their respective Percentages, provided that the Commitments may not be reduced to an amount less than the aggregate principal amount of Loans then outstanding. The Administrative Agent shall give prompt notice to each Lender of any such termination of the Commitments. Any termination of the Commitments pursuant to this Section may not be reinstated.

*Section 2.15. Replacement of Lenders.* If any Lender requests compensation under Section 3.2, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.1 and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with Section 3.4, or if any Lender is a Defaulting Lender or a Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 11.2), all of its interests, rights (other than its existing rights to payments pursuant to Section 3.1 or Section 3.2) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 11.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any such assignment resulting from a claim for compensation under Section 3.2 or payments required to be made pursuant to Section 3.1, such assignment will result in a reduction in such compensation or payments thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such assignment does not conflict with applicable law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

*Section 2.16. Defaulting Lenders.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Defaulting Lender Adjustments*. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Waivers and Amendments.* Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Defaulting Lender Waterfall.* Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section 8 or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 11.7 hereto shall be applied at such time or times as may be determined by the Administrative Agent as follows: *first,* to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; *second,* as the Borrower may request (so long as no Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; *third,* if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this

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Agreement; *fourth,* to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; *fifth,* so long as no Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; and *sixth,* to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; *provided* that if (x) such payment is a payment of the principal amount of any Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made at a time when the conditions set forth in Section 4.2 were satisfied or waived, such payment shall be applied solely to pay the Loans of all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until such time as all Loans are held by the Lenders pro rata in accordance with their Percentages of the Commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Certain Fees.* No Defaulting Lender shall be entitled to receive any commitment fee for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Defaulting Lender Cure.* If the Borrower and the Administrative Agent agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein, that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans to be held pro rata by the Lenders in accordance with their respective Percentages of the relevant Commitments, whereupon such Lender will cease to be a Defaulting Lender; *provided* that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and *provided, further,* that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender.

Section 3. TAXES; CHANGE IN CIRCUMSTANCES , INCREASED COSTS , AND FUNDING INDEMNITY.

*Section 3.1. Taxes.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Certain Defined Terms.* For purposes of this Section, the term "applicable law" includes FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Payments Free of Taxes.* Any and all payments by or on account of any obligation of the Parent or the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable

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Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Parent or the Borrower shall be increased as necessary so that after such deduction or withholding of Indemnified Taxes has been made (including such deductions and withholdings of Indemnified Taxes applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Payment of Other Taxes by the Borrower.* The Parent and the Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Indemnification by the Borrower.* The Borrower shall indemnify each Recipient, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Indemnification by the Lenders.* Each Lender shall severally indemnify the Administrative Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes or Other Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes or Other Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender's failure to comply with the provisions of Section 11.2(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this subsection (e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Evidence of Payments.* As soon as practicable after any payment of Taxes by the Parent or the Borrower to a Governmental Authority pursuant to this Section, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Status of Lenders.* (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 3.1 (g)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) executed originals of IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in form and substance acceptable to the Administrative Agent to the effect that such Foreign Lender is not a "bank"

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within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Code (a *"U.S. Tax Compliance Certificate")* and (y) executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate in form and substance acceptable to the Administrative Agent, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; *provided* that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate in form and substance acceptable to the Administrative Agent on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 147l(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (D), *"FATCA"* shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Treatment of Certain Refunds.* If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section (including by the payment of additional amounts pursuant to this Section), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this subsection (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this subsection (h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this subsection (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts giving rise to such refund had never been paid. This subsection shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Survival.* Each party's obligations under this Section shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

*Section 3.2.* Increased Costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Increased Costs Generally.* If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on any Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender;

and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its obligation to make any such Loan, or to increase the cost to such Lender or such other Recipient of participating in, or to reduce the amount of any sum received or receivable by such Lender or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or other Recipient, the Borrower will pay to such Lender or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Capital Requirements.* If any Lender determines that any Change in Law affecting such Lender or any lending office of such Lender or such Lender's holding company, if any, regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on such Lender's capital or on the capital of such Lender's holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by such Lender to a level below that which such Lender or such Lender's holding company could have achieved but for such Change in Law (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender's holding company for any such reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Certificates for Reimbursement.* A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to the Borrower, shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Delay in Requests.* Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender's right to demand such compensation; *provided* that the Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs incurred or reductions suffered more than six (6) months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of such Lender's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).

*Section 3.3. Discretion of Lender as to Manner of Funding.* Notwithstanding any other provision of this Agreement, each Lender shall be entitled to fund and maintain its funding of all or any part of its Loans in any manner it sees fit.

*Section 3.4. Lending Offices; Mitigation Obligations.* Each Lender may, at its option, elect to make its Loans hereunder at the branch, office or affiliate specified in its Administrative Questionnaire (each a *"Lending Office")* for each Loan available hereunder or at such other of its branches, offices or affiliates as it may from time to time elect and designate in a written notice to the Borrower and the Administrative Agent. If any Lender requests compensation under Section 3.2, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.1, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.1 or 3.2, as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

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Section 4. CONDITIONS PRECEDENT.

*Section 4.1.* Initial Credit Event*.* Before or concurrently with the initial Credit Event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Administrative Agent shall have received this Agreement duly executed by the Borrower and the Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if requested by any Lender, the Administrative Agent shall have received for such Lender such Lender's duly executed Notes of the Borrower dated the date hereof and otherwise in compliance with the provisions of Section 2.8;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Administrative Agent shall have received the Guaranty Agreement duly executed by the Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Administrative Agent shall have received UCC financing statements to be filed against the Borrower, as debtor, in favor of the Administrative Agent, as secured party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Administrative Agent shall have received copies of the Parent's and the Borrower's articles of incorporation and bylaws (or comparable organizational documents) and any amendments thereto, certified in each instance by its Secretary or Assistant Secretary (or comparable Responsible Officer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Administrative Agent shall have received copies of resolutions the Parent's and the Borrower's Board of Directors (or similar governing body) authorizing the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party and the consummation of the transactions contemplated hereby and thereby, together with specimen signatures of the persons authorized to execute such documents on the Parent's and the Borrower's behalf, all certified in each instance by its Secretary or Assistant Secretary (or comparable Responsible Officer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Administrative Agent shall have received copies of the certificates of good standing for the Parent and the Borrower (dated no earlier than 30 days prior to the date hereof) from the office of the secretary of the state of its incorporation or organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Administrative Agent shall have received a list of the Borrower's Authorized Representatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Administrative Agent shall have received a certificate as to the Borrower's Designated Disbursement Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the Administrative Agent shall have received the initial fees called for by Section 2.9, including an upfront fee equal to 0.20% of the Commitments in effect on the Closing Date, which such upfront fee shall be shared ratably with the Lenders based on the Percentages;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Administrative Agent shall have received copies of all documents evidencing preferred equity and subordinated debt of the Borrower, which such documents shall be in form and substance reasonably satisfactory to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the Administrative Agent shall have received a certificate in the form of Exhibit C attached hereto dated as of the date hereof evidencing that the Borrower is in compliance with the financial covenants set forth in Section 7.12 hereof on a pro forma basis after giving effect to any Loan hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the Administrative Agent shall have received a certificate signed by an officer of the Borrower confirming that the conditions set forth in Sections 4.1,4.2(a) and 4.2(b) hereof have been satisfied as of the date of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) the Administrative Agent shall have received evidence satisfactory to it that the Borrower is a broker-dealer regulated by the SEC and the Designated Examining Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) the Administrative Agent shall have received evidence satisfactory to it that the Borrower has directed NSCC to return NSCC Margin Deposits to the Borrower by deposit into the Settlement Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) the Administrative Agent shall have received financing statement, tax, and judgment lien search results against the Parent, the Borrower and their Property evidencing the absence of Liens thereon except as permitted by Section 7.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) the Administrative Agent shall have received pay-off letters from secured creditors of the Borrower (other than secured parties intended to remain outstanding after the Closing Date with Indebtedness and Liens permitted by Sections 7.1 and 7.2) setting forth, among other things, the total amount of indebtedness outstanding and owing to them (or outstanding letters of credit issued for the account of the Borrower), which pay-off letters shall be in form and substance acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) the Administrative Agent shall have received the favorable written opinion of counsel to the Parent and the Borrower, in form and substance satisfactory to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) the Administrative Agent shall have received the FOCUS Part 2 of the Borrower as at September 30, 2020, which such report shall be in form and substance acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) each of the Lenders shall have received, in advance of the Closing Date, all documentation and other information requested by any such Lender required by bank regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including without limitation, the Patriot Act and the information described in Section 11.19; and the Administrative Agent shall have received a fully executed Internal Revenue Service Form W-9 (or its equivalent) for the Parent and the Borrower;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) at least five days prior to the Closing Date, if the Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, the Borrower shall deliver a Beneficial Ownership Certification in relation to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Administrative Agent shall have received the fully executed Debt Subordination Agreement from WBI, LP, which such agreement shall be on terms and conditions reasonably acceptable to the Administrative Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) the Administrative Agent shall have received such other agreements, instruments, documents, certificates, and opinions as the Administrative Agent may reasonably request.

*Section 4.2. All Credit Events. At the time of each Credit Event hereunder:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default shall have occurred and be continuing or would occur as a result of such Credit Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Administrative Agent shall have received a Notice of Borrowing, which shall include evidence that after giving effect to such Credit Event: (i) the aggregate principal amount of all Loans outstanding under this Agreement shall not exceed the Commitment; (ii) the aggregate principal amount of Margin Loans at any time outstanding shall not exceed the Margin Borrowing Base as then determined and computed, (iii) the aggregate principal amount of NSCC Margin Loans at any time outstanding shall not exceed the NSCC Borrowing Base as then determined and computed, (iv) the aggregate principal amount of Customer Loans at any time outstanding shall not exceed the Customer Loan Limit, and (v) the aggregate principal amount of Firms Loans at any time outstanding shall not exceed the Firm Loan Limit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) after giving effect to such extension of credit, the number of Zero Loan Days during the current calendar month shall not be less than eight (8); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) such Credit Event shall not violate any order, judgment or decree of any court or other authority or any provision of law or regulation applicable to the Administrative Agent or any Lender (including, without limitation, Regulation U of the Board of Governors of the Federal Reserve System) as then in effect.

Each request for a Borrowing hereunder shall be deemed to be a representation and warranty by the Borrower on the date of such Credit Event as to the facts specified in subsections (a) through (d), both inclusive, of this Section.

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Section 5. REPRESENTATIONS AND WARRANTIES.

The Borrower represents and warrants to the Administrative Agent and the Lenders as follows:

*Section 5.1. Organization and Qualification.* The Borrower is duly organized, validly existing, and in good standing as a limited liability company under the laws of the State of Delaware, has full and adequate power to own its Property and conduct its business as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying where the failure to do so would reasonably be expected to have a Material Adverse Effect.

*Section 5.2. Subsidiaries.* Each Subsidiary is duly organized, validly existing, and in good standing under the laws of the jurisdiction in which it is incorporated or organized, as the case may be, has full and adequate power to own its Property and conduct its business as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying where the failure to do so would reasonably be expected to have a Material Adverse Effect. Schedule 5.2 hereto identifies each Subsidiary, the jurisdiction of its organization, the percentage of issued and outstanding shares of each class of its capital stock or other equity interests owned by the Borrower and the Subsidiaries and, if such percentage is not 100% (excluding directors' qualifying shares as required by law), a description of each class of its authorized capital stock and other equity interests and the number of shares of each class issued and outstanding. All of the outstanding shares of capital stock and other equity interests of each Subsidiary are validly issued and outstanding and fully paid and nonassessable and all such shares and other equity interests indicated on Schedule 5.2 as owned by the Borrower or a Subsidiary are owned, beneficially and of record, by the Borrower or such Subsidiary free and clear of all Liens. There are no outstanding commitments or other obligations of any Subsidiary to issue, and no options, warrants or other rights of any Person to acquire, any shares of any class of capital stock or other equity interests of any Subsidiary, other than with respect to shares of capital stock or other equity interests of any Subsidiary that may be acquired after the date of this Agreement.

*Section 5.3. Authority and Validity of Obligations.* The Borrower has full right and authority to enter into this Agreement and the other Loan Documents executed by it, to make the borrowings herein provided for, to grant to the Administrative Agent the Liens described in the Loan Documents, and to perform all of its obligations hereunder and under the other Loan Documents executed by it. The Loan Documents delivered by the Borrower have been duly authorized, executed, and delivered by such Persons and constitute valid and binding obligations of the Borrower enforceable against each of them in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance or similar laws affecting creditors' rights generally and general principles of equity (regardless of whether the application of such principles is considered in a proceeding in equity or at law); and this Agreement and the other Loan Documents do not, nor does the performance or observance by the Borrower of any of the matters and things herein or therein provided for, (a) contravene or constitute a default under any provision of applicable law or any judgment, injunction, order or decree binding upon the Borrower or any provision of the Organizational Documents of the Borrower, (b) contravene or constitute a default under any covenant, indenture or agreement of or affecting the Borrower or any Subsidiary or any of their respective Property, in each case where such contravention or default, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect, or (c) result in the creation or imposition of any Lien on any Property of the Borrower or any Subsidiary other than the Liens granted in favor of the Administrative Agent pursuant to the Loan Documents.

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*Section 5.4. Use of Proceeds.* The Borrower shall use the proceeds of the Loans solely (i) to finance the purchase and settlement of securities, (ii) to finance NSCC Deposit Requirements (other than an Adequate Assurance Deposit), and (iii) for the Borrower's general working capital purposes.

*Section 5.5. Financial Reports.* The balance sheet of the Borrower as at December 31, 2019, and the related statements of income, retained earnings, and cash flows of the Borrower for the fiscal year then ended, and accompanying notes thereto, which financial statements are accompanied by the audit report of RSM US LLP, independent public accountants, and a FOCUS Part 2 of the Borrower as at September 30, 2020, and the related statements of income, retained earnings, and cash flows of the Borrower for the nine (9) months then ended, heretofore furnished to the Administrative Agent, fairly present the financial condition of the Borrower as at said dates and the results of its operations and cash flows for the periods then ended in conformity with GAAP applied on a consistent basis. The Borrower does not have any contingent liabilities which are material to it other than as indicated on such financial statements or, with respect to future periods, on the financial statements furnished pursuant to Section 6.5 hereof.

*Section 5.6. No Material Adverse Change.* Since December 31, 2019, there has been no change in the condition (financial or otherwise) or business of the Borrower or of the Borrower and its Subsidiaries taken as a whole except those occurring in the ordinary course of business, none of which individually or in the aggregate would be expected to have a Material Adverse Effect.

*Section 5.7. Full Disclosure.* The statements and information furnished to the Administrative Agent and the Lenders in connection with the negotiation of this Agreement and the other Loan Documents and the commitments by the Lenders to provide all or part of the financing contemplated hereby do not contain any untrue statements of a material fact or omit a material fact necessary to make the material statements contained herein or therein not misleading, the Administrative Agent Administrative Agent and the Lenders acknowledging that as to any projections furnished to them, the Borrower only represents that the same were prepared on the basis of information, assumptions and estimates the Borrower believed to be reasonable at the time made and that actual results during the period or periods covered by any such projections may differ from projected or forecasted results.

*Section 5.8. Trademarks, Franchises, and Licenses.* The Borrower and its Subsidiaries own, possess, or have the right to use all patents, licenses, franchises, trademarks, trade names, trade styles, copyrights, trade secrets, know how, and confidential commercial and proprietary information to conduct their business as now conducted, without known conflict with any patent, license, franchise, trademark, trade name, trade style, copyright or other proprietary right of any other Person, in each case, except as would not reasonably be expected to have a Material Adverse Effect.

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*Section 5.9. Governmental Authority and Licensing.* The Borrower and its Subsidiaries have received all licenses, permits, and approvals of all federal, state, and local governmental authorities, if any, necessary to conduct their businesses, in each case where the failure to obtain or maintain the same would reasonably be expected to have a Material Adverse Effect. No investigation or proceeding which, if adversely determined, would reasonably be expected to result in revocation or denial of any material license, permit or approval is pending or, to the knowledge of the Borrower, threatened.

*Section 5.10. Good Title.* The Borrower and its Subsidiaries have good and defensible title (or valid leasehold interests) to their assets as reflected on the most recent consolidated balance sheet of the Borrower and its Subsidiaries furnished to the Administrative Agent (except for sales of assets by the Borrower and its Subsidiaries in the ordinary course of business), subject to no Liens other than such thereof as are permitted by Section 7.2 hereof and except for minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such assets for their intended purposes.

*Section 5.11. Litigation and Other Controversies.* There is no litigation or governmental or arbitration proceeding or labor controversy pending, nor to the knowledge of the Borrower threatened, against the Borrower or any Subsidiary or any of their Property which, if adversely determined would reasonably be expected to have a Material Adverse Effect.

*Section 5.12. Taxes.* All material Tax returns required to be filed by the Borrower or any Subsidiary in any jurisdiction have, in fact, been filed, and all material Taxes upon the Borrower or any Subsidiary or upon any of their Property, income or franchises, which are shown to be due and payable in such returns, have been paid, except such Taxes, if any, as are being contested in good faith and by appropriate proceedings which prevent enforcement of the matter under contest and as to which adequate reserves established in accordance with GAAP have been provided. The Borrower does not know of any proposed additional material Tax against it or its Subsidiaries for which adequate provisions in accordance with GAAP have not been made on their accounts. Adequate provisions in accordance with GAAP for Taxes on the books of the Borrower and its Subsidiaries have been made for all open years, and for the current fiscal period.

*Section 5.13. Approvals.* No authorization, consent, license or exemption from, or filing or registration with, or approval of any court or governmental department, agency or instrumentality, nor any approval or consent of any other Person, is or will be necessary to the valid execution, delivery or performance by the Borrower of any Loan Document, except for (i) such approvals which have been obtained prior to the date of this Agreement and remain in full force and effect and (ii) filings which are necessary to perfect the security interests under the Loan Documents.

*Section 5.14. Affiliate Transactions.* Neither the Borrower nor any Subsidiary is a party to any contracts or agreements with any of its Affiliates on terms and conditions which are less favorable to the Borrower or such Subsidiary than would be usual and customary in similar contracts or agreements between Persons not affiliated with each other.

*Section 5.15. Investment Company.* Neither the Borrower nor any Subsidiary is an "investment company" or a company "controlled" by an "investment company" within the meaning of the Investment Company Act of 1940, as amended.

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*Section 5.16. ERISA.* (a) Each Plan is in material compliance with the applicable provisions of ERISA, the Code and other federal or state Laws. Each Plan that is intended to be a qualified plan under Section 401(a) of the Code has received a favorable determination letter or opinion letter from the Internal Revenue Service to the effect that the form of such Plan is qualified under Section 401(a) of the Code and the trust related thereto has been determined by the Internal Revenue Service to be exempt from federal income tax under Section 501(a) of the Code, or an application for such a letter is currently being processed by the Internal Revenue Service. To the best knowledge of the Borrower, nothing has occurred that would prevent or cause the loss of such tax-qualified status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There are no pending or, to the best knowledge of the Borrower, threatened or contemplated claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that have not been corrected under established IRS or US Department of Labor correction programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No ERISA Event has occurred, and neither the Borrower nor any ERISA Affiliate is aware of any fact, event or circumstance that, either individually or in the aggregate, would reasonably be expected to constitute or result in an ERISA Event with respect to any Plan that, either individually or in the aggregate, would result in material liability.

(d)(i) the present value of all accrued benefits under each Plan (based on those assumptions used to fund such Plan) did not, as of the last annual valuation date prior to the date on which this representation is made or deemed made, exceed the value of the assets of such Plan allocable to such accrued benefits, and (ii) as of the most recent valuation date for each Multiemployer Plan, the potential liability of the Borrower or any ERISA Affiliate for a complete withdrawal from such Multiemployer Plan (within the meaning of Section 4203 or Section 4205 of ERISA), when aggregated with such potential liability for a complete withdrawal from all Multiemployer Plans, is zero.

*Section 5.17. Compliance with Laws.* The Borrower and its Subsidiaries are in compliance with all Legal Requirements applicable to or pertaining to their Property or business operations (including, without limitation, the Occupational Safety and Health Act of 1970, the Americans with Disabilities Act of 1990, and laws and regulations establishing quality criteria and standards for air, water, land and toxic or hazardous wastes and substances), where any such non-compliance, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. Neither the Borrower nor any Subsidiary has received notice to the effect that its operations are not in compliance with any of the Legal Requirements of applicable federal, state or local environmental, health, and safety statutes and regulations or are the subject of any governmental investigation evaluating whether any remedial action is needed to respond to a release of any toxic or hazardous waste or substance into the environment, where any such non-compliance or remedial action, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

*Section 5.18. Sanctions; Anti-Money Laundering Laws and Anti-Corruption Laws.* (a) None of the Parent, the Borrower, any of their Subsidiaries, any director, officer or employee of the Parent, the Borrower or any of their Subsidiaries, nor, to the knowledge of the Borrower, any agent or representative of the Parent, the Borrower or any of their Subsidiaries, is a Sanctioned Person or currently the subject or target of any Sanctions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parent, the Borrower, each of their Subsidiaries, and each of their respective directors, officers and employees, and, to the knowledge of the Borrower, each of the Parent's, the Borrower's and their Subsidiaries' respective agents and representatives, is in compliance with all applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Parent, the Borrower and their Subsidiaries have instituted and maintain in effect policies and procedures reasonably designed to ensure compliance by the Parent, the Borrower, and their Subsidiaries' respective directors, officers, employees and agents (acting in their capacity as such) with all applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions.

*Section 5.19. EEA Financial Institution.* The Borrower is not an EEA Financial Institution.

*Section 5.20. Other Agreements.* Neither the Borrower nor any Subsidiary is in default under the terms of any covenant, indenture or agreement of or affecting the Borrower, any Subsidiary or any of their Property, which default if uncured would be expected to have a Material Adverse Effect.

*Section 5.21. Solvency.* The Borrower is solvent, able to pay its debts as they become due, and has sufficient capital to carry on its business and all businesses in which it is about to engage.

*Section 5.22. No Default or Termination Event.* No Default has occurred and is continuing. No Termination Event has occurred.

*Section 5.23. Registration; Qualifications.* The Borrower (i) has been duly registered with the SEC as a registered broker dealer, is approved as a clearing corporation of DTC and the National Securities Clearing Corporation, (iii) is an "exempted borrower" within the meaning of Reg U of the Board of Governors of the Federal Reserve System, and (iv) is excluded as a "Legal Entity Customer" for purposes of the beneficial ownership rule under 31 CFR 1010.230.

*Section 5.24. S1PC Assessments.* The Borrower is not in arrears with respect to any assessment made upon it by the SIPC.

*Section 5.25. Designated Examining Authority.* Financial Industry Regulatory Authority ("FINRA ") has been designated as the Designated Examining Authority for the Borrower, and the Borrower's Designated Self-Regulatory Organizations are FINRA and the New York Stock Exchange.

*Section 5.26. Perfection of Security Interest.* Upon the crediting of Collateral to the Accounts or as otherwise specified in Section 10 hereof, the Administrative Agent shall have "control" over such Collateral (as such term is defined under Section 8-106 of the Uniform Commercial Code) and shall have a perfected pledge of and security interest in such Collateral and all proceeds thereof (subject to Section 9-315 of the Uniform Commercial Code), which security interest shall be prior to all other interests in such Collateral to the extent provided under Articles 8 and 9 of the Uniform Commercial Code.

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*Section 5.27. Ownership, No Liens, etc.* Immediately before giving effect to each delivery of Collateral by the Borrower to the Administrative Agent, the Borrower has the authority to pledge, repledge, hypothecate, rehypothecate, or otherwise transfer the Collateral and will have the right to receive all payments on such Collateral, in each case free and clear of all Liens and adverse claims other than the Lien of the Administrative Agent and any interests in such Collateral created or permitted to exist under this Agreement.

*Section 5.28. Valid Security Interest.* The delivery of Collateral to the Administrative Agent, together with the actions described in the foregoing Section 5.26, is effective to create a valid, perfected, first priority security interest in all such Collateral and all proceeds thereof, securing the Obligations. No filings or other actions will be necessary to perfect such security interest.

*Section 5.29. Broker Fees.* No broker's or finder's fee or commission will be payable with respect hereto or any of the transactions contemplated thereby; and the Borrower hereby indemnifies the Administrative Agent against, and agrees that it will hold the Administrative Agent harmless from, any claim, demand, or liability for any such broker's or finder's fees alleged to have been incurred in connection herewith or therewith and any expenses (including reasonable attorneys' fees) arising in connection with any such claim, demand, or liability.

Section 6. AFFIRMATIVE COVENANTS.

The Borrower agrees that, so long as any credit is available to or in use by the Borrower hereunder, except to the extent compliance in any case or cases is waived in writing pursuant to the terms of Section 11.3:

*Section 6.1. Maintenance of Business.* The Borrower shall, and shall cause each Subsidiary to, preserve and maintain its existence, except as otherwise provided in Section 7.4(c). The Borrower shall, and shall cause each Subsidiary to, preserve and keep in force and effect all licenses, permits, franchises, approvals, patents, trademarks, trade names, trade styles, copyrights, and other proprietary rights necessary to the proper conduct of its business, except where the failure to do so, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

*Section 6.2. Maintenance of Properties.* The Borrower shall maintain, preserve, and keep its property, plant, and equipment in good repair, working order and condition (ordinary wear and tear excepted); shall from time to time make all needful and proper repairs, renewals, replacements, additions, and betterments thereto so that at all times the efficiency thereof shall be fully preserved and maintained; and shall cause each Subsidiary to do so in respect of Property owned or used by it, in each case except where the failure to do so would not reasonably be expected to have a Material Adverse Effect.

*Section 6.3. Taxes and Assessments.* The Borrower shall duly pay and discharge, and shall cause each of its Subsidiaries to duly pay and discharge, all material Taxes, rates, assessments, fees, and governmental charges upon or against it or its Property, in each case before the same become delinquent and before penalties accrue thereon, unless and to the extent that the same are being contested in good faith and by appropriate proceedings which prevent enforcement of the matter under contest and adequate reserves are provided therefor.

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*Section 6.4. Insurance.* The Borrower shall insure and keep insured, and shall cause each Subsidiary to insure and keep insured, with good and responsible insurance companies all insurable Property owned by it which is of a character usually insured by Persons similarly situated and operating like Properties against loss or damage from such hazards and risks, and in such amounts, as are insured by Persons similarly situated and operating like Properties; and the Borrower shall insure, and shall cause each Subsidiary to insure, such other hazards and risks (including, without limitation, employers' and public liability risks) with good and responsible insurance companies as and to the extent usually insured by Persons similarly situated and conducting similar businesses. The Borrower shall, upon request of the Administrative Agent, furnish to the Administrative Agent a certificate setting forth in summary form the nature and extent of the insurance maintained pursuant to this Section 6.4.

*Section 6.5. Financial Reports; Notices.* The Borrower shall, and shall cause each of their Subsidiaries to, maintain proper books of records and accounts reasonably necessary to prepare financial statements required to be delivered pursuant to this Section 6.5 in accordance with GAAP and shall furnish to the Administrative Agent and each Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as soon as available, and in any event within 45 days after the last day of each month of the Borrower, a copy of financial statements and reports of the Borrower, including a calculation of the Borrower's Net Capital, for each monthly accounting period consisting of a balance sheet and a profit and loss statement of the Borrower in the form of Focus-Part 2 prepared by the Borrower as of the end of and for such month in accordance with GAAP (except for the absence of footnotes and subject to year-end audit adjustments) and certified by its chief financial officer or such other officer acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as soon as available, and in any event within 90 days after the last day of each fiscal year of the Borrower, copies of the consolidated balance sheet of the Borrower and its Subsidiaries as of the close of such period and the consolidated statements of income, retained earnings, and cash flows of the Borrower and its Subsidiaries for such period, and accompanying notes thereto, each in reasonable detail, accompanied by an unqualified opinion (subject to normal year-end adjustments and except for qualifications relating to changes in accounting principles or practices reflecting changes in GAAP and required or approved by Borrower's independent certified public accountants) thereon of a firm of independent public accountants of recognized national standing, selected by the Borrower and reasonably satisfactory to the Administrative Agent, to the effect that the financial statements have been prepared in accordance with GAAP and present fairly in accordance with GAAP the consolidated financial condition of the Borrower and its Subsidiaries as of the close of such fiscal year and the results of their operations and cash flows for the fiscal year then ended and that an examination of such accounts in connection with such financial statements has been made in accordance with generally accepted auditing standards and, accordingly, such examination included such tests of the accounting records and such other auditing procedures as were considered necessary in the circumstances;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as soon as available, and in any event no later than 90 days after the last day of each fiscal year of the Parent, a copy of the consolidated and consolidating balance sheet of the Parent and its Subsidiaries as of the last day of such period and the consolidated and consolidating statements of income, retained earnings, and cash flows of the Parent and its Subsidiaries for the fiscal year then ended, each in reasonable detail showing in comparative form the figures for the corresponding date and period in the previous fiscal year, prepared by the Parent in accordance with GAAP and certified to by its chief financial officer or such other officer acceptable to Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) as soon as available, and in any event within five (5) days after the close of each fiscal month, a certificate in the form of Exhibit D attached hereto from the Borrower indicating the Eligible NSCC Margin Deposits of the Borrower in effect for each Business Day in the most recently ended fiscal month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) as soon as available, and in any event within 90 days after the close of each fiscal year of the Borrower, any additional written reports or management letters concerning significant aspects of the Borrower's affairs given to its managers (or other governing body) by its independent public accountants in connection with the audit of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) promptly after knowledge thereof shall have come to the attention of any Responsible Officer of the Borrower, written notice of (i) any threatened or pending litigation or governmental or arbitration proceeding or labor controversy against the Parent, the Borrower or any Subsidiary or any of their Property which, if adversely determined, would reasonably be expected to have a Material Adverse Effect, or (ii) the occurrence of any Default hereunder, or, (iii) the occurrence of any Material Adverse Effect, or (iv) any ERISA Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) promptly after receipt thereof, and in any event within five (5) Business Days after receipt thereof, a copy of any financial report performed or required to be performed by any Designated Examining Authority of the Borrower and permitted to be disclosed under applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) notice of any Change of Control or the occurrence of any Termination Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) promptly after it is filed with the SEC, and in any event within five (5) Business Days after sending or filing thereof, copies of each regular, periodic or special report, registration statement or prospectus, if any (including all Form 10-K, Form 10-Q and Form 8-K reports) filed publicly by the Parent, the Borrower or any Subsidiary with any securities exchange or the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) promptly after receipt thereof, a copy of notice of any material noncompliance with any applicable law, regulation or guideline relating to the Parent, the Borrower or any Subsidiary or their respective business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) as soon as available, and in any event within 45 days after the last day of each month, a written certificate in the form attached hereto as Exhibit C signed by a Financial Officer of the Borrower to the effect that to the best of such officer's knowledge and belief no Default has occurred during the period covered by such statements or, if any such Default has occurred during such period, setting forth a description of such Default and specifying the action, if any, taken by the Borrower or its Subsidiary to remedy the same. Such certificate shall also set forth the calculations supporting such statements in respect of Section 7.12 (Financial Covenants); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) promptly, from time to time, (i) such other information regarding the operations, business affairs and financial condition of the Parent, the Borrower or any Subsidiary, or compliance with the terms of any Loan Document, as the Administrative Agent or any Lender may reasonably request or (ii) information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with applicable "know your customer" requirements under the Patriot Act or other applicable Anti-Corruption Laws and the Beneficial Ownership Regulation.

*Section 6.6. Inspection.* The Borrower shall, and shall cause each Subsidiary to, permit the Administrative Agent and each Lender, and each of their duly authorized representatives and agents to visit and inspect any of the Properties, corporate books and financial records of the Borrower and each Subsidiary, to examine and make copies of the books of accounts and other financial records of the Borrower and each Subsidiary, and to discuss the affairs, finances and accounts of the Borrower and each Subsidiary with, and to be advised as to the same by, its officers, employees, and independent public accountants (and by this provision the Borrower hereby authorizes such accountants to discuss with the Administrative Agent and the Lenders the finances and affairs of the Borrower and of each Subsidiary) during business hours at such reasonable times and reasonable intervals as the Administrative Agent or any such Lender may designate; *provided* that, excluding any inspections during the continuation of an Event of Default, the Administrative Agent or such Lender shall provide reasonable prior notice of its exercise of such inspection rights and the Administrative Agent and each Lender, collectively, shall not exercise such inspection rights more often than one time during any calendar year.

*Section 6.7. ERISA.* The Borrower shall, and shall cause each of its ERISA Affiliates to do, each of the following: (a) maintain each Plan in compliance in all material respects with the applicable provisions of ERISA, the Code and other applicable Laws; (b) cause each Plan which is qualified under section 401(a) of the Code to maintain such qualification; and (c) make all required contributions to any Plan subject to the Pension Funding Rules.

*Section 6.8. Compliance with Laws.* The Borrower shall, and shall cause each Subsidiary to, comply in all respects with all Legal Requirements applicable to or pertaining to its Property or business operations, where any such non-compliance, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect or result in a Lien upon any of the Collateral.

*Section 6.9. Compliance with Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions.* (a) The Borrower shall at all times comply with the requirements of all Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions applicable to the Borrower and shall cause each of its respective Subsidiaries to comply with the requirements of all Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions applicable to such Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall provide the Administrative Agent and the Lenders any information regarding the Parent, the Borrower and each of their respective owners, Affiliates, and Subsidiaries necessary for the Administrative Agent and each Lender to comply with all applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions, subject however, in the case of Affiliates, to the Borrower's ability to provide information applicable to them.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower will maintain in effect and enforce policies and procedures reasonably designed to ensure compliance by the Parent, the Borrower, their Subsidiaries, and their respective directors, officers, employees and agents with applicable Anti-Corruption Laws, Anti Money- Laundering Laws and Sanctions.

*Section 6.10.* Formation of Subsidiaries. Promptly upon the formation or acquisition of any Subsidiary, the Borrower shall provide the Administrative Agent notice thereof (at which time Schedule 5.2 shall be deemed amended to include reference to such Subsidiary).

*Section 6.11.* Use of Proceeds. The Borrower shall use the credit extended under this Agreement solely for the purposes set forth in, or otherwise permitted by, Section 5.4. None of the proceeds from the Loans shall be used to make any Adequate Assurance Deposit.

*Section 6.12.* Settlement Account. The Borrower shall at all times maintain the Settlement Account with the Administrative Agent and the Administrative Agent shall at all times be designated with DTC and NSCC as the Administrative Agent's settlement bank. The Borrower shall, and shall cause its Subsidiaries to, promptly remit all assets of the Borrower's customers from the Settlement Account into another account not subject to the Administrative Agent's Lien granted hereunder.

Section 7. NEGATIVE COVENANTS AND FINANCIAL COVENANTS.

The Borrower agrees that, so long as any credit is available to or in use by the Borrower hereunder, except to the extent compliance in any case or cases is waived in writing pursuant to the terms of Section 11.3:

*Section 7.1. Borrowings and Guaranties.* The Borrower shall not, nor shall it permit any Subsidiary to, issue, incur, assume, create, or have outstanding any Indebtedness, or incur liabilities for interest rate, currency, or commodity cap, collar, swap, or similar hedging arrangements, or be or become liable as endorser, guarantor, surety, or otherwise for any Indebtedness or undertaking of any other Person, or otherwise agree to provide funds for payment of the obligations of another, to supply funds thereto or to invest therein, or to otherwise assure a creditor of another against loss, or apply for or become liable to the issuer of a letter of credit which supports an obligation of another, or subordinate any claim or demand it may have to the claim or demand of any other Person; provided, however, that the foregoing shall not restrict nor operate to prevent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Obligations of the Borrower and its Subsidiaries owing to the Administrative Agent and the Lenders under the Loan Documents, and any Indebtedness owing by the Borrower to the Administrative Agent pursuant to any uncommitted demand line of credit that may be extended by the Administrative Agent to the Borrower from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) purchase money indebtedness and Capitalized Lease Obligations of the Borrower and its Subsidiaries in an amount not to exceed $2,000,000 in the aggregate at any one time outstanding;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) obligations of the Borrower or any Subsidiaries arising out of interest rate, foreign currency, and commodity hedging agreements entered into with financial institutions in connection with bona fide hedging activities in the ordinary course of business and not for speculative purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) endorsement of items for deposit or collection of commercial paper received in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) financing of securities and other financial instruments held in the normal day to day conduct of the Borrower's or such Subsidiary's business, including but not limited to any margin facility or other margin-related Indebtedness incurred to finance such securities or instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any letters of credit (and related obligations) obtained by Borrower or any Subsidiary and provided to lessors in connection with leases of real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Subordinated Debt of the Borrower so long as (i) no Default has occurred and is continuing or would result from the incurrence thereof, (ii) after giving effect to the incurrence of such Subordinated Debt, the Borrower is in compliance with the financial covenants set forth in Section 7.12 hereof; and (iii) such Indebtedness is unsecured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) cash management obligations and Indebtedness in respect of netting services, overdraft protections and similar arrangements in each case in connection with cash management and deposit, securities and commodities accounts arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Indebtedness of any Subsidiary arising under Guarantees of Indebtedness to the extent such Indebtedness is permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Indebtedness of the Borrower owing to WBI, LP so long as such Indebtedness is subject to the Debt Subordination Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) other Indebtedness of the Borrower and its Subsidiaries in an aggregate amount not to exceed $2,000,000 at any one time so long as, at the time of issuance, incurrence, assumption or creation of such Indebtedness, no Default or Event of Default exists or would occur as a result of the incurrence of such Indebtedness.

*Section 7.2. Liens.* The Borrower shall not, nor shall it permit any of its Subsidiaries to, create, incur or permit to exist any Lien of any kind on any Property owned by any such Person; provided, however, that the foregoing shall not apply to nor operate to prevent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens arising by statute in connection with worker's compensation, unemployment insurance, old age benefits, social security obligations, taxes, assessments, statutory obligations or other similar charges (other than Liens arising under ERISA), good faith cash deposits in connection with tenders, contracts or leases to which the Borrower or any Subsidiary is a party or other cash deposits required to be made in the ordinary course of business, provided in each case that the obligation is not for borrowed money and that the obligation secured is not overdue or, if overdue, is being contested in good faith by appropriate proceedings which prevent enforcement of the matter under contest and adequate reserves have been established therefor;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) mechanics', workmen's, materialmen's, landlords', carriers' or other similar Liens arising in the ordinary course of business with respect to obligations which are not due or which are being contested in good faith by appropriate proceedings which prevent enforcement of the matter under contest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the pledge of assets for the purpose of securing an appeal, stay or discharge in the course of any legal proceeding, provided that the aggregate amount of such judgment liens and attachments and liabilities of the Borrower and its Subsidiaries secured by a pledge of assets permitted under this subsection, including interest and penalties thereon, if any, shall not be in excess of the Threshold Amount at any one time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens on equipment of the Borrower or any Subsidiary created solely for the purpose of securing indebtedness permitted by Section 7.1(b) hereof, representing or incurred to finance the purchase price of such Property, *provided* that no such Lien shall extend to or cover other Property of the Borrower or such Subsidiary other than the respective Property so acquired, and the principal amount of indebtedness secured by any such Lien shall at no time exceed the purchase price of such Property, as reduced by repayments of principal thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any interest or title of a lessor under any operating lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) easements, rights-of-way, restrictions, and other similar encumbrances against real property incurred in the ordinary course of business which, in the aggregate, are not substantial in amount and which do not materially detract from the value of the Property subject thereto or materially interfere with the ordinary conduct of the business of the Borrower and its Subsidiaries taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) required deposits maintained with commodity or securities exchanges or their associated clearing corporations in the ordinary course of the business of the Borrower or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Liens granted in favor of the Administrative Agent pursuant hereto and the other Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens securing Indebtedness permitted under Section 7.1(e) so long as no such Liens attach to the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Liens (i) of a collection bank arising under Section 4-210 of the Uniform Commercial Code on the items in the course of collection, (ii) attaching to commodity trading accounts or other commodities brokerage accounts or relating to pooled deposit or sweep accounts of the Borrower or any Subsidiary to permit satisfaction of overdraft or similar obligations incurred in the ordinary course of business, (iii) in favor of a banking or other financial institution arising as a matter of law encumbering deposits or other funds maintained with a financial institution (including the right of set off) and which are within the general parameters customary in the banking industry and (iv) in the nature of contractual rights of set-off relating to purchase orders and other agreements entered into with customers of the Borrower or any Subsidiary or otherwise in the ordinary course of business and customary holdbacks under credit cards or similar merchant processing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Liens arising from precautionary Uniform Commercial Code financing statement filings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Liens in connection with sales, transfers, leases, assignments or other conveyances or dispositions of securities permitted under this Agreement, including (x) Liens on securities granted or deemed to arise in connection with and as a result of the execution, delivery or performance of contracts to sell such securities if such sale is otherwise permitted hereunder, or is required by such contracts to be permitted hereunder, and (y) rights of first refusal, options or other contractual rights or obligations to sell, assign or otherwise dispose of any securities or interest therein, which rights of first refusal, option or contractual rights are granted in connection with a sale, transfer or other disposition of securities permitted hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Liens securing Indebtedness owing by any Subsidiary permitted under Section 7.1(k).

*Section 7.3. Investments, Acquisitions, Loans and Advances.* The Borrower shall not, nor shall it permit any Subsidiary to, make or retain any investment (whether through the purchase of stock, obligations or otherwise) in or make any loan or advance to, any other Person or acquire substantially as an entirety the Property or business of any other Person, to the extent prohibited by the Borrower's or such Subsidiary's Organizational Documents.

*Section 7.4. Mergers, Consolidations, Divisions and Sales.* The Borrower shall not, nor shall it permit any of its Subsidiaries to, be a party to any merger, consolidation, amalgamation or division, or sell, transfer, lease or otherwise dispose of all or any part of its Property, including any disposition of Property as part of a sale and leaseback transaction, or in any event sell or discount (with or without recourse) any of its notes or accounts receivable; *provided, however,* that this Section shall not apply to nor operate to prevent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sale of securities or other financial instruments in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the sale, transfer, or other disposition of any tangible personal property that, in the reasonable business judgment of the Borrower or its Subsidiary, has become uneconomical, obsolete, or worn out, or which is surplus property or which is no longer necessary for the proper conduct of the Borrower's business and which is disposed of in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) the amalgamation, merger or consolidation of any Person (including any Subsidiary of the Borrower) into the Borrower, *provided* the Borrower is the surviving entity and no Change of Control results from the merger, (ii) the amalgamation, merger or consolidation of any Subsidiary into or with any other Subsidiary, (iii) the sale, conveyance, transfer, lease or other disposition of some, all or substantially all of the assets of any Subsidiary to any other Subsidiary or to the Borrower, and (iv) the liquidation or dissolution of any Subsidiary if the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and not materially disadvantageous to the Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the sale of equipment in connection with a sale and leaseback transaction so long as no Default has occurred and is continuing or would result from such sale and leaseback transaction; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the sale of delinquent notes or accounts receivable in the ordinary course of business for purposes of collection only (and not for the purpose of any bulk sale or securitization transaction).

*Section 7.5. Maintenance of Subsidiaries.* The Borrower shall not assign, sell or transfer, nor shall it permit any of its Subsidiaries to issue, assign, sell or transfer, any shares of capital stock or other equity interests of a Subsidiary; provided, however, that the foregoing shall not operate to prevent (a) the issuance, sale and transfer to any person of any shares of capital stock of a Subsidiary solely for the purpose of qualifying, and to the extent legally necessary to qualify, such person as a director of such Subsidiary, or (b) any transaction permitted by Section 7.4(c) hereof.

*Section 7.6. Dividends and Certain Other Restricted Payments.* (a) The Borrower shall not, nor shall it permit any Subsidiary to, (i) declare or pay any dividends on or make any other distributions in respect of any class or series of its member's interests or other equity interests or (ii) directly or indirectly purchase, redeem, or otherwise acquire or retire any of its equity interests or any warrants, options or similar instruments to acquire the same (collectively *"Restricted Payments"); provided, however,* that the foregoing shall not operate to prevent (A) the making of any Restricted Payments by any Wholly-owned Subsidiary to the Borrower, or (B) the making of any Restricted Payments by the Borrower so long as (1) each such Restricted Payments is permitted under all rules and regulations applicable to the Borrower, and (2) both before and after giving effect thereto, no Default shall exist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall not permit any member of the Borrower to withdraw any capital from the Borrower without giving the Administrative Agent not less than 10 days prior notice thereof and receiving the Administrative Agent's prior approval of such withdrawal; *provided* that no such notice or approval shall be required if at the time of such withdrawal, no Default shall have occurred and be continuing or would result from such withdrawal and the Borrower is in compliance with Section 7.12 hereof.

*Section 7.7. Burdensome Contracts With Affiliates.* The Borrower shall not, nor shall it permit any Subsidiary to, enter into any contract, agreement or business arrangement with any of its Affiliates on terms and conditions which are less favorable to the Borrower or such Subsidiary than would be usual and customary in similar contracts, agreements or business arrangements between Persons not affiliated with each other.

*Section 7.8. No Changes in Fiscal Year.* The fiscal year of the Borrower and its Subsidiaries ends on December 31 of each year; and the Borrower shall not, nor shall it permit any Subsidiary to, change its fiscal year from its present basis.

*Section 7.9. Change in the Nature of Business.* The Borrower shall not, nor shall it permit any Subsidiary to, engage in any business or activity if as a result the general nature of the business of the Borrower or any Subsidiary would be changed in any material respect from the general nature of the business engaged in by it as of the Closing Date, and any Subsidiary acquired or formed after the date hereof shall be in the same or similar line of business as the Borrower is engaged in as of the date hereof.

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*Section 7.10. No Restrictions*. Except as provided herein, the Borrower shall not, nor shall it permit any Subsidiary to, directly or indirectly create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the ability of the Borrower or any Subsidiary to: (a) pay dividends or make any other distribution on any Subsidiary's capital stock or other equity interests owned by the Borrower or any other Subsidiary, (b) pay any indebtedness owed to the Borrower or any other Subsidiary, (c) make loans or advances to the Borrower or any other Subsidiary, (d) transfer any of its Property to the Borrower or any other Subsidiary, or (e) guarantee the Obligations, and/or grant Liens on its assets to the Administrative Agent as required by the Loan Documents; provided, the foregoing shall not operate to prevent: (i) restrictions imposed by any Legal Requirement, (ii) customary restrictions on joint ventures or interests therein arising from joint venture agreements, (iii) restrictions imposed by the holder of any Lien permitted by Section 7.2 on the transfer of the asset or assets subject thereto, (iv) customary provisions restricting subletting or assignment of any lease or license governing a leasehold interest or license interest of the Borrower or any Subsidiary, (v) customary provisions restricting assignment of any agreement entered into by the Borrower or a Subsidiary, (vi) any customary restrictions with respect to a Subsidiary or other Property imposed pursuant to an agreement that has been entered into relating to the sale of all or substantially all of the equity interests or assets of such Subsidiary or any other Property permitted under Section 7.4 pending the consummation of such sale, (vii) restrictions imposed on the ability of the Borrower to make Restricted Payments pursuant to the Borrower's or such Subsidiary's Organizational Documents, (viii) restrictions in agreements or instruments relating to any Indebtedness permitted to be incurred subsequent to the date of this Agreement pursuant to Section 7.1, and (ix) customary restrictions in connection with any depository, cash management and treasury management services and products (including clearing trades, controlled disbursement, automated clearinghouse transactions, return items, overdrafts and interstate depository network services).

*Section 7.11. Use of Proceeds.* The Borrower will not request any Loan, and the Borrower shall not use, and shall ensure that its Subsidiaries and Affiliates, and its or their respective directors, officers, employees and agents not use, the proceeds of any Loan, directly or indirectly, (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) to fund, finance or facilitate any activities, business or transaction of or with any Sanctioned Person or in any Designated Jurisdiction, or (iii) in any other manner that would result in the violation of any Sanctions applicable to any party hereto.

*Section 7.12. Financial Covenants.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Minimum Tangible Net Worth.* The Borrower shall at all times maintain its Tangible Net Worth of not less than (i) $75,000,000 from the Closing Date to but not including December 31, 2020, and (ii) $100,000,000 from January 1, 2021 and thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Minimum Excess Net Capital.* The Borrower shall at all times maintain Excess Net Capital of not less than (i) $50,000,000 from the Closing Date to but not including December 31, 2020, and (ii) $75,000,000 from January 1, 2021 and thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Total Assets to Total Equity Ratio.* The Borrower shall not, at any time, permit the Total Assets to Total Equity Ratio to exceed 13.0 to 1.0.

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Section 8. EVENTS OF DEFAULT AND REMEDIES.

*Section 8.1. Events of Default.* Any one or more of the following shall constitute an "Event of Default" hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) default in the payment when due of all or any part of the principal of any Loan (whether at the stated maturity thereof or at any other time provided for in this Agreement), or default for a period of three (3) Business Days in the payment when due of any interest, fee or other Obligation payable hereunder or under any other Loan Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) default in the observance or performance of any covenant set forth in Sections 6.5, 6.11, or 6.12 or Section 7 of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) default in the observance or performance of any other provision hereof or of any other Loan Document which is not remedied within thirty (30) days after the earlier of (i) the date on which such failure shall first become known to any Responsible Officer of the Borrower or (ii) written notice thereof is given to the Borrower by the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any representation or warranty made by the Parent, the Borrower or any Subsidiary herein or in any other Loan Document or in any certificate furnished to the Administrative Agent or the Lenders pursuant hereto or thereto or in connection with any transaction contemplated hereby or thereby proves untrue in any material respect as of the date of making or deemed making thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (i) any event occurs or condition exists (other than those described in subsections (a) through (d) above) which is specified as an event of default under any of the other Loan Documents, or (ii) any of the Loan Documents shall for any reason not be or shall cease to be in full force and effect or is declared to be null and void, or (iii) any of the Loan Documents shall for any reason fail to create a valid and perfected first priority Lien in favor of the Administrative Agent in any Collateral purported to be covered thereby except as expressly permitted by the terms hereof, or (iv) the Parent or the Borrower takes any action for the purpose of terminating, repudiating or rescinding any Loan Document executed by it or any of its obligations thereunder, or (v) the Borrower makes any payment on account of any Subordinated Debt which is prohibited under the terms of any instrument subordinating such Subordinated Debt to any Obligations, or any subordination provision in any document or instrument (including, without limitation, any intercreditor or subordination agreement) relating to any Subordinated Debt shall cease to be in full force and effect, or any Person (including the holder of any Subordinated Debt) shall contest in any manner the validity, binding nature or enforceability of any such provision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) default shall occur under any Indebtedness issued, assumed or guaranteed by the Borrower or any Subsidiary aggregating more than the Threshold Amount, or under any indenture, agreement or other instrument under which the same may be issued, and such default shall continue for a period of time sufficient to permit the acceleration of the maturity of any such Indebtedness (whether or not such maturity is in fact accelerated), or any such Indebtedness shall not be paid when due (whether by demand, lapse of time, acceleration or otherwise);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any judgment or judgments, writ or writs, or warrant or warrants of attachment, or any similar process or processes in an aggregate amount in excess of the Threshold Amount (except to the extent fully covered by insurance as to which the insurer has acknowledged coverage) shall be entered or filed against the Borrower or any Subsidiary or against any of their Property and which remains unvacated, unbonded, unstayed or unsatisfied for a period of 30 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) (i) an ERISA Event occurs with respect to a Plan or Multiemployer Plan which has resulted or would reasonably be expected to result in liability of the Borrower or any Subsidiary under Title IV of ERISA to the Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of Threshold Amount, (ii) the existence of any Lien under Section 430(k) of the Code or Section 303(k) or Section 4068 of ERISA on any assets of a the Borrower, or (iii) the Borrower or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of the Threshold Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Change of Control shall occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the Parent, the Borrower or any Subsidiary shall (i) have entered involuntarily against it an order for relief under the United States Bankruptcy Code, as amended, (ii) not pay, or admit in writing its inability to pay, its debts generally as they become due, (iii) make an assignment for the benefit of creditors, (iv) apply for, seek, consent to or acquiesce in, the appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial part of its Property, (v) institute any proceeding seeking to have entered against it an order for relief under the United States Bankruptcy Code, as amended, to adjudicate it insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors or fail to file an answer or other pleading denying the material allegations of any such proceeding filed against it, (vi) take any corporate or similar action in furtherance of any matter described in parts (i) through (v) above, or (vii) fail to contest in good faith any appointment or proceeding described in Section 8.1 (k);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) a custodian, receiver, trustee, examiner, liquidator or similar official shall be appointed for the Parent, the Borrower or any Subsidiary, or any substantial part of any of its Property, or a proceeding described in Section 8.1 (j)(v) shall be instituted against the Parent, the Borrower or any Subsidiary, and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of 60 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the SIPC shall have applied or shall have announced its intention to apply for a decree adjudicating that customers of the Borrower are in need of protection under SIPA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the Borrower shall fail to comply with the capital requirements of the SEC for a period of more than five (5) Business Days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) (i) WBI, LP takes any action for the purpose of terminating, repudiating or rescinding the Debt Subordination Agreement or any of its obligations thereunder, or (ii) the Borrower makes any payment on account of any Indebtedness owing to WBI, LP which is prohibited under the Debt Subordination Agreement, or any subordination provision in the Debt Subordination Agreement shall cease to be in full force and effect, or any Person shall contest in any manner the validity, binding nature or enforceability of any such provision.

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*Section 8.2. Non-Bankruptcy Defaults.* When any Event of Default (other than those described in subsection (j) or (k) of Section 8.1 with respect to the Borrower) has occurred and is continuing, the Administrative Agent shall, by written notice to the Borrower: (a) if so directed by the Required Lenders, terminate the remaining Commitments and all other obligations of the Lenders hereunder on the date stated in such notice (which may be the date thereof); and (b) if so directed by the Required Lenders, declare the principal of and the accrued interest on all outstanding Loans to be forthwith due and payable and thereupon all outstanding Loans, including both principal and interest thereon, shall be and become immediately due and payable together with all other amounts payable under the Loan Documents without further demand, presentment, protest or notice of any kind. In addition, the Administrative Agent may exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the Loan Documents or applicable law or equity when any such Event of Default has occurred and is continuing. The Administrative Agent shall give notice to the Borrower under Section 8.1(c) promptly upon being requested to do so by any Lender. The Administrative Agent, after giving notice to the Borrower pursuant to Section 8.1(c) or this Section 8.2, shall also promptly send a copy of such notice to the other Lenders, but the failure to do so shall not impair or annul the effect of such notice.

*Section 8.3. Bankruptcy Defaults.* When any Event of Default described in subsections (j) or (k) of Section 8.1 with respect to the Borrower has occurred and is continuing, then all outstanding Loans shall immediately become due and payable together with all other amounts payable under the Loan Documents without presentment, demand, protest or notice of any kind, the obligation of the Lenders to extend further credit pursuant to any of the terms hereof shall immediately terminate.

*Section 8.4. Post-Default Collections.* Anything contained herein or in the other Loan Documents to the contrary notwithstanding (including, without limitation, Section 2.6(b)), all payments and collections received in respect of the Obligations and all proceeds of the Collateral and payments made under or in respect of the Guaranty Agreement received, in each instance, by the Administrative Agent or any of the Lenders after acceleration or the final maturity of the Obligations or termination of the Commitments as a result of an Event of Default shall be remitted to the Administrative Agent and distributed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) first, to the payment of any outstanding costs and expenses incurred by the Administrative Agent, and any security trustee therefor, in monitoring, verifying, protecting, preserving or enforcing the Liens on the Collateral, in protecting, preserving or enforcing rights under the Loan Documents, and in any event including all costs and expenses of a character which the Borrower has agreed to pay the Administrative Agent under Section 11.4 (such funds to be retained by the Administrative Agent for its own account unless it has previously been reimbursed for such costs and expenses by the Lenders, in which event such amounts shall be remitted to the Lenders to reimburse them for payments theretofore made to the Administrative Agent);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) second, to the payment of any outstanding interest and fees due under the Loan Documents to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) third, to the payment of principal on the Loans to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) fourth, to the payment of all other unpaid Obligations and all other indebtedness, obligations, and liabilities of the Borrower secured by the Loan Documents to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) finally, to the Borrower or whoever else may be lawfully entitled thereto.

Section 9. THE ADMINISTRATIVE AGENT.

*Section 9.1. Appointment and Authority.* Each of the Lenders hereby irrevocably appoints BMO Harris Bank N.A. to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this Section 9 are solely for the benefit of the Administrative Agent and the Lenders, and the Borrower shall not have rights as a third-party beneficiary of any of such provisions. It is understood and agreed that the use of the term "agent" herein or in any other Loan Documents (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.

*Section 9.2. Rights as a Lender.* The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and the term "Lender" or "Lenders" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with, the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

*Section 9.3. Action by Administrative Agent; Exculpatory Provisions.* (a) The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent and its Related Parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents),

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 *provided* that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law. The Administrative Agent shall in all cases be fully justified in failing or refusing to act hereunder or under any other Loan Document unless it first receives any further assurances of its indemnification from the Lenders that it may require, including prepayment of any related expenses and any other protection it requires against any and all costs, expense, and liability which may be incurred by it by reason of taking or continuing to take any such action; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall not, except as expressly set forth herein and in the other Loan Documents, have any duty or responsibility to disclose, and shall not be liable for the failure to disclose, any information relating to the Parent, the Borrower or any of their Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Administrative Agent nor any of its Related Parties shall be liable for any action taken or not taken by the Administrative Agent under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby or thereby (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 8.2, 8.3, 8.4 and 11.3), or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment. Any such action taken or failure to act pursuant to the foregoing shall be binding on all Lenders. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent in writing by the Borrower, or a Lender.

*Section 9.4. Reliance by Administrative Agent.* The Administrative Agent shall be entitled to rely upon, and shall be fully protected in relying and shall not incur any liability for relying upon, any notice, request, certificate, communication, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting

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or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall be fully protected in relying and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender unless the Administrative Agent shall have received notice to the contrary from such Lender prior to the making of such Loan. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

*Section 9.5. Delegation of Duties.* The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Section shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the facilities as well as activities as Administrative Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

*Section 9.6. Resignation of Administrative Agent.* (a) The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an office in the United States of America, or an Affiliate of any such bank with an office in the United States of America. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the "Resignation Effective Date"), then the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above. Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With effect from the Resignation Effective Date, (i) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents, and (ii) except for any indemnity payments owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided for above. If on the Resignation Effective Date no successor has been appointed and accepted such appointment, the Administrative Agent's rights in the Loan Documents shall be assigned without representation, recourse or warranty to the Lenders as their interests may appear. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, such successor shall

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succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Administrative Agent (other than any rights to indemnity payments or other amounts owed to the retiring Administrative Agent), and the retiring Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring Administrative Agent's resignation hereunder and under the other Loan Documents, the provisions of this Section 9 and Section 11.4 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent.

*Section 9.7. Non-Reliance on Administrative Agent and Other Lenders.* Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

*Section 9.8. Designation of Additional Agents.* The Administrative Agent shall have the continuing right, for purposes hereof, at any time and from time to time to designate one or more of the Lenders (and/or its or their Affiliates) as "syndication agents," "documentation agents," "book runners," "lead arrangers," "arrangers," or other designations for purposes hereto, but such designation shall have no substantive effect, and such Lenders and their Affiliates shall have no additional powers, duties or responsibilities as a result thereof.

*Section 9.9. Enforcement of the Loan Documents; Possession of Collateral.* Upon the occurrence of an Event of Default, the Administrative Agent shall take such action to enforce its Lien on the Collateral and to preserve and protect the Collateral as may be directed by the Required Lenders. Unless and until the Required Lenders give such direction, the Administrative Agent may (but shall not be obligated to) take or refrain from taking such actions as it deems appropriate and in the best interest of all the Lenders. Each Lender acknowledges and agrees that it will be bound by the terms and conditions of the Loan Documents upon the execution and delivery thereof by the Administrative Agent. The Administrative Agent shall not be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Administrative Agent's Lien thereon, or any certificate prepared by the Borrower in connection therewith, nor shall the Administrative Agent be responsible or liable to the Lenders or their Affiliates for any failure to monitor or maintain any portion of the Collateral. The Lenders hereby irrevocably authorize the Administrative Agent, based upon the instruction of the Required Lenders, to credit bid and purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral at any sale thereof conducted by the Administrative Agent (or any security trustee therefore) under the provisions of the Uniform Commercial Code, including pursuant to Sections 9-610 or 9-620 of the Uniform Commercial Code, at any sale thereof conducted under the

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provisions of the United States Bankruptcy Code, including Section 363 of the United States Bankruptcy Code, or at any sale or foreclosure conducted by the Administrative Agent or any security trustee therefore (whether by judicial action or otherwise) in accordance with applicable law. Except as otherwise specifically provided for herein, no Lender or their Affiliates, other than the Administrative Agent, shall have the right to institute any suit, action or proceeding in equity or at law for the foreclosure or other realization upon any Collateral or for the execution of any trust or power in respect of the Collateral or for the appointment of a receiver or for the enforcement of any other remedy under the Loan Documents; it being understood and intended that no one or more of the Lenders or their Affiliates shall have any right in any manner whatsoever to affect, disturb or prejudice the Lien of the Administrative Agent (or any security trustee therefor) under the Loan Documents by its or their action or to enforce any right thereunder, and that all proceedings at law or in equity shall be instituted, had, and maintained by the Administrative Agent (or its security trustee) in the manner provided for in the relevant Loan Documents for the benefit of the Administrative Agent and the other Secured Parties. Each Lender hereby appointed agent for the purpose of perfecting the Administrative Agent's security interest in assets which, in accordance with Article 9 of the Uniform Commercial Code or other applicable law can be perfected only by possession. Should any Lender (other than the Administrative Agent) obtain possession of any Collateral, such Lender shall notify the Administrative Agent thereof, and, promptly upon the Administrative Agent's request therefor shall deliver such Collateral to the Administrative Agent or in accordance with the Administrative Agent's instructions.

*Section 9.10. Authorization to Release or Limit Liens.* The Administrative Agent is hereby irrevocably authorized by each of the Lenders and their Affiliates to (a) release any Lien covering any Collateral that is sold, transferred, or otherwise disposed of in accordance with the terms and conditions of this Agreement (including a sale, transfer, or disposition permitted by the terms of Section 7.4 or which has otherwise been consented to in accordance with Section 11.3), (b) reduce or limit the amount of the indebtedness secured by any particular item of Collateral to an amount not less than the estimated value thereof to the extent necessary to reduce mortgage registry, filing and similar tax, and (c) release Liens on the Collateral following termination or expiration of the Commitments and payment in full in cash of the Obligations (other than contingent indemnification obligations). Upon the Administrative Agent's request, the Required Lenders will confirm in writing the Administrative Agent's authority to release or subordinate its interest in particular types or items of Property or to release any Person from its obligations as a guarantor under the Loan Documents.

*Section 9.11. Authorization of Administrative Agent to File Proofs of Claim.* In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to the Parent or the Borrower, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under the Loan Documents including, but not limited to, Sections 2.9, 3.2, and 11.4) allowed in such judicial proceeding; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.9 and 11.4. Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

*Section 9.12. Certain ERISA Matters.* (a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of the Administrative Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or the Parent, that at least one of the following is and will be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender is not using "plan assets" (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments or this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96- 23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and not, for the avoidance of doubt, to or for the benefit of, the Parent or the Borrower, that the Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).

Section 10. THE COLLATERAL AND GUARANTIES.

*Section 10.1. Collateral and Collateral Accounts.* (a) To secure the payment and performance of the Margin Obligations, the Borrower hereby grants to the Administrative Agent, for the benefit of the Lenders, a continuing lien on and security interest in, and right of set-off against, all right, title, and interest of the Borrower, whether now owned or existing or hereafter created, acquired or arising, in and to all of the Margin Collateral. All of the Margin Collateral shall be credited to one or more of the Accounts and shall be held by the Administrative Agent. No later than the close of business in Chicago, Illinois on the date of each request for a Margin Loan hereunder, the Borrower shall transfer into one or more of the Accounts Margin Collateral having a Market Value such that after giving effect to the requested Margin Loan the aggregate principal amount of all Margin Loans shall not exceed the Margin Borrowing Base as then determined and computed by the Administrative Agent. All of the Margin Collateral shall be at all times subject to the exclusive dominion and control of the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *NSCC Margin Collateral.* To secure the payment and performance of the NSCC Margin Obligations, the Borrower hereby grants to the Administrative Agent, for the benefit of the Lenders, a continuing lien on and security interest in, and right of set-off against, all right, title, and interest of the Borrower, whether now owned or existing or hereafter created, acquired or arising, in and to all of the NSCC Margin Collateral.

*Section 10.2. Delivery of Collateral; Inspection.* The Administrative Agent shall have the right, whether before or after the occurrence of any Default hereunder, to notify any third party holding any of the Collateral of the pledge thereof hereunder and require delivery thereof to the Administrative Agent and may take such steps with respect to any Collateral to insure that the Lien of the Administrative Agent is fully perfected and protected in compliance with the Uniform

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Commercial Code and applicable Federal rules and regulations. The Borrower shall permit the Administrative Agent or its representatives to inspect and make copies of the books and records relating to the Collateral of the Borrower and of the DTC or any other party holding the Collateral and to conduct an audit or inventory of the Collateral at any reasonable time or times either with or without prior notice.

*Section 10.3. Payments and Other Proceeds.* All cash proceeds of the Collateral shall be promptly remitted to the Administrative Agent to be held as additional Collateral in one of the Accounts or another deposit account under control of the Administrative Agent and shall be subject to release in accordance with Section 10.5.

*Section 10.4. Voting Rights and Income.* Unless and until an Event of Default has occurred and is continuing and thereafter until notified to the contrary by the Administrative Agent pursuant to Section 10.7 hereof, (a) the Borrower shall be entitled to exercise all voting and/or consensual powers pertaining to the Collateral or any part thereof, for all purposes not inconsistent with the terms of this Agreement or any other document evidencing or otherwise relating to any Obligations; and (b) the Borrower shall be entitled to receive and retain all cash interest and other distributions paid upon or in respect of the Collateral.

*Section 10.5. Release of Collateral.* (a) If the Borrower shall at any time desire the release of any item of Margin Collateral (including any Margin Collateral consisting of cash), the Borrower shall deliver to the Administrative Agent a written request for such release and on the day the Administrative Agent receives such request (if such request is received prior to 3:00 p.m. (Chicago time) on such day), the Administrative Agent may cause such item of Margin Collateral to be released from the relevant Account to an account of the Borrower maintained with DTC or another securities intermediary, *provided* that (i) no Default shall exist both before and immediately after giving effect to such release, and (ii) the aggregate principal amount of all Margin Loans outstanding as of 5:00 p.m. (Chicago time) shall not exceed the lesser of the Commitment and the Margin Borrowing Base, as determined and computed by the Administrative Agent at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything contained herein to the contrary, in the event that the Administrative Agent releases the Margin Collateral in accordance with clause (a) above (the *"Released Collateral")* but the aggregate principal amount of all Loans exceed the Margin Borrowing Base at the time of such release, the Borrower hereby acknowledges and agrees that (i) the Administrative Agent continues to have a security interest in such Released Collateral and every portion or part thereof and in all proceeds thereof, (ii) the Borrower shall hold such Released Collateral and the proceeds thereof in trust for the Administrative Agent separate from all other Property of the Borrower and free and clear of all Liens and claims other than the Administrative Agent's security interest herein, and (iii) the Borrower shall promptly (but no later than the next Business Day) and without notice or demand return such Released Collateral or the proceeds thereof to the Administrative Agent as a mandatory prepayment of the Loans in the event that the Borrower has failed to comply with clause (a)(ii) above.

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*Section 10.6. Settlement Account.* (i) The Borrower hereby agrees that during any period when it may itself make withdrawals, transfers or other dispositions of funds in the Settlement Account it shall do so only (A) to the extent that immediately after such withdrawal, transfer or other disposition, the sum of (x) the aggregate amount of cash in the Settlement Account (other than with respect to amounts on deposit therein that can fairly be identified by the Borrower as being attributable to the Settlement Bank Obligations) plus (y) an amount equal to 80% of the Eligible NSCC Margin Deposits is at least equal to the aggregate principal amount of NSCC Margin Loans outstanding at such time or (B) to make payments on account of the Obligations. On or prior to the date of this Agreement, the Borrower shall direct NSCC to return any NSCC Margin Deposits to be returned to the Borrower to the Settlement Account. The Borrower shall cause such direction to be in full force and effect at all times until all the Obligations have been fully paid and performed and the Commitments have been terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower agrees that the Settlement Account shall be at all times subject to the "control" (within the meaning of Section 9-104 of the UCC) of and held by the Administrative Agent as the depositary bank during the term of this Agreement, *provided* that unless an Event of Default has occurred and is continuing, the Borrower shall have the right to transfer or otherwise dispose of any funds in the Settlement Account. The Settlement Account shall be deemed to be a "deposit account" (within the meaning of Section 9-102(a)(29) of the UCC). For the purposes of this Agreement and Section 9-304 of the UCC, the Administrative Agent's jurisdiction shall be deemed to be the State of Illinois.

*Section 10.7. Further Acts.* The Borrower hereby appoints the Administrative Agent, its nominee, and any other person whom the Administrative Agent may designate, as the Borrower's attorney-in-fact, with full power, after the occurrence and during the continuation of any Event of Default, to liquidate the Collateral or any part thereof prior to its stated maturity, if any, without thereby incurring any liability whatsoever to the Borrower and, in the name of the Borrower or in the Administrative Agent's own name or both, to demand, collect, withdraw, receipt for or sue for all amounts due or to become due and payable in respect of the Collateral, to execute any withdrawal receipts respecting the Collateral, to endorse the name of the Borrower on any and all commercial paper given in payment thereof, and to take any other action, including, without limitation, transfer any certificate evidencing the Collateral into the Administrative Agent's own name or the name of its nominee, which the Administrative Agent deems necessary or appropriate to preserve or protect its interest in the Collateral. The Borrower hereby ratifies and approves all acts of any such attorney and agrees that neither the Administrative Agent nor any such attorney will be liable for any acts or omissions nor for any error of judgment or mistake of fact or law other than such person's gross negligence or willful misconduct. The foregoing power of attorney, being coupled with an interest, is irrevocable until the Obligations have been fully paid and satisfied and the commitment to extend additional credit to the Borrower has terminated.

*Section 10.8. Remedies on Default.* Upon the occurrence and during the continuation of any Event of Default hereunder, the Administrative Agent shall have such rights and remedies with respect to the Collateral or any part thereof and the proceeds thereof as are provided by the Uniform Commercial Code and such other rights and remedies with respect thereto which it may have at law or in equity or under this Agreement, including without limitation, to the extent not inconsistent with the provisions of the Uniform Commercial Code or other applicable law, the right to (a) transfer into the Administrative Agent's name or into the name of its nominee or nominees or into an account at DTC in the name of, and for the benefit of, the Administrative Agent all or any portion of the Collateral and thereafter receive, for the benefit of the

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Administrative Agent, all cash payments made thereon, vote the same, give all consents, waivers and ratifications in respect thereof and otherwise act with respect thereto as though it was the outright owner thereof, and (b) sell all or any portion of the Collateral at any broker's board or at public or private sale, without prior notice to the Borrower or any other person, except as otherwise required by law (and if notice is required by law, after 5 (five) days' prior written notice), at such place or places and at such time or times and in such manner and for such consideration as the Administrative Agent may determine, and remit all amounts realized from the Collateral to the Administrative Agent for application to the repayment of the Obligations, whether on account of principal, interest, fees, charges, advances or expenses (to the extent the Borrower is obligated to reimburse the Administrative Agent and the Lenders for such expenses hereunder or under the other Loan Documents) or otherwise as the Administrative Agent in its sole discretion may elect, and then to pay the balance, if any, to the Borrower or as otherwise required by law; and if such proceeds are insufficient to pay the Obligations in full, the Borrower shall be liable for the deficiency.

*Section 10.9. Rights of Administrative Agent With Respect to Calculations.* (a) *Schedules, Notices, Reports, etc.* The Administrative Agent shall calculate the Margin Borrowing Base on each Business Day (or with respect to the Margin Collateral consisting of Corporate Bonds, each week), and in connection with such calculations, the Administrative Agent shall (i) obtain all necessary pricing and other market data from the Reporting Service in the determination of the Margin Borrowing Base, (ii) be entitled to rely on the information provided by the Borrower in any notice of a pledge of securities with respect to ratings of, and any restrictions on resale of, the securities described therein, (iii) not give effect to any increase in either Margin Borrowing Base as a result of the transfer by the Borrower of additional Margin Collateral unless it has received and verified the pricing information applicable to such additional Margin Collateral, (iv) not give effect to any decrease in the Margin Borrowing Base as a result of a request by the Borrower for release of Collateral unless it has verified the satisfaction of the conditions set forth in Section 10.5 and (v) be entitled to rely on the information provided by the Administrative Agent or the Borrower pursuant to the other provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Limitation on Liability.* In no event shall the Administrative Agent be liable to the Borrower or any other Person for the accuracy of the value of any item of the Margin Collateral, for any determinations regarding the eligibility of any securities for inclusion in the Margin Collateral or for determinations regarding the amount of any Obligation, except in the case of its gross negligence or willful misconduct. In furtherance of the foregoing, the parties hereto acknowledge and agree that the obligations of the Administrative Agent hereunder, including without limitation, to make determinations of the Margin Borrowing Base and to provide reports and notices hereunder, are based upon information provided to the Administrative Agent as set forth herein. In no event shall the Administrative Agent have any duty or obligation to independently verify the information so provided to it (or the accuracy or completeness thereof).

*Section 10.10. Waiver of Administrative Agent's Rights Against Collateral.* The Administrative Agent hereby acknowledges and agrees that any right it may now have or hereafter acquire against any item of Collateral (prior to its release pursuant to Section 10.5 hereof), by way of right of set-off, Administrative Agent's lien, by enforcement of any rights under any security agreement or otherwise, shall be used solely to satisfy outstanding Obligations in the manner provided for herein until all Obligations have been repaid in full and the Commitment has been terminated or expired.

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*Section 10.11. Agreement Regarding Customers Securities and Firm Securities.* To ensure that the Borrower is in compliance with the Rules, the Borrower and the Administrative Agent hereby agree that, notwithstanding anything to the contrary contained herein or in any other Loan Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the Firm Obligations shall be secured by or be any charge against any Customer Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of the Customer Obligations shall be secured by or be any charge against securities other than Customer Securities and Firm Securities unless (i) the Borrower agrees such Customer Securities as it is informed by the Borrower, pursuant to and in compliance with the Rules, are securities for account of one or more of the Borrower's customers, will be segregated by the Administrative Agent from any other securities (and the Administrative Agent hereby agrees to make such segregation), and (ii) only Customer Securities are identified by the Administrative Agent as substitutes for other Customer Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In consequence of (a) above, all Customer Securities shall be security for any and all Customer Obligations, *provided, however,* that any part of such Customer Obligations secured by Customer Securities may be treated as a separate Customer Loan if, and only if, upon the creation of such part the Administrative Agent approves a notation in the Notice of Borrowing to the effect that such part is to be treated as a separate Customer Loan and that the Customer Securities specifically pledged therefor are carried for the account of a single customer of the Borrower whereupon (without prejudice to the rights of the Administrative Agent in connection with any other Customer Securities) the Customer Securities specifically pledged therefor shall be held separate and apart from all other Customer Securities and shall not be security for any other part of such Customer Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No rehypothecation, assignment or other transfer of any Customer Securities or any interest therein shall be made by the Administrative Agent except subject to the limitations and restrictions contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For the purposes of this Agreement, and in addition, wherever used herein or any other Loan Document, (i) the term "Customer Securities" shall be deemed to mean securities (A) which, according to a Notice of Borrowing received by the Administrative Agent from the Borrower pursuant to and in compliance with the Rules, are securities for the account of one or more of its customers, or (B) which are securities carried for one or more of the Borrower's customers and hypothecated to secure a Customer Loan made and to be repaid on the same calendar day, and (ii) a Customer Loan shall be deemed to be a "Loan against Customer Securities" if only Customer Securities are identified by the Administrative Agent as security used for the purpose of obtaining or increasing such Customer Loan.

*Section 10.12. Guaranties.* The payment and performance of the Obligations shall at all times be guaranteed by the Parent pursuant to the Guaranty Agreement.

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Section 11. MISCELLANEOUS.

*Section 11.1. Notices.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Notices Generally.* Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Borrower, to it at 55 Broadway, Suite 2102, New York, NY 10006, Attention of Chris Pento (Telephone No. (646) 738-4068; electronic mail: cpento @ clear street .io);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to the Administrative Agent, to BMO Harris Bank N.A at 111 West Monroe Street, Chicago, Illinois 60603, Attention of Futures and Securities (Facsimile No. (312) 765-8201; Telephone No. (312) 461-2491);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if to a Lender, to it at its address (or facsimile number) set forth in its Administrative Questionnaire.

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered through electronic communications, to the extent provided in subsection (b) below, shall be effective as provided in said subsection (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Electronic Communications.* Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, *provided* that the foregoing shall not apply to notices to any Lender pursuant to Sections 2.1 and 2.4 if such Lender has notified the Administrative Agent that it is incapable of receiving notices under such Sections by electronic communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; *provided* that approval of such procedures may be limited to particular notices or communications.

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; *provided* that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Change of Address, etc.* Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Platform,* (i)(i) The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make the Communications (as defined below) available to the other Lenders by posting the Communications on Debt Domain, Intralinks, Syndtrak or a substantially similar electronic transmission system (the *"Platform").*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Platform is provided "as is" and "as available." The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or the Platform. In no event shall the Administrative Agent or any of its Related Parties (collectively, the *"Agent Parties")* have any liability to the Borrower, any Lender or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower's, or the Administrative Agent's transmission of communications through the Platform. *"Communications"* means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of the Borrower pursuant to any Loan Document or the transactions contemplated therein which is distributed to the Administrative Agent or any Lender by means of electronic communications pursuant to this Section, including through the Platform.

*Section 11.2. Successors and Assigns.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Successors and Assigns Generally.* The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of participation in accordance with the provisions of paragraph (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (e) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Assignments by Lenders.* Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitments and the Loans at the time owing to it); *provided* that any such assignment shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Minimum Amounts.* (A) in the case of an assignment of the entire remaining amount of the assigning Lender's Commitments and the Loans at the time owing to it or contemporaneous assignments to related Approved Funds that equal at least the amount specified in paragraph (b)(i)(B) of this Section in the aggregate or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in any case not described in paragraph (b)(i)(A) of this Section, the aggregate amount of the relevant Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if *"Trade Date"* is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $5,000,000, unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Proportionate Amounts.* Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Loan or the Commitment assigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Required Consents.* No consent shall be required for any assignment except to the extent required by paragraph (b)(i)(B) of this Section and, in addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment, or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; *provided* that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within ten (10) days after having received notice thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required if such assignment is to a Person that is not a Lender with a Commitment, an Affiliate of such Lender or an Approved Fund with respect to such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Assignment and Assumption.* The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; *provided* that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *No Assignment to Certain Persons.* No such assignment shall be made to (A) the Borrower's Affiliates or Subsidiaries or (B) to any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *No Assignment to Natural Persons.* No such assignment shall be made to a natural Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) *Certain Additional Payments.* In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent and each other Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro rata share of all Loans in accordance with its Percentage. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 3.1, 3.2 and 11.4 with respect to facts and circumstances occurring prior to the effective date of such assignment; *provided* that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this Section.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Register.* The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices in Chicago, Illinois a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the *"Register").* The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Participations*. Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural Person or the Parent, the Borrower or any of their Affiliates or Subsidiaries) (each, a *"Participant")* in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion of its Commitments and/or the Loans owing to it); *provided* that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower, the Administrative Agent and Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 11.4(c) with respect to any payments made by such Lender to its Participant(s).

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; *provided* that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver that would reduce the amount of or postpone any fixed date for payment of any Obligation in which such participant has an interest. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.1 and 3.2 (subject to the requirements and limitations therein, including the requirements under Section 3.1(g) (it being understood that the documentation required under Section 3.1(g) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; *provided* that such Participant (A) agrees to be subject to the provisions of Sections 2.15 and 3.4 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 3.1 or 3.2, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower's request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 2.15 with respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.6 (Right of Setoff) as though it were a Lender; provided that such Participant agrees to be subject to Section 11.7 (Sharing of Payments by Lenders) as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under

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the Loan Documents (the *"Participant Register"), provided* that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Certain Pledges.* Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; *provided* that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

*Section 11.3. Amendments.* Any provision of this Agreement or the other Loan Documents may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by (a) the Borrower, (b) the Required Lenders (or the Administrative Agent acting at the direction of the Required Lenders) (except as otherwise stated below to require only the consent of the Lenders affected thereby), and (c) if the rights or duties of the Administrative Agent are affected thereby, the Administrative Agent; provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no amendment or waiver pursuant to this Section 11.3 shall (A) increase any Commitment of any Lender without the consent of such Lender (it being understood that a waiver of any condition precedent set forth in Section IV or the waiver of any Default shall not constitute an extension or increase of any Commitment of any Lender) or (B) reduce the amount of or postpone the date for any scheduled payment of any principal of or interest on any Loan or of any fee payable hereunder without the consent of the Lender to which such payment is owing or which has committed to make such Loan hereunder; *provided, however,* that only the consent of the Required Lenders shall be necessary to amend the default rate provided in Section 2.7 or to waive any obligation of the Borrower to pay interest or fees at the default rate as set forth therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no amendment or waiver pursuant to this Section 11.3 shall, unless signed by each Lender, change the definition of Required Lenders, change the provisions of this Section 11.3, change Section 11.7 in a manner that would affect the ratable sharing of setoffs required thereby, change the application of payments contained in Section 2.10 or 8.4, release the Parent as the guarantor or all or substantially all of the Collateral (except as otherwise provided for in the Loan Documents), or affect the number of Lenders required to take any action hereunder or under any other Loan Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no amendment or waiver pursuant to this Section 11.3 shall, unless signed by each Lender affected thereby, extend the Termination Date; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) no waiver or amendment shall, unless signed by each Lender, change the definition of Borrowing Base or any definition thereof (or waive any mandatory prepayment due under Section 2.6(b)) so as to make more credit available as a consequence thereof.

Notwithstanding anything to the contrary herein, (1) no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x) the Commitment of any Defaulting Lender may not be increased or extended without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender more adversely than other affected Lenders shall require the consent of such Defaulting Lender, (2) if the Administrative Agent and the Borrower have jointly identified an obvious error or any error or omission of a technical nature, in each case, in any provision of the Loan Documents, then the Administrative Agent and the Borrower shall be permitted to amend such provision, (3) guarantees, collateral security documents and related documents executed by the Borrower in connection with this Agreement may be in a form reasonably determined by the Administrative Agent and may be amended, supplemented or waived without the consent of any Lender if such amendment, supplement or waiver is delivered in order to (x) comply with local law or advice of local counsel, (y) cure ambiguities, omissions, mistakes or defects or (z) cause such guarantee, collateral security document or other document to be consistent with this Agreement and the other Loan Documents, and (4) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto.

*Section 11.4. Costs and Expenses; Indemnification.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Costs and Expenses.* The Borrower shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent and its Affiliates (including the reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent), in connection with the syndication of the facilities, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), including, without limitation, such reasonable and documented fees and expenses incurred in connection with the creation, perfection or protection of the Liens under the Loan Documents (including all reasonable and documented title insurance fees and all search, filing and recording fees), and (ii) all out-of-pocket reasonable and documented expenses incurred by the Administrative Agent or any Lender (including the reasonable and documented fees, charges and disbursements of one counsel for the Administrative Agent or any Lender) in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made hereunder, including all such out-of-pocket reasonable and documented expenses incurred during any workout, restructuring or negotiations in respect of such Loans (including all such reasonable and documented costs and expenses incurred in connection with any proceeding under the United States Bankruptcy Code involving the Parent or the Borrower as a debtor thereunder). The foregoing notwithstanding, the Borrower's obligations under this Section 11.4(a) for fees and expenses of legal counsel shall be limited to

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fees and expenses of (x) one outside legal counsel for all Persons described in clauses (i) and (ii), taken as a whole, (y) in the case of any conflict of interest, one outside legal counsel for such affected Person or group of Persons, and (z) if necessary, one specialist counsel and local legal counsel in each material relevant jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Indemnification by the Borrower.* The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof) and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an *"Indemnitee")* against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including any third party or the Parent or the Borrower) arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, or, in the case of Administrative Agent (and any sub-agent thereof) and their Related Parties, the administration and enforcement of this Agreement and the other Loan Documents (including all such reasonable and documented costs and expenses incurred in connection with any proceeding under the United States Bankruptcy Code involving the Parent or the Borrower as a debtor thereunder), (ii) any Loan or the use or proposed use of the proceeds therefrom, or (iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Parent or the Borrower, and regardless of whether any Indemnitee is a party thereto (including, without limitation, any settlement arrangement arising from or relating to the foregoing); *provided* that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee, (y) result from a claim brought by the Parent or the Borrower against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder or under any other Loan Document, if the Parent or the Borrower has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction, or (z) result from a claim not involving an act or omission of the Borrower and that is brought by an Indemnitee against another Indemnitee (other than against the arranger or the Administrative Agent in their capacities as such). This subsection (b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim. The foregoing notwithstanding, the Borrower's obligations under this Section 11.4(b) for fees and expenses of legal counsel shall be limited to fees and expenses of (i) one outside legal counsel for all Indemnitees, taken as a whole, (y) in the case of any conflict of interest, one outside legal counsel for such affected Indemnitee or group of Indemnitees, and (z) if necessary, one specialist counsel and local legal counsel in each material relevant jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Reimbursement by Lenders.* To the extent that (i) the Parent or the Borrower for any reason fail to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by any of them to the Administrative Agent (or any sub-agent thereof) or any Related Party or (ii) any liabilities, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever are imposed on, incurred by, or asserted against, Administrative Agent or a Related Party in any way relating to or arising out of this Agreement or

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any other Loan Document or any action taken or omitted to be taken by Administrative Agent or a Related Party in connection therewith, then, in each case, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent) or such Related Party, as the case may be, such Lender's pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based on each Lender's share of the Total Credit Exposure at such time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender). The obligations of the Lenders under this subsection (c) are subject to the provisions of Section 11.15.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Waiver of Consequential Damages, Etc.* To the fullest extent permitted by applicable law, no party shall assert, and each party hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Payments.* All amounts due under this Section shall be payable promptly after demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Survival.* Each party's obligations under this Section shall survive the termination of the Loan Documents and payment of the obligations hereunder.

*Section 11.5. No Waiver, Cumulative Remedies.* No delay or failure on the part of the Administrative Agent or any Lender, or on the part of the holder or holders of any of the Obligations, in the exercise of any power or right under any Loan Document shall operate as a waiver thereof or as an acquiescence in any default, nor shall any single or partial exercise of any power or right preclude any other or further exercise thereof or the exercise of any other power or right. The rights and remedies hereunder of the Administrative Agent, the Lenders, and of the holder or holders of any of the Obligations are cumulative to, and not exclusive of, any rights or remedies which any of them would otherwise have.

*Section 11.6. Right of Setoff.* In addition to any rights now or hereafter granted under the Loan Documents or applicable law and not by way of limitation of any such rights, if an Event of Default shall have occurred and be continuing, each Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held, and other obligations (in whatever currency) at any time owing, by such Lender or any such Affiliate, to or for the credit or the account of the Parent or the Borrower against any and all of the obligations of the Parent or the Borrower now or hereafter existing under this Agreement or any other Loan Document to such Lender or their respective Affiliates, irrespective of whether or not such Lender or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Parent or the Borrower may be contingent or unmatured or are owed to a branch, office or Affiliate

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of such Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; provided that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.16 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the other Secured Parties, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender or their respective Affiliates may have. Each Lender agrees to notify the Borrower and the Administrative

Agent promptly after any such setoff and application; *provided* that the failure to give such notice shall not affect the validity of such setoff and application.

*Section 11.7. Sharing of Payments by Lenders.* If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of its Loans and accrued interest thereon or other such obligations greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them; provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the provisions of this Section shall not be construed to apply to (x) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender), or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant, other than to the Parent, the Borrower or any Subsidiary thereof (as to which the provisions of this Section shall apply).

The Parent and the Borrower consent to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Parent and the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

*Section 11.8. Survival of Representations.* All representations and warranties made herein or in any other Loan Document or in certificates given pursuant hereto or thereto shall survive the execution and delivery of this Agreement and the other Loan Documents, and shall continue in full force and effect with respect to the date as of which they were made as long as any credit is in use or available hereunder.

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*Section 11.9. Survival of Indemnities.* All indemnities and other provisions relative to reimbursement to the Lenders of amounts sufficient to protect the yield of the Lenders with respect to the Loans, including, but not limited to, Sections 3.1,3.2 and 11.4, shall survive the termination of this Agreement and the other Loan Documents and the payment of the Obligations.

*Section 11.10. Counterparts; Integration; Effectiveness.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Counterparts; Integration; Effectiveness.* This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and the other Loan Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.1, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (e.g., "pdf' or "tif") format shall be effective as delivery of a manually executed counterpart of this Agreement. For purposes of determining compliance with the conditions specified in Section 4.1, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the Closing Date specifying its objection thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Electronic Execution of Loan Documents.* The words "execution," "signed," "signature," and words of like import in this Agreement and the other Loan Documents, including any Assignment and Assumption, shall be deemed to include electronic signatures and electronic records, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronics Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

*Section 11.11. Headings.* Section headings used in this Agreement are for reference only and shall not affect the construction of this Agreement.

*Section 11.12. Severability of Provisions.* Any provision of any Loan Document which is unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. All rights, remedies and powers provided in this Agreement and the other Loan Documents may be exercised only to the extent that the exercise thereof does not violate any applicable mandatory provisions of law, and all the provisions of this Agreement and other Loan Documents are intended to be subject to all applicable mandatory provisions of law which may be controlling and to be limited to the extent necessary so that they will not render this Agreement or the other Loan Documents invalid or unenforceable.

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*SECTION 11.13. Construction.* The parties acknowledge and agree that the Loan Documents shall not be construed more favorably in favor of any party hereto based upon which party drafted the same, it being acknowledged that all parties hereto contributed substantially to the negotiation of the Loan Documents. The provisions of this Agreement relating to Subsidiaries shall only apply during such times as the Borrower has one or more Subsidiaries. NOTHING CONTAINED HEREIN SHALL BE DEEMED OR CONSTRUED TO PERMIT ANY ACT OR OMISSION WHICH IS PROHIBITED BY THE TERMS OF ANY OTHER LOAN DOCUMENT, THE COVENANTS AND AGREEMENTS CONTAINED HEREIN BEING IN ADDITION TO AND NOT IN SUBSTITUTION FOR THE COVENANTS AND AGREEMENTS CONTAINED IN SUCH OTHER LOAN DOCUMENTS.

*Section 11.14. Excess Interest.* Notwithstanding any provision to the contrary contained herein or in any other Loan Document, no such provision shall require the payment or permit the collection of any amount of interest in excess of the maximum amount of interest permitted by applicable law to be charged for the use or detention, or the forbearance in the collection, of all or any portion of the Loans or other obligations outstanding under this Agreement or any other Loan Document ("Excess Interest"). If any Excess Interest is provided for, or is adjudicated to be provided for, herein or in any other Loan Document, then in such event (a) the provisions of this Section shall govern and control, (b) neither the Borrower nor any guarantor or endorser shall be obligated to pay any Excess Interest, (c) any Excess Interest that the Administrative Agent or any Lender may have received hereunder shall, at the option of the Administrative Agent, be (i) applied as a credit against the then outstanding principal amount of Obligations hereunder and accrued and unpaid interest thereon (not to exceed the maximum amount permitted by applicable law), (ii) refunded to the Borrower, or (iii) any combination of the foregoing, (d) the interest rate payable hereunder or under any other Loan Document shall be automatically subject to reduction to the maximum lawful contract rate allowed under applicable usury laws (the "Maximum Rate"), and this Agreement and the other Loan Documents shall be deemed to have been, and shall be, reformed and modified to reflect such reduction in the relevant interest rate, and (e) neither the Borrower nor any guarantor or endorser shall have any action against the Administrative Agent or any Lender for any damages whatsoever arising out of the payment or collection of any Excess Interest. Notwithstanding the foregoing, if for any period of time interest on any of Borrower's Obligations is calculated at the Maximum Rate rather than the applicable rate under this Agreement, and thereafter such applicable rate becomes less than the Maximum Rate, the rate of interest payable on the Borrower's Obligations shall remain at the Maximum Rate until the Lenders have received the amount of interest which such Lenders would have received during such period on the Borrower's Obligations had the rate of interest not been limited to the Maximum Rate during such period.

*Section 11.15. Lender's Obligations Several.* The obligations of the Lenders hereunder are several and not joint. Nothing contained in this Agreement and no action taken by the Lenders pursuant hereto shall be deemed to constitute the Lenders a partnership, association, joint venture or other entity.

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*Section 11.16. No Advisory or Fiduciary Responsibility.* In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and acknowledges its Affiliates' understanding, that: (a) (i) no fiduciary, advisory or agency relationship between the Parent, the Borrower and their Subsidiaries and the Administrative Agent or any Lender is intended to be or has been created in respect of the transactions contemplated hereby or by the other Loan Documents, irrespective of whether the Administrative Agent or any Lender has advised or is advising the Parent, the Borrower or any of their Subsidiaries on other matters, (ii) the arranging and other services regarding this Agreement provided by the Administrative Agent and the Lenders are arm's-length commercial transactions between the Parent, the Borrower and their Affiliates, on the one hand, and the Administrative Agent and the Lenders, on the other hand, (iii) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent that it has deemed appropriate and (iv) the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; and (b) (i) the Administrative Agent and the Lenders each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Parent, the Borrower or any of their Affiliates, or any other Person; (ii) none of the Administrative Agent or any Lender has any obligation to the Parent, the Borrower or any of their Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent and the Lenders and their respective Affiliates may be engaged, for their own accounts or the accounts of customers, in a broad range of transactions that involve interests that differ from those of the Parent, the Borrower and their Affiliates, and none of the Administrative Agent and the Lenders has any obligation to disclose any of such interests to any of the Parent, the Borrower or their Affiliates. To the fullest extent permitted by law, the Parent and the Borrower hereby waives and releases any claims that it may have against the Administrative Agent and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

*Section 11.17. Governing Law; Jurisdiction; Consent to Service of Process.* (a) THIS AGREEMENT, THE NOTES AND THE OTHER LOAN DOCUMENTS (EXCEPT AS OTHERWISE SPECIFIED THEREIN), AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE CONSTRUED AND DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to any Loan Document, or for recognition or enforcement of any judgment, and each party hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by applicable Legal Requirements, in such federal court. Each party hereto hereby agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable Legal Requirements. Nothing in this Agreement or any other Loan Document or otherwise shall affect any right that the Administrative Agent or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Parent or the Borrower or their respective properties in the courts of any jurisdiction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower hereby irrevocably and unconditionally waives, to the fullest extent permitted by applicable Legal Requirements, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in Section 11.17(b). Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable Legal Requirements, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each party to this Agreement irrevocably consents to service of process in any action or proceeding arising out of or relating to any Loan Document, in the manner provided for notices (other than telecopy or e-mail) in Section 11.1. Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by applicable Legal Requirements.

*Section 11.18. Waiver of Jury Trial.* EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LEGAL REQUIREMENTS, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

*Section 11.19. USA Patriot Act.* Each Lender that is subject to the requirements of the Patriot Act hereby notifies the Borrower that pursuant to the requirements of the Patriot Act, it is required to obtain, verify, and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Patriot Act.

*Section 11.20. Confidentiality.* Each of the Administrative Agent and the Lenders agree to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its Related Parties that have a need to know such Information (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential); (b) to the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners); (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process; (d) to any other party hereto; (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder; (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee

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of or Participant in, any of its rights and obligations under this Agreement, or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder; (g) on a confidential basis to any rating agency in connection with rating the Parent, the Borrower or their Subsidiaries or the Facilities; (h) with the consent of the Borrower; or (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section, or (y) becomes available to the Administrative Agent, any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower. For purposes of this Section, *"Information"* means all information received from the WBI, LP *("WBI"),* the Parent, the Borrower or any of the Subsidiaries or from any other Person on behalf of the Borrower or any Subsidiary relating to WBI, the Parent, the Borrower or any Subsidiary or any of their respective businesses, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Parent, the Borrower or any of their Subsidiaries. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

*Section 11.21. Acknowledgement and Consent to Bail-ln of Affected Financial Institutions.* Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto (including any party becoming a party hereto by virtue of an Assignment and Assumption) acknowledges that any liability of any Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the Applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-in Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of the applicable Resolution Authority.

*Section 11.22. Acknowledgement Regarding Any Supported QFCs.* To the extent that the Loan Documents provide support, through a guarantee or otherwise, for hedging agreements or any other agreement or instrument that is a QFC (such support, *"QFC Credit Support"* and each such QFC a *"Supported QFC"),* the parties acknowledge and agree as follows with respect to the

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resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the *"U.S. Special Resolution Regimes")* in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event a Covered Entity that is party to a Supported QFC (each, a *"Covered Party")* becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As used in this Section, the following terms have the following meanings:

*"BHC Act Affiliate"* of a party means an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841 (k)) of such party.

*"Covered Entity"* means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §252.82(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §382.2(b).

*"Default Rights"* has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§252.81,47.2 or 382.1, as applicable.

*"QFC"* has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

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*Section 11.23. Time is of the Essence.* Time is of the essence of this Agreement and each of the other Loan Documents.

[SIGNATURE PAGES TO FOLLOW]

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This Credit Agreement is entered into by and between us for the uses and purposes hereinabove set forth as of the date first written.

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| | |
|:---|:---|
|  "*BORROWER*"  | "*BORROWER*"  |
| CLEAR STREET LLC | CLEAR STREET LLC |
| By: | /s/ Chris Pento |
|  | Name: Chris Pento |
|  | Title: CEO |

---

---

| | |
|:---|:---|
|  "*ADMINISTRATIVE AGENT AND LENDERS*"  | "*ADMINISTRATIVE AGENT AND LENDERS*"  |
| BMO HARRIS BANK N.A., as Administrative Agent and a Lender | BMO HARRIS BANK N.A., as Administrative Agent and a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

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| | |
|:---|:---|
| TEXAS CAPITAL BANK, NATIONAL<br>ASSOCIATION, as a Lender | TEXAS CAPITAL BANK, NATIONAL<br>ASSOCIATION, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

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| | |
|:---|:---|
|  CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
|  By: |  |
|  | Name: |
|  | Title: |

---

[Signature Page to Credit Agreement]

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This Credit Agreement is entered into by and between us for the uses and purposes hereinabove set forth as of the date first written.

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| | |
|:---|:---|
|  "*BORROWER*" | "*BORROWER*" |
|  CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
|  "*ADMINISTRATIVE AGENT AND LENDERS*"  | "*ADMINISTRATIVE AGENT AND LENDERS*"  |
| BMO HARRIS BANK N.A., as Administrative<br>Agent and a Lender | BMO HARRIS BANK N.A., as Administrative<br>Agent and a Lender |
| By: | /s/ Krupa Tantuwaya |
|  | Name: Krupa Tantuwaya |
|  | Title: Director |

---

---

| | |
|:---|:---|
| TEXAS CAPITAL BANK, NATIONAL<br>ASSOCIATION, as a Lender | TEXAS CAPITAL BANK, NATIONAL<br>ASSOCIATION, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
|  CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

[Signature Page to Credit Agreement]

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This Credit Agreement is entered into by and between us for the uses and purposes hereinabove set forth as of the date first written.

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| | |
|:---|:---|
|  "*BORROWER*"  | "*BORROWER*"  |
|  CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
|  "*ADMINISTRATIVE AGENT AND LENDERS*"  | "*ADMINISTRATIVE AGENT AND LENDERS*"  |
| BMO HARRIS BANK N.A., as Administrative<br>Agent and a Lender | BMO HARRIS BANK N.A., as Administrative<br>Agent and a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

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| | |
|:---|:---|
| TEXAS CAPITAL BANK, NATIONAL<br>ASSOCIATION, as a Lender | TEXAS CAPITAL BANK, NATIONAL<br>ASSOCIATION, as a Lender |
| By: | /s/ Bart McCain |
|  | Name: Bart McCain |
|  | Title: SVP |

---

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| | |
|:---|:---|
|  CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

[Signature Page to Credit Agreement]

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This Credit Agreement is entered into by and between us for the uses and purposes hereinabove set forth as of the date first written.

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| | |
|:---|:---|
|  "*BORROWER*" | "*BORROWER*" |
|  CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
|  "*ADMINISTRATIVE AGENT AND LENDERS*" | "*ADMINISTRATIVE AGENT AND LENDERS*" |
| BMO HARRIS BANK N.A., as Administrative Agent and a Lender | BMO HARRIS BANK N.A., as Administrative Agent and a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

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| | |
|:---|:---|
| TEXAS CAPITAL BANK, NATIONAL ASSOCIATION, as a Lender | TEXAS CAPITAL BANK, NATIONAL ASSOCIATION, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

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| | |
|:---|:---|
|  CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: | /s/ Michael King |
|  | Name: Michael King |
|  | Title: Managing Director |

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[Signature Page to Credit Agreement]

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**EXHIBIT A** 

**NOTICE OF BORROWING** 

Date: ______________, ____

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| | |
|:---|:---|
| To: | BMO Harris Bank N.A., as Administrative Agent for the Lenders party to the Credit Agreement dated as of December 4, 2020 (as extended, renewed, amended or restated from time to time, the *"Credit Agreement"), among Clear Street LLC, certain Lenders which are signatories thereto, BMO Harris Bank N.A., as Administrative Agent* |

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Ladies and Gentlemen:

The undersigned, __________________ (the *"Borrower*"), refers to the Credit Agreement, the terms defined therein being used herein as therein defined, and hereby gives you notice irrevocably, pursuant to Section 2.4 of the Credit Agreement, of the Borrowing specified below:

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| | | |
|:---|:---|:---|
| (1) | Borrowing Date |  |
| (2) | Dollar Amount of Loan Requested |  |
| (3) | Type of Loan | **[Margin Loan] / [NSCC Margin Loan]** |

---

Annex I attached hereto sets forth data and computations evidencing the Borrowing Base, and all of such data and computations are true, correct and complete and have been made in accordance with the relevant sections of the Credit Agreement.

For new value received the undersigned hereby pledges to the Administrative Agent and grants to the Administrative Agent, for the benefit of the Lenders, a security interest in the securities and other Property listed on the schedule(s) attached hereto as Annex II and made a part hereof and confirms a pledge of and security interest in the same now in effect in favor of the Administrative Agent, together with all rights related thereto and all proceeds thereof pursuant to the terms of the Credit Agreement.

The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed Loan, before and after giving effect thereto and to the application of the proceeds therefrom:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default has occurred and is continuing or would result from such proposed Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) after giving effect to the Loan: (i) the aggregate principal amount of all Loans shall not exceed the Commitment; (ii) the aggregate principal amount of Margin Loans outstanding shall not exceed the Margin Borrowing Base, (iii) the aggregate principal amount of NSCC Margin Loans outstanding shall not exceed the NSCC Borrowing Base, (iv) the aggregate principal amount of Customer Loans outstanding shall not exceed the Customer Loan Limit, and (v) the aggregate principal amount of Firms Loans outstanding shall not exceed the Firm Loan Limit.

(4) With respect to NSCC Margin Loan, the Number of Zero Loan Days during the current month: ____________. **[Number of Zero Loan Days during any calendar month cannot be less than 8]** 

(5) To the extent such Loan is a Margin Loan, then such requested Borrowing is (select one):

[____] Customer Loan secured by Customer Securities; or <br> [____] Firm Loan secured by Firm Securities.

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| | |
|:---|:---|
|  CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

------

**ANNEX I** 

**TO** 

**NOTICE OF BORROWING** 

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| | | | |
|:---|:---|:---|:---|
|  **BORROWING BASE (MARGIN LOANS)\*\*** | **BORROWING BASE (MARGIN LOANS)\*\*** | **BORROWING BASE (MARGIN LOANS)\*\*** | **BORROWING BASE (MARGIN LOANS)\*\*** |
| (1) | Market Value of Eligible Federal Government Securities | x 90% | $_____________ |
| (2) | Market Value of Eligible Bond Securities | x 90% | $_____________ |
| (3) | the Market Value of Eligible Equity Securities | x 80% | $_____________ |
| (4) | Sum of Lines (1), (2) and (3) |  | $_____________ |
| (5) | Outstanding Margin Loans |  | $_____________ |
| (6) | Availability (Line (5) minus Line (4)) |  | $_____________ |
|  **BORROWING BASE (NSCC MARGIN LOANS)**  | **BORROWING BASE (NSCC MARGIN LOANS)**  | **BORROWING BASE (NSCC MARGIN LOANS)**  | **BORROWING BASE (NSCC MARGIN LOANS)**  |
| (a) | Previous month 10th lowest Eligible NSCC Margin Deposits |  | $_____________ |
| (b) | Current Eligible NSCC Margin Deposits |  | $_____________ |
| (c) | Line (b) minus Line (a) |  | $_____________ |
| (d) | Line (c) multiplied by 80% (to the extent positive) |  | $_____________ |
| (e) | Outstanding NSCC Margin Loans |  | $_____________ |
| (f) | Availability (Line (e) minus Line (d)) |  | $_____________ |

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\*\* Eligible Securities shall exclude securities held in the Borrower's inventory for more than thirty (30) consecutive days and the calculation of Eligible Bond Securities and Eligible Equity Securities shall exclude the Market Value of any security that exceeds 15% of the Borrowing Base (Margin Loans) 

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| | | |
|:---|:---|:---|
| A | Line (4) plus Line (d) | $_____________ |
| B | Commitment | $75000000 |
| C | Lesser of Line (A) or Line (B) | $_____________ |
| D | Outstanding Loans | $_____________ |

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------

**ANNEX II** 

**TO** 

**NOTICE OF BORROWING** 

------

**EXHIBIT B** 

**REVOLVING NOTE** 

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| | |
|:---|:---|
| U .S. $| December 4, 2020 |

---

FOR VALUE RECEIVED, the undersigned, CLEAR STREET LLC, a Delaware limited liability company (the *"Borrower"),* hereby promises to pay to(the *"Lender")* or its registered assigns on the Termination Date of the hereinafter defined Credit Agreement, at the principal office of the Administrative Agent in Chicago Illinois (or such other location as the Administrative Agent may designate to the Borrower), in immediately available funds, the principal sum of Dollars ($) or, if less, the aggregate unpaid principal amount of all Loans made by the Lender to the Borrower pursuant to the Credit Agreement, together with interest on the principal amount of each Loan from time to time outstanding hereunder at the rates, and payable in the manner and on the dates, specified in the Credit Agreement.

This Note is one of the Notes referred to in the Credit Agreement dated as of December 4, 2020, among the Borrower, the Lenders and BMO Harris Bank N.A., as Administrative Agent (as extended, renewed, amended or restated from time to time, the *"Credit Agreement"),* and this Note and the holder hereof are entitled to all the benefits and security provided for thereby or referred to therein, to which Credit Agreement reference is hereby made for a statement thereof. All defined terms used in this Note, except terms otherwise defined herein, shall have the same meaning as in the Credit Agreement. This Note 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.

Voluntary prepayments may be made hereon, certain prepayments are required to be made hereon, and this Note may be declared due prior to the expressed maturity hereof, all in the events, on the terms and in the manner as provided for in the Credit Agreement.

The Borrower hereby waives demand, presentment, protest or notice of any kind hereunder.

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| | |
|:---|:---|
|  CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

------

**EXHIBIT C** 

**CLEAR STREET LLC** 

**COMPLIANCE CERTIFICATE** 

To: BMO Harris Bank N.A., as Administrative

Agent under, and the Lenders party to, the

Credit Agreement described below

This Compliance Certificate is furnished to the Administrative Agent and the Lenders pursuant to that certain Credit Agreement dated as of December 4, 2020, among Clear Street LLC, as Borrower, the Lenders party thereto from time to time, and BMO Harris Bank N.A., as Administrative Agent (as extended, renewed, amended or restated from time to time, the *"Credit Agreement").* Unless otherwise defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in the Credit Agreement.

THE UNDERSIGNED HEREBY CERTIFIES THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I am the duly elected of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I have reviewed the terms of the Credit Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of the Borrower and its Subsidiaries during the accounting period covered by the attached financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or the occurrence of any event which constitutes a Default during or at the end of the accounting period covered by the attached financial statements or as of the date of this Compliance Certificate, except as set forth below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The financial statements required by Section 6.5 of the Credit Agreement and being furnished to you concurrently with this Compliance Certificate are true, correct and complete as of the date and for the periods covered thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Schedule I hereto sets forth financial data and computations evidencing the Borrower's compliance with certain covenants of the Credit Agreement, all of which data and computations are, to the best of my knowledge, true, complete and correct and have been made in accordance with the relevant Sections of the Credit Agreement. In the event of a conflict between the attached spreadsheet and any certifications relating thereto and the Credit Agreement and related definitions used in calculating such covenants, the Credit Agreement and such related definitions shall govern and control.

Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

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The foregoing certifications, together with the computations set forth in Schedule I hereto and the financial statements delivered with this Certificate in support hereof, are made and delivered this _____ day of ____________________ 20__.

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| | |
|:---|:---|
|  CLEAR STREET LLC | CLEAR STREET LLC |
|  By: |  |
|  | Name: |
|  | Title: |

---

------

**SCHEDULE I** 

**TO COMPLIANCE CERTIFICATE** 

**CLEAR STREET LLC** 

**COMPLIANCE CALCULATIONS** 

**FOR CREDIT AGREEMENT DATED AS OF DECEMBER 4, 2020** 

Calculations as of _____________, _____

Minimum Tangible Net Worth (Section 7.12(a))

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| | | |
|:---|:---|:---|
| A. | <u>Minimum Tangible Net Worth (Section 7.12(a))</u> |  |
| 1. | Tangible Net Worth | $____________ |
| 2. | Line Al shall not be less than<sup>1</sup> | $____________ |
| 3. | The Borrower is in compliance (circle yes or no) | yes/no |
| B. | <u>Minimum Excess Net Capital (Section 7.12(b))</u> |  |
| 1. | Excess Net Capital | $____________ |
| 2. | Line B1 shall not be less than<sup>2</sup> | $____________ |
| 3. | The Borrower is in compliance (circle yes or no) | yes/no |
| C. | <u>Total Assets to Total Equity (Section 7.12(c))</u> |  |
| 1. | Total Assets | $____________ |
| 2. | Matched repurchased agreements | $____________ |
| 3. | Loans consisting of securities | $____________ |
| 4. | Line C1 minus Line C2 minus Line C3 | $____________ |
| 5. | Total equity | $____________ |
| 6. | Ratio of Line C4 to C5 | _____ to _____ |
| 7. | Line C6 shall not exceed | 13.0 to 1 |
| 8. | The Borrower's in Compliance | yes/no |

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<sup>1</sup> Tangible Net Worth shall not be less than (i) $75,000,000 from the Closing Date to but not including December 31, 2020, and (ii) $100,000,000 from January 1, 2021 and thereafter. 

<sup>2</sup> Excess Net Capital shall not be less than (i) $50,000,000 from the Closing Date to but not including December 31, 2020, and (ii) $75,000,000 from January 1, 2021 and thereafter. 

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**EXHIBIT D** 

**CERTIFICATE RE: ELIGIBLE NSCC MARGIN DEPOSITS** 

To: BMO Harris Bank N.A., as Administrative Agent under, and the Lenders party to, the Credit Agreement described below

This Certificate re: Eligible NSCC Margin Deposits is furnished to the Administrative Agent and the Lenders pursuant to that certain Credit Agreement dated as of December 4, 2020 among, Clear Street LLC, the Lenders party thereto from time to time, and BMO Harris Bank N.A., as Administrative Agent (as extended, renewed, amended or restated from time to time, the *"Credit Agreement").* The undersigned hereby certifies that the Eligible NSCC Margin Deposits in effect for each Business Day in the most recently ended calendar month were as described on the schedule attached hereto.

Unless otherwise defined herein, the terms used in this Certificate have the meanings ascribed thereto in the Credit Agreement.

In Witness Whereof, the undersigned has hereunto set my name as of the date set forth below.

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| |
|:---|
|  CLEAR STREET LLC |
|  By: |

---

---

| | |
|:---|:---|
|  Name: | |
|  Its: | |
|  Date: | , 20 |

---

------

**SCHEDULE** 

**ELIGIBLE NSCC MARGIN DEPOSITS** 

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| | |
|:---|:---|
| Date of Business Day | Eligible NSCC Margin Deposits |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  | $__________________ |
|  10th Lowest Eligible NSCC Margin Deposits during the calendar month | $__________________ |

---

------

**EXHIBIT E** 

**ASSIGNMENT AND ASSUMPTION** 

This Assignment and Assumption (the *"Assignment and Assumption")* is dated as of the Effective Date set forth below and is entered into by and between **[the][each]**<sup>3</sup> Assignor identified in item 1 below **([the][each, an]** *"Assignor")* and **[the][each]**<sup>4</sup> Assignee identified in item 2 below ([the][each, an] *"Assignee").* **[It is understood and agreed that the rights and obligations of [the Assignors][the Assignees]**<sup>5</sup> **hereunder are several and not joint.]**<sup>6</sup> Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, the *"Credit Agreement"),* receipt of a copy of which is hereby acknowledged by **[the][each]** Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, **[the][each]** Assignor hereby irrevocably sells and assigns to **[the Assignee][the respective Assignees],** and **[the][each]** Assignee hereby irrevocably purchases and assumes from **[the Assignor][the respective Assignors],** subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of **[the Assignor's][the respective Assignors']** rights and obligations in **[its capacity as a Lender][their respective capacities as Lenders]** under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of **[the Assignor] [the respective Assignors]** under the respective facilities identified below (including without limitation any guarantees included in such facilities), and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of **[the Assignor (in its capacity as a Lender)] [the respective Assignors (in their respective capacities as Lenders)]** against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by **[the][any]** Assignor to **[the][any]** Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as **[the][an]** *"Assigned Interest").* Each such sale and

<sup>3</sup> For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first bracketed language. If the assignment is from multiple Assignors, choose the second bracketed language.

<sup>4</sup> For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first bracketed language. If the assignment is to multiple Assignees, choose the second bracketed language.

<sup>5</sup> Select as appropriate.

<sup>6</sup> Include bracketed language if there are either multiple Assignors or multiple Assignees.

------

assignment is without recourse to **[the][any]** Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by **[the][any]** Assignor.

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| | | |
|:---|:---|:---|
| 1. | Assignor[s]: |  |
|  | **[Assignor [is] [is not] a Defaulting Lender]** | **[Assignor [is] [is not] a Defaulting Lender]** |
| 2. | Assignee[s]: |  |
|  | **[for each Assignee, indicate [Affiliate][Approved Fund] of *[identify Lender]*** | **[for each Assignee, indicate [Affiliate][Approved Fund] of *[identify Lender]*** |
| 3. | Borrower: | Clear Street LLC |
| 4. | Administrative Agent: BMO Harris Bank N.A., as the administrative agent under the Credit Agreement | Administrative Agent: BMO Harris Bank N.A., as the administrative agent under the Credit Agreement |
| 5. | Credit Agreement: Credit Agreement dated as of December 4, 2020 among Clear Street LLC, the Lenders parties thereto, BMO Harris Bank N.A., as Administrative Agent, and the other agents parties thereto | Credit Agreement: Credit Agreement dated as of December 4, 2020 among Clear Street LLC, the Lenders parties thereto, BMO Harris Bank N.A., as Administrative Agent, and the other agents parties thereto |
| 6. | Assigned Interest[s]: | Assigned Interest[s]: |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Assignor[s]<sup>7</sup> | Assignee[s]<sup>8</sup> | Facility<br>Assigned<sup>9</sup> | Aggregate<br>Amount of<br>Commitment/<br>Loans for all<br>Lenders<sup>10</sup> | Percentage<br>Assigned of<br>Commitment/<br>Loans |
|  |  |  | $| $nan% |
|  |  |  | $| $nan% |
|  |  |  | $| $nan% |

---

<sup>7</sup> List each Assignor, as appropriate.

<sup>8</sup> List each Assignee, as appropriate.

<sup>9</sup> Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being assigned under this Assignment

<sup>10</sup> Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date. 

<sup>11</sup> Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder. 

------

---

| | |
|:---|:---|
| **[7.** | **Trade Date: ]<sup>12</sup>** |

---

[Page Break]

<sup>12</sup> To be completed if the Assignor(s) and the Assignee(s) intend that the minimum assignment amount is to be determined as of the Trade Date. 

------

Effective Date: __________________, 20__ **[To be inserted by Administrative Agent and which shall be the effective date of recordation of transfer in the register therefor.]**

The terms set forth in this Assignment and Assumption are hereby agreed to:

---

| | |
|:---|:---|
|  ASSIGNOR[S]<sup>13</sup> | ASSIGNOR[S]<sup>13</sup> |
|  [NAME OF ASSIGNOR] | [NAME OF ASSIGNOR] |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
|  [NAME OF ASSIGNOR] | [NAME OF ASSIGNOR] |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
|  ASSIGNEE[S]<sup>14</sup> | ASSIGNEE[S]<sup>14</sup> |
|  [NAME OF ASSIGNEE] | [NAME OF ASSIGNEE] |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
|  [NAME OF ASSIGNEE] | [NAME OF ASSIGNEE] |
| By: |  |
|  | Name: |
|  | Title: |

---

<sup>13</sup> Add additional signature blocks as needed. Include both Fund/Pension Plan and manager making the trade (if applicable).

<sup>14</sup> Add additional signature blocks as needed. Include both Fund/Pension Plan and manager making the trade (if applicable).

------

**[Consented to and]**<sup>15</sup> Accepted:

---

| | |
|:---|:---|
|  BMO Harris Bank N.A., as<br> Administrative Agent | BMO Harris Bank N.A., as<br> Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |

---

**[Consented to:]<sup>16</sup>** 

---

| | |
|:---|:---|
|  CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

<sup>15</sup> To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.

<sup>16</sup> To be added only if the consent of the Borrower and/or other parties is required by the terms of the Credit Agreement.

------

**ANNEX 1** 

**STANDARD TERMS AND CONDITIONS FOR** 

**ASSIGNMENT AND ASSUMPTION** 

SECTION 1. REPRESENTATIONS AND WARRANTIES .

*Section 1.1. Assignors].* **[The][Each]** Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][the relevant] Assigned Interest, (ii) **[the][such]** Assigned Interest is free and clear of any lien, encumbrance or other adverse claim, (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and (iv) it is **[not]** a Defaulting Lender; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document, or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

*Section 1*.2. *Assignee[s].* **[The][Each]** Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee under Section 11,2(b)(iii), (v) and (vi) of the Credit Agreement (subject to such consents, if any, as may be required under Section 11,2(b)(iii) of the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of **[the][the relevant]** Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 6.5 thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase **[the][such]** Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption and to purchase **[the][such]** Assigned Interest, and (vii) attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by **[the][such]** Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, **[the][any]** Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

------

SECTION 2. PAYMENTS.

From and after the Effective Date, the Administrative Agent shall make all payments in respect of **[the][each]** Assigned Interest (including payments of principal, interest, fees and other amounts) to **[the][the relevant]** Assignee whether such amounts have accrued prior to, on or after the Effective Date. The Assignor[s] and the Assignee[s] shall make all appropriate adjustments in payments by the Administrative Agent for periods prior to the Effective Date or with respect to the making of this assignment directly between themselves. Notwithstanding the foregoing, the Administrative Agent shall make all payments of interest, fees or other amounts paid or payable in kind from and after the Effective Date to **[the][the relevant]** Assignee.

SECTION 3. GENERAL PROVISIONS.

This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

------

**SCHEDULE 2.1** 

**COMMITMENTS** 

---

| | |
|:---|:---|
|  NAME OF LENDER | COMMITMENT |
|  BMO Harris Bank N.A. | $30000000 |
|  Texas Capital Bank, National Association | $25000000 |
|  CIBC Bank USA | $20000000 |
|  Total | $75000000.00 |

---

------

**SCHEDULE 5.2** 

**SUBSIDIARIES** 

Clear Street Markets LLC

------

**FIRST AMENDMENT** 

**TO CREDIT AGREEMENT** 

This First Amendment to Credit Agreement (herein, the "*Amendment*") is entered into as of June 1, 2020 (the "*Effective Date*"), by and among Clear Street LLC, a Delaware limited liability company (the "*Borrower*"), Clear Street Capital LLC (f/k/a Clear Street Capital Holdings, LLC and referred to herein as the "*Parent*"), and BMO Harris Bank N.A., a national banking association (the "*Bank*").

**PRELIMINARY STATEMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Borrower and the Bank entered into a certain Credit Agreement, dated as of June 3, 2019 (the "*Credit Agreement*"). All capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Borrower and the Bank have agreed to amend the Credit Agreement on the terms and conditions set forth in this Amendment.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

SECTION 1. AMENDMENTS.

Subject to the satisfaction of the conditions precedent set forth in Section 2 below, the Credit Agreement shall be and hereby is amended to incorporate the changes reflected on Exhibit A hereto.

SECTION 2. CONDITIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. *Conditions Precedent.* This Amendment shall become effective on the Effective Date upon satisfaction of all of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower, the Parent and the Bank shall have executed and delivered this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall have executed and delivered a new Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Bank shall have received copies (executed or certified, as may be appropriate) of resolutions of the Managers or other governing body of the Parent and the Borrower authorizing the execution, delivery, and performance of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Bank shall have received copies of the certificates of good standing for the Borrower and the Parent (dated no earlier than 30 days prior to the date hereof) from the office of the secretary of the state of their organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Bank shall have received financing statement, tax, and judgment lien search results against the Property of the Borrower and the Parent evidencing the absence of Liens on its Property except as permitted by Section 8.8 of the Credit Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Bank shall have received such valuations and certifications as it may reasonably require in order to satisfy itself as to the value of the Collateral, the financial condition of the Borrower and the Parent, and the lack of material contingent liabilities of the Parent and the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Bank shall have received all filings and recordations that are necessary to perfect the security interest of the Bank in the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Bank shall have received evidence satisfactory to it that the Borrower has directed NSCC to return NSCC Margin Deposits to the Borrower by deposit into the Settlement Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Legal matters incident to the execution and delivery of this Amendment shall be satisfactory to the Bank and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Bank shall have received a non-refundable upfront fee equal to 0.20% of the Commitment in effect on the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. *Conditions Subsequent.* No later than seven (7) Business Days after the Effective Date, the Borrower shall deliver a favorable written opinion of counsel for the Borrower in form and substance reasonably satisfactory to the Bank and its counsel.

SECTION 3. REPRESENTATIONS.

In order to induce the Bank to enter into this Amendment, the Borrower and the Parent signing below (collectively, the "*Loan Parties*") hereby represent and warrant to the Bank that as of the date hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. *Authorization, Etc.* The Loan Parties have the power and authority to execute, deliver and perform this Amendment and the other Loan Documents (if any) called for hereby. The Loan Parties have taken all necessary action (including, without limitation, obtaining approval of its equity holders, if necessary) to authorize its execution, delivery and performance of this Amendment and the other Loan Documents (if any) called for hereby. No consent, approval or authorization of, or declaration or filing with, any Governmental Authority, and no consent of any other Person, is required in connection with such Loan Party's execution, delivery and performance of this Amendment or such other Loan Documents, except for those already duly obtained. This Amendment and the other Loan Documents (if any) called for hereby have been duly executed and delivered by the Loan Parties and constitute the legal, valid and binding obligation of the Loan Parties, enforceable against them in accordance with their terms, except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditor rights generally or by equitable principles relating to enforceability. The execution, delivery and performance of this Amendment and the other Loan Documents (if any) called for hereby by the relevant Loan Parties does not (i) contravenes the terms of any Loan Party's Organizational Documents; (ii) conflict with or constitute a violation or breach of, or constitutes a default under, or results in the creation or imposition of any Lien (other than pursuant to the Credit Agreement) upon the Property of any Loan Party by reason of the terms of any material contractual obligation (including without limitation contractual obligations arising from any material agreements to which any Loan Party is a party or which is binding upon it); or (iii) violates any requirement of law in any material respect.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. *No Change to Organizational Documents.* Each Loan Party hereby certifies that: (w) except as specifically set forth herein, the copies of such Loan Party's Organizational Documents previously delivered to the Bank under the Loan Documents continue to be true, correct and complete, have not been amended or otherwise modified since the date of such delivery, and are in full force and effect on the date hereof; (x) attached hereto as Exhibit B is a true and correct copy of the Third Amended and Restated Limited Liability Company of the Borrower as of the date hereof; (y) except for the name change amendment attached hereto as Exhibit C, the Certificate of Formation of the Parent previously delivered to the Bank has not been amended or otherwise modified since the date of such delivery, and is in full force and effect on the date hereof; and (z) each Person previously identified by such Loan Party to sign any Loan Document on behalf of such Loan Party continues to be so authorized on the date hereof and is authorized to sign this Amendment. The Bank may conclusively rely on this certification until it is otherwise notified by the applicable Loan Party in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. *Representations and Warranties.* After giving effect to this Amendment, the representations and warranties set forth in Section 6 of the Credit Agreement and in the other Loan Documents are and shall be and remain true and correct in all material respects (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. *No Default.* No Default or Event of Default exists under the Credit Agreement or shall result after giving effect to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. *No Material Adverse Change.* Since December 31, 2019, there has been no change in the condition (financial or otherwise) or business of the Borrower or of the Borrower and its Subsidiaries taken as a whole except those occurring in the ordinary course of business, none of which individually or in the aggregate could be expected to have a Material Adverse Effect.

SECTION 4. REAFFIRMATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. *Collateral*. The Borrower hereby acknowledges and agrees that the Liens created and provided for by the Loan Documents continue to secure, among other things, the Obligations arising under the Credit Agreement as amended hereby; and the Loan Documents and the rights and remedies of the Bank thereunder, the obligations of the Loan Parties thereunder, and the Liens created and provided for thereunder remain in full force and effect and shall not be affected, impaired or discharged hereby. Nothing herein contained shall in any manner affect or impair the priority of the Liens created and provided for by the Loan Documents as to the indebtedness which would be secured thereby prior to giving effect to this Amendment.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. *Guaranties*. The Parent hereby acknowledges that it has reviewed the terms and provisions of this Amendment and consents to any modification of the Credit Agreement and the other Loan Documents effected pursuant to this Amendment. The Parent hereby confirms to the Bank that, after giving effect to this Amendment, the Guaranty and each other Loan Document to which the Parent is a party continues in full force and effect and is the legal, valid and binding obligation of the Parent, enforceable against the Parent in accordance with their terms except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability. The Parent acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Amendment, the Parent is not required by the terms of the Credit Agreement or any other Loan Document to consent to the waivers or modifications to the Credit Agreement effected pursuant to this Amendment and (ii) nothing in the Credit Agreement, this Amendment or any other Loan Document shall be deemed to require the consent of the Parent to any future waivers or modifications to the Credit Agreement.

SECTION 5. MISCELLANEOUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. Except as specifically amended herein, the Credit Agreement shall continue in full force and effect in accordance with its original terms. Reference to this specific Amendment need not be made in the Credit Agreement, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Credit Agreement, any reference in any of such items to the Credit Agreement being sufficient to refer to the Credit Agreement as amended hereby. This Amendment is not a novation nor is it to be construed as a release, waiver or modification of any of the terms, conditions, representations, warranties, covenants, rights or remedies set forth in the Credit Agreement or the other Loan Documents, except as specifically set forth herein. Without limiting the foregoing, the Borrower and the other Loan Parties agree to comply with all of the terms, conditions, and provisions of the Credit Agreement and the other Loan Documents except to the extent such compliance is irreconcilably inconsistent with the express provisions of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. The Borrower agrees to pay on demand all reasonable and documented out-of-pocket costs and expenses of or incurred by the Bank in connection with the negotiation, preparation, execution and delivery of this Amendment and the other instruments and documents being executed and delivered in connection herewith and the transactions contemplated hereby, including the reasonable fees, charges and disbursements of counsel for the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. This Amendment may be executed in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall constitute one and the same agreement. Any of the parties hereto may execute this Amendment by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be an original. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic (e.g., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of Amendment. This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of New York (including Section 5-1401 and Section 5-1402 of the General Obligations law of the State of New York) without regard to principles of conflicts of laws.

[Remainder Left Intentionally Blank]

------

This First Amendment to Credit Agreement is entered into as of the date and year first above written.

---

| | |
|:---|:---|
| "*BORROWER*" | "*BORROWER*" |
| CLEAR STREET LLC | CLEAR STREET LLC |
| By: | /s/ Chris Pento |
|  | Name: Chris Pento |
|  | Title: CFO |

---

---

| | |
|:---|:---|
| "*PARENT*" | "*PARENT*" |
| CLEAR STREET CAPITAL LLC (f/k/a Clear Street Capital Holdings, LLC) | CLEAR STREET CAPITAL LLC (f/k/a Clear Street Capital Holdings, LLC) |
| By: | /s/ Elliot Gulkowitz |
|  | Name: Elliot Gulkowitz |
|  | Title: Manager |

---

---

| | |
|:---|:---|
| "*BANK*" | "*BANK*" |
| BMO HARRIS BANK N.A. | BMO HARRIS BANK N.A. |
| By: | /s/ Krupa Tantuwaya |
|  | Name: Krupa Tantuwaya |
|  | Title: Director |

---

------

EXHIBIT A

CREDIT AGREEMENT

------

CREDIT AGREEMENT

DATED AS OF

JUNE 3, 2019<sup>1</sup>

BETWEEN

CLEAR STREET LLC

AND

4293320

BMO HARRIS BANK N.A.

<sup>1</sup> A redline of this version is to be attached as Exhibit A to the First Amendment to Credit Agreement dated as of June 1, 2020, between the Borrower and the Bank to reflect the amendments to the Credit Agreement.

------

**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
| SECTION | DESCRIPTION | PAGE |
| Section 1. The Credis | Section 1. The Credis | 1 |
| Section 1.1. | Revolving Credit | 1 |
| Section 1.2. | Revolving Credit Loans | 2 |
| Section 1.3. | Manner and Disbursement of Loans | 2 |
| Section 2. Interest and Change In Circumstances | Section 2. Interest and Change In Circumstances | 2 |
| Section 2.1. | Interest Rate | 2 |
| Section 2.2. | Computation of Interest | 3 |
| Section 2.3. | Change in Capital Adequacy Requirements | 3 |
| Section 2.4. | Lending Branch | 3 |
| Section 3. Fees, Prepayments, Terminations, and Applications | Section 3. Fees, Prepayments, Terminations, and Applications | 3 |
| Section 3.1. | Fees | 3 |
| Section 3.2. | Voluntary Prepayments | 3 |
| Section 3.3. | Mandatory Prepayments | 3 |
| Section 3.4. | Terminations | 4 |
| Section 3.5. | Place and Application of Payments | 4 |
| Section 3.6. | Notations | 5 |
| Section 4. Collateral and Guaranty | Section 4. Collateral and Guaranty | 5 |
| Section 4.1. | Collateral | 5 |
| Section 4.2. | Delivery of Collateral; Inspection | 5 |
| Section 4.3. | Payments and Other Proceeds | 6 |
| Section 4.4. | Voting Rights and Income | 6 |
| Section 4.5. | Release of Collateral | 6 |
| Section 4.6. | Further Acts | 6 |
| Section 4.7. | Remedies on Default | 7 |
| Section 4.8. | Rights of Bank With Respect to Calculations | 7 |
| Section 4.9. | Waiver of Bank's Rights Against Collateral | 8 |
| Section 4.10. | Agreement Regarding Customers Securities and Firm Securities | 8 |
| Section 4.11. | Guaranties | 9 |
| Section 4.12. | Settlement Account | 9 |
| Section 5. Definitions; Interpretation | Section 5. Definitions; Interpretation | 9 |
| Section 5.1. | Definitions | 9 |
| Section 5.2. | Interpretation | 21 |

---

i

------

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| | | |
|:---|:---|:---|
| Section 6. Representations and Warranties | Section 6. Representations and Warranties | 21 |
| Section 6.1. | Organization and Qualification | 21 |
| Section 6.2. | Subsidiaries | 22 |
| Section 6.3. | Authority and Validity of Obligations | 22 |
| Section 6.4. | Use of Proceeds | 22 |
| Section 6.5. | Financial Reports | 23 |
| Section 6.6. | No Material Adverse Change | 23 |
| Section 6.7. | Full Disclosure | 23 |
| Section 6.8. | Trademarks, Franchises, and Licenses | 23 |
| Section 6.9. | Governmental Authority and Licensing | 23 |
| Section 6.10. | Good Title | 24 |
| Section 6.11. | Litigation and Other Controversies | 24 |
| Section 6.12. | Taxes | 24 |
| Section 6.13. | Approvals | 24 |
| Section 6.14. | Affiliate Transactions | 24 |
| Section 6.15. | Investment Company | 24 |
| Section 6.16. | ERISA | 24 |
| Section 6.17. | Compliance with Laws; Sanctions; Anti-Money Laundering and Anti-Corruption Laws | 25 |
| Section 6.18. | Other Agreements | 25 |
| Section 6.19. | Solvency | 25 |
| Section 6.20. | No Default; No Termination Event | 25 |
| Section 6.21. | Registration; Beneficial Ownership | 25 |
| Section 6.22. | SIPC Assessments | 26 |
| Section 6.23. | Designated Examining Authority | 26 |
| Section 6.24. | Perfection of Security Interest | 26 |
| Section 6.25. | Ownership, No Liens, etc | 26 |
| Section 6.26. | Valid Security Interest | 26 |
| Section 6.27. | Broker Fees | 26 |
| Section 7. Conditions Precedent | Section 7. Conditions Precedent | 27 |
| Section 7.1. | All Advances | 27 |
| Section 7.2. | Initial Advance | 27 |
| Section 8. Covenants | Section 8. Covenants | 29 |
| Section 8.1. | Maintenance of Business | 29 |
| Section 8.2. | Maintenance of Properties | 29 |
| Section 8.3. | Taxes and Assessments | 29 |
| Section 8.4. | Insurance | 29 |
| Section 8.5. | Financial Reports | 30 |
| Section 8.6. | Inspection | 31 |
| Section 8.7. | Borrowings and Guaranties | 32 |
| Section 8.8. | Liens | 33 |
| Section 8.9. | Investments, Acquisitions, Loans and Advances | 33 |
| Section 8.10. | Mergers, Consolidations and Sales | 34 |
| Section 8.11. | Dividends and Certain Other Restricted Payments | 34 |

---

ii

------

---

| | | |
|:---|:---|:---|
| Section 8.12. | ERISA | 35 |
| Section 8.13. | Compliance with Laws; Compliance with Anti-Corruption Loans, Anti-Money Laws and Sanctions | 35 |
| Section 8.14. | Burdensome Contracts With Affiliates | 35 |
| Section 8.15. | No Changes in Fiscal Year | 35 |
| Section 8.16. | Formation of Subsidiaries | 35 |
| Section 8.17. | Change in the Nature of Business | 36 |
| Section 8.18. | Use of Proceeds | 36 |
| Section 8.19. | No Restrictions | 36 |
| Section 8.20. | Financial Covenants | 36 |
| Section 8.21. | Maintenance of Accounts | 36 |
| Section 8.22. | Maintenance of Subsidiaries | 36 |
| Section 8.23. | Settlement Account | 37 |
| Section 9. Events of Default and Remedies | Section 9. Events of Default and Remedies | 37 |
| Section 9.1. | Events of Default | 37 |
| Section 9.2. | Non-Bankruptcy Defaults | 39 |
| Section 9.3. | Bankruptcy Defaults | 39 |
| Section 10. Miscellaneous | Section 10. Miscellaneous | 39 |
| Section 10.1. | Non-Business Days | 39 |
| Section 10.2. | No Waiver, Cumulative Remedies | 40 |
| Section 10.3. | Amendments, Etc | 40 |
| Section 10.4. | Costs and Expenses; Indemnification | 40 |
| Section 10.5. | Documentary Taxes | 41 |
| Section 10.6. | Survival of Representations | 41 |
| Section 10.7. | Survival of Indemnities | 41 |
| Section 10.8. | Notices | 41 |
| Section 10.9. | Construction | 42 |
| Section 10.10. | Headings | 42 |
| Section 10.11. | Severability of Provisions | 42 |
| Section 10.12. | Counterparts | 42 |
| Section 10.13. | Binding Nature, Governing Law, Etc | 42 |
| Section 10.14. | Submission to Jurisdiction; Waiver of Jury Trial | 43 |
| Section 10.15. | USA Patriot Act | 43 |
| Section 10.16. | Confidentiality | 43 |

---

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| | | |
|:---|:---|:---|
|  EXHIBIT A |  | Revolving Note |
|  EXHIBIT B |  | Compliance Certificate |
|  EXHIBIT C |  | Notice of Borrowing |
|  <u>EXHIBIT D</u>  | <u>—</u> | <u>Certificate Re: Eligible NSCC Margin Deposits</u> |
|  SCHEDULE 6.2 |  | Subsidiaries |

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**CREDIT AGREEMENT** 

This Credit Agreement is entered into as of June 3, 2019 by and between Clear Street LLC, a Delaware limited liability company (the "*Borrower*") and BMO Harris Bank N.A., a national banking association (the "*Bank*"). All capitalized terms used herein without definition shall have the same meanings herein as such terms are defined in Section 5.1 hereof.

**PRELIMINARY STATEMENT** 

The Borrower has requested, and the Bank has agreed to extend, certain credit facilities on the terms and conditions of this Agreement.

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

SECTION 1. THE CREDIS.

Section 1.1. *Revolving Credit.* Subject to the terms and conditions hereof, the Bank agrees to extend a revolving credit (the "*Revolving Credit*") to the Borrower which may be availed of by the Borrower from time to time during the period from and including the date hereof to but not including the Termination Date, at which time the commitment of the Bank to extend credit under the Revolving Credit shall expire. The Revolving Credit may be utilized by the Borrower in the form of Loans, all as more fully hereinafter set forth, *provided* that<u>:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate principal amount of Loans outstanding at any one time shall not exceed <u>$25,000,000</u> (the "*Commitment*", as such amount may be reduced pursuant to the terms hereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the aggregate principal amount of the Broker Loans outstanding at any one time shall not exceed the Broker Borrowing Base as then determined and computed by the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate principal amount of Customer Loans at any time outstanding shall not exceed the Customer Loan Limit<u>,</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the aggregate principal amount of Firms Loans at any time outstanding shall not exceed the Firm Loan Limit<u>,</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the aggregate principal amount of NSCC Margin Loans outstanding at any one time shall not exceed the lesser of (x) the NSCC Sublimit and (y) the NSCC Margin Loans Borrowing Base as then determined and computed, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Bank shall not be obligated to make an NSCC Margin Loan during any calendar month if such NSCC Margin Loan would cause the number of Zero Loan Days during such calendar month to be less than eight (8).

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During the period from and including the date hereof to but not including the Termination Date, the Borrower may use the Commitment by borrowing, repaying, and reborrowing Loans in whole or in part, all in accordance with the terms and conditions of this Agreement.

Section 1.2. *Revolving Credit Loans.* Subject to the terms and conditions hereof, the Revolving Credit may be availed of by the Borrower in the form of loans (individually a "*Loan*" and collectively the "*Loans*"). Each Loan shall be in a minimum amount of $100,000. The Loans shall be made against and evidenced by a single promissory note of the Borrower in the form (with appropriate insertions) attached hereto as Exhibit A (the "*Note*"). The Note shall be dated the date of issuance thereof and be expressed to bear interest as set forth in Section 2 hereof. The Note, and all Loans evidenced thereby, shall mature and become due and payable in full on the Termination Date. Without regard to the principal amount of the Note stated on its face, the actual principal amount at any time outstanding and owing by the Borrower on account of the Note shall be the sum of all Loans made hereunder less all payments of principal actually received by the Bank.

Section 1.3. *Manner and Disbursement of Loans.* The Borrower shall give the Bank an executed Notice of Borrowing (which notice shall be irrevocable once given) by no later than 3:00 p.m. (Chicago time) on the date the Borrower requests the Bank to make a Loan hereunder. Each such notice shall specify the date of the Loan requested (which must be a Business Day), the amount of such Loan, whether such Loan is a Customer Loan, Firm Loan <u>or a NSCC Margin Loan</u>, and<u>, with respect to a Broker Loan,</u> shall describe all <u>Broker</u> Collateral being transferred into the Account with such detail as the Bank may require, including which such securities delivered (including any securities that are listed on a schedule to be delivered) pursuant hereto are Customer Securities or Firm Securities. The Borrower shall be deemed to warrant to the Bank with each such delivery of securities that it has full legal power and authority to grant to the Bank a first security interest in the <u>Broker</u> Collateral consisting of Customer Securities. All Customer Loans shall be secured by Customer Securities and no Customer Securities will be substituted hereunder for Firm Securities. No Customer Securities shall be pledged hereunder to secure <u>Obligations other than Customer</u> Obligations. Each Loan shall bear interest in accordance with Section 2 below. The Borrower agrees that the Bank may rely upon any written notice given by any person the Bank in good faith believes is an Authorized Representative without the necessity of independent investigation. Subject to the provisions of Section 7 hereof, the proceeds of each Loan shall be made available to the Borrower at the principal office of the Bank in Chicago, Illinois, in immediately available funds by deposit to the Borrower's primary operating account maintained with the Bank or as otherwise agreed upon by the Borrower and the Bank.

SECTION 2. INTEREST AND CHANGE IN CIRCUMSTANCES.

Section 2.1. *Interest Rate.* The outstanding principal balance of the Loans shall bear interest at the rate per annum equal to the Federal Funds Rate as in effect from time to time plus <u>the Applicable Margin</u>, *provided* that if the Loans or any part thereof is not paid when due (whether by lapse of time, acceleration, or otherwise), or at the election of the Bank during the existence of any other Event of Default, the outstanding principal balance of the Loans shall bear interest, whether before or after judgment until payment in full thereof, at the rate per annum determined by adding 2.0% to the interest rate which would otherwise be applicable thereto from

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time to time. Interest on the outstanding principal balance of the Loans shall be payable monthly in arrears on the last day of each month in each year (commencing on the first such date occurring after the date hereof) and at maturity of the Note, and interest after maturity (whether by lapse of time, acceleration, or otherwise) shall be due and payable upon demand. Any change in the interest rate resulting from a change in the Federal Funds Rate shall be effective on the date of the relevant change in the Federal Funds Rate.

Section 2.2. *Computation of Interest.* All interest on the Note shall be computed on the basis of a year of 360 days for the actual number of days elapsed.

Section 2.3. *Change in Capital Adequacy Requirements.* If the Bank shall determine that any Change in Law has or would have the effect of reducing the rate of return on the Bank's capital as a consequence of its obligations hereunder or for the credit which is the subject matter hereof to a level below that which the Bank could have achieved but for such Change in Law (taking into consideration the Bank's policies with respect to liquidity and capital adequacy) by an amount deemed by the Bank to be material, then from time to time, within 15 days after demand by the Bank, the Borrower shall pay to the Bank such additional amount or amounts reasonably determined by the Bank as will compensate the Bank for such reduction; *provided* that the Borrower shall not be required to compensate the Bank pursuant to this Section for any reductions suffered more then six months prior to the date the Bank notifies the Borrower of such Change in Law (except if such Change in Law gives rise to such reduction is retroactive, then the six-months referred to above shall be extended to include the period of retroactive thereof).

Section 2.4. *Lending Branch.* The Bank may, at its option, elect to make, fund or maintain any portion of the Loans hereunder at such of its branches or offices as the Bank may from time to time elect.

SECTION 3. FEES, PREPAYMENTS, TERMINATIONS, AND APPLICATIONS.

Section 3.1. *Fees.* For the period from and including the date hereof to but not including the Termination Date, the Borrower shall pay to the Bank a commitment fee at the rate of one-half of one percent (0.50%) per annum (computed on the basis of a year of 360 days for the actual number of days elapsed) on the average daily unused portion of the Commitment. Such commitment fee shall be payable quarterly in arrears on the last day of each March, June, September and December in each year (commencing on the first such date occurring after the date hereof) and on the Termination Date.

Section 3.2. *Voluntary Prepayments.* The Borrower shall have the privilege of prepaying the Loans in whole or in part (but, if in part, then in an amount not less than $100,000), at any time upon prior notice to the Bank (such notice if received subsequent to 3:00 p.m. (Chicago time) on a given day to be treated as though received at the opening of business on the next Business Day) by paying to the Bank the principal amount to be prepaid and if such a prepayment prepays the Note in full and is accompanied by the termination of the Commitment in whole, accrued interest thereon to the date of prepayment.

Section 3.3. *Mandatory Prepayments.* (a) The Borrower covenants and agrees that if at any time the sum of the principal amount of the <u>Broker</u> Loans then outstanding shall be in excess of the <u>Collateral</u> Borrowing Base as then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Bank as and for a mandatory prepayment on such Obligations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower covenants and agrees that if at any time the sum of the principal amount of the NSCC Margin Loans then outstanding shall be in excess of the NSCC Margin Borrowing Base as then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Bank as and for a mandatory prepayment on such Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any time the sum of the unpaid principal balance of the Customer Loans then outstanding shall be in excess of the Customer Loan Limit then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Bank as and for a mandatory prepayment on such Customer Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If at any time the sum of the unpaid principal balance of the Firm Loans then outstanding shall be in excess of the Firm Loan Limit then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Bank as and for a mandatory prepayment on such Firm Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Borrower shall, without notice or demand, prepay any NSCC Margin Loan in full on the earlier to occur of (a) the date upon which the NSCC Margin Deposits funded from the proceeds of such NSCC Margin Loan are returned to the Borrower, and (b) the date which is five (5) days after the date of such NSCC Margin Loan was advanced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Without limiting the Borrower's obligation to repay the NSCC Margin Loans pursuant to any other provision of this Section 3.3, on any Business Day in a calendar month (other than the last Business Day in a calendar month), if (A) the sum of (x) the number of Business Days remaining in such calendar month (not including such Business Day) plus (y) the number of Zero Loan Days occurring in such calendar month on or prior to such Business Day is less than (B) eight (8), then the Borrower shall not later than 3:00 p.m. on such Business Day, without notice or demand, prepay over the full amount of all outstanding NSCC Margin Loans as and for a mandatory prepayment on the Obligations.

Section 3.4. *Terminations.* The Borrower shall have the right, at any time and from time to time, upon five (5) Business Days prior notice to the Bank, to terminate the Commitment without premium or penalty and in whole or in part (but if in part, then in an amount not less than $1,000,000), *provided* that the Commitment may not be reduced to an amount less than the aggregate principal amount of the Loans then outstanding. Any termination of the Commitment pursuant to this Section may not be reinstated.

Section 3.5. *Place and Application of Payments.* All payments of principal, interest, fees, and all other Obligations payable under the Loan Documents shall be made to the Bank at its office at 111 West Monroe Street, Chicago, Illinois (or at such other place as the Bank may specify) no later than 3:00 p.m. (Chicago time) on the date any such payment is due and payable. Payments received by the Bank after 3:00 p.m. (Chicago time) shall be deemed received as of the opening of business on the next Business Day. All such payments shall be made in lawful money

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of the United States of America, in immediately available funds at the place of payment, without set-off or counterclaim and without reduction for, and free from, any and all present or future taxes, levies, imposts, duties, fees, charges, deductions, withholdings, restrictions, and conditions of any nature imposed by any government or any political subdivision or taxing authority thereof (but excluding any taxes imposed on or measured by the net income of the Bank). The Borrower hereby irrevocably authorizes the Bank to (a) charge from time to time any of the Borrower's deposit accounts with the Bank (other than the Excluded Accounts) and/or (b) make Loans from time to time hereunder (and any such Loan may be made by the Bank hereunder without regard to the provisions of Section 7 hereof), in each case for payment of any Obligation then due and payable (whether such Obligation is for interest then due on a Loan, or otherwise); *provided that* the Bank shall not be under any obligation to charge any such deposit account or make any such Loan under this Section, and the Bank shall incur no liability to the Borrower or any other Person for its failure to do so.

Section 3.6. *Notations.* All Loans made against the Note shall be recorded by the Bank on its books and records or, at its option in any instance, endorsed on a schedule to the Note and the unpaid principal balance so recorded or endorsed by the Bank shall be prima facie evidence in any court or other proceeding brought to enforce the Note of the principal amount remaining unpaid thereon.

SECTION 4. COLLATERAL AND GUARANTY.

Section 4.1. *Collateral.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Broker Collateral</u>.* To secure the payment and performance of the <u>Broker</u> Obligations, the Borrower hereby grants to the Bank a continuing lien on and security interest in, and right of set-off against, all right, title, and interest of the Borrower, whether now owned or existing or hereafter created, acquired or arising, in and to all of the <u>Broker</u> Collateral. All of the <u>Broker</u> Collateral shall be credited to one or more of the Accounts and shall be held by the Bank. No later than the close of business in Chicago, Illinois on the date of each request for a <u>Broker</u> Loan hereunder, the Borrower shall transfer into one or more of the Accounts <u>Broker</u> Collateral having a Market Value such that after giving effect to the requested <u>Broker</u> Loan the aggregate principal amount of all <u>Broker</u> Loans shall not exceed the <u>Broker</u> Borrowing Base as then determined and computed by the Bank. All of the <u>Broker</u> Collateral shall be at all times subject to the exclusive dominion and control of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *NSCC Margin Collateral.* To secure the payment and performance of the NSCC Margin Obligations, the Borrower hereby grants to the Bank a continuing lien on and security interest in, and right of set-off against, all right, title, and interest of the Borrower, whether now owned or existing or hereafter created, acquired or arising, in and to all of the NSCC Margin Collateral.

Section 4.2. *Delivery of Collateral; Inspection.* The Bank shall have the right, whether before or after the occurrence of any Default or Event of Default hereunder, to notify any third party holding any of the Collateral of the pledge thereof hereunder and require delivery thereof to the Bank and may take such steps with respect to any Collateral to insure that the Lien of the Bank is fully perfected and protected in compliance with the Uniform Commercial Code

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and applicable Federal rules and regulations. The Borrower shall permit the Bank or its representatives to inspect and make copies of the books and records relating to the Collateral of the Borrower and of the DTC or any other party holding the Collateral and to conduct an audit or inventory of the Collateral at any reasonable time or times either with or without prior notice.

Section 4.3. *Payments and Other Proceeds.* All cash proceeds of the Collateral shall be promptly remitted to the Bank to be held as additional Collateral in one of the Accounts or another deposit account under control of the Bank and shall be subject to release in accordance with Section 4.5.

Section 4.4. *Voting Rights and Income.* Unless and until an Event of Default has occurred and is continuing and thereafter until notified to the contrary by the Bank pursuant to Section 4.7 hereof, (a) the Borrower shall be entitled to exercise all voting and/or consensual powers pertaining to the Collateral or any part thereof, for all purposes not inconsistent with the terms of this Agreement or any other document evidencing or otherwise relating to any Obligations; and (b) the Borrower shall be entitled to receive and retain all cash interest and other distributions paid upon or in respect of the Collateral.

Section 4.5. *Release of Collateral.* (a) If the Borrower shall at any time desire the release of any item of <u>Broker</u> Collateral (including any <u>Broker</u> Collateral consisting of cash), the Borrower shall deliver to the Bank a written request for such release and on the day the Bank receives such request (if such request is received prior to 3:00 p.m. (Chicago time) on such day), the Bank may cause such item of <u>Broker</u> Collateral to be released from the relevant Account to an account of the Borrower maintained with DTC or another securities intermediary, *provided* that (i) no Default or Event of Default shall exist both before and immediately after giving effect to such release, and (ii) the aggregate principal amount of all <u>Broker</u><u> </u>Loans outstanding as of 5:00 p.m. (Chicago time) shall not exceed the lesser of the Commitment and the <u>Broker</u> Borrowing Base as determined and computed by the Bank at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything contained herein to the contrary, in the event that the Bank releases the <u>Broker</u> Collateral in accordance with clause (a) above (the "*Released Collateral*") but the aggregate principal amount of all <u>Broker</u> Loans exceed the <u>Broker</u> Borrowing Base at the time of such release, the Borrower hereby acknowledges and agrees that (i) the Bank continues to have a security interest in such Released Collateral and every portion or part thereof and in all proceeds thereof, (ii) the Borrower shall hold such Released Collateral and the proceeds thereof in trust for the Bank separate from all other Property of the Borrower and free and clear of all Liens and claims other than the Bank's security interest herein, and (iii) the Borrower shall promptly (but no later than the next Business Day) and without notice or demand return such Released Collateral or the proceeds thereof to the Bank as a mandatory prepayment of the <u>Broker</u> Loans in the event that the Borrower has failed to comply with clause (a)(ii) above.

Section 4.6. Further Acts. The Borrower will faithfully preserve and protect the Bank's security interest in the Collateral and the proceeds thereof and will do all such acts and things and execute and deliver all such documents and instruments, including without limitation further pledges, assignments, financing statements and continuation statements, as the Bank in its reasonable discretion may deem necessary or advisable from time to time in order to preserve, protect and perfect such security interest. The Borrower assumes full responsibility for taking

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any and all necessary steps to preserve rights with respect to the Collateral against prior parties. The Bank shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral held by the Bank pursuant hereto if the Bank takes such action for that purpose as the Borrower shall request in writing, *provided* that such requested action will not, in the reasonable judgment of the Bank, impair the Bank's first priority Lien in the Collateral or the proceeds thereof or its rights in, or the value of, the Collateral or such proceeds, and provided further that such written request is received by the Bank in sufficient time to permit the Bank to take the requested action.

Section 4.7. *Remedies on Default.* Upon the occurrence and during the continuation of any Event of Default hereunder, the Bank shall have such rights and remedies with respect to the Collateral or any part thereof and the proceeds thereof as are provided by the Uniform Commercial Code and such other rights and remedies with respect thereto which it may have at law or in equity or under this Agreement, including without limitation, to the extent not inconsistent with the provisions of the Uniform Commercial Code or other applicable law, the right to (a) transfer into the Bank's name or into the name of its nominee or nominees or into an account at DTC in the name of, and for the benefit of, the Bank all or any portion of the Collateral and thereafter receive, for the benefit of the Bank, all cash payments made thereon, vote the same, give all consents, waivers and ratifications in respect thereof and otherwise act with respect thereto as though it was the outright owner thereof, and (b) sell all or any portion of the Collateral at any broker's board or at public or private sale, without prior notice to the Borrower or any other person, except as otherwise required by law (and if notice is required by law, after 5 days' prior written notice), at such place or places and at such time or times and in such manner and for such consideration as the Bank may determine, and remit all amounts realized from the Collateral to the Bank for application to the repayment of the Obligations, whether on account of principal, interest, fees, charges, advances or expenses (to the extent the Borrower is obligated to reimburse the Bank for such expenses hereunder or under the other Loan Documents) or otherwise as the Bank in its sole discretion may elect, and then to pay the balance, if any, to the Borrower or as otherwise required by law; and if such proceeds are insufficient to pay the Obligations in full, the Borrower shall be liable for the deficiency.

Section 4.8. *Rights of Bank With Respect to Calculations.* (a) *Schedules, Notices, Reports, etc.* The Bank shall calculate the <u>applicable</u> Borrowing Base on each Business Day (or with respect to the Collateral consisting of Corporate Bonds, each week), and in connection with such calculations, the Bank shall (i) obtain all necessary pricing and other market data from the Reporting Service in the determination of the <u>Broker</u><u> </u>Borrowing Base, (ii) be entitled to rely on the information provided by the Borrower in any notice of a pledge of securities with respect to ratings of, and any restrictions on resale of, the securities described therein, (iii) not give effect to any increase in either Borrowing Base as a result of the transfer by the Borrower of additional Collateral unless it has received and verified the pricing information applicable to such additional Collateral, (iv) not give effect to any decrease in the <u>Broker</u> Borrowing Base as a result of a request by the Borrower for release of <u>the Broker</u> Collateral unless it has verified the satisfaction of the conditions set forth in Section 4.5 and (v) be entitled to rely on the information provided by the Bank or the Borrower pursuant to the other provisions hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Limitation on Liability*. In no event shall the Bank be liable to the Borrower or any other Person for the accuracy of the value of any item of Collateral, for any determinations regarding the eligibility of any securities for inclusion in the Collateral or for determinations regarding the amount of any Obligation, except in the case of its gross negligence or willful misconduct. In furtherance of the foregoing, the parties hereto acknowledge and agree that the obligations of the Bank hereunder, including without limitation, to make determinations of the Borrowing Base and to provide reports and notices hereunder, are based upon information provided to the Bank as set forth herein. In no event shall the Bank have any duty or obligation to independently verify the information so provided to it (or the accuracy or completeness thereof).

Section 4.9. *Waiver of Bank's Rights Against Collateral.* The Bank hereby acknowledges and agrees that any right it may now have or hereafter acquire against any item of Collateral (prior to its release pursuant to Section 4.5 hereof), by way of right of set-off, banker's lien, by enforcement of any rights under any security agreement or otherwise, shall be used solely to satisfy outstanding Obligations in the manner provided for herein (including Section 3.5 of this Agreement) until all Obligations have been repaid in full and the Commitment has been terminated or expired.

Section 4.10. *Agreement Regarding Customers Securities and Firm Securities.* To ensure that the Borrower is in compliance with the Rules, the Borrower and the Bank hereby agree that, notwithstanding anything to the contrary contained herein or in any other Loan Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the Firm Obligations shall be secured by or be any charge against any Customer Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of the Customer Obligations shall be secured by or be any charge against securities other than Customer Securities and Firm Securities unless (i) the Borrower agrees such Customer Securities as it is informed by the Borrower, pursuant to and in compliance with the Rules, are securities for account of one or more of the Borrower's customers, will be segregated by the Bank from any other securities (and the Bank hereby agrees to make such segregation), and (ii) only Customer Securities are identified by the Bank as substitutes for other Customer Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In consequence of (a) above, all Customer Securities shall be security for any and all Customer Obligations, *provided, however,* that any part of such Customer Obligations secured by Customer Securities may be treated as a separate Customer Loan if, and only if, upon the creation of such part the Bank approves a notation in the Notice of Borrowing to the effect that such part is to be treated as a separate Customer Loan and that the Customer Securities specifically pledged therefor are carried for the account of a single customer of the Borrower whereupon (without prejudice to the rights of the Bank in connection with any other Customer Securities) the Customer Securities specifically pledged therefor shall be held separate and apart from all other Customer Securities and shall not be security for any other part of such Customer Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No rehypothecation, assignment or other transfer of any Customer Securities or any interest therein shall be made by the Bank except subject to the limitations and restrictions contained herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For the purposes of this Agreement, and in addition, wherever used herein or any other Loan Document, (i) the term "Customer Securities" shall be deemed to mean securities (A) which, according to a Notice of Borrowing received by the Bank from the Borrower pursuant to and in compliance with the Rules, are securities for the account of one or more of its customers, or (B) which are securities carried for one or more of the Borrower's customers and hypothecated to secure a Customer Loan made and to be repaid on the same calendar day, and (ii) a Customer Loan shall be deemed to be a "Loan against Customer Securities" if only Customer Securities are identified by the Bank as security used for the purpose of obtaining or increasing such Customer Loan.

Section 4.11. *Guaranties.* The payment and performance of the Obligations shall at all times be guaranteed by the Parent pursuant to a guaranty agreement in form and substance reasonably acceptable to the Bank, as the same may be amended, modified, or supplemented from time to time (the "*Guaranty*").

Section 4.12. *Settlement Account.* (a) The Borrower hereby agrees that during any period when it may itself make withdrawals, transfers or other dispositions of funds in the Settlement Account it shall do so only (i) to the extent such withdrawal, transfer or other disposition would not result in either (x) the aggregate amount of cash in the Settlement Account (other than with respect to amounts on deposit therein that can fairly be identified as being attributable to the Settlement Bank Obligations) plus an amount equal to 80% of the face amount of any NSCC Margin Deposits that constitutes NSCC Margin Collateral being less than the aggregate principal amount of NSCC Margin Loans outstanding at such time or (y) the aggregate amount of cash in the Settlement Account (other than with respect to amounts on deposit therein that can fairly be identified by the Borrower as being attributable to the Settlement Bank Obligations) plus an amount equal to 80% of the face amount of any NSCC Margin Deposits that constitute NSCC Margin Collateral plus the Market Value of all other NSCC Margin Collateral at such time being less than the aggregate principal amount of all NSCC Margin Loans and outstanding at such time or (ii) to make payments on account of the Obligations. The Borrower shall cause such direction to be in full force and effect at all times until all the Obligations have been fully paid and performed and the Commitment has been terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Settlement Account shall be at all times subject to the "control" (within the meaning of Sections 9-104 and 9-106 of the UCC) of the Bank and held by the Settlement Bank as the depositary bank. The Settlement Account shall be deemed to be a "deposit account" (within the meaning of Section 9-102(a)(29) of the UCC).

SECTION 5. DEFINITIONS; INTERPRETATION.

Section 5.1. *Definitions.* The following terms when used herein shall have the following meanings:

"*Account(s)*" means one or more pledged accounts (i) maintained by the Bank with the DTC and (ii) in the name of and maintained with the Bank.

<u>"</u>*<u>Adequate Assurance Deposit</u>*<u>"</u> <u>means an NSCC deposit requirement, in excess of ordinary course NSCC deposit requirements, pursuant to NSCC Rule 15, section 2(b).</u>

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"*Affiliate*" means any Person directly or indirectly controlling or controlled by, or under direct or indirect common control with, another Person. A Person shall be deemed to control another Person for purposes of this definition if such Person possesses, directly or indirectly, the power to direct, or cause the direction of, the management and policies of the other Person, whether through the ownership of voting securities, common directors, trustees or officers, by contract or otherwise; *provided* that, in any event for purposes of this definition, any Person that owns, directly or indirectly, 20% or more of the securities having the ordinary voting power for the election of directors or governing body of a corporation or 20% or more of the partnership or other ownership interests of any other Person (other than as a limited partner of such other Person) will be deemed to control such corporation or other Person.

"*Agreement*" means this Credit Agreement, as the same may be amended, modified, or restated from time to time in accordance with the terms hereof.

"*Anti-Corruption Laws*" means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption.

"*Anti-Money Laundering Laws*" means any and all laws, statutes, regulations or obligatory government orders, decrees, ordinances or rules applicable to the Borrower or its Subsidiaries related to terrorism financing or money laundering, including any applicable provision of the Patriot Act.

<u>"</u>*<u>Applicable Margin</u>*<u>"</u> <u>means a rate per annum equal to (i) 1.50% with respect to the Broker Loans and (ii) 2.50% with respect to the NSCC Margin Loans.</u>

"*Authorized Representative*" means those persons shown on the list of officers provided by the Borrower pursuant to Section 7.2 hereof or on any update of any such list provided by the Borrower to the Bank, or any further or different officer of the Borrower so named by any Authorized Representative of the Borrower in a written notice to the Bank.

"*Bank*" is defined in the introductory paragraph hereof.

"*Borrower*" is defined in the introductory paragraph hereof.

"*<u>Broker</u> Borrowing Base*" means, as of any time it is to be determined, the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 90% of the Market Value of Eligible Federal Government Securities; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 90% of the Market Value of Eligible Bond Securities; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 80% of the Market Value of Eligible Equity Securities.

<u>"</u>*<u>Broker Collateral</u>*<u>"</u> <u>means</u> <u>and includes (a) the Accounts, (b) all securities and other Property described in each borrowing request (including a Notice of Borrowing) delivered to the Bank pursuant to this Agreement, (c) all other securities or Property delivered or deliverable on the sale, exchange, collection, reclassification, conversion, merger or consolidation and other dispositions of or distributions on any of the foregoing, and (d) any and all proceeds thereof (including all income payable thereon), both cash and non-cash</u><u>.</u>

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<u>"</u> *<u>Broker Loan</u>*<u>"</u> <u>means either a Customer Loan or Firm Loan, and</u> <u>"</u>*<u>Broker Loans</u>*<u>"</u> <u>means collectively, the</u> <u>"</u>*<u>Broker Loans</u>*<u>"</u><u>.</u> 

<u>"</u> *<u>Broker Obligations</u>*<u>"</u> <u>means all obligations of the Borrower to pay principal and interest on the Broker Loans, all fees and charges payable hereunder, and all other payment obligations of the Borrower arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held, or acquired.</u>

"*Business Day*" means any day other than a Saturday or Sunday on which the Bank is not authorized or required to close in Chicago, Illinois and, when used with respect to LIBOR Portions, a day on which the Bank is also dealing in United States Dollar deposits in London, England, and Nassau, Bahamas.

"*Capital Lease*" means any lease of Property which in accordance with GAAP is required to be capitalized on the balance sheet of the lessee.

"*Capitalized Lease Obligation*" means the amount of the liability shown on the balance sheet of any Person in respect of a Capital Lease determined in accordance with GAAP.

"*Cash Equivalents*" means, collectively, (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency thereof maturing within one hundred twenty (120) days from the date of acquisition thereof, (b) commercial paper maturing no more than one hundred twenty (120) days from the date of creation thereof and currently having the highest rating obtainable from either S&P or Moody's, (c) certificates of deposit maturing no more than one hundred twenty (120) days from the date of creation thereof issued by commercial banks incorporated under the laws of the United States, each having combined capital, surplus and undivided profits of not less than $500,000,000 and having a rating of "A" or better by a nationally recognized rating agency; (d) time deposits maturing no more than thirty (30) days from the date of creation thereof with commercial banks or savings banks or savings and loan associations incorporated under the laws of the United States, each having combined capital, surplus and undivided profits of not less than $500,000,000 and having a rating of "A" or better by a nationally recognized rating agency; (e) any investment fund registered with the SEC that is regulated as a "money market fund" as defined in Rule 2a-7 under the Investment Company Act of 1940, as amended; and (f) any offshore money market fund or similar investment vehicle rated "MR1+" by Moody's or "AAA" by S&P.

"*Change in Law*" means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority, or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; *provided* that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, regulations, guidelines

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or directives thereunder or issued in connection therewith shall be deemed to be a "Change in Law", regardless of the date enacted, adopted or issued and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted or issued.

"*Change of Control*" means any of (a) Uriel Cohen (or any trust or other estate planning vehicle established for the benefit of Uriel Cohen and his immediately family members) ceases at any time and for any reason (including death or incapacity) to own, legally and beneficially, at least 50.1% of the equity interests of the Parent entitled to vote, (b) the failure of the Parent to own, directly or indirectly, less than 100% of the equity interest of the Borrower entitled to vote, (c) the failure of individuals who are members of the board of directors (or similar governing body) of the Borrower or the Parent on the date hereof (together with any new or replacement directors whose initial nomination for election was approved by a majority of the directors who were either directors on the on date hereof or previously so approved) to constitute a majority of the board of directors (or similar governing body) of the Borrower or the Parent, as applicable, or (d) any "Change of Control" (or words of like import), as defined in any agreement or indenture relating to any issue of Indebtedness of the Parent or the Borrower shall occur.

"*Code*" means the Internal Revenue Code of 1986, as amended, and any successor statute thereto.

"*Collateral*" means <u>Broker Collateral and NSCC Margin Collateral, as the case may be</u>.

"*Commitment*" is defined in Section 1.1 hereof.

"*Controlled Group*" means all members of a controlled group of corporations and all trades or businesses (whether or not incorporated) under common control which, together with the Borrower or any of its Subsidiaries, are treated as a single employer under Section 414 of the Code.

"*Customer Loan*" means any <u>Broker</u> Loan that has been designated by the Borrower in the Notice of Borrowing as a "Customer Loan".

"*Customer Loan Limit*" means the <u>Broker</u> Borrowing Base as determined and computed with Customer Securities only.

"*Customer Obligations*" means all <u>Broker</u> Obligations of the Borrower with respect to Customer Loans.

"*Customer Securities*" means, at any time, <u>Broker</u> Collateral that is pledged at such time to the Bank to secure Customer Obligations.

"*Default*" means any event or condition the occurrence of which would, with the passage of time or the giving of notice, or both, constitute an Event of Default.

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"*Designated Examining Authority*" means the exchange that has been designated as the Borrower's securities designated examining authority, as defined in Rule 15c3-1(c)(12) of the SEC.

"*Designated Jurisdiction*" means, at any time, any country, region or territory which is itself the subject or target of any Sanctions.

"*Designated Self-Regulatory Organization*" shall have the meaning assigned to such term in Section 3(a)(26) of the Securities Exchange Act of 1934, as amended.

"*DTC*" means The Depository Trust Company and its successors and assigns.

"*Eligible Bond Security*" means an Eligible Security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is either (i) a bond issued by a corporation, partnership or limited liability company with a maturity date not less than one year from the date of issuance, or (ii) a marketable obligation of a State of the United States of America or any political subdivision, agency or instrumentality of any of the foregoing, or the District of Columbia, or (iii) a marketable obligation of any territory or local government of a State of the United States or any political subdivision, agency, or instrumentality of such territory or local government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has a Market Value of not less than $5.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the issuer of such security has not defaulted in the payment when due of any principal of or interest on any debt securities issued by it or loans or other extensions of credit made to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the issuer of such security (i) is not the subject of any bankruptcy, arrangement, receivership, conservatorship, reorganization proceeding or other proceeding for relief of debtors, (ii) is not insolvent, and (iii) has not admitted its inability to pay its debts generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it is Investment Grade;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) would not cause the Market Value of such security issued by any one issuer and its Affiliates to exceed 15% of all of the the Collateral; *provided,* that only the excess Market Value shall be excluded for purposes of determining the Borrowing Base; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the issuer of such security is not an Affiliate of the Bank.

<u>"</u>*<u>Eligible NSCC Margin Deposits</u>*<u>"</u> <u>means those NSCC Margin Deposits of the Borrower, excluding such portions of NSCC Margin Deposits that (a)</u> <u>relate to losses incurred by the Borrower for its own account or the account of any of its Subsidiaries or (b)</u> <u>as reasonably determined by the Borrower, acting in good faith, are subject to any counterclaim, deduction, defense, setoff or similar rights by NSCC or DTC other than to the extent constituting or arising out of the obligations for which such deposit was delivered (but only to the extent of any such counterclaim, deduction, defense, setoff or similar rights);</u> *<u>provided, however</u>*<u>, that the value of</u> <u>Eligible NSCC Margin Deposits shall not at any time exceed the NSCC Deposit Requirements applicable to the Borrower at such time.</u>

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"*Eligible Equity Security*" means an Eligible Security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is a security consisting of common stock and other equity securities of an issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has a Market Value of at least $5.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the issuer of such security (i) is not the subject of any bankruptcy, arrangement, receivership, conservatorship, reorganization proceeding or other proceeding for relief of debtors, (ii) is not insolvent, and (iii) has not admitted its inability to pay its debts generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it would not cause the Market Value of such security to exceed 15% of the Market Value of all of the Collateral; *provided,* that only the excess Market Value shall be excluded for purposes of determining the Borrowing Base; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the issuer of such security is not an Affiliate of the Bank.

"*Eligible Federal Government Security*" means an Eligible Security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is a direct obligation of the United States of America or of any agency or instrumentality thereof whose obligations constitute the full faith and credit obligations of the United States of America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the issuer of such security has not defaulted in the payment when due of any principal of or interest on any debt securities issued by it or loans or other extensions of credit made to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the issuer of such security (i) is not the subject of any bankruptcy, arrangement, receivership, conservatorship, reorganization proceeding or other proceeding for relief of debtors, (ii) is not insolvent, and (iii) has not admitted its inability to pay its debts generally; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it is Investment Grade.

"*Eligible Security*" means a security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is traded on an Exchange and is not subject to any restriction on transfer (including without limitation Rule 144 and Rule 144A promulgated by the SEC);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is not a security that has been held in the Borrower's inventory for more than thirty (30) consecutive days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it is available to be pledged, repledged, hypothecated, rehypothecated, or otherwise transferred by the Borrower in favor the Bank;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it is subject to a perfected first priority Lien in favor of the Bank and is free of all other Liens, adverse claims and other encumbrances of every type or nature whatsoever, including without limitation any of the foregoing in favor of any brokers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it is held in an Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Market Value of such security is readily available through the Reporting Service or is otherwise available to the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if such security is a callable or convertible security it has not matured or been called prior to its stated maturity date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) it is not an option, warrant, put, call, strip, repurchase agreement, reverse repurchase agreement, mutual fund share or interest, derivative or similar security; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) is not otherwise deemed to be ineligible in the reasonable judgment of the Bank (it being acknowledged and agreed that with five (5) Business Days prior written notice any such security or categories thereof may be deemed ineligible by the Bank acting in its reasonable judgment).

"*ERISA*" means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute thereto.

"*Event of Default*" means any event or condition identified as such in Section 9.1 hereof.

"*Excess Net Capital*" means, as of any date the same is to be determined, the Borrower's net capital as shown on line 3910 of the Borrower's most recent FOCUS Part 2 report.

"*Exchange*" means a nationally recognized securities exchange located in the United States of America or on a recognized over-the-counter market located in the United States of America.

"*Excluded Accounts*" means each of the Borrower's deposit accounts maintained with the Bank as a "Special Reserve Account For the Exclusive Benefit of Customers" pursuant to Rule 15c3-3 of the Rules.

"*Federal Funds Rate*" means, for any day, the rate reasonably determined by Bank to be the average (rounded upward, if necessary, to the next higher 1/100 of 1%) of the rates per annum quoted to Bank at approximately 10:00 a.m. (or as soon thereafter as is practicable) on such day (or, if such day is not a Business Day, on the immediately preceding Business Day) by two or more Federal funds brokers selected by Bank for sale to Bank at face value of Federal funds in the secondary market in an amount equal or comparable to the principal amount for which such rate is being determined.; *provided,* that in no event shall the Federal Funds Rate be less than 0.00%.

"*Firm Loan*" means any <u>Broker</u> Loan that has been designated by the Borrower in the Notice of Borrowing as a "Firm Loan".

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"*Firm Loan Limit*" means the <u>Broker</u> Borrowing Base as determined and computed with Firm Securities only.

"*Firm Obligations*" means all <u>Broker</u> Obligations of the Borrower with respect to Firm Loans to the Borrower.

"*Firm Securities*" means at any time, <u>Broker</u> Collateral that is pledged at such time to the Bank to secure <u>Firms</u> Obligations.

"*Fitch*" means Fitch, Inc.

"*GAAP*" means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting profession), which are applicable to the circumstances as of the date of determination.

"*Guaranty*" is defined in Section 4.11 hereof.

"*Indebtedness*" means for any Person (without duplication) (a) all indebtedness created, assumed or incurred in any manner by such Person representing money borrowed (including by the issuance of debt securities), (b) all indebtedness for the deferred purchase price of property or services (other than trade accounts payable arising in the ordinary course of business which are not more than ninety (90) days past due), (c) all indebtedness secured by any Lien upon Property of such Person, whether or not such Person has assumed or become liable for the payment of such indebtedness, (d) all Capitalized Lease Obligations of such Person, (e) all obligations of such Person on or with respect to letters of credit, bankers' acceptances and other extensions of credit whether or not representing obligations for borrowed money, and (f) all net obligations of such Person under any interest rate, foreign currency, and/or commodity swap, exchange, cap, collar, floor, forward, future or option agreement, or any other similar interest rate, currency or commodity hedging arrangement.

"*Investment Grade*" means a security having a long-term rating of BBB or better by S&P, Baa or better by Moody's, or BBB or better by Fitch; *provided* that if more than one long-term rating applies to such security, then the lowest rating shall apply.

"*Lien*" means any mortgage, lien, security interest, pledge, charge, or encumbrance of any kind in respect of any Property, including the interests of a vendor or lessor under any conditional sale, Capital Lease or other title retention arrangement.

"*Loan*" and "*Loans*" each is defined in Section 1.2 hereof.

"*Loan Documents*" means this Agreement, the Note, and each other instrument or document to be delivered hereunder or thereunder or otherwise in connection therewith.

"*Market Value*" means, for each unit of a security of any class at a particular time, the closing price for such security for the immediately preceding Business Day reported by the Reporting Service, but excluding accrued and unpaid interest on interest-bearing securities from such determination.

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"*Material Adverse Effect*" means (a) a material adverse change in, or material adverse effect upon, the operations, business, Property or condition (financial or otherwise) of the Borrower or of the Borrower and its Subsidiaries taken as a whole, (b) a material impairment of the ability of the Borrower or any Subsidiary to perform its obligations under any Loan Document, or (c) a material adverse effect upon (i) the legality, validity, binding effect or enforceability against the Borrower or any Subsidiary of any Loan Document or the rights and remedies of the Bank thereunder or (ii) the perfection or priority of any Lien granted under any Loan Document.

"*Moody's*" means Moody's Investors Service, Inc.

"*Note*" is defined in Section 1.2 hereof.

"*Notice of Borrowing*" means that certain Notice of Borrowing in the form of Exhibit C attached hereto.

<u>"</u> *<u>NSCC</u>*<u>"</u> <u>means the National Securities Clearing Corporation.</u>

<u>"</u>*<u>NSCC Deposit Requirements</u>*<u>"</u> <u>means cash collateral requirements established by NSCC in connection with securities clearing services provided by NSCC, as such requirements may be amended, supplemented or otherwise modified from time to time.</u>

<u>"</u> *<u>NSCC Margin Borrowing Base</u>*<u>"</u> <u>means as of any time it is to be determined, an amount equal to 80% of the excess, if any, of the Eligible NSCC Margin Deposits at such time over the Eligible NSCC Margin Deposits in effect as at the close of business on the day in the prior calendar month (or if the certificate for such prior calendar month has not been delivered pursuant to Section</u> <u>8.5 hereof, the preceding calendar month) that was the day having the 10th lowest Eligible NSCC Margin Deposits during such calendar month;</u> *<u>provided,</u>* <u>that in no event shall at any time the amount set forth herein exceed the amount of the Eligible NSCC Margin Deposits at such time.</u>

<u>"</u>*<u>NSCC Margin Collateral</u>*<u>"</u> <u>means all of the Borrower</u><u>'</u><u>s right, title and interest in (i)</u> <u>the right to the return from NSCC of NSCC Margin Deposits pursuant to the terms of the rules and procedures of the NSCC in effect from time to time, (ii)</u> <u>the Settlement Account, all balances in the Settlement Account, and all income, distributions, and sums distributable or payable from, upon, or in respect of the foregoing, and (iii)</u> <u>any and all proceeds thereof (including cash and non-cash proceeds and all income payable on any of the foregoing items (i), (ii) or (iii), whether now owned or held or hereafter acquired.</u>

<u>"</u> *<u>NSCC Margin Deposits</u>*<u>"</u> <u>means deposits made by the Borrower with NSCC in connection with securities clearing services provided to it by NSCC.</u>

<u>"</u> *<u>NSCC Margin Loans</u>*<u>"</u> <u>means any Loan that has been designated by the Borrower in the Notice of Borrowing as a</u> <u>"</u><u>NSCC Margin Loan</u><u>"</u><u>.</u> 

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<u>"</u> *<u>NSCC Margin Obligations</u>*<u>"</u> <u>means all obligations of the Borrower to pay principal and interest on the NSCC Margin Loans, all fees and charges payable hereunder, and all other payment obligations of the Borrower arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held, or acquired.</u>

<u>"</u> *<u>NSCC Sublimit</u>*<u>"</u> <u>means $15,000,000.</u>

"*Obligations*" means all obligations of the Borrower to pay principal and interest on the Loans, all fees and charges payable hereunder, and all other payment obligations of the Borrower arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held, or acquired.

"*OFAC*" means the United States Department of Treasury Office of Foreign Assets Control.

"*OFAC SDN List*" means the list of the Specially Designated Nationals and Blocked Persons maintained by OFAC.

"*Organizational Documents*" means the certificate of organization, limited liability company agreement, operating agreement, or such other agreement under which the Borrower or such Subsidiary is organized, as each of the same may be amended, amended and restated, supplemented or otherwise modified from time to time in accordance with this Agreement.

"*Parent*" means Clear Street Capital LLC, a Delaware limited liability company <u>and formerly known as Clear Street Capital Holdings, LLC</u>.

"*Patriot Act*" means the USA Patriot Act (Title III of Pub. L. 107 56 (signed into law October 26, 2001)).

"*PBGC*" means the Pension Benefit Guaranty Corporation or any Person succeeding to any or all of its functions under ERISA.

"*Person*" means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, or any other entity or organization, including a government or agency or political subdivision thereof.

"*Plan*" means any employee pension benefit plan covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code that either (a) is maintained by a member of the Controlled Group for employees of a member of the Controlled Group or (b) is maintained pursuant to a collective bargaining agreement or any other arrangement under which more than one employer makes contributions and to which a member of the Controlled Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions.

"*Property*" means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible.

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"*Reg U*" means Regulation U of the Board of Governors of the Federal Reserve System.

"*Regulatory Authority*" means Designated Examining Authority, Designated Self-Regulatory Organization, the SEC and all other examining and regulating authorities with jurisdiction over such Loan Party or Subsidiary.

"*Reporting Service*" means ISDI-Interactive Data or, to the extent pricing and other market data is not available, any other independent pricing service selected by the Bank in accordance with its ordinary and customary business practices.

"*Revolving Credit*" is defined in Section 1.1 hereof.

"*Rules*" means the rules and regulations of the SEC under the Securities Exchange Act of 1934, as amended concerning the hypothecation of Customer Securities, including Rule 8c-1, Rule 15c2-1, and Rule 15c3-3.

"*Sanctioned Person*" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC (including the OFAC SDN List), the United States Department of State, the United Nations Security Council, the European Union, any European Union member state, Her Majesty's Treasury of the United Kingdom, or any other relevant sanctions authority, (b) any Person located, organized or resident in a Designated Jurisdiction or (c) any Person owned or controlled by any such Person or Persons described in clauses (a) or (b) above.

"*Sanctions*" means all economic or financial sanctions, sectoral sanctions, secondary sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the United States government (including those administered by OFAC or the United States Department of State), or (b) the United Nations Security Council, the European Union, any European Union member state, Her Majesty's Treasury of the United Kingdom, or any other relevant sanctions authority with jurisdiction over the Borrower and its Affiliates or any other Loan Party or any of their respective Subsidiaries.

"*S&P*" means Standard & Poor's Ratings Services Group, a division of The McGraw-Hill Companies, Inc.

"*SEC*" means the Securities and Exchange Commission.

<u>"</u>*<u>Settlement Account</u>*<u>"</u> <u>means the Borrower (account number</u> <u>) maintained with the Bank.</u>

<u>"</u>*<u>Settlement Bank Obligations</u>*<u>"</u> <u>means the obligations of the Borrower owing to the Bank solely in connection with the settlement of securities.</u>

"*SIPA*" means Securities Investor Protection Act of 1970, as amended.

"*SIPC*" means the Securities Investor Protection Corporation established pursuant to SIPA, or any other corporation that succeeds to the functions thereof.

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"*Subordinated Debt*" means Indebtedness which (i) qualifies as the Borrower's regulatory capital calculated in accordance with Exchange Act Rule 15c3-1, (ii) is unsecured, and (iii) is subordinated in right of payment to the prior payment of the Obligations pursuant to subordination provisions reasonably acceptable to the Bank (which shall include the subordination provisions required pursuant to Appendix D to the Exchange Act Rule 15c3-1).

"*Subsidiary*" means any corporation or other Person more than 50% of the outstanding ordinary voting shares or other equity interests of which is at the time directly or indirectly owned by the Borrower, by one or more of its Subsidiaries, or by the Borrower and one or more of its Subsidiaries.

"*Tangible Net Worth*" means, at any time the same is to be determined, the difference between (a) total assets of the Borrower less the sum of (i) the aggregate book value of all assets which would be classified as intangible assets under GAAP, including, without limitation, goodwill, patents, trademarks, trade names, copyrights, franchises and deferred charges (including, without limitation, unamortized debt discount and expense, organization costs and deferred research and development expense) and similar assets, and (ii) the write-up of assets above cost minus (b) total liabilities and reserves of the Borrower, all as determined in accordance with GAAP.

"*Termination Date*" means the earliest to occur of: (i) <u>May</u> <u>31</u>, <u>2021</u>, (ii) the date upon which a Termination Event occurs, or (iii) or such earlier date on which the Commitment is terminated in whole pursuant to Section 3.4, 9.2, or 9.3 hereof.

"*Termination Event*" means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the NSCC requires the Borrower to make an Adequate Assurance Deposit or any other clearinghouse imposes a similar requirement on the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) one or more Regulatory Authorities imposes fines, levies, or other monetary penalties (including the disgorgement of profits) against the Borrower in excess of $500,000 individually or in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Regulatory Authority requires that a material portion of the Borrower's business be suspended or otherwise prohibited from operating for a period of five (5) or more Business Days, including, as applicable, the suspension, revocation or termination of the Borrower as a broker-dealer with the SEC or as a member of a Regulatory Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Borrower enters into a settlement with any Person (including any Regulatory Authority), and the Borrower is obligated to pay an amount in excess of $500,000 as part of such settlement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) one or more Regulatory Authorities imposes a fine, levy or other monetary penalty against the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer in excess of $100,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer enters into a settlement with any Person (including any Regulatory Authority), and such Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer is obligated to pay an amount in excess of $100,000 as part of such settlement; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer is suspended in any capacity for any reason for a period of five (5) or more Business Days or expelled by a Regulatory Authority.

"*Threshold Amount*" means $500,000.

"*Total Assets to Total Equity Ratio*" means, at any time the same is to be determined, the ratio of (i) total assets of the Borrower and its Subsidiaries at such time, *less* assets constituting matched repos and matched securities loans to (ii) the difference between total assets of the Borrower and its Subsidiaries minus total liabilities and reserves of the Borrower and its Subsidiaries at such time, all as determined on a consolidated basis in accordance with GAAP.

"*Unfunded Vested Liabilities*" means, for any Plan at any time, the amount (if any) by which the present value of all vested nonforfeitable accrued benefits under such Plan exceeds the fair market value of all Plan assets allocable to such benefits, all determined as of the then most recent valuation date for such Plan, but only to the extent that such excess represents a potential liability of a member of the Controlled Group to the PBGC or the Plan under Title IV of ERISA.

"*Welfare Plan*" means a "welfare plan" as defined in Section 3(1) of ERISA.

"*Wholly-Owned Subsidiary*" means a Subsidiary of which all of the issued and outstanding shares of capital stock (other than directors' qualifying shares as required by law) or other equity interests are owned by the Borrower and/or one or more Wholly-Owned Subsidiaries within the meaning of this definition.

<u>"</u>*<u>Zero Loan Day</u>*<u>"</u> <u>means, at any time, a Business Day in which no principal amount of the NSCC Margin Loans is outstanding.</u>

Section 5.2. Interpretation. The foregoing definitions are equally applicable to both the singular and plural forms of the terms defined. The words "*hereof*", "*herein*", and "*hereunder*" and words of like import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. All references to time of day herein are references to Chicago, Illinois time unless otherwise specifically provided. Where the character or amount of any asset or liability or item of income or expense is required to be determined or any consolidation or other accounting computation is required to be made for the purposes of this Agreement, it shall be done in accordance with GAAP (as in effect from time to time) except where such principles are inconsistent with the specific provisions of this Agreement.

SECTION 6. REPRESENTATIONS AND WARRANTIES.

The Borrower represents and warrants to the Bank as follows:

Section 6.1. *Organization and Qualification.* The Borrower is duly organized, validly existing, and in good standing as a limited liability company under the laws of the State of Delaware, has full and adequate power to own its Property and conduct its business as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying where the failure to do so could reasonably be expected to have a Material Adverse Effect.

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Section 6.2. *Subsidiaries*. Each Subsidiary is duly organized, validly existing, and in good standing under the laws of the jurisdiction in which it is incorporated or organized, as the case may be, has full and adequate power to own its Property and conduct its business as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying where the failure to do so could reasonably be expected to have a Material Adverse Effect. Schedule 6.2 hereto identifies each Subsidiary, the jurisdiction of its organization, the percentage of issued and outstanding shares of each class of its capital stock or other equity interests owned by the Borrower and the Subsidiaries and, if such percentage is not 100% (excluding directors' qualifying shares as required by law), a description of each class of its authorized capital stock and other equity interests and the number of shares of each class issued and outstanding. All of the outstanding shares of capital stock and other equity interests of each Subsidiary are validly issued and outstanding and fully paid and nonassessable and all such shares and other equity interests indicated on Schedule 6.2 as owned by the Borrower or a Subsidiary are owned, beneficially and of record, by the Borrower or such Subsidiary free and clear of all Liens. There are no outstanding commitments or other obligations of any Subsidiary to issue, and no options, warrants or other rights of any Person to acquire, any shares of any class of capital stock or other equity interests of any Subsidiary, other than with respect to shares of capital stock or other equity interests of any Subsidiary that may be acquired after the date of this Agreement.

Section 6.3. *Authority and Validity of Obligations*. The Borrower has full right and authority to enter into this Agreement and the other Loan Documents executed by it, to make the borrowings herein provided for, to issue its Note in evidence thereof, to grant to the Bank the Liens described herein, and to perform all of its obligations hereunder and under the other Loan Documents executed by it. The Loan Documents delivered by the Borrower have been duly authorized, executed, and delivered by such Persons and constitute valid and binding obligations of the Borrower enforceable against it in accordance with their terms except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance, or similar laws affecting creditors' rights generally and general principles of equity (regardless of whether the application of such principles is considered in a proceeding in equity or at law); and this Agreement and the other Loan Documents do not, nor does the performance or observance by the Borrower of any of the matters and things herein or therein provided for, (a) contravene or constitute a default under any provision of applicable law or any judgment, injunction, order or decree binding upon the Borrower or any provision of the Borrower's Organizational Documents or any material covenant, indenture or agreement of or affecting the Borrower or any of its Property, or (b) result in the creation or imposition of any Lien on any Property of the Borrower (other than Liens granted in favor of Bank created pursuant hereto).

Section 6.4. *Use of Proceeds*. The Borrower shall use the proceeds of the Loans solely to finance the purchase and settlement of securities<u>, to finance NSCC Deposit</u> <u>Requirements (other than the Adequate Assurance Deposits),</u> and for the Borrower's general working capital purposes.

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Section 6.5. *Financial Reports*. The balance sheet of the Borrower as at December 31, <u>2019</u>, and the related statements of income, retained earnings, and cash flows of the Borrower for the fiscal year then ended, and accompanying notes thereto, which financial statements are accompanied by the audit report of Lerner and Sipkin, independent public accountants, and a FOCUS Part 2 of the Borrower as at February <u>29</u>, <u>2020</u>, and the related statements of income, retained earnings, and cash flows of the Borrower for the two (2) months then ended, heretofore furnished to the Bank, fairly present the financial condition of the Borrower as at said dates and the results of its operations and cash flows for the periods then ended in conformity with GAAP applied on a consistent basis. The Borrower does not have any contingent liabilities which are material to it other than as indicated on such financial statements or, with respect to future periods, on the financial statements furnished pursuant to Section 8.5 hereof.

Section 6.6. *No Material Adverse Change.* Since December 31, <u>2019</u>, there has been no change in the condition (financial or otherwise) or business of the Borrower or of the Borrower and its Subsidiaries taken as a whole except those occurring in the ordinary course of business, none of which individually or in the aggregate could be expected to have a Material Adverse Effect.

Section 6.7. *Full Disclosure*. The statements and information furnished to the Bank in connection with the negotiation of this Agreement and the other Loan Documents and the commitment by the Bank to provide all or part of the financing contemplated hereby do not contain any untrue statements of a material fact or omit a material fact necessary to make the material statements contained herein or therein not misleading, the Bank acknowledging that as to any projections furnished to the Bank, the Borrower only represents that the same were prepared on the basis of information, assumptions and estimates the Borrower believed to be reasonable at the time made and that actual results during the period or periods covered by any such projections may differ from projected or forecasted results.

Section 6.8. *Trademarks, Franchises, and Licenses*. The Borrower and its Subsidiaries own, possess, or have the right to use all patents, licenses, franchises, trademarks, trade names, trade styles, copyrights, trade secrets, know how, and confidential commercial and proprietary information to conduct their business as now conducted, without known conflict with any patent, license, franchise, trademark, trade name, trade style, copyright or other proprietary right of any other Person, in each case, except as could not reasonably be expected to have a Material Adverse Effect.

Section 6.9. *Governmental Authority and Licensing*. The Borrower and its Subsidiaries have received all licenses, permits, and approvals of all federal, state, and local governmental authorities, if any, necessary to conduct their businesses, in each case where the failure to obtain or maintain the same could reasonably be expected to have a Material Adverse Effect. No investigation or proceeding which, if adversely determined, could reasonably be expected to result in revocation or denial of any material license, permit or approval is pending or, to the knowledge of the Borrower, threatened.

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Section 6.10. *Good Title*. The Borrower and its Subsidiaries have good and defensible title (or valid leasehold interests) to their assets as reflected on the most recent consolidated balance sheet of the Borrower and its Subsidiaries furnished to the Bank (except for sales of assets by the Borrower and its Subsidiaries in the ordinary course of business), subject to no Liens other than such thereof as are permitted by Section 8.8 hereof and except for minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such assets for their intended purposes.

Section 6.11. *Litigation and Other Controversies.* There is no litigation or governmental or arbitration proceeding or labor controversy pending, nor to the knowledge of the Borrower threatened, against the Borrower or any Subsidiary or any of their Property which, if adversely determined could reasonably be expected to have a Material Adverse Effect.

Section 6.12. *Taxes*. All material tax returns required to be filed by the Borrower or any Subsidiary in any jurisdiction have, in fact, been filed, and all taxes, assessments, fees, and other governmental charges upon the Borrower or any Subsidiary or upon any of their Property, income or franchises, which are shown to be due and payable in such returns, have been paid, except such taxes, assessments, fees and governmental charges, if any, as are being contested in good faith and by appropriate proceedings which prevent enforcement of the matter under contest and as to which adequate reserves established in accordance with GAAP have been provided. The Borrower does not know of any proposed additional tax assessment against it or its Subsidiaries for which adequate provisions in accordance with GAAP have not been made on their accounts. Adequate provisions in accordance with GAAP for taxes on the books of the Borrower and its Subsidiaries have been made for all open years, and for the current fiscal period.

Section 6.13. *Approvals*. No authorization, consent, license or exemption from, or filing or registration with, or approval of any court or governmental department, agency or instrumentality, nor any approval or consent of any other Person, is or will be necessary to the valid execution, delivery or performance by the Borrower of any Loan Document, except for such approvals which have been obtained prior to the date of this Agreement and remain in full force and effect.

Section 6.14. *Affiliate Transactions.* Neither the Borrower nor any Subsidiary is a party to any contracts or agreements with any of its Affiliates on terms and conditions which are less favorable to the Borrower or such Subsidiary than would be usual and customary in similar contracts or agreements between Persons not affiliated with each other.

Section 6.15. *Investment Company.* Neither the Borrower nor any Subsidiary is an "investment company" or a company "controlled" by an "investment company" within the meaning of the Investment Company Act of 1940, as amended.

Section 6.16. *ERISA*. The Borrower and each other member of its Controlled Group has fulfilled its obligations under the minimum funding standards of and is in compliance in all material respects with ERISA and the Code to the extent applicable to it and has not incurred any liability to the PBGC or a Plan under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA. Neither the Borrower nor any Subsidiary has any contingent liabilities with respect to any post-retirement benefits under a Welfare Plan, other than liability for continuation coverage described in article 6 of Title I of ERISA.

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Section 6.17. *Compliance with Laws; Sanctions; Anti-Money Laundering and Anti-Corruption Laws*. (a) The Borrower and its Subsidiaries are in compliance with the requirements of all federal, state and local laws, rules and regulations applicable to or pertaining to their Property or business operations (including, without limitation, the Occupational Safety and Health Act of 1970, the Americans with Disabilities Act of 1990, and laws and regulations establishing quality criteria and standards for air, water, land and toxic or hazardous wastes and substances), where any such non-compliance, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. Neither the Borrower nor any Subsidiary has received notice to the effect that its operations are not in compliance with any of the requirements of applicable federal, state or local environmental, health, and safety statutes and regulations or are the subject of any governmental investigation evaluating whether any remedial action is needed to respond to a release of any toxic or hazardous waste or substance into the environment, where any such non-compliance or remedial action, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the Parent, the Borrower, any of their Subsidiaries, any director, officer or employee of the Parent, the Borrower or any of their Subsidiaries, nor, to the knowledge of Borrower, any agent or representative of the Parent, the Borrower or any of their Subsidiaries, is a Sanctioned Person or currently the subject or target of any Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parent, the Borrower, each of their Subsidiaries, and each of their respective directors, officers and employees, and, to the knowledge of Borrower, each of the Parent, the Borrower's and their Subsidiaries' respective agents and representatives, is in compliance with all applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Parent, the Borrower and their Subsidiaries have instituted and maintain in effect policies and procedures reasonably designed to ensure compliance by the Parent, the Borrower, their Subsidiaries, and their respective directors, officers, employees and agents (acting in their capacity as such) with all applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions.

Section 6.18. *Other Agreements*. Neither the Borrower nor any Subsidiary is in default under the terms of any covenant, indenture or agreement of or affecting the Borrower, any Subsidiary or any of their Property, which default if uncured could be expected to have a Material Adverse Effect.

Section 6.19. *Solvency*. The Borrower is solvent, able to pay its debts as they become due, and has sufficient capital to carry on its business and all businesses in which it is about to engage.

Section 6.20. *No Default*; No Termination Event*.* No Default or Event of Default has occurred and is continuing. No Termination Event has occurred.

Section 6.21. *Registration; Beneficial Ownership.* The Borrower has been duly registered with the SEC as a registered broker dealer. The Borrower is approved as a clearing corporation of DTC and the National Securities Clearing Corporation. The Borrower is excluded as a "Legal Entity Customer" for purposes of the beneficial ownership rule under 31 CFR 1010.230.

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Section 6.22. *SIPC Assessments.* The Borrower is not in arrears with respect to any assessment made upon it by the SIPC.

Section 6.23. *Designated Examining Authority*. Financial Industry Regulatory Authority ("*FINRA*") has been designated as the Designated Examining Authority for the Borrower, and the Borrower's Designated Self-Regulatory Organizations are FINRA and the New York Stock Exchange.

Section 6.24. *Perfection of Security Interest*. Upon the crediting of Collateral to the Accounts or as otherwise specified in Section 4.1, the Bank shall have "control" over such Collateral (as such term is defined under Section 8-106 of the Uniform Commercial Code) and shall have a perfected pledge of and security interest in such Collateral and all proceeds thereof (subject to Section 9-315 of the Uniform Commercial Code), which security interest shall be prior to all other interests in such Collateral to the extent provided under Articles 8 and 9 of the Uniform Commercial Code.

Section 6.25. *Ownership, No Liens, etc*. Immediately before giving effect to each delivery of Collateral by the Borrower to the Bank, the Borrower has the authority to pledge, repledge, hypothecate, rehypothecate, or otherwise transfer the Collateral and will have the right to receive all payments on such Collateral, in each case free and clear of all Liens and adverse claims other than the Lien of the Bank and any interests in such Collateral created or permitted to exist under this Agreement.

Section 6.26. *Valid Security Interest*. The delivery of Collateral to the Bank, together with the actions described in the foregoing Section 6.24, is effective to create a valid, perfected, first priority security interest in all such Collateral and all proceeds thereof, securing the Obligations. No filings or other actions will be necessary to perfect such security interest.

Section 6.27. *Broker Fees*. No broker's or finder's fee or commission will be payable with respect hereto or any of the transactions contemplated thereby; and the Borrower hereby indemnifies the Bank against, and agrees that it will hold the Bank harmless from, any claim, demand, or liability for any such broker's or finder's fees alleged to have been incurred in connection herewith or therewith and any expenses (including reasonable attorneys' fees) arising in connection with any such claim, demand, or liability.

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SECTION 7. CONDITIONS PRECEDENT.

The obligation of the Bank to make any extension of credit under this Agreement is subject to the following conditions precedent:

Section 7.1. *All Advances.* As of the date of this Agreement and thereafter as as of the time of the making of each extension of credit hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default or Event of Default shall have occurred and be continuing or would occur as a result of making such extension of credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) after giving effect to such extension of credit<u>: (i)</u> the aggregate principal amount of all Loans outstanding under this Agreement shall not exceed the Commitment<u>,</u> (ii) <u>the aggregate principal amount of Broker Loans shall not exceed</u> the <u>Broker</u> Borrowing Base<u>, (iii)</u> <u>the aggregate principal amount of the NSCC Margin Loans shall not exceed the lesser of (x)</u> <u>the NSCC Margin Sublimit and (y)</u> <u>the NSCC Margin Borrowing Base, and (iv)</u> <u>with respect to NSCC Margin Loan, the number of Zero Loan Days during the current calendar month shall not be less than eight (8)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Bank shall have received a Notice of Borrowing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) either (i) the Borrower is an "exempted borrower" within the meaning of Reg U of the Board of Governors of the Federal Reserve System or (ii) such extension of credit qualifies as a special purpose loan under Reg U; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) such extension of credit shall not violate any order, judgment, or decree of any court or other authority or any provision of law or regulation applicable to the Bank (including, without limitation, Reg U of the Board of Governors of the Federal Reserve System) as then in effect.

The Borrower's request for any extension of credit hereunder shall constitute its warranty as to the facts specified in subsections (a) through (e), both inclusive, above.

Section 7.2. *Initial Advance.* At or prior to the making of the initial extension of credit hereunder, the following conditions precedent shall also have been satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Bank shall have received the following (and, with respect to all documents, each to be properly executed and completed) and the same shall have been approved as to form and substance by the Bank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Guaranty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) copies (executed or certified as may be appropriate) of resolutions of the Managers or other governing body of the Parent and the Borrower authorizing the execution, delivery, and performance of the Loan Documents;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) certificate of organization (or equivalent organizational document) of the Parent and the Borrower certified by the appropriate governmental office of the state of its organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) operating agreement (or equivalent organizational document) for the Parent and the Borrower certified by an appropriate officer of such Person acceptable to the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) an incumbency certificate containing the name, title and genuine signature of the Borrower's Authorized Representatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) good standing certificates for the Parent and the Borrower, dated as of a date no earlier than 30 days prior to the date hereof, from the appropriate governmental offices in the state of organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) all documentation and other information required by bank regulatory authorities under applicable "know your customer" and Anti-Money Laundering rules and regulations, including without limitation the USA PATRIOT Act; and the Bank shall have received a fully-executed Internal Revenue Service Form W-9 for the Parent and the Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Bank shall have received such valuations and certifications as it may reasonably require in order to satisfy itself as to the value of the Collateral, the financial condition of the Borrower and the Parent, and the lack of material contingent liabilities of the Parent and the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) legal matters incident to the execution and delivery of the Loan Documents and to the transactions contemplated hereby shall be reasonably satisfactory to the Bank and its counsel; and the Bank shall have received the favorable written opinion of counsel for the Parent and the Borrower, in form and substance reasonably satisfactory to the Bank and its counsel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Bank shall have received financing statement, tax and judgment lien search results against the Property of the Parent and the Borrower evidencing the absence of Liens on their Property except as permitted by Section 8.8 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Bank shall have received copies of all documents evidencing preferred equity and subordinated debt of the Borrower, which such documents shall be in form and substance reasonably satisfactory to the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) since December 31, 2018, no material adverse change in the business, condition (financial or otherwise), operations, performance or Properties of the Borrower shall have occurred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Bank shall have received a Compliance Certificate dated as of the date hereof evidencing that the Borrower is in compliance with the financial covenants set forth in Section 8.20 hereof on a pro forma basis after giving effect to any Loan hereunder;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Bank shall have received a certificate signed by an officer of the Borrower confirming that the conditions set forth in Section 7.1 hereof have been satisfied as of the date of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Bank shall have received evidence satisfactory to it that the Borrower is a broker-dealer regulated by the SEC and the Designated Examining Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the Bank shall have received a non-refundable upfront fee equal to 0.50% of the Commitment in effect on the date hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Bank shall have received such other agreements, instruments, documents and certificates as the Bank may reasonably request.

SECTION 8. COVENANTS.

The Borrower agrees that, so long as any credit is available to or in use by the Borrower hereunder, except to the extent compliance in any case or cases is waived in writing by the Bank:

Section 8.1. *Maintenance of Business.* The Borrower shall, and shall cause each Subsidiary to, preserve and maintain its existence, except as otherwise provided in Section 8.10(c). The Borrower shall, and shall cause each Subsidiary to, preserve and keep in force and effect all licenses, permits, franchises, approvals, patents, trademarks, trade names, trade styles, copyrights, and other proprietary rights necessary to the proper conduct of its business, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

Section 8.2. *Maintenance of Properties.* The Borrower shall maintain, preserve, and keep its property, plant, and equipment in good repair, working order and condition (ordinary wear and tear excepted); shall from time to time make all needful and proper repairs, renewals, replacements, additions, and betterments thereto so that at all times the efficiency thereof shall be fully preserved and maintained; and shall cause each Subsidiary to do so in respect of Property owned or used by it, in each case except where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

Section 8.3. *Taxes and Assessments*. The Borrower shall duly pay and discharge, and shall cause each Subsidiary to duly pay and discharge, all taxes, rates, assessments, fees, and governmental charges upon or against it or its Property, in each case before the same become delinquent and before penalties accrue thereon, unless and to the extent that the same are being contested in good faith and by appropriate proceedings which prevent enforcement of the matter under contest and adequate reserves are provided therefor.

Section 8.4. *Insurance.* The Borrower shall insure and keep insured, and shall cause each Subsidiary to insure and keep insured, with good and responsible insurance companies all insurable Property owned by it which is of a character usually insured by Persons similarly situated and operating like Properties against loss or damage from such hazards and risks, and in such amounts, as are insured by Persons similarly situated and operating like Properties; and the Borrower shall insure, and shall cause each Subsidiary to insure, such other hazards and risks (including, without limitation, employers' and public liability risks) with good and responsible

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insurance companies as and to the extent usually insured by Persons similarly situated and conducting similar businesses. The Borrower shall, upon request of the Bank, furnish to the Bank a certificate setting forth in summary form the nature and extent of the insurance maintained pursuant to this Section.

Section 8.5. *Financial Reports.* The Borrower shall, and shall cause each Subsidiary to, maintain a standard system of accounting in accordance with GAAP and shall furnish to the Bank and its duly authorized representatives such information respecting the business and financial condition of the Borrower and its Subsidiaries as the Bank may reasonably request; and without any request, shall furnish to the Bank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as soon as available, and in any event within 45 days after the last day of each month of the Borrower, a copy of financial statements and reports of the Borrower, including a calculation of the Borrower's Net Capital, for each monthly accounting period consisting of a balance sheet and a profit and loss statement of the Borrower in the form of FOCUS-Part 2 prepared by the Borrower as of the end of and for such month in accordance with GAAP (except for the absence of footnotes and subject to year-end audit adjustments) and certified by its chief financial officer or such other officer acceptable to the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) as soon as available, and in any event within 90 days after the last day of each fiscal year of the Borrower, copies of the consolidated balance sheet of the Borrower and its Subsidiaries as of the close of such period and the consolidated statements of income, retained earnings, and cash flows of the Borrower and its Subsidiaries for such period, and accompanying notes thereto, each in reasonable detail, accompanied by an unqualified opinion (subject to normal year-end adjustments and except for qualifications relating to changes in accounting principles or practices reflecting changes in GAAP and required or approved by Borrower's independent certified public accountants) thereon of a firm of independent public accountants of recognized national standing, selected by the Borrower and reasonably satisfactory to the Bank, to the effect that the financial statements have been prepared in accordance with GAAP and present fairly in accordance with GAAP the consolidated financial condition of the Borrower and its Subsidiaries as of the close of such fiscal year and the results of their operations and cash flows for the fiscal year then ended and that an examination of such accounts in connection with such financial statements has been made in accordance with generally accepted auditing standards and, accordingly, such examination included such tests of the accounting records and such other auditing procedures as were considered necessary in the circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as soon as available, and in any event no later than 90 days after the last day of each fiscal year of the Parent, a copy of the consolidated and consolidating balance sheet of the Parent and its Subsidiaries as of the last day of such period and the consolidated and consolidating statements of income, retained earnings, and cash flows of Borrower and its Subsidiaries for the fiscal year then ended, each in reasonable detail showing in comparative form the figures for the corresponding date and period in the previous fiscal year, prepared by the Parent in accordance with GAAP and certified to by its chief financial officer or such other officer acceptable to Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as soon as available, and in any event within 45 days after the last day of each month, the Borrower shall deliver to the Bank a written certificate (a "*Compliance Certificate*") in the form attached hereto as Exhibit B signed by the chief financial officer or chief operating officer of the Borrower, or such other officer of the Borrower satisfactory to the Bank;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) as soon as available, and in any event within 90 days after the close of each fiscal year of the Borrower, any additional written reports or management letters concerning significant aspects of the Borrower's affairs given to its managers (or other governing body) by its independent public accountants in connection with the audit of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) as soon as available, and in any event within five (5) Business Days after the close of each month, a certificate in the form of Exhibit D attached hereto from each Borrower indicating the Eligible NSCC Margin Deposits of such Borrower in effect for each Business Day in the most recently ended calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) promptly after knowledge thereof shall have come to the attention of any responsible officer of the Borrower, written notice of (i) any threatened or pending litigation or governmental or arbitration proceeding or labor controversy against the Borrower or any Subsidiary or any of their Property which, if adversely determined, would be expected to have a Material Adverse Effect, (ii) the occurrence of any Default or Event of Default hereunder, or (iii) the occurrence of any event or the existence of any condition that would be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) promptly after receipt thereof, and in any event within five (5) Business Days after receipt thereof, a copy of any financial report performed or required to be performed by any Designated Examining Authority of the Borrower and permitted to be disclosed under applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) notice of any Change of Control or the occurrence of any Termination Event; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) promptly after it is filed with the SEC, and in any event within five (5) Business Days after sending or filing thereof, copies of each regular, periodic or special report, registration statement or prospectus, if any (including all Form 10-K, Form 10-Q and Form 8-K reports) filed publicly by the Parent, the Borrower or any Subsidiary with any securities exchange or the SEC.

Section 8.6. *Inspection*. The Borrower shall, and shall cause each Subsidiary to, permit the Bank and its duly authorized representatives and agents to visit and inspect any of the Properties, corporate books and financial records of the Borrower and each Subsidiary, to examine and make copies of the books of accounts and other financial records of the Borrower and each Subsidiary, and to discuss the affairs, finances and accounts of the Borrower and each Subsidiary with, and to be advised as to the same by, its officers, employees, and independent public accountants (and by this provision the Borrower hereby authorizes such accountants to discuss with the Bank the finances and affairs of the Borrower and of each Subsidiary) during business hours at such reasonable times and reasonable intervals as the Bank may designate; *provided* that, excluding any inspections during the continuation of an Event of Default, the Bank shall provide reasonable prior notice of its exercise of such inspection rights and shall not exercise such inspection rights more often than one time during any calendar year.

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Section 8.7. *Borrowings and Guaranties.* The Borrower shall not, nor shall it permit any Subsidiary to, issue, incur, assume, create, or have outstanding any Indebtedness, or incur liabilities for interest rate, currency, or commodity cap, collar, swap, or similar hedging arrangements, or be or become liable as endorser, guarantor, surety, or otherwise for any debt, obligation, or undertaking of any other Person, or otherwise agree to provide funds for payment of the obligations of another, to supply funds thereto or to invest therein, or to otherwise assure a creditor of another against loss, or apply for or become liable to the issuer of a letter of credit which supports an obligation of another, or subordinate any claim or demand it may have to the claim or demand of any other Person; *provided, however,* that the foregoing shall not restrict nor operate to prevent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Obligations of the Borrower and its Subsidiaries owing to the Bank under the Loan Documents, and any Indebtedness owing by the Borrower to the Bank pursuant to any uncommitted demand line of credit that may be extended by the Bank to the Borrower from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) purchase money indebtedness and Capitalized Lease Obligations of the Borrower and its Subsidiaries in an amount not to exceed $500,000 in the aggregate at any one time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) obligations of the Borrower or any Subsidiaries arising out of interest rate, foreign currency, and commodity hedging agreements entered into with financial institutions in connection with bona fide hedging activities in the ordinary course of business and not for speculative purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) endorsement of items for deposit or collection of commercial paper received in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) financing of securities and other financial instruments held in the normal day to day conduct of the Borrower's or such Subsidiary's business, including but not limited to any margin facility or other margin-related Indebtedness incurred to finance such securities or instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any letters of credit (and related obligations) obtained by Borrower or any Subsidiary and provided to lessors in connection with leases of real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Subordinated Debt of the Borrower so long as (i) no Default or Event of Default has occurred and is continuing or would result from the incurrence thereof, (ii) after giving effect to the incurrence of such Subordinated Debt, the Borrower is in compliance with the financial covenants set forth in Section 8.20 hereof; and (iii) such Indebtedness is unsecured; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) other unsecured Indebtedness of the Borrower in an aggregate amount not to exceed $500,000 at any one time so long as no Default or Event of Default has occurred and is continuing or would occur as a result of the incurrence of such Indebtedness.

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Section 8.8. *Liens.* The Borrower shall not, nor shall it permit any Subsidiary to, create, incur or permit to exist any Lien of any kind on any Property owned by any such Person; *provided, however,* that the foregoing shall not apply to nor operate to prevent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens arising by statute in connection with worker's compensation, unemployment insurance, old age benefits, social security obligations, taxes, assessments, statutory obligations or other similar charges (other than Liens arising under ERISA), good faith cash deposits in connection with tenders, contracts or leases to which the Borrower or any Subsidiary is a party or other cash deposits required to be made in the ordinary course of business, provided in each case that the obligation is not for borrowed money and that the obligation secured is not overdue or, if overdue, is being contested in good faith by appropriate proceedings which prevent enforcement of the matter under contest and adequate reserves have been established therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) mechanics', workmen's, materialmen's, landlords', carriers' or other similar Liens arising in the ordinary course of business with respect to obligations which are not due or which are being contested in good faith by appropriate proceedings which prevent enforcement of the matter under contest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the pledge of assets for the purpose of securing an appeal, stay or discharge in the course of any legal proceeding, provided that the aggregate amount of such judgment liens and attachments and liabilities of the Borrower and its Subsidiaries secured by a pledge of assets permitted under this subsection, including interest and penalties thereon, if any, shall not be in excess of the Threshold Amount at any one time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens on equipment of the Borrower or any Subsidiary created solely for the purpose of securing indebtedness permitted by Section 8.7(b) hereof, representing or incurred to finance the purchase price of such Property, *provided* that no such Lien shall extend to or cover other Property of the Borrower or such Subsidiary other than the respective Property so acquired, and the principal amount of indebtedness secured by any such Lien shall at no time exceed the purchase price of such Property, as reduced by repayments of principal thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any interest or title of a lessor under any operating lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) easements, rights-of-way, restrictions, and other similar encumbrances against real property incurred in the ordinary course of business which, in the aggregate, are not substantial in amount and which do not materially detract from the value of the Property subject thereto or materially interfere with the ordinary conduct of the business of the Borrower and its Subsidiaries taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) required deposits maintained with commodity or securities exchanges or their associated clearing corporations in the ordinary course of the business of the Borrower or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Liens granted in favor of the Bank; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens securing Indebtedness permitted under Section 8.7(e) so long as no such Liens attach to the Collateral.

Section 8.9. *Investments, Acquisitions, Loans and Advances*. The Borrower shall not, nor shall it permit any Subsidiary to, make or retain any investment (whether through the purchase of stock, obligations or otherwise) in or make any loan or advance to, any other Person or acquire substantially as an entirety the Property or business of any other Person, to the extent prohibited by the Borrower's or such Subsidiary's Organizational Documents.

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Section 8.10. *Mergers, Consolidations and Sales.* The Borrower shall not, nor shall it permit any Subsidiary to, be a party to any merger or consolidation, or sell, transfer, lease or otherwise dispose of all or any part of its Property, including any disposition of Property as part of a sale and leaseback transaction, or in any event sell or discount (with or without recourse) any of its notes or accounts receivable; *provided, however,* that this Section shall not apply to nor operate to prevent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sale of securities or other financial instruments in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the sale, transfer, or other disposition of any tangible personal property that, in the reasonable business judgment of the Borrower or its Subsidiary, has become uneconomical, obsolete, or worn out, or which is surplus property or which is no longer necessary for the proper conduct of the Borrower's business and which is disposed of in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the merger of any Person (including any Subsidiary of the Borrower) into the Borrower, *provided* the Borrower is the surviving entity and no Change of Control results from the merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the sale of equipment in connection with a sale and leaseback transaction so long as no Default or Event of Default has occurred and is continuing or would result from such sale and leaseback transaction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the sale of delinquent notes or accounts receivable in the ordinary course of business for purposes of collection only (and not for the purpose of any bulk sale or securitization transaction).

Section 8.11. *Dividends and Certain Other Restricted Payments*. (a) The Borrower shall not, nor shall it permit any Subsidiary to, (i) declare or pay any dividends on or make any other distributions in respect of any class or series of its member's interests or other equity interests or (ii) directly or indirectly purchase, redeem, or otherwise acquire or retire any of its equity interests or any warrants, options or similar instruments to acquire the same; *provided, however,* that the foregoing shall not operate to prevent (A) the making of dividends or distributions by any Wholly-Owned Subsidiary to the Borrower, and (B) the making of any dividends and distributions by the Borrower so long as (1) such distribution or dividend is permitted under all rules and regulations applicable to the Borrower, and (2) both before and after giving effect thereto, no Default or Event of Default shall exist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall not permit any member of the Borrower to withdraw any capital from the Borrower without giving the Bank not less than 10 days prior notice thereof and receiving the Bank's prior approval of such withdrawal; *provided* that no such notice or approval shall be required if at the time of such withdrawal, no Default or Event of Default shall have occurred and be continuing or would result from such withdrawal and the Borrower is in compliance with Section 8.20 hereof.

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Section 8.12. *ERISA.* The Borrower shall, and shall cause each Subsidiary to, promptly pay and discharge all obligations and liabilities arising under ERISA of a character which if unpaid or unperformed could reasonably be expected to result in the imposition of a Lien against any of its Property. The Borrower shall, and shall cause each Subsidiary to, promptly notify the Bank of: (a) the occurrence of any reportable event (as defined in ERISA) with respect to a Plan, (b) receipt of any notice from the PBGC of its intention to seek termination of any Plan or appointment of a trustee therefor, (c) its intention to terminate or withdraw from any Plan, and (d) the occurrence of any event with respect to any Plan which would result in the incurrence by the Borrower or any Subsidiary of any material liability, fine or penalty, or any material increase in the contingent liability of the Borrower or any Subsidiary with respect to any post-retirement Welfare Plan benefit.

Section 8.13. *Compliance with Laws; Compliance with Anti-Corruption Loans, Anti-Money Laws and Sanctions.* (a) The Borrower shall, and shall cause each Subsidiary to, comply in all material respects with the requirements of all federal, state, and local laws, rules, regulations, ordinances and orders applicable to or pertaining to its Property or business operations, where any such non-compliance, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect or result in a Lien upon any Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall at all times comply with the requirements of all Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions applicable to Borrower and shall cause each the Parent and each of their respective Subsidiaries to comply with the requirements of all Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions applicable to such Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall provide Bank any information regarding Borrower, the Parent, and each of their respective owners, Affiliates, and Subsidiaries necessary for Bank to comply with all applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions; subject however, in the case of Affiliates, to Borrower's ability to provide information applicable to them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower will maintain in effect and enforce policies and procedures reasonably designed to ensure compliance by the Parent, the Borrower, their Subsidiaries, and the Parent's, the Borrower's and their Subsidiaries' respective directors, officers, employees and agents with applicable Anti-Corruption Laws, Anti Money-Laundering Laws and Sanctions.

Section 8.14. *Burdensome Contracts With Affiliates.* The Borrower shall not, nor shall it permit any Subsidiary to, enter into any contract, agreement or business arrangement with any of its Affiliates on terms and conditions which are less favorable to the Borrower or such Subsidiary than would be usual and customary in similar contracts, agreements or business arrangements between Persons not affiliated with each other.

Section 8.15. *No Changes in Fiscal Year.* The fiscal year of the Borrower and its Subsidiaries ends on December 31 of each year; and the Borrower shall not, nor shall it permit any Subsidiary to, change its fiscal year from its present basis.

Section 8.16. *Formation of Subsidiaries.* Promptly upon the formation or acquisition of any Subsidiary, the Borrower shall provide the Bank notice thereof.

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Section 8.17. *Change in the Nature of Business.* The Borrower shall not, nor shall it permit any Subsidiary to, engage in any business or activity if as a result the general nature of the business of the Borrower or any Subsidiary would be changed in any material respect from the general nature of the business engaged in by it as of the date the conditions set forth in Section 7.2 hereof have been satisfied or waived by the Bank in accordance with this Agreement, and any Subsidiary acquired or formed after the date hereof shall be in the same or similar line of business as the Borrower is engaged in as of the date hereof.

Section 8.18. *Use of Proceeds*. The Borrower shall use the credit extended under this Agreement solely for the purposes set forth in, or otherwise permitted by, Section 6.4 hereof. <u>None of the proceeds from the Loans shall be used to make any Adequate Assurance Deposit</u>. The Borrower will not request any Loan, and the Borrower shall not use, and shall ensure that its Subsidiaries and Affiliates, and its or their respective directors, officers, employees and agents not use, the proceeds of any Loan, directly or indirectly, (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) to fund, finance or facilitate any activities, business or transaction of or with any Sanctioned Person or in any Designated Jurisdiction, or (iii) in any other manner that would result in the violation of any Sanctions applicable to any party hereto.

Section 8.19. *No Restrictions*. Except as provided herein or in any other agreement between the Borrower and the Bank, the Borrower shall not, nor shall it permit any Subsidiary to, directly or indirectly create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the ability of the Borrower or any Subsidiary to: (a) pay dividends or make any other distribution on any Subsidiary's capital stock or other equity interests owned by the Borrower or any other Subsidiary, (b) pay any indebtedness owed to the Borrower or any other Subsidiary, (c) make loans or advances to the Borrower or any other Subsidiary, (d) transfer any of its Property to the Borrower or any other Subsidiary, or (e) guarantee the Obligations, and/or grant Liens on its assets to the Bank as required by the Loan Documents.

Section 8.20. *Financial Covenants.* (a) *Minimum Tangible Net Worth.* The Borrower shall, at all times, maintain its Tangible Net Worth of not less than $<u>50,000,000</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Minimum Excess Net Capital*. The Borrower shall, at all times, maintain Net Capital of not less than <u>$25,000,000</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Total Assets to Total Equity Ratio.* The Borrower shall not, at any time, permit the Total Assets to Total Equity Ratio to exceed 13.0 to 1.0.

Section 8.21. *Maintenance of Accounts.* The Borrower agrees that it shall maintain all of its clearinghouse settlement accounts at Bank or its Affiliates.

Section 8.22. *Maintenance of Subsidiaries.* The Borrower shall not assign, sell or transfer, nor shall it permit any Subsidiary to issue, assign, sell or transfer, any shares of capital stock of a Subsidiary; *provided, however,* that the foregoing shall not operate to prevent (a) the issuance, sale and transfer to any person of any shares of capital stock of a Subsidiary solely for the purpose of qualifying, and to the extent legally necessary to qualify, such person as a director of such Subsidiary, or (b) any transaction permitted by Section 8.10(c) hereof.

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Section 8.23. *Settlement Account*. The Borrower shall at all times maintain the Settlement Account with the Bank and the Bank shall at all times be designated with DTC and NSCC as the settlement bank. The Borrower shall promptly remit all assets of the Borrower's customers from the Settlement Account into another account not subject to the Bank's Lien granted hereunder.

SECTION 9. EVENTS OF DEFAULT AND REMEDIES.

Section 9.1. *Events of Default*. Any one or more of the following shall constitute an "*Event of Default*" hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) default in the payment when due of all or any part of the principal of any Loan (whether at the stated maturity thereof or at any other time provided for in this Agreement) or the principal of any other Indebtedness for borrowed money of the Borrower owing to the Bank, or (ii) default for a period of three (3) Business Days in the payment when due of any interest, fee or other Obligation payable hereunder or under any other Loan Document, or under any other indebtedness or obligation (whether direct, contingent or otherwise) of the Borrower owing to the Bank; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) default in the observance or performance of any covenant set forth in Section 8.5, 8.7, 8.8, 8.9, 8.10, 8.11, 8.14, 8.15, 8.16, 8.17, 8.18, 8.19, 8.20, 8.21, 8.22<u>, or 8.23</u> hereof; or of any provision hereunder or under any other Loan Document dealing with the use or remittance of proceeds of Collateral; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) default in the observance or performance of any other provision hereof or of any other Loan Document which is not remedied within 30 days after the earlier of (i) the date on which such failure shall first become known to any officer of the Borrower or (ii) written notice thereof is given to the Borrower by the Bank; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any representation or warranty made by the Parent, the Borrower or any Subsidiary herein or in any other Loan Document, or in any statement or certificate furnished to Bank pursuant hereto or thereto, or in connection with any extension of credit made hereunder, proves untrue in any material respect as of the date of the issuance or making thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (i) any event occurs or condition exists (other than those described in subsections (a) through (d) above) which is specified as an event of default under any of the other Loan Documents, or any of the Loan Documents shall for any reason not be or shall cease to be in full force and effect, or any of the Loan Documents is declared to be null and void, or (ii) the Parent or any Subsidiary takes any action for the purpose of terminating repudiating or rescinding any Loan Document executed by it or any of its obligations thereunder, or (iii) any Loan Documents shall for any reason fail to create a valid and perfected first priority Lien in favor of the Bank in any Collateral purported to be covered thereby except as expressly permitted by the terms thereof, or (iv) the Borrower makes any payment on account of any Subordinated Debt which is prohibited under the terms of any instrument subordinating such Subordinated Debt to any Obligations owed to the Bank, or any subordination provision in any document or instrument

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(including, without limitation, any intercreditor or subordination agreement) relating to any Subordinated Debt shall cease to be in full force and effect, or any Person (including the holder of any Subordinated Debt) shall contest in any manner the validity, binding nature or enforceability of any such provision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) default shall occur under any Indebtedness issued, assumed or guaranteed by the Borrower or any Subsidiary aggregating more than the Threshold Amount, or under any indenture, agreement or other instrument under which the same may be issued, and such default shall continue for a period of time sufficient to permit the acceleration of the maturity of any such Indebtedness (whether or not such maturity is in fact accelerated), or any such Indebtedness shall not be paid when due (whether by lapse of time, acceleration or otherwise); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any judgment or judgments, writ or writs, or warrant or warrants of attachment, or any similar process or processes in an aggregate amount in excess of the Threshold Amount (except to the extent fully covered by insurance as to which the insurer has acknowledged coverage) shall be entered or filed against the Parent, the Borrower or any Subsidiary or against any of their Property and which remains unvacated, unbonded, unstayed or unsatisfied for a period of 30 days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Parent or the Borrower or any member of its Controlled Group shall fail to pay when due an amount or amounts aggregating in excess the Threshold Amount which it shall have become liable to pay to the PBGC or to a Plan under Title IV of ERISA; or notice of intent to terminate a Plan or Plans having aggregate Unfunded Vested Liabilities in excess of the Threshold Amount (collectively, a "*Material Plan*") shall be filed under Title IV of ERISA by the Parent, the Borrower or any other member of its Controlled Group, any plan administrator or any combination of the foregoing; or the PBGC shall institute proceedings under Title IV of ERISA to terminate or to cause a trustee to be appointed to administer any Material Plan or a proceeding shall be instituted by a fiduciary of any Material Plan against the Parent, the Borrower or any member of its Controlled Group to enforce Section 515 or 4219(c)(5) of ERISA and such proceeding shall not have been dismissed within 30 days thereafter; or a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any Material Plan must be terminated; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) dissolution or termination of the existence of the Borrower or any Subsidiary (except as permitted by Section 8.10(c) hereof), or any Change of Control shall occur; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Parent, the Borrower or any Subsidiary shall (i) have entered involuntarily against it an order for relief under the United States Bankruptcy Code, as amended, (ii) not pay, or admit in writing its inability to pay, its debts generally as they become due, (iii) make an assignment for the benefit of creditors, (iv) apply for, seek, consent to, or acquiesce in, the appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial part of its Property, (v) institute any proceeding seeking to have entered against it an order for relief under the United States Bankruptcy Code, as amended, to adjudicate it insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors or fail to file an answer or other pleading denying the material allegations of any such proceeding filed against it, (vi) take any action in furtherance of any matter described in parts (i) through (v) above, or (vii) fail to contest in good faith any appointment or proceeding described in Section 9.1(k) hereof; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) a custodian, receiver, trustee, examiner, liquidator or similar official shall be appointed for the Parent, the Borrower or any Subsidiary or any substantial part of any of their Property, or a proceeding described in Section 9.1(j)(v) shall be instituted against the Borrower or any Subsidiary and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of 60 days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the SIPC shall have applied or shall have announced its intention to apply for a decree adjudicating that customers of the Borrower are in need of protection under SIPA; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the Borrower shall fail to comply with the capital requirements of the SEC for a period of more than five (5) Business Days.

Section 9.2. *Non-Bankruptcy Defaults*. When any Event of Default (other than those described in subsection (j) or (k) of Section 9.1 with respect to the Borrower) has occurred and is continuing, the Bank may, by written notice to the Borrower, take one or more of the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) terminate the obligation of the Bank to extend any further credit hereunder on the date (which may be the date thereof) stated in such notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) declare the principal of and the accrued interest on the Note to be forthwith due and payable and thereupon the Note, including both principal and interest and all fees, charges and other Obligations payable hereunder and under the other Loan Documents, shall be and become immediately due and payable without further demand, presentment, protest or notice of any kind; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) enforce any and all rights and remedies available to it under the Loan Documents or applicable law.

Section 9.3. *Bankruptcy Defaults.* When any Event of Default described in subsection (j) or (k) of Section 9.1 with respect to the Borrower has occurred and is continuing, then the Note, including both principal and interest, and all fees, charges and other Obligations payable hereunder and under the other Loan Documents, shall immediately become due and payable without presentment, demand, protest or notice of any kind, and the obligation of the Bank to extend further credit pursuant to any of the terms hereof shall immediately terminate. In addition, the Bank may exercise any and all remedies available to it under the Loan Documents or applicable law.

SECTION 10. MISCELLANEOUS.

Section 10.1. *Non-Business Days.* If any payment hereunder becomes due and payable on a day which is not a Business Day, the due date of such payment shall be extended to the next succeeding Business Day on which date such payment shall be due and payable. In the case of any payment of principal falling due on a day which is not a Business Day, interest on such principal amount shall continue to accrue during such extension at the rate per annum then in effect, which accrued amount shall be due and payable on the next scheduled date for the payment of interest.

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Section 10.2. *No Waiver, Cumulative Remedies.* No delay or failure on the part of the Bank or on the part of the holder of the Obligations in the exercise of any power or right shall operate as a waiver thereof or as an acquiescence in any default, nor shall any single or partial exercise of any power or right preclude any other or further exercise thereof or the exercise of any other power or right. The rights and remedies hereunder of the Bank and of the holder of the Obligations are cumulative to, and not exclusive of, any rights or remedies which any of them would otherwise have.

Section 10.3. *Amendments*, Etc*.* No amendment, modification, termination or waiver of any provision of this Agreement or of any other Loan Document, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Borrower and the Bank. No notice to or demand on the Borrower in any case shall entitle the Borrower to any other or further notice or demand in similar or other circumstances.

Section 10.4. *Costs and Expenses; Indemnification.* The Borrower agrees to pay on demand the reasonable and documented costs and out-of-pocket expenses of the Bank in connection with the negotiation, preparation, execution and delivery of this Agreement, the other Loan Documents and the other instruments and documents to be delivered hereunder or thereunder, and in connection with the recording or filing of any of the foregoing, and in connection with the transactions contemplated hereby or thereby, and in connection with any consents hereunder or waivers or amendments hereto or thereto, including the reasonable fees and expenses of counsel for the Bank with respect to all of the foregoing (whether or not the transactions contemplated hereby are consummated). The Borrower further agrees to pay to the Bank or any other holder of the Obligations all reasonable and documented out-of-pocket costs and expenses (including court costs and reasonable attorneys' fees), if any, incurred or paid by the Bank or any other holder of the Obligations in connection with any Default or Event of Default or in connection with the enforcement of this Agreement or any of the other Loan Documents or any other instrument or document delivered hereunder or thereunder (including, without limitation, all such reasonable and documented out-of-pocket costs and expenses incurred in connection with any proceeding under the United States Bankruptcy Code involving the Borrower or any guarantor). The Borrower further agrees to indemnify the Bank, and any security trustee, and their respective directors, officers and employees, against all losses, claims, damages, penalties, judgments, liabilities and expenses (including, without limitation, all expenses of litigation or preparation therefor, whether or not the indemnified Person is a party thereto) which any of them may pay or incur arising out of or relating to any Loan Document or any of the transactions contemplated thereby or the direct or indirect application or proposed application of the proceeds of any extension of credit made available hereunder, other than those which arise from the bad faith, gross negligence or willful misconduct of the party claiming indemnification as determined by a court of competent jurisdiction by a final and nonappealable judgment. The Borrower, upon demand by the Bank at any time, shall reimburse the Bank for any legal or other reasonable and documented out-of-pocket expenses incurred in connection with investigating or defending against any of the foregoing except if the same is directly due to the bad faith, gross negligence or willful misconduct of the party to be indemnified as determined by a court of competent jurisdiction by a final and nonappealable judgment. The obligations of the Borrower under this Section shall survive the termination of this Agreement.

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Section 10.5. *Documentary Taxes.* The Borrower agrees to pay on demand any documentary, stamp or similar taxes payable in respect of this Agreement or any other Loan Document, including interest and penalties, in the event any such taxes are assessed, irrespective of when such assessment is made and whether or not any credit is then in use or available hereunder.

Section 10.6. *Survival of Representations.* All representations and warranties made herein or in any of the other Loan Documents or in certificates given pursuant hereto or thereto shall survive the execution and delivery of this Agreement and the other Loan Documents, and shall continue in full force and effect with respect to the date as of which they were made as long as any credit is in use or available hereunder.

Section 10.7. *Survival of Indemnities*. All indemnities and other provisions relative to reimbursement to the Bank of amounts sufficient to protect the yield of the Bank with respect to the Loans, including, but not limited to, Sections 2.7 and 2.9 hereof, shall survive the termination of this Agreement and the payment of the Note.

Section 10.8. *Notices.* Except as otherwise specified herein, all notices hereunder and under the other Loan Documents shall be in writing (including, without limitation, notice by telecopy) and shall be given to the relevant party at its address or telecopier number set forth below, or such other address or telecopier number as such party may hereafter specify by notice to the other given by courier, by United States certified or registered mail, by telecopy or by other telecommunication device capable of creating a written record of such notice and its receipt. Notices under the Loan Documents hereunder shall be addressed:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to the Borrower: | to the Bank: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Clear Street LLC<br> 55 Broadway, Suite 2102<br> New York, NY 10006<br> Attention: Chris Pento<br> Telephone: (646) 738-4068<br> Email: [ ] | BMO Harris Bank N.A.<br> 111 West Monroe Street<br> Chicago, Illinois 60603<br> Attention: Futures and Securities<br> Telephone: (312) 461-2491<br> Telecopy: (312) 765-8201 |

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Each such notice, request or other communication shall be effective (i) if given by telecopier, when such telecopy is transmitted to the telecopier number specified in this Section and a confirmation of such telecopy has been received by the sender, (ii) if given by mail, five (5) days after such communication is deposited in the mail, certified or registered with return receipt requested, addressed as aforesaid or (iii) if given by any other means, when delivered at the addresses specified in this Section; provided that any notice given pursuant to Section 1 or Section 2 hereof shall be effective only upon receipt.

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Section 10.9. *Construction.* The provisions of this Agreement relating to Subsidiaries shall only apply during such times as the Borrower has one or more Subsidiaries and references herein to "consolidated" shall be deemed to refer to "unconsolidated" when Borrower has no Subsidiaries. NOTHING CONTAINED HEREIN SHALL BE DEEMED OR CONSTRUED TO PERMIT ANY ACT OR OMISSION WHICH IS PROHIBITED BY THE TERMS OF ANY OF THE OTHER LOAN DOCUMENTS, THE COVENANTS AND AGREEMENTS CONTAINED HEREIN BEING IN ADDITION TO AND NOT IN SUBSTITUTION FOR THE COVENANTS AND AGREEMENTS CONTAINED IN THE OTHER LOAN DOCUMENTS.

Section 10.10. *Headings.* Section headings used in this Agreement are for convenience of reference only and are not a part of this Agreement for any other purpose.

Section 10.11. *Severability of Provisions.* Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

Section 10.12. *Counterparts*. This Agreement may be executed in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall constitute one and the same agreement. Any of the parties hereto may execute this Agreement by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be an original. Delivery of a counterpart hereof by facsimile transmission or by e-mail transmission of an Adobe portable document format file (also known as a "PDF" file) shall be effective as delivery of a manually executed counterpart hereof.

Section 10.13. *Binding Nature, Governing Law, Etc.* (a) This Agreement shall be binding upon the Borrower and its successors and assigns, and shall inure to the benefit of the Bank and the benefit of its successors and assigns, including any subsequent holder of the Obligations. The Borrower may not assign its rights hereunder without the written consent of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Bank shall have the right at any time to assign to another commercial bank or other financial institution this Agreement and other the Loan Documents, its Commitment and all Loans owing to it (in whole but not in part) with the prior written consent of the Borrower (which consent shall not be unreasonably withheld, conditioned or delayed); *provided*, that no such consent shall be required (i) during the continuance of a Default or an Event of Default, (ii) for assignments to an Affiliate of the Bank, or (iii) in the event that the Borrower has not provided its consent or rejection to such assignment within 10 days after the Bank makes a request for the Borrower's consent to such assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything herein to the contrary, the Bank may at any time pledge or grant a security interest in all or any portion of its rights under this Agreement to secure its obligations, including any such pledge or grant to a Federal Reserve Bank, and this Section shall not apply to any such pledge or grant of a security interest; *provided* that no such pledge or grant of a security interest shall release the Bank from any of its obligations hereunder or substitute any such pledgee or secured party for the Bank as a party hereto; *provided further, however*, the right of any such pledgee or grantee (other than any Federal Reserve Bank) to further transfer all or any portion of the rights pledged or granted to it, whether by means of foreclosure or otherwise, shall be at all times subject to the terms of this Agreement.

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(C) This Agreement constitutes the entire understanding of the parties with respect to the subject matter hereof and any prior agreements, whether written or oral, with respect thereto are superseded hereby. THIS AGREEMENT AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

Section 10.14. *Submission to Jurisdiction; Waiver of Jury Trial*. Each party hereby submits to the exclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York for purposes of all legal proceedings arising out of or relating to this Agreement, the other Loan Documents or the transactions contemplated hereby or thereby. The Borrower irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum. THE BORROWER AND THE BANK HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY.

Section 10.15. *USA Patriot Act*. The Bank hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "*Act*"), it is required to obtain, verify, and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow the Bank to identify the Borrower in accordance with the Act.

Section 10.16. *Confidentiality*. The Bank agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates' directors, officers, employees and agents, including accountants, legal counsel and other advisors to the extent any such Person has a need to know such Information (it being understood that the Persons to whom such disclosure is made will first be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) in connection with the exercise of any remedies hereunder or under any other Loan Document or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (e) subject to an agreement containing provisions substantially the same as those of this Section, to (A) any assignee of or participant in, or any prospective assignee of or participant in, any of its rights or obligations under this Agreement or (B) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower or any Subsidiary and its obligations, (f) with the prior written consent of the Borrower, (g) to the extent such Information (A) becomes publicly available other than as a result of a breach of this Section or (B) becomes available to the Bank on a non-confidential basis from a source other than the Borrower or any Subsidiary or any of their directors, officers, employees or agents, including accountants, legal counsel and other advisors, (h) to rating agencies if requested or required by such agencies in connection with a rating relating to the Loans or the

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Commitment, or (i) to entities which compile and publish information about the syndicated loan market, *provided* that only basic information about the pricing and structure of the transaction evidenced hereby may be disclosed pursuant to this subsection (j). For purposes of this Section, "*Information*" means all information received from the WBI, LP ("*WBI*"), the Parent, the Borrower or any of the Subsidiaries or from any other Person on behalf of the Borrower or any Subsidiary relating to WBI, the Parent, the Borrower or any Subsidiary or any of their respective businesses, other than any such information that is available to the Bank on a non-confidential basis prior to disclosure by the Borrower or any of its Subsidiaries or from any other Person on behalf of the Borrower or any of the Subsidiaries.

[Signature Page to Follow]

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This Credit Agreement is entered into between us for the uses and purposes hereinabove set forth as of the date first above written.

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| | |
|:---|:---|
| "*BORROWER*"<br>CLEAR STREET LLC | "*BORROWER*"<br>CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| "*BANK*"<br>BMO HARRIS BANK N.A. | "*BANK*"<br>BMO HARRIS BANK N.A. |
| By: |  |
|  | Name: |
|  | Title: |

---

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**Exhibit A** 

**Revolving Note** 

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| | |
|:---|:---|
| $<u>25000000</u> | Chicago, Illinois<br>June <u>1</u>, <u>2020</u> |

---

On the Termination Date, for value received, the undersigned, Clear Street LLC, a Delaware limited liability company (the "*Borrower*"), hereby promises to pay to the order of BMO Harris Bank N.A. (the "*Bank*") at its office at 111 West Monroe Street, Chicago, Illinois, the principal sum of (i) <u>Twenty-Five</u> Million and No/100 Dollars ($<u>25,000,000</u>), or (ii) such lesser amount as may at the time of the maturity hereof, whether by acceleration or otherwise, be the aggregate unpaid principal amount of all Loans owing from the Borrower to the Bank under the Revolving Credit provided for in the Credit Agreement hereinafter mentioned.

This Note evidences Loans made and to be made to the Borrower by the Bank under the Revolving Credit provided for under that certain Credit Agreement dated as of June 3, 2019, between the Borrower and the Bank (said Credit Agreement, as the same <u>has been or</u> may be amended, modified or restated from time to time, being referred to herein as the "*Credit Agreement*"), and the Borrower hereby promises to pay interest at the office described above on such Loans evidenced hereby at the rates and at the times and in the manner specified therefor in the Credit Agreement.

This Note is issued by the Borrower under the terms and provisions of the Credit Agreement and is secured by, among other things, the Loan Documents, and this Note and the holder hereof are entitled to all of the benefits and security provided for thereby or referred to therein, to which reference is hereby made for a statement thereof. This Note may be declared to be, or be and become, due prior to its expressed maturity, voluntary prepayments may be made hereon, and certain prepayments are required to be made hereon, all in the events, on the terms and with the effects provided in the Credit Agreement. All capitalized terms used herein without definition shall have the same meanings herein as such terms are defined in the Credit Agreement.

The Borrower hereby promises to pay all reasonable and documented out-of-pocket costs and expenses (including reasonable attorneys' fees) suffered or incurred by the holder hereof in collecting this Note or enforcing any rights in any collateral therefor as required pursuant to Section 10.4 of the Credit Agreement. The Borrower hereby waives presentment for payment and demand. This Note shall be construed in accordance with, and governed by, the internal laws of the State of New York (including Section 5-1401 and Section 5-1402 of the General Obligations law of the State of New York) without regard to principles of conflicts of laws.

<u>This Note is being issued in substitution for and replacement of that certain Revolving Note dated June</u> <u>3, 2019 from the Borrower to the Bank in the original principal amount of $10,000,000.</u>

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| | |
|:---|:---|
| CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

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**Exhibit B** 

**Clear Street LLC** 

**Compliance Certificate** 

To: BMO Harris Bank N.A.

This Compliance Certificate is furnished to BMO Harris Bank N.A. (the "*Bank*") pursuant to that certain Credit Agreement dated as of June 3, 2019, <u>as amended,</u> between Clear Street LLC and the Bank (the "*Credit Agreement*"). Unless otherwise defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in the Credit Agreement.

The Undersigned hereby certifies that:

1 I am the duly elected<u> </u><sup>2</sup> of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I have reviewed the terms of the Credit Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of the Borrower and its Subsidiaries during the accounting period covered by the attached financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or the occurrence of any event which constitutes a Default or Event of Default during or at the end of the accounting period covered by the attached financial statements or as of the date of this Certificate, except as set forth below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The financial statements required by Section 8.5 of the Credit Agreement and being furnished to you concurrently with this certificate are, to the best of my knowledge, true, correct and complete as of the dates and for the periods covered thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Attachment hereto sets forth financial data and computations evidencing the Borrower's compliance with certain covenants of the Credit Agreement, all of which data and computations are, to the best of my knowledge, true, complete and correct and have been made in accordance with the relevant Sections of the Credit Agreement.

Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

<sup>2</sup> Certificate provided by the chief financial officer, chief operating officer of the Borrower, or such other officer of the Borrower satisfactory to the Bank.

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The foregoing certifications, together with the computations set forth in the Attachment hereto and the financial statements delivered with this Certificate in support hereof, are made and delivered this<u> </u>day of<u> </u>, .

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| | |
|:---|:---|
| CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

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**Attachment to Compliance Certificate** 

**Clear Street LLC** 

Compliance Calculations for Credit Agreement

Dated as of June 3, 2019<u>, as amended</u>

Calculations as of<u>_________</u> ,__

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| | | | |
|:---|:---|:---|:---|
| A. | Minimum Tangible Net Worth (Section 8.20(a)) | Minimum Tangible Net Worth (Section 8.20(a)) |  |
|  | 1. | Tangible Net Worth | $________ |
|  | 2. | Line A1 shall not be less than | $50000000 |
|  | 3. | The Borrower is in compliance (circle yes or no) | yes/no |
| B. | <u>Minimum Excess Net Capital (Section 8.20(b))</u> | <u>Minimum Excess Net Capital (Section 8.20(b))</u> |  |
|  | 1. | Excess Net Capital | $________ |
|  | 2. | Line B1 shall not be less than | $25000000 |
|  | 3. | The Borrower is in compliance (circle yes or no) | yes/no |
| C. | <u>Total Assets to Total Equity (Section 8.20(c))</u> | <u>Total Assets to Total Equity (Section 8.20(c))</u> |  |
|  | 1. | Total Assets | $________ |
|  | 2. | Matched repurchased Agreements | $________ |
|  | 3. | Loans consisting of securities | $________ |
|  | 4. | Line C1 minus Line C2 minus Line C3 | $________ |
|  | 5. | Total equity | $________ |
|  | 6. | Ratio of Line C4 to C5 | to |
|  | 7. | Line C6 shall not exceed | 13.0 to 1 |
|  | 8. | The Borrower's in Compliance | yes/no |

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**EXHIBIT C** 

**NOTICE OF BORROWING** 

**CLEAR STREET LLC** 

**FORM OF BORROWING NOTICE** 

____________, ______

BMO Harris Bank N.A

111 West Monroe Street

Chicago, Illinois 60603

Attention: Terri Mikula

Fax: (312) 293-4339

Phone: (312) 461-3524

E-Mail: gfs.fsclients@bmo.com

Re: <u>Request for Loan</u>

Reference is made to the Credit Agreement, <u>as amended</u> (the "*Agreement*") dated as of June 3, 2019, between Clear Street LLC (the "*Borrower*") and BMO Harris Bank N.A. (the "*Bank*"). Terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement.

The Borrower hereby gives you notice pursuant to Section 1.3 of the Agreement that it requests a Loan under the terms of the Agreement, and sets forth below certain terms on which such Loan is requested to be made:

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| | |
|:---|:---|
| (1) | Borrowing Date |
| (2) | Dollar Amount of Loan Requested |
| (3) | Excess Net Capital as of the Borrowing Date |
|  | (cannot be less than $<u>25,000,000</u>) |

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<u>(4)</u> <u>. Number of Zero Loan Days during the current month:</u> <u>.</u>  **<u>[Applicable only for NSCC Margin Loans and number of Zero Loan Days during any calendar month cannot be less than 8]</u>** <u>.</u> 

For new value received the undersigned hereby pledges to the Bank and grants to the Bank a security interest in the securities and other Property listed on the schedule(s) attached hereto as Annex I and made a part hereof and confirms a pledge of and security interest in the same now in effect in favor of the Bank, together with all rights related thereto and all proceeds thereof pursuant to the terms of the Credit Agreement.

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The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed Loan, before and after giving effect thereto and to the application of the proceeds therefrom:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default or Event of Default has occurred and is continuing or would result from such proposed Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the aggregate principal amount of all Loans outstanding (after giving to the Loan requested hereby) does not exceed the lesser of the Commitment and the Borrowing Base<u>; and</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(d) Annex II attached hereto sets forth data and computations evidencing each</u> <u>Borrowing Base, and all of such data and computations are true, correct and complete and have been made in accordance with the relevant sections of the Credit Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(35) The <u>Loan</u> being requested is (select one):

[__] Customer Loan secured by <u>Customer Securities;</u>

<u>[</u>__<u>]</u> <u>Firm Loan secured by</u> Firm Securities<u>;</u>

<u>[__] NSCC Margin Loan</u>

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| | |
|:---|:---|
| VERY TRULY YOURS,<br>CLEAR STREET LLC | VERY TRULY YOURS,<br>CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

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**Annex I** 

**The Collateral** 

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**Annex II** 

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| | | |
|:---|:---|:---|
| **<u>BROKER BORROWING BASE</u>** | **<u>BROKER BORROWING BASE</u>** | |
| <u>(1)</u> | <u>the Market Value of Eligible Federal Government Securities</u> | $— |
| <u>(2)</u> | <u>Line (1)</u> <u>multiplied by 90%</u> | $— |
| <u>(3)</u> | <u>the Market Value of Eligible Bond Securities</u> | $— |
| <u>(4)</u> | <u>Line (3)</u> <u>multiplied by 90%</u> | $— |
| <u>(5)</u> | <u>the Market Value of Eligible Equity Securities</u> | $— |
| <u>(6)</u> | <u>Line (5)</u> <u>multiplied by 80%</u> | $— |
| <u>(7)</u> | <u>Sum of Line (2), (4) and (6)</u> | $— |
| <u>(8)</u> | <u>Commitment</u> | $<u>25000000</u> |
| <u>(9)</u> | <u>Lesser of Line (7)</u> <u>and Line (8)</u> | $— |
| <u>(10)</u> | <u>Outstanding Loans</u> | $— |
| <u>(11)</u> | <u>Availability (Line (10)</u> <u>minus Line (9))</u> | $— |
| **<u>NSCC</u> <u>MARGIN BORROWING BASE</u>** | **<u>NSCC</u> <u>MARGIN BORROWING BASE</u>** |  |
| <u>(a)</u> | <u>Previous month 10th lowest NSCC Margin Deposits</u> | $— |
| <u>(b)</u> | <u>Current Eligible NSCC Margin Deposits</u> | $— |
| <u>(c)</u> | <u>Line (9)</u> <u>minus Line (8)</u> | $— |
| <u>(d)</u> | <u>Line (c)</u> <u>multiplied by 80% (to the extent positive)</u> | $— |
| <u>(e)</u> | <u>Lesser of Line (d)</u> <u>and $15,000,000</u> | $— |
| <u>(f)</u> | <u>Commitment</u> | $<u>25000000</u> |
| <u>(g)</u> | <u>Lesser of Line (e)</u> <u>and Line (f)</u> | $— |
| <u>(h)</u> | <u>Outstanding Loans</u> | $— |
| <u>(i)</u> | <u>Availability (Line (g)</u> <u>minus Line (h))</u> | $— |

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**<u>EXHIBIT</u> <u>D</u>** 

**<u>CERTIFICATE RE: ELIGIBLE</u> <u>NSCC</u> <u>MARGIN DEPOSITS</u>**

<u>To:</u> <u>BMO Harris Bank N.A.</u>

<u>Reference is made to the Credit Agreement dated as of June</u> <u>3, 2019, as amended (the</u> <u>"</u>*<u>Agreement</u>*<u>"</u><u>) between Clear Street LLC (the</u> <u>"</u>*<u>Borrower</u>*<u>"</u><u>) and BMO Harris Bank N.A. (the</u> <u>"</u>*<u>Bank</u>*<u>"</u><u>). Terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement.. The undersigned hereby certifies that the Eligible NSCC Margin Deposits in effect for each Business Day in the most recently ended calendar month were as described on the schedule attached hereto.</u>

<u>Unless otherwise defined herein, the terms used in this Certificate have the meanings ascribed thereto in the Credit Agreement.</u>

<u>IN WITNESS WHEREOF,</u> <u>the undersigned has hereunto set my name as of the date set forth</u> <u>below.</u>

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| | |
|:---|:---|
| <u>VERY TRULY YOURS,</u><br><u>CLEAR STREET LLC</u> | <u>VERY TRULY YOURS,</u><br><u>CLEAR STREET LLC</u> |
| <u>By:</u> |  |
|  | <u>Name:</u> |
|  | <u>its:</u> |

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<u>Date:</u> <u>, 201___</u>

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**<u>SCHEDULE</u>**

**<u>ELIGIBLE</u> <u>NSCC</u> <u>MARGIN DEPOSITS</u>** 

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| | |
|:---|:---|
| <u>Date of Business Day</u> | <u>Eligible NSCC Margin Deposits</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  | <u>$</u> |
|  <u>10th Lowest Eligible NSCC Margin Deposits during the calendar month</u> | <u>$</u> |

---

------

**Schedule 6.2** 

**Subsidiaries** 

None.

------

EXHIBIT B

THIRD AMENDED AND RESTATED LIMITED LIABILITY COMPANY

OF CLEAR STREET LLC

------

**THIRD AMENDED AND RESTATED LIMITED LIABILITY COMPANY** 

**OPERATING AGREEMENT OF** 

**CLEAR STREET LLC** 

This Third Amended and Restated Limited Liability Company Operating Agreement (the "**Agreement**") of Clear Street LLC, a Delaware limited liability company (the "**Company**") is entered into as of September 12, 2019 by and between the Company and the members listed on the signature pages hereto (the "**Members**").

**RECITALS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Company was organized on December 20, 2016 under the name of Globecs LLC and filed a certificate of
amendment with the State of Delaware amending the Company's name to Clear Street LLC on November 7, 2018.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Company entered into that certain Operating Agreement of the Company dated December 27, 2016, as
amended and restated on August 31, 2017 and on April 2, 2019.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The parties hereto wish to amend and restate the Company's operating agreement in its entirety as set
forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. This Agreement constitutes a limited liability company agreement, as defined in 6 Del. Code §18-101(7), and is entered into for the purpose of providing for the operation and management of the business of the Company and the other matters hereinafter provided.

**NOW, THEREFORE,** in consideration of the foregoing and the agreements and undertakings contained in this Agreement, the parties agree as follows:

1. **Definitions.** In addition to the abbreviations and terms otherwise defined in the text of this Agreement,
the capitalized terms used herein shall be defined as provided below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. "Act" means the Delaware Limited Liability Company Act, 6 Del. Code §18-101 et seq., as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. "Agreement" means this Third Amended and Restated Limited Liability Company Operating Agreement,
and all amendments and modifications hereto, including any schedules, exhibits, amendments or supplements to this Limited Liability Company Operating Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. "Approved Company Sale" shall have the meaning ascribed to such term in Section 9.2 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. "Board of Managers" shall have the meaning ascribed to such term in Section 7.1.1 below.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. "Book Basis" means, with respect to any asset, the asset's adjusted basis for federal income
tax purposes, except as follows: (i) the initial Book Basis of any asset contributed (or deemed contributed) to the Company shall be such asset's gross fair market value at the time of such contribution as reasonably determined by the
CEO; (ii) the Book Basis of all Company assets may be adjusted in the discretion of the CEO to equal their respective gross fair market values, as reasonably determined by the CEO, at the times specified in Treasury Regulations Section 1.704-1(b)(2)(iv)(f); (iii) any adjustments to the adjusted basis of any asset of the Company pursuant to Section 734 or Section 743 of the Code shall be taken into account in determining such
asset's Book Basis in a manner consistent with Treasury Regulations Section 1.704- 1(b)(2)(iv)(m); (iv) the Book Basis of any Company asset distributed or deemed distributed by the Company to any
Member shall be adjusted immediately prior to such distribution to equal its gross fair market value as of the date of distribution, as reasonably determined by the CEO; and (v) if the Book Basis of an asset has been determined pursuant to
clause (i), (ii) or (iii) of this definition, such Book Basis shall thereafter be adjusted in the same manner as would the asset's adjusted basis for federal income tax purposes, except that depreciation deductions shall be computed based
on the asset's Book Basis as so determined, rather than on its adjusted tax basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. "CEO" means the Chief Executive Officer of the Company, as appointed by the Board of Managers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7. "Certificate of Formation" means the initial Certificate of Formation of the Company filed with the
Delaware Secretary of State, as the same may be further amended or restated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8. "Clear Street Holdings" shall mean Clear Street Holdings LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9. "Covered Person" shall have the meaning ascribed to such term in Section 12.4 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10. "Member" means each person admitted as a Member of the Company and as reflected in the records of
the Company who has signed this Agreement as permitted by the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11. "Membership Interest" shall mean a Member's entire ownership interest in the Company,
including any and all benefits to which such Member may be entitled as provided in this Agreement, any Side Letter and the Act, together with all duties and obligations of such Member to comply with the terms and provisions of this Agreement, any
Side Letter and the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12. "Profits" and "Losses" means, for any period, the Company's taxable income or
loss determined in accordance with Code Section 703(a), with the following adjustments: (a) all items of income, gain, loss, deduction, or credit required to be stated separately pursuant to Code Section 703(a)(1) shall be included in
computing taxable income or loss; (b) any tax-exempt income of the Company, not otherwise

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taken into account in computing Profits or Losses, shall be included in computing taxable income or loss; (c) any expenditures of the Company described in Code Section 705(a)(2)(B) (or treated as such pursuant to Regulation Section 1.704- 1(b)(2)(iv)(i)) and not otherwise taken into account in computing Profits or Losses, shall be subtracted from taxable income or loss; (d) gain or loss resulting from any taxable disposition of Company property shall be computed by reference to the book value as adjusted under Regulation Section 1.704-1(b) ("Adjusted Book Value") of the property disposed of, notwithstanding the fact that the Adjusted Book Value differs from the adjusted basis of the property for federal income tax purposes; (e) in lieu of the depreciation, amortization, or cost recovery deductions allowable in computing taxable income or loss, there shall be taken into account the depreciation, amortization or cost recovery computed based upon the Adjusted Book Value of the asset; and (f) notwithstanding any other provision of this definition, any items which are specially allocated pursuant to this Agreement shall not be taken into account in computing Profits or Losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13. "Unit" or "Units shall have the meaning ascribed to such term in Section 12.44.3 below

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14. "Side Letter" shall have the meaning ascribed to such term in Section 12.4 below.

2. **Organization.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Name.</u> The name of the Company is Clear Street LLC. The business of the Company may be conducted under
any other name or names that the CEO deems advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. <u>Formation.</u> The Company was formed on December 20, 2016. The rights, powers, duties and liabilities
of the Board of Managers, the Company's officers and the Members shall be as provided in the Act, except as provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. <u>Registered Office; Registering Agent.</u> The address of the registered office of the Company is 874 Walker
Road, Suite C, Dover, Delaware 19904. The name of the Company's registered agent is United Corporate Services, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. <u>Term.</u> The Company shall have perpetual existence, unless dissolved in accordance with the provisions of
this Agreement. The existence of the Company shall continue until the cancellation of the Certificate of Formation of the Company in the manner required by the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. <u>FinancialAccounts.</u> All funds of the Company shall be deposited in one or more accounts with one or more
recognized financial institutions in the name of the Company, at such locations as shall be determined by the CEO.

3. **Purpose and Powers.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Purpose.</u> The Company may engage in any lawful business, purpose or activity for which a limited
liability company may be organized, as set forth in §18-106 of the Act, including, without limiting the foregoing, all activities permitted pursuant to the rules and regulations of all exchanges and SROs
of which it is a member.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Powers.</u> The Company shall have the powers set forth in this Agreement and the Act, including §18-106(b) of the Act, which powers shall include, in all events, the power to borrow money, to use leverage for trading, to invest in other derivatives, to acquire, sell, mortgage, convey, pledge or lease
property or assets owned by the Company, to purchase, receive, lease or otherwise acquire, own, hold, improve, use and otherwise deal with property and assets, to make contracts, appoint agents and attorneys-in-fact, create corporations or other entities owned by the Company, and to undertake any and all other lawful activities as may be required to carry on the business permitted hereunder or under the
Act.

4. **Members.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Members; Admission of Members.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1. The names and addresses of the Members shall be set forth on <u>Schedule A</u>, as the same may be amended from
time to time at the approval of the majority of the Board of Managers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.2. Subject to any restrictions or other applicable procedures detailed herein, the admission of any Member to the
Company shall be subject to the prior approval of the majority of the Board of Managers. In connection with any such admission, Schedule A shall be amended by the CEO to reflect the inclusion of the additional Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>Membership Classes.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.1 The Company shall have a Class A Member and Class B Members each with such rights, powers,
preferences, obligations, qualifications, limitations and restrictions as set forth in this Agreement and any Side Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.2 The Board of Managers may create additional membership classes from time to time, each having separate rights,
powers, preferences, obligations, qualifications, limitations and restrictions. Notwithstanding anything in this Agreement to the contrary, any such revision shall not be deemed an amendment to this Agreement, and shall not require any act, vote, or
approval of any other person. References to any one class with respect to any Member shall refer solely to the Member's interest in that class and not to any other class of interests, if any, held by such Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.3 The Members of the Company will not take part in the management of the business of the Company in their
capacity of being Members of the Company, will not have any right to vote on Company matters except as may be required under Delaware law or as detailed herein, and will not transact any business for the Company or have the power to sign for the
Company or to bind the Company to any agreement or document in their capacity of being Members of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.1 The Company shall issue units of equity interests to the Class A and Class B Members representing
their respective equity interests in the Company (the "Units"). The Company shall have 100,000,000 Class A Units and 100,000,000 Class B Units authorized for issuance. The number of authorized Units shall not be changed,
modified or adjusted without the approval of the Board of Managers. Fractional Units may be issued. If the CEO determines that it is in the best interest of the Company to issue certificates representing the Units, certificates shall be issued and
the Units shall be represented by such certificates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.2 Simultaneously with the execution and delivery of this Agreement, each Class A and Class B Member is
issued the respective Units set forth in the Schedule of Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.3 Any authorized but unissued Class B Units may be issued by the CEO provided that such Units are granted
from the pool of reserved Units approved in advance by the Board of Managers (except that each person issued Units must, as a condition to such issuance, have executed this Agreement and a Member Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.4 The issuance of additional Class A Units requires the prior unanimous consent of the Board of Managers of
the Company.

5. **Accounts and Records.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>Records and Accounting</u>. Proper and complete records and books of accounting of the business shall be
maintained by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. <u>Fiscal Year End</u>. The fiscal year end shall be December 31.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. <u>Capital Accounts</u>. A capital account shall be maintained by the Company for each Member. Each
Member's capital account shall consist of its initial capital contribution, 5.3.1.increased by: (i) the amount of any cash contributed by such Member to the capital of the Company, (ii) the Book Basis (as defined in Section 1.5)
of any property contributed by such Member to the capital of the Company (net of liabilities that the Company is considered to assume, or take property subject to, under Section 752 of the Code), (iii) such Member's share of Profits (as
determined in accordance with Section 6), (iv) any gross income and gain allocated to such Member and (v) any other increases required by Treasury Regulation Section 1.704-1(b)(2)(iv), without
duplication;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.1 and decreased by: (i) the amount of all cash distributions to such Member, (ii) the Book Basis of any
property distributed to such Member by the Company (net of liabilities that the Member is considered to assume, or take property subject to, under Section 752 of the Code), (iii) such Member's share of Losses (as determined in accordance
with Section 6), (iv) any gross deductions and loss allocated to such Member pursuant to Section 6 and (v) any other decreases required by Treasury Regulation Section 1.704-1(b)(2)(iv), without duplication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. <u>Capital Account Risk</u>. Each Member understands that his Capital Account is an asset of the Company, and
as such, is subject to the obligations of the Company and third party claims of creditors of the Company. Further notwithstanding any other provisions contained in this Agreement or any Side Letter between the Company and a Member, each Member
acknowledges and agrees that its respective Capital Account shares the capital risk of all other Members of the Company, and therefore is at risk of Company losses, whether or not such losses are attributed to or are the fault of a particular
Member.

5.5. 6. <u>Allocation of profits and losses; Capital Transaction Proceeds; Withdrawal of Funds.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Except as otherwise expressly provided in this Agreement or in any Side Letter, Profits and Losses from
operations shall be allocated among the Members at the time and in the aggregate amounts as determined by the CEO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. Profits and Losses from capital transactions shall be allocated, (i) first, to the Class B Member
until its capital is returned, and (ii) second, subject to this Agreement and any Side Letter, among the members at the time and in the aggregate amounts as determined by the CEO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. <u>Distribution of allocated Profits and Losses.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.1 Each Member shall be entitled to receive distributions from the Company equal to the amount of Profits
allocated to such Member pursuant to Section 6 hereof according to the distribution schedules determined in a Side Letter between the Member and the Company or as otherwise approved by the CEO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.2 For the avoidance of doubt, the CEO may make distributions to any Member(s) at the CEO's sole discretion
aand no Member shall have a right to receive a distribution at any time as a result of another Member receiving a distribution at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. <u>Risk of Loss</u>. Each Member understands and acknowledges that capital contributions to the Company
constitute an investment in a business subject to a high level of risk. Members should only contribute capital if their lifestyle will be unaffected by its loss. As a financial services firm, the Company's business is materially affected by
conditions in the global financial markets and economic conditions throughout the world. Each Member acknowledges the risk to its capital, including principal.

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7. **Board of Managers; Procedures.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. <u>Board of Managers.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.1 The business and affairs of the Company shall be under the direction of the Board of Managers (the
" **Board of Managers**") of Clear Street Holdings. The Board of Managers may appoint committees for such purpose or purposes as it shall determine. Subject to applicable law, each such committee of the Board of Managers shall have
such powers as shall be specified in the resolution of appointment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.2 The Board of Managers shall appoint the CEO to manage and control the day to day business and affairs of the
Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.3 Except as otherwise expressly provided for herein, the Members hereby consent to the exercise by the Board of
Managers of all such powers and rights conferred on it by this Agreement, the Act or otherwise by applicable law. Except as otherwise expressly provided for herein or as required by the Act, no other Member shall have any power to act for, sign for
or do any act that would bind the Company without the authorization of the Board of Managers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. <u>Procedures of the Board of Managers</u>. The procedures in relation to rights, votes and appointment of the
Board of Managers shall be as detailed in the Operating Agreement of Clear Street Holdings, as amended from time to time.

8. **Officers and Employees.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. <u>Officers</u>. The day to day management of the Company shall be vested in the CEO, who shall be appointed
and removed by the Board of Managers. The CEO shall have the authority and power to appoint additional officers to assist in the management of the day to day affairs of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. <u>Officer Powers</u>. The officers of the Company shall have the powers authorized by the Board of Managers in
a written resolution, provided, however, that an officer shall not be authorized, without the consent of the Board of Managers to: (a) admit or remove a person as a Class A Member of the Company; (b) adopt, amend, restate or revoke
any terms of this Agreement; (c) cause the Company to merge or consolidate with or into another limited liability company or other entity, or to enter into any business combination or joint venture or approve any other sale of the Company
(including, without limitation, any sale of all or substantially all of the assets of the Company); or (d) create, incur, assume or otherwise become liable with respect to any obligation for borrowed money (including a guarantee of, or
contingent liability for, the indebtedness or other obligation of any other person or entity), or to issue any bonds, debentures, notes or other evidences of indebtedness; provided however, that the CEO shall be authorized to enter into any margin,
hypothecation, loan, swap arrangement, or similar credit agreement as he deems necessary for the Company's regular conduct of its business.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. <u>Certifications</u>. Any person dealing with the Company or the CEO may rely on a certificate signed by the
CEO: (i) as to the existence or nonexistence of any fact or facts which constitute conditions precedent to acts by the Company or are in any other manner germane to the affairs of the Company; (ii) as to who is authorized to execute and
deliver any instrument or document on behalf of the Company, and as to whether any approval, consent, or other action is necessary under this Agreement and/or as to whether any such action or consent has been obtained; or (iii) as to any other
matter whatsoever involving the Company or the CEO.

9. **Assignment, Sale, & Transfer of Interest.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. <u>Sale, Transfer or Assignment of Interest.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.1 Except as otherwise provided herein, the membership interest held by any Member, shall not be assigned,
conveyed, exchanged, sold, encumbered, pledged or otherwise transferred or disposed of without the prior written consent of the Board of Managers, delivered to the CEO writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.2 Any assignment, sale, exchange, transfer or other disposition in contravention of any of the provisions of this
Section 9 shall be void and ineffective and shall not bind, or be recognized by, the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. <u>Drag Along Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.1. In the event the Board of Managers approves a sale of the Company to any party ()"**Approved Company Sale** "), then each Member shall take all actions as requested by the CEO to approve the consummation of the sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.2. Each Member shall take all necessary or desirable actions in connection with the consummation of the Approved
Company Sale as requested by the CEO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. <u>Admission of Substituted Members; Death or Incapacity; Further Conditions</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.1. No assignment or transfer of all or any part of the interest of a Member permitted to be made under this
Agreement shall be binding upon the Company unless and until a duplicate original of such assignment or instrument of transfer, duly executed and acknowledged by the assignor and the transferee, has been delivered to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.2. As a condition to the admission of any substituted Member, as provided in this Article, the person so to be
admitted shall execute and acknowledge such instruments, in form and substance reasonably satisfactory to the CEO, as the CEO may deem necessary or desirable to effectuate such admission and to confirm the agreement of the person to be admitted as
such Member to be bound by all of the covenants, terms and conditions of this Agreement, as the same may have been amended.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.3. In the event of the death, dissolution, adjudication of incompetency, or bankruptcy of a Member, the legal
representative of such Member, or the successor in interest of such Member, shall succeed only to the right of such Member to receive allocations and distributions previously accrued hereunder, and may be admitted to the Company as a Member in the
place and stead of the deceased, dissolved, incompetent, or bankrupt Member in accordance with this Section 9 upon the consent of the CEO, which consent may be withheld or delayed for any reason, but shall not be deemed to be a substituted
Member unless so admitted. In addition, upon the bankruptcy of a Member, the Class A Member shall be entitled, upon notice to the bankrupt Member given within twenty (20) business days of notice of such bankruptcy, to purchase the interest
of the bankrupt Member for an amount equal to the fair market value of such interest (taking into account minority discounts, control premiums and other factors impacting the value of such interest), which fair market value shall be payable in ten
equal annual installments with interest thereon at the "applicable federal rate" as determined pursuant to Code section 1274(d). The closing of such purchase shall take place no later than one hundred twenty (120) days following
notice to the bankrupt Member as aforesaid.

10. **Exculpation; Indemnification.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. <u>Liability.</u> Except as otherwise provided by the Act, the debts, obligations and liabilities of the
Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and no member, manager, employee, officer, consultant or agent (each a "**Covered Person**") shall be
obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Covered Person. No Covered Person shall be personally liable for the return of all or any part of a Member's capital contribution or
payment of any amounts allocated to such Member or credited to its Capital Account, which return or payment shall be made solely from, and to the extent of, the Company's assets pursuant to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. <u>Indemnification.</u> To the fullest extent permitted by law, the Company will indemnify, defend and hold
harmless each Covered Person from any liability, loss or damage incurred by the Covered Person by reason of any act performed or omitted to be performed by the Covered Person in connection with the business of the Company and from liabilities or
obligations of the Company imposed on such Person by virtue of such Person's position with the Company, including reasonable attorneys' fees and costs and any amounts expended in the settlement of any such claims of liability, loss or
damage; provided, however, that if the liability, loss, damage or claim arises out of the fraud, bad faith or willful misconduct of a Covered Person, then such Covered Person shall indemnify the other Covered Persons for all such liabilities, losses
and damages and shall indemnify the Company for all liabilities, losses and damages incurred by the Company as a result of such fraud, bad faith or willful misconduct.

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11. **Dissolution.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. <u>Dissolution</u>. Notwithstanding any other provision of this Agreement, the Company shall be terminated and
dissolved and its affairs wound up and terminated upon the first to occur of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.1. The determination by the Board of Managers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.2. The sale or distribution of all or substantially all of the assets of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.3. At any time there are no Members of the Company unless the Company is discontinued without dissolution in a
manner permitted by the Act; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.4. Entry of an order of judicial dissolution of the Company pursuant to the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. <u>Liquidation</u>. Upon the dissolution of the Company as herein provided, a full and general accounting shall
be taken of the Company business and the affairs of the Company shall be wound up. Any Profit or Loss occurring since the previous accounting shall be divided and allocated among the Members in accordance with clause 6.3 hereof. Within 30 days of
the occurrence of any of the events set forth in clause 11.1 hereof, the Board of Managers shall wind up and liquidate the Company by selling the Company assets or distributing the Company assets to the Members in-kind after making adequate provision for the payment of all Company debts and liabilities, all expenses and fees incurred in connection with such liquidation. When the Board of Managers fully winds up the
Company affairs and liquidation is completed, the Board of Managers shall cause the cancellation of the Certificate of Formation in the State of Delaware and of all qualifications and registrations of the Company as a foreign limited liability
company in jurisdictions other than the State of Delaware and shall take such other actions as may be necessary to terminate the Company.

12. **Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. <u>Amendments.</u> This Agreement may be amended or restated from time to time by the consent of the Members
holding the majority of the Company's Units and of the Board of Managers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. <u>Governing Law.</u> This Agreement and all rights and remedies hereunder shall be governed and construed
under the laws of the State of Delaware.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3. <u>Arbitration.</u> Any dispute, claim or controversy arising out of or relating to this Agreement or the
breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration in New York, New York before one arbitrator. If the
parties to the dispute, claim or controversy arises out of the Company's securities business activities the dispute shall be submitted for binding arbitration in accordance with the rules of FINRA. All other disputes which do not arise out of
the Company's securities business activities shall be submitted for binding arbitration administered by Judicial Arbitration and Mediation Services (JAMS) pursuant to its Streamlined Arbitration Rules and Procedures. Judgment on the award of
the arbitrator may be entered in any court having jurisdiction. The determination of the arbitrator shall be final and binding and the parties waive their right to appeal the determination of the arbitrator. In addition, the parties waive the right
to jury trial, as well as the right to adjudication in a court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4. <u>Entire Agreement.</u> This Agreement and, in each case with respect to the applicable Member, any Side
Letter between the Company and such applicable Member, constitute the entire agreement and understanding of the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements relating thereto, whether written or oral.
The Company, upon approval of the Board of Managers, may enter into agreements ()"**Side Letters**") with certain Members that vary the terms of this Agreement as applied to such Members. Any terms contained in any Side Letter with a
Member shall govern with respect to such Member notwithstanding the provisions of this Agreement or of any application of the terms hereof. In the event of any conflict between a provision of this Agreement and any provision of the Act not subject
to variation in this Agreement, the provisions of the Act shall govern.

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

------

IN WITNESS WHEREOF, the parties have entered into this Third Amended and Restated Limited Liability Company Operating Agreement of Clear Street LLC effective as of the day and year first written above.

---

| | | |
|:---|:---|:---|
| **COMPANY**: | **COMPANY**: | **COMPANY**: |
| CLEAR STREET LLC | CLEAR STREET LLC | CLEAR STREET LLC |
| By: | /s/ Chris Pento | /s/ Chris Pento |
|  | Name: | Chris Pento |
|  | Title: | CEO |
| Date: | 09/13/2019 | 09/13/2019 |

---

---

| | | |
|:---|:---|:---|
| **CLASS A MEMBER**: | **CLASS A MEMBER**: | **CLASS A MEMBER**: |
| CLEAR STREET HOLDINGS LLC | CLEAR STREET HOLDINGS LLC | CLEAR STREET HOLDINGS LLC |
| By: | /s/ Chris Pento | /s/ Chris Pento |
|  | Name: | Chris Pento |
|  | Title: | CEO |
| Date: | 09/13/2019 | 09/13/2019 |

---

------

**<u>Counterpart Signature Page for Class B Members of the Amended and Restated</u>**

**<u>Limited Liability Company Operating Agreement of Clear Street LLC</u>**

The terms and conditions of that Amended and Restated Limited Liability Company Operating Agreement of Clear Street LLC a Delaware limited liability company, effective as of September 12, 2019, as it may be amended from time to time (the "Operating Agreement") are hereby accepted and agreed to by the undersigned, and the undersigned hereby acknowledges and agrees that it shall be bound as a Class B Member by all such terms and conditions of the Operating Agreement.

---

| | | |
|:---|:---|:---|
| **CLASS B MEMBER:** | **CLASS B MEMBER:** | **CLASS B MEMBER:** |
| CLEAR STREET CAPITAL LLC | CLEAR STREET CAPITAL LLC | CLEAR STREET CAPITAL LLC |
| By: | /s/ Elliot Gulkowitz | /s/ Elliot Gulkowitz |
|  | Name: | Elliot Gulkowitz |
|  | Title: | CEO |
| Date: | 09/17/2019 | 09/17/2019 |

---

---

| | | |
|:---|:---|:---|
| <u>**APPROVED**</u>: | <u>**APPROVED**</u>: | <u>**APPROVED**</u>: |
| Clear Street LLC | Clear Street LLC | Clear Street LLC |
| By: | /s/ Chris Pento | /s/ Chris Pento |
|  | Name: | Chris Pento |
|  | Title: | CEO |
| Date: | 09/13/2019 | 09/13/2019 |

---

------

State of Delaware <br>Secretary of State <br>Division of Corporations <br>Delivered 09:56 AM 07/17/2019 <br>FILED 09:56 AM 07/17/2019<br> SR 20196008338 - File Number 5658340

**<u>SCHEDULE A</u>**

**<u>MEMBERS' NAMES AND ADDRESSES</u>**

Class A Member: Clear Street Holdings LLC

Class B Member: Clear Street Capital LLC

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EXHIBIT C

AMENDMENT TO CLEAR STREET CAPITAL LLC'S

CERTIFICATE OF FORMATION

------

State of Delaware <br>Secretary of State <br>Division of Corporations <br>Delivered 09:56 AM 07/17/2019 <br>FILED 09:56 AM 07/17/2019<br> SR 20196008338 - File Number 5658340

**<u>Delaware</u>**

The First State

***I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF AMENDMENT OF* "*CLEAR STREET CAPITAL HOLDINGS, LLC", CHANGING ITS NAME FROM "CLEAR STREET CAPITAL HOLDINGS, LLC*" *TO* "*CLEAR STREET CAPITAL LLC*"*, FILED IN THIS OFFICE ON THE SEVENTEENTH DAY OF JULY, A.D. 2019, AT 9:56 O'CLOCK A.M.*** 

---

| | | |
|:---|:---|:---|
| 4570123 8100<br> SR# 20196008338 | ![LOGO](g39893dsp311a.jpg) | ![LOGO](g39893dsp311b.jpg) <br> Authentication: 203230870<br> Date: 07-17-19 |
| You may verify this certificate online at corp.delaware.gov/authver.shtml | You may verify this certificate online at corp.delaware.gov/authver.shtml | You may verify this certificate online at corp.delaware.gov/authver.shtml |

---

------

**STATE OF DELAWARE** 

**CERTIFICATE OF AMENDMENT** 

1. Name of Limited Liability Company: Clear Street Capital Holdings, LLC

2. The Certificate of Formation of the limited liability company is hereby amended as follows:

First: The name of the limited liability company is: Clear Street Capital LLC

**IN WITNESS WHEREOF,** the undersigned have executed this Certificate on the 17<sup>th</sup><u> </u>day of July, A.D. 2019.

---

| | |
|:---|:---|
| By: |  |
|  | Authorized Person(s) |
| Name: | Ellion Gulkowit |
|  | Print or Type |

---

------

Execution Version

**SECOND AMENDMENT TO CREDIT AGREEMENT** 

This Second Amendment to Credit Agreement (herein, the *"Amendment"*) is entered into as of December 3, 2021, by and among CLEAR STREET LLC, a Delaware limited liability company (the *"Borrower"*), CLEAR STREET HOLDINGS LLC, a Delaware limited liability company (the *"Guarantor"*), the several financial institutions from time to time party to this Agreement, as Lenders, and BMO HARRIS BANK N.A., as Administrative Agent (the *"Administrative Agent"*).

**PRELIMINARY STATEMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Borrower, the Lenders and the Administrative Agent entered into a certain Credit Agreement, dated as of December 4, 2020, as amended (the *"Credit Agreement"*). All capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Borrower has asked the Lenders to (i) remove Texas Capital Bank N.A., as a Lender, and (ii) make certain amendments to the Credit Agreement, and the Lenders are willing to do so under the terms and conditions set forth in this Amendment.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

SECTION 1. AMENDMENT.

Subject to the satisfaction of the conditions precedent set forth in Section 2 below, the Credit Agreement shall be and hereby is amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. The following defined terms appearing in Section 1.1 of the Credit Agreement shall be amended and restated to read in their entirety as follows:

*"Applicable Interest Rate"* means (i) a rate per annum equal to Overnight Base Rate in effect from time to time plus 1.50% for the Margin Loans, and (ii) a rate per annum equal to Overnight Base Rate in effect from time to time plus 2.50% for the NSCC Loans and Reserve Loans, in each case with any change in the Applicable Interest Rate resulting from a change in the Overnight Base Rate to be effective as of the date of the relevant change in said Overnight Base Rate.

*"Business Day"* means any day (other than a Saturday or Sunday) on which banks are not authorized or required to close in Chicago, Illinois or, with respect to calculating Term SOFR, any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

------

"*Cohen Affiliates*" means collectively (i) Uriel Cohen, (ii) any Family Member of Uriel Cohen, (iii) any trust or estate planning vehicle established for the benefit of Uriel Cohen or his Family Members, (iv) any charitable trust Controlled by any Person in clause (i), (ii) or (iii) above, and (v) any other Person Controlled by one or more of the Persons in clause (i), (ii), (iii) or (iv) above.

"*Commitment"* means, as to any Lender, the obligation of such Lender to make Loans in an aggregate principal at any one time outstanding not to exceed the amount set forth opposite such Lender's name on Schedule 2.1attached hereto and made a part hereof, as the same may be reduced or modified at any time or from time to time pursuant to the terms hereof. The Borrower and the Lenders acknowledge and agree that the aggregate Commitments of the Lenders is $200,000,000 as of the Second Amendment Effective Date.

*"Loan"* is defined in Section 2.1, and as so defined, includes a Margin Loan, an NSCC Loan and a Reserve Loan, each of which is a *"type"* of Loan hereunder.

*"Overnight Base Rate"* means, for any day, the rate per annum equal to the greatest of: (a) Term SOFR for such day plus 0.11448%, (b) the Target Rate for such day, and (c) 0.25%.

*"Required Lenders"* means, at any time, two or more Lenders having Total Credit Exposures representing more than 50.0% of the Total Credit Exposures of all Lenders. To the extent provided in the last paragraph of Section 11.3, the Total Credit Exposure of any Defaulting Lender shall be disregarded in determining Required Lenders at any time

*"Target Rate"* means, for any day, the rate per annum equal to the Federal Funds Target Range – Upper Limit as announced by the Federal Open Market Committee of the Federal Reserve Board*.*

*"Termination Date"* means (i) December 2, 2022, (ii) the date upon which a Level II Termination Event occurs unless such Level II Termination Event has been waived in accordance with this Agreement, or (iii) or such earlier date on which the Commitment is terminated in whole pursuant to Section 2.14, 8.2 or 8.3.

*"Termination Event"* means a Level I Termination Event and a Level II Termination Event.

*"Zero Loan Day"* means, at any time, a Business Day in which no principal amount of the NSCC Margin Loans and Reserve Loans is outstanding.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. Section 1.1 of the Credit Agreement shall be and hereby is amended by inserting the new defined terms in their appropriate alphabetical order, each such defined term to read in its entirety as follows:

*"Level I Termination Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the NSCC requires the Borrower to make an Adequate Assurance Deposit or any other clearinghouse imposes a similar requirement on the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) one or more Regulatory Authorities imposes fines, levies, or other monetary penalties (including the disgorgement of profits) against the Borrower in excess of $1,000,000 individually or in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Borrower enters into a settlement with any Person (including any Regulatory Authority), and the Borrower is obligated to pay an amount in excess of $1,000,000 as part of such settlement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) one or more Regulatory Authorities imposes a fine, levy or other monetary penalty against the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer in excess of $500,000; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer enters into a settlement with any Person (including any Regulatory Authority), and such Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer is obligated to pay an amount in excess of $500,000 as part of such settlement.

*"Level II Termination Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) one or more Regulatory Authorities imposes fines, levies, or other monetary penalties (including the disgorgement of profits) against the Borrower in excess of $5,000,000 individually or in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Regulatory Authority requires that a material portion of the Borrower's business be suspended or otherwise prohibited from operating for a period of five (5) or more Business Days, including, as applicable, the suspension, revocation or termination of the Borrower as a broker-dealer with the SEC or as a member of a Regulatory Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Borrower enters into a settlement with any Person (including any Regulatory Authority), and the Borrower is obligated to pay an amount in excess of $5,000,000 as part of such settlement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) one or more Regulatory Authorities imposes a fine, levy or other monetary penalty against the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer in excess of $1,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer enters into a settlement with any Person (including any Regulatory Authority), and such Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer is obligated to pay an amount in excess of $1,000,000 as part of such settlement; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer is suspended in any capacity for any reason for a period of five (5) or more Business Days or expelled by a Regulatory Authority.

*"Reserve Borrowing Base"* means, at any time, an amount equal to the difference between (A) the requested withdrawals of customers' cash from the Excluded Account, less (B) cash received by the Borrower that is required to be deposited into the Excluded Account, in each case from the last computation date of the value of the Excluded Account through the date of determination.

*"Reserve Loans"* means Loans the proceeds of which are used to finance withdrawals from the Excluded Accounts.

*"Second Amendment"* means that certain Second Amendment to Credit Agreement dated as of December 3, 2021, by and among the Borrower, the Lenders, and the Administrative Agent.

*"Second Amendment Effective Date"* means the date that the Second Amendment becomes effective in accordance with its terms

*"Sublimit"* means $125,000,000.

*"Term SOFR"* means the Term SOFR Reference Rate for a tenor of one month on the day (such day, the *"Term SOFR Determination Day"*) that is two (2) Business Days prior to such day, as such rate is published by the Term SOFR Administrator; *provided, however*, that if as of 5:00 p.m. (New York City time) on any Term SOFR Determination Day, the Term SOFR Reference Rate for a tenor of one month has not been published by the Term SOFR Administrator, then Term SOFR will be the Term SOFR Reference Rate for a tenor of one month as published by the Term SOFR Administrator on the first preceding Business Dayfor which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding Business Day is not more than three (3) Business Days prior to such Term SOFR Determination Day.

*"Term SOFR Administrator"* means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its reasonable discretion).

*"Term SOFR Reference Rate"* means the forward-looking term rate based

on the secured overnight financing rate as administered by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. Section 1.1 of the Credit Agreement shall be and is hereby amended by deleting the defined terms *"Benchmark," "Benchmark Replacement," "Benchmark Replacement Adjustment," "Benchmark Replacement Conforming Changes," "Benchmark Replacement Date," "Benchmark Transition Event," "Benchmark Unavailability Period," "Daily Simple SOFR," "Early Opt-in Election," "Eurodollar Reserve Percentage," "LIBOR Quoted Rate," "SOFR", "SOFR Administrator,"* and *"SOFR Administrator's Website,"* and any reference to any such term shall have no force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. Clause (b) in the defined term *"Change of Control"* appearing in Section 1.1 of the Credit Agreement shall be amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the failure of the Parent to own, directly or indirectly, 100% of the Voting Stock of the Borrower

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. Section 2.1(b) of the Credit Agreement shall be amended and restated in its entirety to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The foregoing notwithstanding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate principal amount of Loans at any time outstanding shall not exceed the Commitments in effect at such time,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the aggregate principal amount of Margin Loans at any time outstanding shall not exceed the Margin Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate principal amount of NSCC Margin Loans at any time outstanding shall not exceed the NSCC Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the aggregate principal amount of Reserve Loans at any time outstanding shall not exceed the Reserve Borrowing Base as then determined and computed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the aggregate principal amount of Customer Loans at any time outstanding shall not exceed the Customer Loan Limit,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the aggregate principal amount of Firms Loans at any time outstanding shall not exceed the Firm Loan Limit,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the aggregate principal amount of NSCC Margin Loans and Reserve Loans at any time outstanding shall not exceed the Sublimit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the Lenders shall not be obligated to make an NSCC Margin Loan or a Reserve Loan during any calendar month if such NSCC Margin Loan or Reserve Loan would cause the number of Zero Loan Days during such calendar month to be less than eight (8).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. Section 2.6(b) of the Credit Agreement shall be amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Mandatory*. (i) (A)The Borrower covenants and agrees that if at any time the sum of the principal amount of the Margin Loans then outstanding shall be in excess of the Margin Borrowing Base as then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Administrative Agent as and for a mandatory prepayment on such Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Borrower covenants and agrees that if at any time the sum of the principal amount of the NSCC Margin Loans then outstanding shall be in excess of the NSCC Borrowing Base as then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Administrative Agent as and for a mandatory prepayment on such Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The Borrower covenants and agrees that if at any time the sum of the principal amount of the Reserve Loans then outstanding shall be in excess of the Reserve Borrowing Base as then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Administrative Agent as and for a mandatory prepayment on such Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If at any time the sum of the unpaid principal balance of the Customer Loans then outstanding shall be in excess of the Customer Loan Limit then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Administrative Agent as and for a mandatory prepayment on such Customer Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If at any time the sum of the unpaid principal balance of the Firm Loans then outstanding shall be in excess of the Firm Loan Limit then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Administrative Agent as and for a mandatory prepayment on such Firm Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Borrower shall, without notice or demand, prepay any NSCC Margin Loan in full on the earlier to occur of (a) the date upon which the NSCC Margin Deposits funded from the proceeds of such NSCC Margin Loan are returned to the Borrower, and (b) the date which is five (5) days after the date such NSCC Margin Loan was advanced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Borrower shall, without notice or demand, prepay any Reserve Loan in full on the date which is five (5) days after the date such Reserve Loan was advanced.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) On any Business Day in a calendar month (other than the last Business Day in a calendar month), if (A) the sum of (x) the number of Business Days remaining in such calendar month (not including such Business Day) plus (y) the number of Zero Loan Days occurring in such calendar month on or prior to such Business Day is less than (B) eight (8), then the Borrower shall not later than 3:00 p.m. on such Business Day, without notice or demand, prepay the full amount of all outstanding NSCC Margin Loans and Reserve Loans to the Administrative Agent as and for a mandatory prepayment on the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7. Section 3.5 of the Credit Agreement shall be and is hereby amended and restated in its entirety to read as follows:

*Section 3.5*. Intentionally Omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8. Sections 4.2(b) and 4.2(c) of the Credit Agreement shall be amended and restated in their entirety to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) no Default shall have occurred and be continuing or would occur as a result of such Credit Event and (ii) no Level I Termination Event has occurred that has not been waived in accordance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Administrative Agent shall have received a Notice of Borrowing, which shall include evidence that after giving effect to such Credit Event: (i) the aggregate principal amount of all Loans outstanding under this Agreement shall not exceed the Commitment; (ii) the aggregate principal amount of Margin Loans at any time outstanding shall not exceed the Margin Borrowing Base as then determined and computed, (iii) the aggregate principal amount of NSCC Margin Loans at any time outstanding shall not exceed the NSCC Borrowing Base as then determined and computed, (iv) the aggregate principal amount of Reserve Loans at any time outstanding shall not exceed the Reserve Borrowing Base as then determined and computed, (v) the aggregate principal amount of Customer Loans at any time outstanding shall not exceed the Customer Loan Limit, and (vi) the aggregate principal amount of Firms Loans at any time outstanding shall not exceed the Firm Loan Limit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9. Section 5.4 of the Credit Agreement shall be and is hereby amended and restated in its entirety to read as follows:

*Section 5.4. Use of Proceeds.* The Borrower shall use the proceeds of the Loans solely (i) to finance the purchase and settlement of securities, (ii) to finance NSCC Deposit Requirements (other than an Adequate Assurance Deposit), (iii) to finance withdrawals from the Excluded Accounts, and (iv) for the Borrower's general working capital purposes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10. Section 5.6 of the Credit Agreement shall be amended and restated to read in its entirety as follows:

*Section 5.6. No Material Adverse Change.* Since December 31, 2020, there has been no change in the condition (financial or otherwise) or business of the Borrower or of the Borrower and its Subsidiaries taken as a whole which individually or in the aggregate would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11. Section 5.22 of the Credit Agreement shall be amended and restated to read in its entirety as follows:

*Section 5.22. No Default or Termination Event.* No Default has occurred and is continuing. No Level II Termination Event has occurred that has not been waived in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12. Sections 6.5(c) and (i) of the Credit Agreement shall be and hereby is amended by deleting reference to the *"Parent"* appearing therein and inserting in its place the reference to *"Clear Street Group, Inc."*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13. Sections 7.12(a) and (b) of the Credit Agreement shall be amended and restated in their entirety to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Minimum Tangible Net Worth.* The Borrower shall at all times maintain its Tangible Net Worth of not less than $210,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Minimum Excess Net Capital*. The Borrower shall at all times maintain Excess Net Capital of not less than $125,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14. Section 11.1(a)(i) of the Credit Agreement shall be amended and restated in its entirety to read as follow:

"(i) if to the Borrower, to it at Four World Trade Center 45th Floor, 150 Greenwich Street, New York, NY 10007, Attention of Chris Pento (Telephone No. (646) 738-4068; electronic mail: [ ], and with a copy to Four World Trade Center 45th Floor, 150 Greenwich Street, New York, NY 10007 , Attention of Kenneth A. Sicklick; electronic mail: legal@clearstreet.io;"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15. Section 11.3(iii) of the Credit Agreement shall be amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no amendment or waiver pursuant to this Section 11.3 shall, unless signed by each Lender affected thereby, extend the Termination Date; *provided,* that only the consent of the Required Lenders shall be necessary to amend or waive any Level II Termination Event; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.16. Exhibit A to the Credit Agreement shall be and is hereby amended and restated in the form of Exhibit A attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18. Exhibit C to the Credit Agreement shall be and is hereby amended and restated in the form of Exhibit C attached hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19. Schedule 2.1 to the Credit Agreement shall be and is hereby amended and restated in the form of Schedule 2.1 attached hereto.

SECTION 2. CONDITIONS PRECEDENT.

The effectiveness of this Amendment is subject to the satisfaction of all of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. The Borrower, the Guarantor, the Lenders and the Administrative Agent shall have executed and delivered this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. If requested by any Lender, the Borrower shall have executed and delivered to the Administrative Agent a Note for such Lender dated the date hereof and otherwise in compliance with the provisions of Section 2.8 of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. WBI, LP shall have executed its reaffirmation, acknowledgment, and consent in the space provided for that purpose below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. The Administrative Agent shall have received copies of the Guarantor's and the Borrower's articles of incorporation and bylaws (or comparable organizational documents) and any amendments thereto, certified in each instance by its Secretary or Assistant Secretary (or comparable Responsible Officer).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. The Administrative Agent shall have received copies (executed or certified as may be appropriate) of resolutions of the Board of Directors or other governing body of the Borrower and the Guarantor authorizing the execution, delivery, and performance of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. The Administrative Agent shall have received an incumbency certificate containing the name, title and genuine signature of the Borrower's Authorized Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. The Administrative Agent shall have received good standing certificates for the Borrower and the Guarantor, dated as of a date no earlier than 30 days prior to the date hereof, from the Delaware Secretary of State.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. Each of the Lenders shall have received, sufficiently in advance of the date of this Amendment, all documentation and other information requested by any such Lender required by bank regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including without limitation, the United States Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) including, without limitation, the information described in Section 11.19 of the Agreement; and the Administrative Agent shall have received a fully executed Internal Revenue Service Form W-9 (or its equivalent) for the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9. Legal matters incident to the execution and delivery of the Loan Documents and to the transactions contemplated hereby shall be satisfactory to the Administrative Agent and its counsel; and the Administrative Agent shall have received the favorable written opinion of inhouse counsel for the Borrower in form and substance satisfactory to the Agent and its counsel.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10. The Administrative Agent shall have received financing statement, tax and judgment lien search results against the Property of the Borrower evidencing the absence of Liens on their Property except as permitted by Section 7.2 of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11. The Administrative Agent shall have received, for the pro rata benefit of the Lenders, an upfront fee equal to (i) 0.10% of such Lender's Commitment to the extent such Commitment is less than $20,000,000 and (ii) 0.20% of such Lender's Commitment to the extent such Commitment is equal to or greater than $20,000,000, in each case after giving effect to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12. The Administrative Agent shall have received the fees set forth in separate agreement between the Borrower and the Administrative Agent.

SECTION 3. REPRESENTATIONS.

In order to induce the Lenders to enter into this Amendment, each of Borrower and the Guarantor (collectively, the *"Credit Parties"*) hereby represents and warrants to the Administrative Agent and the Lenders that as of the date hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. *Authorization, Etc.* Each Credit Party has the power and authority to execute, deliver and perform this Amendment and the other Loan Documents (if any) called for hereby. Each Credit Party has taken all necessary action (including, without limitation, obtaining approval of its equity holders, if necessary) to authorize its execution, delivery and performance of this Amendment and the other Loan Documents (if any) called for hereby. No consent, approval or authorization of, or declaration or filing with, any Governmental Authority, and no consent of any other Person, is required in connection with the Credit Parties' execution, delivery and performance of this Amendment or such other Loan Documents, except for those already duly obtained. This Amendment and the other Loan Documents (if any) called for hereby have been duly executed and delivered by the Credit Parties and constitute the legal, valid and binding obligation of the Credit Parties, enforceable against them in accordance with their terms, except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditor rights generally or by equitable principles relating to enforceability. The execution, delivery and performance of this Amendment and the other Loan Documents (if any) called for hereby by the Credit Parties does not (i) contravene the terms of any of such Party's Organizational Documents; (ii) conflict with or constitute a violation or breach of, or constitute a default under, or results in the creation or imposition of any Lien (other than pursuant to the Loan Documents) upon the Property of such Credit Party by reason of the terms of any material contractual obligation (including without limitation contractual obligations arising from any material agreements to which such Credit Party is a party or which is binding upon it); or (iii) violate any applicable law in any material respect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. *Representations and Warranties.* After giving effect to this Amendment, the representations and warranties set forth in Section 5 of the Credit Agreement and in the other Loan Documents are and shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. *No Default.* No Default exists under the Credit Agreement or shall result after giving effect to this Amendment.

SECTION 4. REAFFIRMATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. The Borrower hereby acknowledges and agrees that the Liens created and provided for by the Loan Documents continue to secure, among other things, the Obligations arising under the Credit Agreement as amended hereby; and the Loan Documents and the rights and remedies of the Administrative Agent thereunder, the obligations of the Borrower thereunder, and the Liens created and provided for thereunder remain in full force and effect and shall not be affected, impaired or discharged hereby. Nothing herein contained shall in any manner affect or impair the priority of the Liens created and provided for by the Loan Documents as to the indebtedness which would be secured thereby prior to giving effect to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. The Guarantor hereby acknowledges that it has reviewed the terms and provisions of this Amendment and consents to any modification of the Credit Agreement and the other Loan Documents effected pursuant to this Amendment. The Guarantor hereby confirms to the Administrative that, after giving effect to this Amendment, the Guarantee of the Guarantor and each other Loan Document to which the Guarantor is a party continues in full force and effect and is the legal, valid and binding obligation of the Guarantor, enforceable against the Guarantor in accordance with their terms except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability. The Guarantor acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Amendment, the Guarantor is not required by the terms of the Credit Agreement or any other Loan Document to consent to the waivers or modifications to the Credit Agreement effected pursuant to this Amendment and (ii) nothing in the Credit Agreement, this Amendment or any other Loan Document shall be deemed to require the consent of the Guarantor to any future waivers or modifications to the Credit Agreement.

SECTION 5. JOINDER; DEPARTING LENDER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. Except as otherwise provided in the Credit Agreement, on the Second Amendment Effective Date, each of Customers Bank and TriState Capital Bank (each a *"New Lender"*, and collectively, the *"New Lenders"*) (i) shall be deemed automatically to have become a party to the Credit Agreement and have all the rights and obligations of a *"Lender"* under the Credit Agreement as if it were an original signatory thereto and (ii) agrees to be bound by the terms and conditions set forth in the Credit Agreement as if it were an original signatory thereto. Each New Lender hereby confirm that it has received a

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copy of the Loan Documents and the exhibits related thereto, together with copies of the documents which were required to be delivered under the Credit Agreement as a condition to the making of the Loans and other extensions of credit thereunder. Each New Lender acknowledges and agrees that it has made and will continue to make, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as they have deemed appropriate, its own credit analysis and decisions relating to the Loan Agreement. Each New Lender further acknowledges and agrees that the Administrative Agent has not made any representations or warranties about the credit worthiness of the Borrower or any other party to the Credit Agreement or any other Loan Document or with respect to the legality, validity, sufficiency or enforceability of the Credit Agreement or any other Loan Document or the value of any security therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. On the Second Amendment Effective Date, the Commitment of Texas Capital Bank (the *"Departing Lender"*) shall be terminated, and the Departing Lender shall cease to be a Lender under the Credit Agreement and the other Loan Documents. The Departing Lender shall have relinquished its rights (other than rights to indemnification and reimbursements referred to in the Credit Agreement which survive the repayment of the Obligations owed to the Departing Lender in accordance with its terms) and be released from its obligations under the Credit Agreement. The parties hereto agree that, except as provided for in the preceding sentence, all references in the Loan Documents to the Lenders or any Lender shall from and after the date hereof no longer include the Departing Lender and the Departing Lender shall have no obligations under this Agreement other than those set out in this Section 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. On the Second Amendment Effective Date, the Lenders each agree to make such purchases and sales of interests in the outstanding Loans among themselves so that each Lender is then holding its full pro rata share of all Loans in accordance with its Percentage. Such purchases and sales shall be arranged through the Administrative Agent and each Lender hereby agrees to execute such further instruments and documents, if any, as the Administrative Agent may reasonably request in connection therewith.

SECTION 6. MISCELLANEOUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Except as specifically amended herein, the Credit Agreement shall continue in full force and effect in accordance with its original terms. Reference to this specific Amendment need not be made in the Credit Agreement, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Credit Agreement, any reference in any of such items to the Credit Agreement being sufficient to refer to the Credit Agreement as amended hereby. This Amendment is not a novation nor is it to be construed as a release, waiver or modification of any of the terms, conditions, representations, warranties, covenants, rights or remedies set forth in the Credit Agreement or the other Loan Documents, except as specifically set forth herein. Without limiting the foregoing, each party to this Amendment agrees to comply with all of the terms, conditions, and provisions of the Credit Agreement and the other Loan Documents except to the extent such compliance is irreconcilably inconsistent with the express provisions of this Amendment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. The Borrower agrees to pay on demand all reasonable and documented out-of-pocket costs and expenses of or incurred by the Administrative Agent in connection with the negotiation, preparation, execution and delivery of this Amendment and the other instruments and documents being executed and delivered in connection herewith and the transactions contemplated hereby, including the reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. This Amendment may be executed in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall constitute one and the same agreement. Any of the parties hereto may execute this Amendment by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be an original. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic (e.g., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of Amendment. This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

[Remainder Left Intentionally Blank]

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This Second Amendment to Credit Agreement is entered into as of the date and year first above written.

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| | |
|:---|:---|
| CLEAR STREET LLC, as the Borrower | CLEAR STREET LLC, as the Borrower |
| By: | /s/ Chris Pento |
|  | Name: Chris Pento |
|  | Title: Chief Executive Officer |

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| | |
|:---|:---|
| CLEAR STREET HOLDINGS LLC, as the Guarantor | CLEAR STREET HOLDINGS LLC, as the Guarantor |
| By: | /s/ Chris Pento |
|  | Name: Chris Pento |
|  | Title: Chief Executive Officer |

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[Second Amendment to Credit Agreement]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
| BMO HARRIS BANK N.A., as a Lender and as Administrative Agent | BMO HARRIS BANK N.A., as a Lender and as Administrative Agent |
| By: | /s/ Krupa Tantawaya |
|  | Name: Krupa Tantawaya |
|  | Title: Director |

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| | |
|:---|:---|
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

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| | |
|:---|:---|
| FIRST MIDWEST BANK, as a Lender | FIRST MIDWEST BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

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| | |
|:---|:---|
| *"NEW LENDERS"* | *"NEW LENDERS"* |
| CUSTOMERS BANK | CUSTOMERS BANK |
| By: |  |
|  | Name: |
|  | Title: |

---

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK | TRISTATE CAPITAL BANK |
| By: |  |
|  | Name: |
|  | Title: |

---

[Second Amendment to Credit Agreement]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
| BMO HARRIS BANK N.A., as a Lender and as Administrative Agent | BMO HARRIS BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: | /s/ Morgan Donovan |
|  | Name: Morgan Donovan |
|  | Title: Associate Managing Director |

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| | |
|:---|:---|
| FIRST MIDWEST BANK, as a Lender | FIRST MIDWEST BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

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| | |
|:---|:---|
| *"NEW LENDERS"* | *"NEW LENDERS"* |
| CUSTOMERS BANK | CUSTOMERS BANK |
| By: |  |
|  | Name: |
|  | Title: |

---

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK | TRISTATE CAPITAL BANK |
| By: |  |
|  | Name: |
|  | Title: |

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[Second Amendment to Credit Agreement]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
| BMO HARRIS BANK N.A., as a Lender and as Administrative Agent | BMO HARRIS BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

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| | |
|:---|:---|
| FIRST MIDWEST BANK, as a Lender | FIRST MIDWEST BANK, as a Lender |
| By: | /s/ Zachary Flahaven |
|  | Name: Zachary Flahaven |
|  | Title: SVP |

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| | |
|:---|:---|
| *"NEW LENDERS"* | *"NEW LENDERS"* |
| CUSTOMERS BANK | CUSTOMERS BANK |
| By: |  |
|  | Name: |
|  | Title: |

---

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK | TRISTATE CAPITAL BANK |
| By: |  |
|  | Name: |
|  | Title: |

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[Second Amendment to Credit Agreement]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
| BMO HARRIS BANK N.A., as a Lender and as Administrative Agent | BMO HARRIS BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

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| | |
|:---|:---|
| FIRST MIDWEST BANK, as a Lender | FIRST MIDWEST BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| *"NEW LENDERS"* | *"NEW LENDERS"* |
| CUSTOMERS BANK | CUSTOMERS BANK |
| By: | /s/ Brandon Troster |
|  | Name: Brandon Troster |
|  | Title: SVP, Financial Institutions Group |

---

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK | TRISTATE CAPITAL BANK |
| By: |  |
|  | Name: |
|  | Title: |

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[Second Amendment to Credit Agreement]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
| BMO HARRIS BANK N.A., as a Lender and as Administrative Agent | BMO HARRIS BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| FIRST MIDWEST BANK, as a Lender | FIRST MIDWEST BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| *"NEW LENDERS"* | *"NEW LENDERS"* |
| CUSTOMERS BANK | CUSTOMERS BANK |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK | TRISTATE CAPITAL BANK |
| By: | /s/ Ellen Frank |
|  | Name: Ellen Frank |
|  | Title: Senior Vice President |

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[Second Amendment to Credit Agreement]

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| | |
|:---|:---|
| *"DEPARTING LENDER"* | *"DEPARTING LENDER"* |
| TEXAS CAPITAL BANK | TEXAS CAPITAL BANK |
| By: | /s/ Brook A. Silvestri |
|  | Name: Brook A. Silvestri |
|  | Title: SVP |

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[Second Amendment to Credit Agreement]

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**REAFFIRMATION, ACKNOWLEDGEMENT, AND CONSENT OF SUBORDINATED CREDITOR** 

The undersigned, WBI, LP, heretofore executed in favor of the Administrative Agent a Debt Subordination Agreement dated December 4, 2020. The undersigned hereby consents to the Amendment to the Credit Agreement as set forth above and confirms that the Debt Subordination Agreement, and all obligations of the undersigned thereunder, remains in full force and effect and, without limiting the foregoing, the undersigned acknowledges and agrees that increase in the Commitments constitutes Superior Indebtedness under the Debt Subordination Agreement. The undersigned further agrees that the consent of the undersigned to any further amendments to the Credit Agreement shall not be required as a result of this consent having been obtained. The undersigned acknowledges that the Administrative Agent is relying on the assurances provided herein in entering into the Amendment set forth above.

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| | |
|:---|:---|
| WBI, LP | WBI, LP |
| By: | /s/ Elli Ausubel |
|  | Name: Elli Ausubel |
|  | Title: Officer |

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**EXHIBIT A** 

**NOTICE OF BORROWING** 

Date: _________, ____

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| | |
|:---|:---|
| To: | BMO Harris Bank N.A., as Administrative Agent for the Lenders party to the Credit Agreement dated as of December 4, 2020 (as extended, renewed, amended or restated from time to time, the "Credit Agreement"), among Clear Street LLC, certain Lenders which are signatories thereto, BMO Harris Bank N.A., as Administrative Agent |

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Ladies and Gentlemen:

The undersigned, ______________ (the *"Borrower"*), refers to the Credit Agreement, the terms defined therein being used herein as therein defined, and hereby gives you notice irrevocably, pursuant to Section 2.4 of the Credit Agreement, of the Borrowing specified below:

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| | | |
|:---|:---|:---|
| (1) | Borrowing Date |  |
| (2) | Dollar Amount of Loan Requested |  |
| (3) | Type of Loan | **[Margin Loan] / [NSCC Margin Loan] / [Reserve Loan]** |

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Annex I attached hereto sets forth data and computations evidencing the Borrowing Base, and all of such data and computations are true, correct and complete and have been made in accordance with the relevant sections of the Credit Agreement.

For new value received the undersigned hereby pledges to the Administrative Agent and grants to the Administrative Agent, for the benefit of the Lenders, a security interest in the securities and other Property listed on the schedule(s) attached hereto as Annex II and made a part hereof and confirms a pledge of and security interest in the same now in effect in favor of the Administrative Agent, together with all rights related thereto and all proceeds thereof pursuant to the terms of the Credit Agreement.

The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed Loan, before and after giving effect thereto and to the application of the proceeds therefrom:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default has occurred and is continuing or would result from such proposed Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) after giving effect to the Loan: (i) the aggregate principal amount of all Loans outstanding under this Agreement shall not exceed the Commitment; (ii) the aggregate principal amount of Margin Loans at any time outstanding shall not exceed the Margin Borrowing Base as then determined and computed, (iii) the aggregate principal amount of NSCC Margin Loans at any time outstanding shall not exceed the NSCC Borrowing Base as then determined and computed, (iv) the aggregate principal amount of Reserve Loans at any time outstanding shall not exceed the Reserve Borrowing Base as then determined and computed, (v) the aggregate principal amount of Customer Loans at any time outstanding shall not exceed the Customer Loan Limit, and (vi) the aggregate principal amount of Firms Loans at any time outstanding shall not exceed the Firm Loan Limit.

(4) With respect to NSCC Margin Loan and Reserve Loans, the Number of Zero Loan Days during the current month:
____________. **[Number of Zero Loan Days during any calendar month cannot be less than 8]** 

(5) To the extent such Loan is a Margin Loan, then such requested Borrowing is (select one):

[ ] Customer Loan secured by Customer Securities; or

[ ] Firm Loan secured by Firm Securities.

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| | |
|:---|:---|
| CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

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**ANNEX I** 

**TO** 

**NOTICE OF BORROWING** 

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| | | | |
|:---|:---|:---|:---|
|  **BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** | **BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** | **BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** | **BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** |
| (1) | Market Value of Eligible Federal Government Securities | x 90% | $___________ |
| (2) | Market Value of Eligible Bond Securities | x 90% | $___________ |
| (3) | the Market Value of Eligible Equity Securities | x 80% | $___________ |
| (4) | Sum of Lines (1), (2) and (3) |  | $___________ |
| (5) | Outstanding Margin Loans |  | $___________ |
| (6) | Availability (Line (4) minus Line (5)) |  | $___________ |
|  **BORROWING BASE (NSCC MARGIN LOANS)** | **BORROWING BASE (NSCC MARGIN LOANS)** | **BORROWING BASE (NSCC MARGIN LOANS)** | **BORROWING BASE (NSCC MARGIN LOANS)** |
| (a) | Previous month 10th lowest Eligible NSCC Margin Deposits |  | $___________ |
| (b) | Current Eligible NSCC Margin Deposits |  | $___________ |
| (c) | Line (b) minus Line (a) |  | $___________ |
| (d) | Line (c) multiplied by 80% (to the extent positive) |  | $___________ |
| (e) | Outstanding NSCC Margin Loans |  | $___________ |
| (f) | Availability (Line (d) minus Line (e)) |  | $___________ |

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\*\* Eligible Securities shall exclude securities held in the Borrower's inventory for more than thirty (30) consecutive days and the calculation of Eligible Bond Securities and Eligible Equity Securities shall exclude the Market Value of any security that exceeds 15% of the Borrowing Base (Margin Loans) 

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**ANNEX I** 

**TO** 

**NOTICE OF BORROWING** 

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| | | |
|:---|:---|:---|
|  **BORROWING BASE (RESERVE LOANS)** | **BORROWING BASE (RESERVE LOANS)** | **BORROWING BASE (RESERVE LOANS)** |
| (i) | Amount in Reserve Account as of _______ (the *"Requested Withdrawal Date"*) | $___________ |
| (ii) | Requested customer withdrawals from the Requested Withdrawal Date | $___________ |
| (iii) | Deposits required to be made in the Excluded Account from the Requested Withdrawal Date | $___________ |
| (iv) | Line (ii) minus Line (iii) (to the extent positive) | $___________ |
| (v) | Outstanding Reserve Loans | $___________ |
| (vi) | Availability (Line (iv) minus Line (v) | $___________ |
|  **LIMITATIONS ON AVAILABILITY** | **LIMITATIONS ON AVAILABILITY** | **LIMITATIONS ON AVAILABILITY** |
| A. | Outstanding Loans after giving effect to such requested Borrowing (sum of Line (5), Line (e) and Line (v)) | $___________ |
| B. | The lesser of (i) $200,000,000 and (ii) Line A | $___________ |
| C. | Outstanding NSCC Margin Loans and Reserve Loans after giving effect to such requested Borrowing (sum of Line (e) and Line (v)) | $___________ |
| D. | The lesser of (i) $125,000,000 and (ii) Line C | $___________ |

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**ANNEX II** 

**TO** 

**NOTICE OF BORROWING** 

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**EXHIBIT C** 

**CLEAR STREET LLC** 

**COMPLIANCE CERTIFICATE** 

To: BMO Harris Bank N.A., as Administrative Agent under, and the Lenders party to, the Credit Agreement described below

This Compliance Certificate is furnished to the Administrative Agent and the Lenders pursuant to that certain Credit Agreement dated as of December 4, 2020, among Clear Street LLC, as Borrower, the Lenders party thereto from time to time, and BMO Harris Bank N.A., as Administrative Agent (as extended, renewed, amended or restated from time to time, the *"Credit Agreement"*). Unless otherwise defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in the Credit Agreement.

THE UNDERSIGNED HEREBY CERTIFIES THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I am the duly elected _______ of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I have reviewed the terms of the Credit Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of the Borrower and its Subsidiaries during the accounting period covered by the attached financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or the occurrence of any event which constitutes a Default during or at the end of the accounting period covered by the attached financial statements or as of the date of this Compliance Certificate, except as set forth below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The financial statements required by Section 6.5 of the Credit Agreement and being furnished to you concurrently with this Compliance Certificate are true, correct and complete as of the date and for the periods covered thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Schedule I hereto sets forth financial data and computations evidencing the Borrower's compliance with certain covenants of the Credit Agreement, all of which data and computations are, to the best of my knowledge, true, complete and correct and have been made in accordance with the relevant Sections of the Credit Agreement. In the event of a conflict between the attached spreadsheet and any certifications relating thereto and the Credit Agreement and related definitions used in calculating such covenants, the Credit Agreement and such related definitions shall govern and control.

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Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

The foregoing certifications, together with the computations set forth in Schedule I hereto and the financial statements delivered with this Certificate in support hereof, are made and delivered this __ day of ___________ 20___.

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| | |
|:---|:---|
|  CLEAR STREET LLC | CLEAR STREET LLC |
|  By: |  |
|  | Name: |
|  | Title: |

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**SCHEDULE I** 

**TO COMPLIANCE CERTIFICATE** 

**CLEAR STREET LLC** 

**COMPLIANCE CALCULATIONS** 

**FOR CREDIT AGREEMENT DATED AS OF DECEMBER 4, 2020** 

CALCULATIONS AS OF ,

A. Minimum Tangible Net Worth (Section 7.12(a))

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| | | |
|:---|:---|:---|
| A. | <u>Minimum Tangible Net Worth (Section 7.12(a))</u> |  |
| 1. | Tangible Net Worth | $___________ |
| 2. | Line A1 shall not be less than | $210000000 |
| 3. | The Borrower is in compliance (circle yes or no) | yes/no |
| B. | <u>Minimum Excess Net Capital (Section 7.12(b))</u> |  |
| 1. | Excess Net Capital | $___________ |
| 2. | Line B1 shall not be less than | $125000000 |
| 3. | The Borrower is in compliance (circle yes or no) | yes/no |
| C. | <u>Total Assets to Total Equity (Section 7.12(c))</u> |  |
| 1. | Total Assets | $___________ |
| 2. | Matched repurchased agreements | $___________ |
| 3. | Loans consisting of securities | $___________ |
| 4. | Line C1 minus Line C2 minus Line C3 | $___________ |
| 5. | Total equity | $___________ |
| 6. | Ratio of Line C4 to C5 | _____ to ____ |
| 7. | Line C6 shall not exceed | 13.0 to 1 |
| 8. | The Borrower's in Compliance | yes/no |

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**SCHEDULE 2.1** 

**COMMITMENTS** 

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| | |
|:---|:---|
| NAME OF LENDER | COMMITMENT |
|  BMO Harris Bank N.A. | $75000000 |
|  Customers Bank | $50000000 |
|  CIBC Bank USA | $40000000 |
|  First Midwest Bank | $20000000 |
|  TriState Capital Bank | $15000000 |
|  TOTAL | $200000000 |

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**THIRD AMENDMENT TO CREDIT AGREEMENT** 

This Third Amendment to Credit Agreement (herein, the "*Amendment*") is entered into as of April 6, 2022, by and among CLEAR STREET LLC, a Delaware limited liability company (the "*Borrower*"), CLEAR STREET HOLDINGS LLC, a Delaware limited liability company (the "*Guarantor*"), the Lenders party hereto, and BMO HARRIS BANK N.A., as Administrative Agent (the "*Administrative Agent*").

**PRELIMINARY STATEMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Borrower, the Lenders and the Administrative Agent entered into a certain Credit Agreement, dated as of December 4, 2020, as amended (the "*Credit Agreement*"). All capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Borrower has asked the Lenders to make certain amendments to the Credit Agreement, and the Lenders constituting "Required Lenders" under the terms of the Existing Credit Agreement are willing to do so under the terms and conditions set forth in this Amendment.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

SECTION 1. AMENDMENT.

Subject to the satisfaction of the conditions precedent set forth in Section 2 below, the following defined terms appearing in Section 1.1 of the Credit Agreement shall be amended and restated to read in their entirety as follows:

"*Change of Control*" means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Cohen Affiliates shall cease at any time and for any reason (including death or incapacity) to own, directly or indirectly, at least 50.1% of the Voting Stock of the Parent and of Clear Street Group Inc. (the "Ultimate Parent"),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the failure of the Parent to own, directly or indirectly, 100% of the Voting Stock of the Borrower,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Cohen Affiliates shall cease to have the ability to elect (either through share ownership or contractual voting rights) a majority of the board of directors or equivalent governing body of the Ultimate Parent,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Ultimate Parent shall (i) at any time that Parent is managed by a board of directors (or equivalent governing body), cease to have the ability to elect (either through share ownership or contractual voting rights) a majority of the board of directors or equivalent governing body of the Parent or (ii) at any time that Parent is managed by a managing member, cease to serve as the managing member of the Parent, or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Parent shall (i) at any time that Borrower is managed by a board of directors (or equivalent governing body), cease to have the ability to elect (either through share ownership or contractual voting rights) a majority of the board of directors or equivalent governing body of the Borrower or (ii) at any time that Borrower is managed by a managing member, cease to serve as the managing member of the Borrower, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any "Change of Control" (or words of like import), as defined in any agreement or indenture relating to any issue of Indebtedness of the Ultimate Parent, the Parent or the Borrower shall occur.

"*Voting Stock*" of any Person means the voting power vested in capital stock or other equity interests of any class or classes (however designated) having ordinary power for the election of directors or other similar governing body of such Person, other than stock or other equity interests having such power only by reason of the happening of a contingency.

SECTION 2. CONDITIONS PRECEDENT.

The effectiveness of this Amendment is subject to the execution and delivery thereof by the Borrower, the Guarantor, the Required Lenders and the Administrative Agent.

SECTION 3. REPRESENTATIONS.

In order to induce the Lenders to enter into this Amendment, each of Borrower and the Guarantor (collectively, the "*Credit Parties*") hereby represents and warrants to the Administrative Agent and the Required Lenders that as of the date hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. *Authorization, Etc*. Each Credit Party has the power and authority to execute, deliver and perform this Amendment. Each Credit Party has taken all necessary action (including, without limitation, obtaining approval of its equity holders, if necessary) to authorize its execution, delivery and performance of this Amendment. No consent, approval or authorization of, or declaration or filing with, any Governmental Authority, and no consent of any other Person, is required in connection with the Credit Parties' execution, delivery and performance of this Amendment, except for those already duly obtained. This Amendment has been duly executed and delivered by the Credit Parties and constitutes the legal, valid and binding obligation of the Credit Parties, enforceable against them in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditor rights generally or by equitable principles relating to enforceability. The execution, delivery and performance of this Amendment by the Credit Parties does not (i) contravene the terms of any of such Credit Party's Organizational Documents; (ii) conflict with or constitute a violation or breach of, or constitute a default under, or results in the creation or imposition of any Lien (other than pursuant to the Loan Documents) upon the Property of such Credit Party by reason of the terms of any material contractual obligation (including without limitation contractual obligations arising from any material agreements to which such Credit Party is a party or which is binding upon it); or (iii) violate any applicable law in any material respect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. *Representations and Warranties*. After giving effect to this Amendment, the representations and warranties set forth in Section 5 of the Credit Agreement and in the other Loan Documents are and shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. *No Default*. No Default exists under the Credit Agreement or shall result after giving effect to this Amendment.

SECTION 4. REAFFIRMATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. The Borrower hereby acknowledges and agrees that the Liens created and provided for by the Loan Documents continue to secure, among other things, the Obligations arising under the Credit Agreement as amended hereby; and the Loan Documents and the rights and remedies of the Administrative Agent thereunder, the obligations of the Borrower thereunder, and the Liens created and provided for thereunder remain in full force and effect and shall not be affected, impaired or discharged hereby. Nothing herein contained shall in any manner affect or impair the priority of the Liens created and provided for by the Loan Documents as to the indebtedness which would be secured thereby prior to giving effect to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. The Guarantor hereby acknowledges that it has reviewed the terms and provisions of this Amendment and consents to any modification of the Credit Agreement and the other Loan Documents effected pursuant to this Amendment. The Guarantor hereby confirms to the Administrative that, after giving effect to this Amendment, the Guarantee of the Guarantor and each other Loan Document to which the Guarantor is a party continues in full force and effect and is the legal, valid and binding obligation of the Guarantor, enforceable against the Guarantor in accordance with their terms except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability. The Guarantor acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Amendment, the Guarantor is not required by the terms of the Credit Agreement or any other Loan Document to consent to the waivers or modifications to the Credit Agreement effected pursuant to this Amendment and (ii) nothing in the Credit Agreement, this Amendment or any other Loan Document shall be deemed to require the consent of the Guarantor to any future waivers or modifications to the Credit Agreement.

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SECTION 5. MISCELLANEOUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. Except as specifically amended herein, the Credit Agreement shall continue in full force and effect in accordance with its original terms. Reference to this specific Amendment need not be made in the Credit Agreement, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Credit Agreement, any reference in any of such items to the Credit Agreement being sufficient to refer to the Credit Agreement as amended hereby. This Amendment is not a novation nor is it to be construed as a release, waiver or modification of any of the terms, conditions, representations, warranties, covenants, rights or remedies set forth in the Credit Agreement or the other Loan Documents, except as specifically set forth herein. Without limiting the foregoing, each party to this Amendment agrees to comply with all of the terms, conditions, and provisions of the Credit Agreement and the other Loan Documents except to the extent such compliance is irreconcilably inconsistent with the express provisions of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. The Borrower agrees to pay on demand all reasonable and documented out-of-pocket costs and expenses of or incurred by the Administrative Agent in connection with the negotiation, preparation, execution and delivery of this Amendment and the other instruments and documents being executed and delivered in connection herewith and the transactions contemplated hereby, including the reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. This Amendment may be executed in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall constitute one and the same agreement. Any of the parties hereto may execute this Amendment by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be an original. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic (e.g., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of Amendment. This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

[Remainder Left Intentionally Blank]

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This Third Amendment to Credit Agreement is entered into as of the date and year first above written.

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| | |
|:---|:---|
|  CLEAR STREET LLC, as the Borrower | CLEAR STREET LLC, as the Borrower |
|  By: | /s/ Chris Pento |
|  | Name: Chris Pento |
|  | Title: CEO |
|  CLEAR STREET HOLDINGS LLC, as the Guarantor | CLEAR STREET HOLDINGS LLC, as the Guarantor |
|  By: | /s/ Chris Pento |
|  | Name: Chris Pento |
|  | Title: CEO |

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[Signature Page to the Third Amendment to Credit Agreement]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
| BMO HARRIS BANK N.A., as a Lender and as Administrative Agent | BMO HARRIS BANK N.A., as a Lender and as Administrative Agent |
| By: | /s/ Krupa Tantuwaya |
|  | Name: Krupa Tantuwaya |
|  | Title: Director |

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| | |
|:---|:---|
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| FIRST MIDWEST BANK, as a Lender | FIRST MIDWEST BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK, as a Lender | TRISTATE CAPITAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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[Signature Page to the Third Amendment to Credit Agreement]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
| BMO HARRIS BANK N.A., as a Lender and as Administrative Agent | BMO HARRIS BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: | /s/ Morgan Donovan |
|  | Name: Morgan Donovan |
|  | Title: Associate Managing Director |

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| | |
|:---|:---|
| FIRST MIDWEST BANK, as a Lender | FIRST MIDWEST BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK, as a Lender | TRISTATE CAPITAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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[Signature Page to the Third Amendment to Credit Agreement]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
| BMO HARRIS BANK N.A., as a Lender and as Administrative Agent | BMO HARRIS BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| FIRST MIDWEST BANK, as a Lender | FIRST MIDWEST BANK, as a Lender |
| By: | /s/ Zachary Flahaven |
|  | Name: Zachary Flahaven |
|  | Title: SVP |

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| | |
|:---|:---|
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK, as a Lender | TRISTATE CAPITAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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[Signature Page to the Third Amendment to Credit Agreement]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
| BMO HARRIS BANK N.A., as a Lender and as Administrative Agent | BMO HARRIS BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| FIRST MIDWEST BANK, as a Lender | FIRST MIDWEST BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK, as a Lender | TRISTATE CAPITAL BANK, as a Lender |
| By: | /s/ Ellen Frank |
|  | Name: Ellen Frank |
|  | Title: Senior Vice President |

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[Signature Page to the Third Amendment to Credit Agreement]

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**FOURTH AMENDMENT TO CREDIT AGREEMENT** 

This Fourth Amendment to Credit Agreement (herein, this *"Amendment"*) is entered into as of December 2, 2022, by and among CLEAR STREET LLC, a Delaware limited liability company (the *"Borrower"*), CLEAR STREET HOLDINGS LLC, a Delaware limited liability company (the *"Guarantor"*), the financial institutions party to this Amendment, as Lenders, and BMO HARRIS BANK N.A., as Administrative Agent (the *"Administrative Agent"*).

**PRELIMINARY STATEMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Borrower, the Lenders and the Administrative Agent entered into a certain Credit Agreement, dated as of December 4, 2020, as amended (the *"Credit Agreement"*). All capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Each of Northbrook Bank & Trust Company, N.A., Signature Bank and Bank of America N.A. (each a *"New Lender"* and together with the other financial institutions party to this Amendment, the "*Lenders*") will be joining the Credit Agreement as a New Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Borrower has asked the Lenders to make certain amendments to the Credit Agreement, and the Lenders are willing to do so under the terms and conditions set forth in this Amendment.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

SECTION 1. AMENDMENTS.

Subject to the satisfaction of the conditions precedent set forth in Section 2 below, the Credit Agreement shall be and hereby is amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. The following defined terms appearing in Section 1.1 of the Credit Agreement shall be amended and restated to read in their entirety as follows:

"*Commitment"* means, as to any Lender, the obligation of such Lender to make Loans in an aggregate principal at any one time outstanding not to exceed the amount set forth opposite such Lender's name on Schedule 2.1 attached hereto and made a part hereof, as the same may be increased, reduced or modified at any time or from time to time pursuant to the terms hereof. The Borrower and the Lenders acknowledge and agree that the aggregate Commitments of the Lenders is $300,000,000 as of the Fourth Amendment Effective Date.

*"Sublimit"* means $187,500,000, as such amount may be increased pursuant to Section 2.17 hereof.

*"Termination Date"* means (i) December 1, 2023, (ii) the date upon which a Level II Termination Event occurs unless such Level II Termination Event has been waived in accordance with this Agreement, or (iii) or such earlier date on which the Commitment is terminated in whole pursuant to Section 2.14, 8.2 or 8.3.

*[Signature Page to Revolving Note and Cash Subordination Agreement]* 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. Section 1.1 of the Credit Agreement shall be and hereby is amended by inserting the following new defined terms in their appropriate alphabetical order to read in their entirety as follows:

"Fourth Amendment" means that certain Fourth Amendment to Credit Agreement dated as of December 2, 2022, by and among the Borrower, the Lenders, and the Administrative Agent.

"*Fourth Amendment Effective Date*" means the date that the Fourth Amendment becomes effective in accordance with its terms.

*"Liquidity Ratio"* means, at any time the same is to be determined, the ratio of (a) the sum of the (i) value of unencumbered marketable securities (determined after taking into account prudent and customary financing haircuts as reasonably determined by the Administrative Agent) of the Borrower (exclusive of any securities on deposit in a Customer Reserve Bank Account or a PAB Reserve Bank Account, as those terms are defined in Exchange Act rule 15c3-3), *plus* (ii) unencumbered cash held by the Borrower (exclusive of any cash on deposit in a Customer Reserve Bank Account or a PAB Reserve Bank Account, as those terms are defined in Exchange Act rule 15c3-3) unless such cash on deposit is available to satisfy any obligation of the Borrower, *plus* (iii) Eligible NSCC Margin Deposits (solely to the extent of the lesser of (x) the amount, if any, by which the Borrowing Base at such time exceeds the aggregate outstanding amount of Loans and (y) an amount equal to the Commitment *minus* the aggregate outstanding amount of Loans), to (b) the aggregate outstanding principal amount of unsecured Indebtedness of the Borrower at such time (other than the Loans, Subordinated Debt, and intercompany Indebtedness that is subordinated to the Obligations, and exclusive of any credit balances carried for the account of any customer, broker or dealer).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. Section 2 of the Credit Agreement shall be and hereby is amended by inserting a new Section 2.17 immediately after Section 2.16 to read in its entirety as follows:

*Section 2.17. Increase in Commitments*. The Borrower may, on any Business Day prior to the Termination Date, with the written consent of the Administrative Agent, increase the aggregate amount of the Commitments by delivering an Increase Request substantially in the form attached hereto as Exhibit F (or in such other form acceptable to the Administrative Agent) to the Administrative Agent at least five (5) Business Days prior to the desired effective date of such increase (the *"Increase"*) identifying an additional Lender (or additional Commitment for an existing Lender) and the amount of its Commitment (or additional amount of its Commitment); *provided, however*, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the aggregate amount of all such Revolver Increases shall not exceed $100,000,000 and any such Revolver Increase shall be in an amount not less than $5,000,000 (or such lesser amount then agreed to by the Administrative Agent);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default shall have occurred and be continuing at the time of the request or the effective date of the Revolver Increase; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each of the representations and warranties set forth in Section 5 and in the other Loan Documents shall be and remain true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) on the effective date of such Revolver Increase, except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date.

The effective date of the Revolver Increase shall be agreed upon by the Borrower and the Administrative Agent. Upon the effectiveness thereof, Schedule 2.1 shall be deemed amended to reflect the Revolver Increase and the new Lender (or, if applicable, existing Lender) shall advance Loans in an amount sufficient such that after giving effect to its Loans each Lender shall have outstanding its Percentage of all Loans outstanding under the Commitments. Any Revolver Increase shall increase the Sublimit by a proportionate amount (or such other amount as may be agreed upon between the Borrower and the Lender). It shall be a condition to such effectiveness that the Borrower shall not have terminated any portion of the Commitments pursuant to Section 2.14. The Borrower agrees to pay the expenses of the Administrative Agent (including reasonable attorneys' fees) relating to any Revolver Increase. Notwithstanding anything herein to the contrary, no Lender shall have any obligation to increase its Commitment and no Lender's Commitment shall be increased without its consent thereto, and each Lender may at its option, unconditionally and without cause, decline to increase its Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. Section 5.6 of the Credit Agreement shall be amended and restated to read in its entirety as follows:

*Section 5.6. No Material Adverse Change.* Since December 31, 2021, there has been no change in the condition (financial or otherwise) or business of the Borrower or of the Borrower and its Subsidiaries taken as a whole which individually or in the aggregate would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. Section 6.5(k) of the Credit Agreement shall be amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) as soon as available, and in any event within 45 days after the last day of each quarter, a written certificate in the form attached hereto as Exhibit C signed by a Financial Officer of the Borrower to the effect that to the best of such officer's knowledge and belief no Default has occurred during the period covered by such statements or, if any such Default has occurred during such period, setting forth a description of such Default and specifying the action, if any, taken by the Borrower or its Subsidiary to remedy the same. Such certificate shall also set forth the calculations supporting such statements in respect of Section 7.12 (Financial Covenants); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. Section 7.12 of the Credit Agreement shall be amended and restated in its entirety to read as follows:

*Section 7.12. Financial Covenants.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Minimum Tangible Net Worth.* The Borrower shall at all times maintain its Tangible Net Worth of not less than $350,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Minimum Excess Net Capital*. The Borrower shall at all times maintain Excess Net Capital of not less than $250,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Total Assets to Total Equity Ratio.* The Borrower shall not, at any time, permit the Total Assets to Total Equity Ratio to exceed 13.0 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Minimum Liquidity Ratio.* The Borrower shall, at all times, maintain a Liquidity Ratio of not less than 1.0 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7. Section 11.1(a)(ii) of the Credit Agreement shall be amended and restated in its entirety to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to the Administrative Agent, to BMO Harris Bank N.A at 320 South Canal Street, Chicago, Illinois 60606, Attention of Futures and Securities (Facsimile No. (312) 765-8201; Telephone No. (312) 461-2491);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8. Exhibit A to the Credit Agreement shall be and is hereby amended and restated in the form of Exhibit A attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9. Exhibit C to the Credit Agreement shall be and is hereby amended and restated in the form of Exhibit C attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10. Schedule 2.1 to the Credit Agreement shall be and is hereby amended and restated in the form of Schedule 2.1 attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11. The Credit Agreement shall be and hereby is further amended by inserting new Exhibit F immediately after Exhibit E in the form of Exhibit F attached hereto.

SECTION 2. CONDITIONS PRECEDENT.

The effectiveness of this Amendment is subject to the satisfaction of all of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. The Borrower, the Guarantor, the Lenders, and the Administrative Agent shall have executed and delivered this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. If requested by any Lender, the Borrower shall have executed and delivered to the Administrative Agent a Note for such Lender dated the date hereof and otherwise in compliance with the provisions of Section 2.8 of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. WBI, LP shall have executed its reaffirmation, acknowledgment, and consent in the space provided for that purpose below.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. The Administrative Agent shall have received copies of the Guarantor's and the Borrower's articles of incorporation and bylaws (or comparable organizational documents) and any amendments thereto, certified in each instance by its Secretary or Assistant Secretary (or comparable Responsible Officer).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. The Administrative Agent shall have received copies (executed or certified as may be appropriate) of resolutions of the Board of Directors or other governing body of the Borrower and the Guarantor authorizing the execution, delivery, and performance of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. The Administrative Agent shall have received an incumbency certificate containing the name, title and genuine signature of the Borrower's Authorized Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. The Administrative Agent shall have received good standing certificates for the Borrower and the Guarantor, dated as of a date no earlier than 30 days prior to the date hereof, from the Delaware Secretary of State.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. Each of the Lenders shall have received, sufficiently in advance of the date of this Amendment, all documentation and other information requested by any such Lender required by bank regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including without limitation, the United States Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) including, without limitation, the information described in Section 11.19 of the Credit Agreement; and the Administrative Agent shall have received a fully executed Internal Revenue Service Form W-9 (or its equivalent) for the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9. Legal matters incident to the execution and delivery of the Loan Documents and to the transactions contemplated hereby shall be satisfactory to the Administrative Agent and its counsel; and the Administrative Agent shall have received the favorable written opinion of inhouse counsel for the Borrower in form and substance satisfactory to the Agent and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10. The Administrative Agent shall have received financing statement, tax and judgment lien search results against the Property of the Borrower evidencing the absence of Liens on their Property except as permitted by Section 7.2 of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11. The Administrative Agent shall have received, for the pro rata benefit of the Lenders, an upfront fee equal to 0.20% of such Lender's Commitment after giving effect to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12. The Administrative Agent shall have received the fees set forth in separate agreement between the Borrower and the Administrative Agent.

SECTION 3. REPRESENTATIONS.

In order to induce the Lenders to enter into this Amendment, each of Borrower and the Guarantor (collectively, the *"Credit Parties"*) hereby represents and warrants to the Administrative Agent and the Lenders that as of the date hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. *Authorization, Etc.* Each Credit Party has the power and authority to execute, deliver and perform this Amendment. Each Credit Party has taken all necessary action (including,

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without limitation, obtaining approval of its equity holders, if necessary) to authorize its execution, delivery and performance of this Amendment. No consent, approval or authorization of, or declaration or filing with, any Governmental Authority, and no consent of any other Person, is required in connection with the Credit Parties' execution, delivery and performance of this Amendment, except for those already duly obtained. This Amendment has been duly executed and delivered by the Credit Parties and constitutes the legal, valid and binding obligation of the Credit Parties, enforceable against them in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditor rights generally or by equitable principles relating to enforceability. The execution, delivery and performance of this Amendment by the Credit Parties does not (i) contravene the terms of any of such Credit Party's Organizational Documents; (ii) conflict with or constitute a violation or breach of, or constitute a default under, or results in the creation or imposition of any Lien (other than pursuant to the Loan Documents) upon the Property of such Credit Party by reason of the terms of any material contractual obligation (including without limitation contractual obligations arising from any material agreements to which such Credit Party is a party or which is binding upon it); or (iii) violate any applicable law in any material respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. *Representations and Warranties.* After giving effect to this Amendment, the representations and warranties set forth in Section 5 of the Credit Agreement and in the other Loan Documents are and shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. *No Default.* No Default exists under the Credit Agreement or shall result after giving effect to this Amendment.

SECTION 4. REAFFIRMATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. The Borrower hereby acknowledges and agrees that the Liens created and provided for by the Loan Documents continue to secure, among other things, the Obligations arising under the Credit Agreement as amended hereby; and the Loan Documents and the rights and remedies of the Administrative Agent thereunder, the obligations of the Borrower thereunder, and the Liens created and provided for thereunder remain in full force and effect and shall not be affected, impaired or discharged hereby. Nothing herein contained shall in any manner affect or impair the priority of the Liens created and provided for by the Loan Documents as to the indebtedness which would be secured thereby prior to giving effect to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. The Guarantor hereby acknowledges that it has reviewed the terms and provisions of this Amendment and consents to any modification of the Credit Agreement and the other Loan Documents effected pursuant to this Amendment. The Guarantor hereby confirms to the Administrative Agent that, after giving effect to this Amendment, the Guarantee of the Guarantor and each other Loan Document to which the Guarantor is a party continues in full force and effect and is the legal, valid and binding obligation of the Guarantor, enforceable against the Guarantor in accordance with their terms except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors' rights generally or by equitable

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principles relating to enforceability. The Guarantor acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Amendment, the Guarantor is not required by the terms of the Credit Agreement or any other Loan Document to consent to the waivers or modifications to the Credit Agreement effected pursuant to this Amendment and (ii) nothing in the Credit Agreement, this Amendment or any other Loan Document shall be deemed to require the consent of the Guarantor to any future waivers or modifications to the Credit Agreement.

SECTION 5. NEW LENDER; EQUALIZATION OF LOANS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. *New Lender.* Upon the satisfaction of the conditions precedent set forth in Section 2 hereof, each New Lender (i) shall be deemed automatically to have become a party to the Credit Agreement as a Lender, and have all the rights and obligations of a *"Lender"* under the Credit Agreement, (ii) shall have a Commitment in the amount set forth on Schedule 2.1 to the Credit Agreement, and (iii) agrees to be bound by the terms and conditions of the Credit Agreement as if it were an original signatory thereto. Each New Lender hereby confirms that it has received a copy of the Credit Agreement and the other Loan Documents and the exhibits related thereto, together with copies of the documents which were required to be delivered under the Credit Agreement as a condition to the making of the Loans and other extensions of credit thereunder. Each New Lender acknowledges and agrees that it has made and will continue to make, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, its own credit analysis and decisions relating to the Credit Agreement. Each New Lender further acknowledges and agrees that the Administrative Agent has not made any representations or warranties about the credit worthiness of the Borrower or any other party to the Credit Agreement or any other Loan Document or with respect to the legality, validity, sufficiency or enforceability of the Credit Agreement or any other Loan Document or the value of any security therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. *Equalization of Loans.* Upon the satisfaction of the conditions precedent set forth in Section 2 hereof, the Lenders each agree to make such purchases and sales of interests in the outstanding Loans among themselves so that each Lender is then holding its Percentage of outstanding Loans. Such purchases and sales shall be arranged through the Administrative Agent and each Lender hereby agrees to execute such further instruments and documents, if any, as the Administrative Agent may reasonably request in connection therewith.

SECTION 6. MISCELLANEOUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Except as specifically amended herein, the Credit Agreement shall continue in full force and effect in accordance with its original terms. Reference to this specific Amendment need not be made in the Credit Agreement, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Credit Agreement, any reference in any of such items to the Credit Agreement being sufficient to refer to the Credit Agreement as amended hereby. This Amendment is not a novation nor is it to be construed as a release, waiver or modification of any of the terms, conditions, representations, warranties, covenants, rights or remedies set forth in the Credit Agreement or the other Loan Documents, except as specifically set forth herein. Without limiting the foregoing, each party to this Amendment agrees to comply with all of the terms, conditions, and provisions of the Credit Agreement and the other Loan Documents except to the extent such compliance is irreconcilably inconsistent with the express provisions of this Amendment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. The Borrower agrees to pay on demand all reasonable and documented out-of-pocket costs and expenses of or incurred by the Administrative Agent in connection with the negotiation, preparation, execution and delivery of this Amendment and the other instruments and documents being executed and delivered in connection herewith and the transactions contemplated hereby, including the reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. This Amendment may be executed in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall constitute one and the same agreement. Any of the parties hereto may execute this Amendment by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be an original. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic (e.g., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of Amendment. This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

[Remainder Left Intentionally Blank]

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This Fourth Amendment to Credit Agreement is entered into as of the date and year first above written.

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| | |
|:---|:---|
| CLEAR STREET LLC, as the Borrower | CLEAR STREET LLC, as the Borrower |
| By: | /s/ Chris Pento |
|  | Name: Chris Pento |
|  | Title: Chief Executive Officer |

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| | |
|:---|:---|
| CLEAR STREET HOLDINGS LLC, as the Guarantor | CLEAR STREET HOLDINGS LLC, as the Guarantor |
| By: | /s/ Chris Pento |
|  | Name: Chris Pento |
|  | Title: Chief Executive Officer |

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[Signature Page to the Fourth Amendment to Credit Agreement]

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| | |
|:---|:---|
| ACCEPTED AND AGREED TO. | ACCEPTED AND AGREED TO. |
| BMO HARRIS BANK N.A., AS A LENDER AND AS ADMINISTRATIVE AGENT | BMO HARRIS BANK N.A., AS A LENDER AND AS ADMINISTRATIVE AGENT |
| By: | /s/ Matthew Witt |
|  | Name: Matthew Witt |
|  | Title: Vice President |

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| | |
|:---|:---|
| CIBC BANK USA, AS A LENDER | CIBC BANK USA, AS A LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| OLD NATIONAL BANK (As successor by merger to First Midwest Bank), as a Lender | OLD NATIONAL BANK (As successor by merger to First Midwest Bank), as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK, AS A LENDER | TRISTATE CAPITAL BANK, AS A LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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[Signature Page to the Fourth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  Accepted and Agreed to. | Accepted and Agreed to. |
| BMO HARRIS BANK N.A., as a Lender and as Administrative Agent | BMO HARRIS BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
|  CIBC BANK USA, AS A LENDER | CIBC BANK USA, AS A LENDER |
| By: | /s/ Morgan Donovan |
|  | Name: Morgan Donovan |
|  | Title: Associate Managing Director |

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| | |
|:---|:---|
| OLD NATIONAL BANK (As successor by merger to First Midwest Bank), as a Lender | OLD NATIONAL BANK (As successor by merger to First Midwest Bank), as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
|  CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
|  TRISTATE CAPITAL BANK, AS A LENDER | TRISTATE CAPITAL BANK, AS A LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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[Signature Page to the Fourth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  Accepted and agreed to. | Accepted and agreed to. |
| BMO HARRIS BANK N.A., as a Lender and as Administrative Agent | BMO HARRIS BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
|  CIBC BANK USA, AS A LENDER | CIBC BANK USA, AS A LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| OLD NATIONAL BANK (As successor by merger to First Midwest Bank), as a Lender | OLD NATIONAL BANK (As successor by merger to First Midwest Bank), as a Lender |
| By: | /s/ Zachary Flahaven |
|  | Name: Zachary Flahaven |
|  | Title: SVP |

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| | |
|:---|:---|
|  CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
|  TRISTATE CAPITAL BANK, AS A LENDER | TRISTATE CAPITAL BANK, AS A LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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[Signature Page to the Fourth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  Accepted and agreed to. | Accepted and agreed to. |
| BMO HARRIS BANK N.A., as a Lender and as Administrative Agent | BMO HARRIS BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
|  CIBC BANK USA, AS A LENDER | CIBC BANK USA, AS A LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| OLD NATIONAL BANK (As successor by merger to First Midwest Bank), as a Lender | OLD NATIONAL BANK (As successor by merger to First Midwest Bank), as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
|  CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: | /s/ Brandon Troster |
|  | Name: Brandon Troster |
|  | Title: Senior Vice President |

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| | |
|:---|:---|
|  TRISTATE CAPITAL BANK, AS A LENDER | TRISTATE CAPITAL BANK, AS A LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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[Signature Page to the Fourth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  Accepted and agreed to.<br>BMO HARRIS BANK N.A., as a Lender and as Administrative Agent | Accepted and agreed to.<br>BMO HARRIS BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
|  CIBC BANK USA, AS A LENDER | CIBC BANK USA, AS A LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| OLD NATIONAL BANK (As successor by merger to First Midwest Bank), as a Lender | OLD NATIONAL BANK (As successor by merger to First Midwest Bank), as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
|  CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
|  TRISTATE CAPITAL BANK, AS A LENDER | TRISTATE CAPITAL BANK, AS A LENDER |
| By: | /s/ Ellen Frank |
|  | Name: Ellen Frank |
|  | Title: Senior Vice President |

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[Signature Page to the Fourth Amendment to Credit Agreement]

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| | |
|:---|:---|
| NORTHBROOK BANK & TRUST COMPANY, N.A., AS A NEW LENDER | NORTHBROOK BANK & TRUST COMPANY, N.A., AS A NEW LENDER |
| By: | /s/ Connor Huxable |
|  | Name: Connor Huxable |
|  | Title: Vice President |

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| | |
|:---|:---|
|  SIGNATURE BANK, AS A NEW LENDER | SIGNATURE BANK, AS A NEW LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
|  BANK OF AMERICA, N.A., AS A NEW LENDER | BANK OF AMERICA, N.A., AS A NEW LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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[Signature Page to the Fourth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  NORTHBROOK BANK & TRUST COMPANY, N.A., AS A NEW LENDER | NORTHBROOK BANK & TRUST COMPANY, N.A., AS A NEW LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
|  SIGNATURE BANK, AS A NEW LENDER | SIGNATURE BANK, AS A NEW LENDER |
| By: | /s/ Richard Ohl |
|  | Name: Richard Ohl |
|  | Title: Sr. Vice President/Sr. Lender |

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| | |
|:---|:---|
|  BANK OF AMERICA, N.A., AS A NEW LENDER | BANK OF AMERICA, N.A., AS A NEW LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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[Signature Page to the Fourth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  NORTHBROOK BANK & TRUST COMPANY, N.A., AS A NEW LENDER | NORTHBROOK BANK & TRUST COMPANY, N.A., AS A NEW LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
|  SIGNATURE BANK, AS A NEW LENDER | SIGNATURE BANK, AS A NEW LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
|  BANK OF AMERICA, N.A., AS A NEW LENDER | BANK OF AMERICA, N.A., AS A NEW LENDER |
| By: | /s/ Sherman Wong |
|  | Name: Sherman Wong |
|  | Title: Director |

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[Signature Page to the Fourth Amendment to Credit Agreement]

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**EXHIBIT A** 

**NOTICE OF BORROWING** 

Date:<u> </u><u> </u>,

 To: BMO Harris Bank N.A., as Administrative Agent for the Lenders party to the Credit Agreement dated as of December 4, 2020 (as extended, renewed, amended or restated from time to time, the "Credit Agreement"), among Clear Street LLC, certain Lenders which are signatories thereto, BMO Harris Bank N.A., as Administrative Agent<br>

Ladies and Gentlemen:

The undersigned,<u> </u> (the *"Borrower"*), refers to the Credit Agreement, the terms defined therein being used herein as therein defined, and hereby gives you notice irrevocably, pursuant to Section 2.4 of the Credit Agreement, of the Borrowing specified below:

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| | | |
|:---|:---|:---|
| (1) | Borrowing Date |  |
| (2) | Dollar Amount of Loan Requested |  |
| (3) | Type of Loan | **[Margin Loan] / [NSCC Margin Loan] / [Reserve Loan]** |

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Annex I attached hereto sets forth data and computations evidencing the Borrowing Base, and all of such data and computations are true, correct and complete and have been made in accordance with the relevant sections of the Credit Agreement.

For new value received the undersigned hereby pledges to the Administrative Agent and grants to the Administrative Agent, for the benefit of the Lenders, a security interest in the securities and other Property listed on the schedule(s) attached hereto as Annex II and made a part hereof and confirms a pledge of and security interest in the same now in effect in favor of the Administrative Agent, together with all rights related thereto and all proceeds thereof pursuant to the terms of the Credit Agreement.

The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed Loan, before and after giving effect thereto and to the application of the proceeds therefrom:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true andcorrect in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default has occurred and is continuing or would result from such proposed Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) after giving effect to the Loan: (i) the aggregate principal amount of all Loans outstanding under this Agreement shall not exceed the Commitment; (ii) the aggregate principal amount of Margin Loans at any time outstanding shall not exceed the Margin Borrowing Base as then determined and computed, (iii) the aggregate principal amount of NSCC Margin Loans at any time outstanding shall not exceed the NSCC Borrowing Base as then determined and computed, (iv) the aggregate principal amount of Reserve Loans at any time outstanding shall not exceed the Reserve Borrowing Base as then determined and computed, (v) the aggregate principal amount of Customer Loans at any time outstanding shall not exceed the Customer Loan Limit, and (vi) the aggregate principal amount of Firms Loans at any time outstanding shall not exceed the Firm Loan Limit.

(4) With respect to NSCC Margin Loan and Reserve Loans, the Number of Zero Loan Days during the current month: . **[Number of Zero Loan Days during any calendar month cannot be less than 8]** 

(5) To the extent such Loan is a Margin Loan, then such requested Borrowing is (select one):

[ ] Customer Loan secured by Customer Securities; or

[ ] Firm Loan secured by Firm Securities.

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| | |
|:---|:---|
|  CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

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**ANNEX I** 

**TO** 

**NOTICE OF BORROWING** 

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| | | | |
|:---|:---|:---|:---|
|  **BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** | **BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** | **BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** | **BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** |
| (1) | Market Value of Eligible Federal Government Securities | x 90% | $<u> </u> |
| (2) | Market Value of Eligible Bond Securities | x 90% | $<u> </u> |
| (3) | the Market Value of Eligible Equity Securities | x 80% | $<u> </u> |
| (4) | Sum of Lines (1), (2) and (3) |  | $<u> </u> |
| (5) | Outstanding Margin Loans |  | $<u> </u> |
| (6) | Availability (Line (4) minus Line (5)) |  | $<u> </u> |
|  **BORROWING BASE (NSCC MARGIN LOANS)** | **BORROWING BASE (NSCC MARGIN LOANS)** | **BORROWING BASE (NSCC MARGIN LOANS)** | **BORROWING BASE (NSCC MARGIN LOANS)** |
| (a) | Previous month 10th lowest Eligible NSCC Margin Deposits |  | $<u> </u> |
| (b) | Current Eligible NSCC Margin Deposits |  | $<u> </u> |
| (c) | Line (b) minus Line (a) |  | $<u> </u> |
| (d) | Line (c) multiplied by 80% (to the extent positive) |  | $<u> </u> |
| (e) | Outstanding NSCC Margin Loans |  | $<u> </u> |
| (f) | Availability (Line (d) minus Line (e)) |  | $<u> </u> |

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| | |
|:---|:---|
| <sup>\*\*</sup> | Eligible Securities shall exclude securities held in the Borrower's inventory for more than thirty (30) consecutive days and the calculation of Eligible Bond Securities and Eligible Equity Securities shall exclude the Market Value of any security that exceeds 15% of the Borrowing Base (Margin Loans)  |

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| | | |
|:---|:---|:---|
|  **BORROWING BASE (RESERVE LOANS)** | **BORROWING BASE (RESERVE LOANS)** | **BORROWING BASE (RESERVE LOANS)** |
| (i) | Amount in Reserve Account as of<u> </u> (the*"Requested Withdrawal Date"*) | $<u> </u> |
| (ii) | Requested customer withdrawals from the Requested Withdrawal Date | $<u> </u> |
| (iii) | Deposits required to be made in the Excluded Account from the Requested Withdrawal Date | $<u> </u> |
| (iv) | Line (ii) minus Line (iii) (to the extent positive) | $<u> </u> |
| (v) | Outstanding Reserve Loans | $<u> </u> |
| (vi) | Availability (Line (iv) minus Line (v) | $<u> </u> |
|  **LIMITATIONS ON AVAILABILITY** | **LIMITATIONS ON AVAILABILITY** | **LIMITATIONS ON AVAILABILITY** |
| A. | Outstanding Loans after giving effect to such requested Borrowing (sum of Line (5), Line (e) and Line (v)) | $<u> </u> |
| B. | The lesser of (i) the Commitment and (ii) Line A | $<u> </u> |
| C. | Outstanding NSCC Margin Loans and Reserve Loans after giving effect to such requested Borrowing (sum of Line (e) and Line (v)) | $<u> </u> |
| D. | The lesser of (i) the Sublimit and (ii) Line C | $<u> </u> |

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**ANNEX II** 

**TO** 

**NOTICE OF BORROWING** 

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**EXHIBIT C** 

**CLEAR STREET LLC** 

**COMPLIANCE CERTIFICATE** 

To: BMO Harris Bank N.A., as Administrative Agent under,

and the Lenders party to, the Credit Agreement described below

This Compliance Certificate is furnished to the Administrative Agent and the Lenders pursuant to that certain Credit Agreement dated as of December 4, 2020, among Clear Street LLC, as Borrower, the Lenders party thereto from time to time, and BMO Harris Bank N.A., as Administrative Agent (as extended, renewed, amended or restated from time to time, the *"Credit Agreement"*). Unless otherwise defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in the Credit Agreement.

THE UNDERSIGNED HEREBY CERTIFIES THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I am the duly elected<u> </u> of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I have reviewed the terms of the Credit Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of the Borrower and its Subsidiaries during the accounting period covered by the attached financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or the occurrence of any event which constitutes a Default during or at the end of the accounting period covered by the attached financial statements or as of the date of this Compliance Certificate, except as set forth below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The financial statements required by Section 6.5 of the Credit Agreement and being furnished to you concurrently with this Compliance Certificate are true, correct and complete as of the date and for the periods covered thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Schedule I hereto sets forth financial data and computations evidencing the Borrower's compliance with certain covenants of the Credit Agreement, all of which data and computations are, to the best of my knowledge, true, complete and correct and have been made in accordance with the relevant Sections of the Credit Agreement. In the event of a conflict between the attached spreadsheet and any certifications relating thereto and the Credit Agreement and related definitions used in calculating such covenants, the Credit Agreement and such related definitions shall govern and control.

Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

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The foregoing certifications, together with the computations set forth in Schedule I hereto and the financial statements delivered with this Certificate in support hereof, are made and delivered this day of<u> </u>20 .

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| | |
|:---|:---|
|  CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

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**SCHEDULE I** 

**TO COMPLIANCE CERTIFICATE** 

**CLEAR STREET LLC** 

**COMPLIANCE CALCULATIONS** 

**FOR CREDIT AGREEMENT DATED AS OF DECEMBER 4, 2020** 

CALCULATIONS AS OF ,

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| | | |
|:---|:---|:---|
| A. | <u>Minimum Tangible Net Worth (Section 7.12(a))</u> |  |
| 1. | Tangible Net Worth | $<u> </u> |
| 2. | Line A1 shall not be less than | $350000000 |
| 3. | The Borrower is in compliance (circle yes or no) | yes/no |
| B. | <u>Minimum Excess Net Capital (Section 7.12(b))</u> |  |
| 1. | Excess Net Capital | $<u> </u> |
| 2. | Line B1 shall not be less than | $250000000 |
| 3. | The Borrower is in compliance (circle yes or no) | yes/no |
| C. | <u>Total Assets to Total Equity (Section 7.12(c))</u> |  |
| 1. | Total Assets | $<u> </u> |
| 2. | Matched repurchased agreements | $<u> </u> |
| 3. | Loans consisting of securities | $<u> </u> |
| 4. | Line C1 minus Line C2 minus Line C3 | $<u> </u> |
| 5. | Total equity | $<u> </u> |
| 6. | Ratio of Line C4 to C5 | _____ to _____ |
| 7. | Line C6 shall not exceed | 13.0 to 1 |
| 8. | The Borrower's in Compliance | yes/no |
| D. | <u>Minimum Liquidity Ratio (Section 7.12(d))</u> | $<u> </u> |
| 1. | Unencumbered marketable securities (determined after taking into account prudent and customary financing haircuts as reasonably determined by the Administrative Agent) (exclusive of any securities on deposit in a Customer Reserve Bank Account or a PAB Reserve Bank Account, as those terms are defined in Exchange Act rule 15c3-3) | $<u> </u> |
| 2. | Unencumbered cash (exclusive of any cash on deposit in a Customer Reserve Bank Account or a PAB Reserve Bank Account, as those terms are defined in Exchange Act rule 15c3-3 unless such cash on deposit is available to satisfy any obligation of the Borrower) | $<u> </u> |
| 3. | Eligible NSCC Margin Deposits (solely to the extent of the lesser of (x) the amount, if any, by which the Borrowing Base at such time exceeds the aggregate outstanding amount of Loans and (y) an amount equal to the | $<u> </u> |

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| | | |
|:---|:---|:---|
| 4. | Sum of Lines D1 plus D2 plus D3 | $<u> </u> |
| 5. | Unsecured Indebtedness (other than the Loans, Subordinated Debt and intercompany Indebtedness that is subordinated to the Obligations, and exclusive of any credit balances carried for the account of any customer, broker or dealer) | $<u> </u> |
| 6. | Ratio of Line D4 to line D5 | _____ to _____ |
| 7. | Line D6 ratio shall not be less than | 1.0 to 1 |
| 8. | The Borrower is in compliance (circle yes or no) | yes / no |

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**EXHIBIT F** 

**INCREASE REQUEST** 

Dated<u> </u> ,

To: BMO Harris Bank N.A., as Administrative Agent for

the Lenders party to the Credit Agreement dated as

of December 4, 2020, as amended, among Clear

Street LLC, as Borrower, the Guarantors referred to

therein, the Lenders party thereto from time to time,

and the Administrative Agent (as extended, renewed, amended or restated from time to time, the *"Credit Agreement"*)

Ladies and Gentlemen:

The undersigned, Clear Street LLC, a Delaware limited liability company (the *"Borrower"*), hereby refers to the Credit Agreement and requests that the Administrative Agent consent to an increase in the aggregate Commitments (the *"Revolver Increase"*), in accordance with Section 2.17 of the Credit Agreement, to be effected by **[an increase in the Commitment of [name of existing Lender]] [the addition of [name of new Lender] (the *"New Lender"*), as a Lender under the terms of the Credit Agreement]**. Capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

After giving effect to such Revolver Increase, the Commitment of the **[Lender] [New Lender]** shall be $.

**[Include paragraphs 1-4 for a New Lender]** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The New Lender hereby confirms that it has received a copy of the Loan Documents and the exhibits related thereto, together with copies of the documents which were required to be delivered under the Credit Agreement as a condition to the making of the Loans and other extensions of credit thereunder. The New Lender acknowledges and agrees that it has made and will continue to make, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, its own credit analysis and decisions relating to the Credit Agreement. The New Lender further acknowledges and agrees that the Administrative Agent has not made any representations or warranties about the credit worthiness of any Loan Party or any of its Subsidiaries or any other party to the Credit Agreement or any other Loan Document or with respect to the legality, validity, sufficiency or enforceability of the Credit Agreement or any other Loan Document or the value of any security therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as otherwise provided in the Credit Agreement, effective as of the date of acceptance hereof by the Administrative Agent, the New Lender (i) shall be deemed automatically to have become a party to the Credit Agreement and have all the rights and obligations of a *"Lender"* under the Credit Agreement as if it were an original signatory thereto and (ii) agrees to be bound by the terms and conditions set forth in the Credit Agreement as if it were an original signatory thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The New Lender shall deliver to the Administrative Agent a completed Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The New Lender has delivered to the Borrower and the Administrative Agent (or is delivering to the Borrower and the Administrative Agent concurrently herewith), as required, the Tax forms referred to in Section 3.1 of the Credit Agreement.

THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACTUAL OBLIGATION UNDER, AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

The Revolver Increase shall be effective when the executed consent of the Administrative Agent is received or otherwise in accordance with Section 2.17 of the Credit Agreement, but not in any case prior to<u> </u><u> </u>,<u> </u><sup>1</sup>. It shall be a condition to the effectiveness of the Revolver Increase that all expenses referred to in Section 2.17 of the Credit Agreement shall have been paid.

The Borrower hereby certifies that (a) no Default has occurred and is continuing and (b) each of the representations and warranties set forth in Section 5 of the Credit Agreement and in the other Loan Documents are and remain true and correct in all material respects on the effective date of this Revolver Increase (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date.

[SIGNATURE PAGES TO FOLLOW]

**<sup>1</sup>** **Date must be at least five Business Days from date of this notice** 

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Please indicate your consent to such Revolver Increase by signing the enclosed copy of this letter in the space provided below.

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| | |
|:---|:---|
|  Very truly yours,<br>CLEAR STREET LLC | Very truly yours,<br>CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
|  [NEW OR EXISTING LENDER INCREASING REVOLVING CREDIT COMMITMENTS] | [NEW OR EXISTING LENDER INCREASING REVOLVING CREDIT COMMITMENTS] |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| The undersigned hereby consents on this ____ day of<u> </u>, 20___, to theabove-requested Revolver Increase | The undersigned hereby consents on this ____ day of<u> </u>, 20___, to theabove-requested Revolver Increase |
|  BMO HARRIS BANK N.A., AS ADMINISTRATIVE AGENT | BMO HARRIS BANK N.A., AS ADMINISTRATIVE AGENT |
| By: |  |
|  | Name: |
|  | Title: |

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**SCHEDULE 2.1** 

**COMMITMENTS** 

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| | |
|:---|:---|
| NAME OF LENDER | COMMITMENT |
|  BMO Harris Bank N.A. | $100000000.00 |
|  Customers Bank | $50000000.00 |
|  CIBC Bank USA | $40000000.00 |
|  Old National Bank | $30000000.00 |
|  TriState Capital Bank | $20000000.00 |
|  Northbrook Bank & Trust Company, N.A. | $20000000.00 |
|  Signature Bank | $20000000.00 |
|  Bank of America, N.A. | $20000000.00 |
|  TOTAL | $300000000 |

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REAFFIRMATION, ACKNOWLEDGEMENT, AND CONSENT OF SUBORDINATED CREDITOR

The undersigned, WBI, LP, heretofore executed in favor of the Administrative Agent a Debt Subordination Agreement dated December 4, 2020. The undersigned hereby consents to the Fourth Amendment to the Credit Agreement as set forth above and confirms that the Debt Subordination Agreement, and all obligations of the undersigned thereunder, remains in full force and effect and, without limiting the foregoing, the undersigned acknowledges and agrees that increase in the Commitments constitutes Superior Indebtedness under the Debt Subordination Agreement. The undersigned further agrees that the consent of the undersigned to any further amendments to the Credit Agreement shall not be required as a result of this consent having been obtained. The undersigned acknowledges that the Administrative Agent is relying on the assurances provided herein in entering into the Amendment set forth above.

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| | |
|:---|:---|
|  WBI, LP | WBI, LP |
| By: | /s/ Elli Ausubel |
|  | Name: Elli Ausubel |
|  | Title: Officer |

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**FIFTH AMENDMENT TO CREDIT AGREEMENT** 

This Fifth Amendment to Credit Agreement (herein, the *"Amendment")* is entered into as of December 1, 2023, by and among CLEAR STREET LLC, a Delaware limited liability company (the *"Borrower"),* CLEAR STREET HOLDINGS LLC, a Delaware limited liability company (the *"Guarantor"),* the Lenders party hereto, and BMO BANK N.A. (f/k/a BMO Hands Bank N.A.), as Administrative Agent (the *"Administrative Agent").*

**PRELIMINARY STATEMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Borrower, the Lenders and the Administrative Agent entered into a certain Credit Agreement, dated as of December 4, 2020, as amended (the *"Credit Agreement").* All capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Borrower has asked the Lenders to make certain amendments to the Credit Agreement, and the Lenders are willing to do so under the terms and conditions set forth in this Amendment.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

SECTION 1. AMENDMENTS.

Subject to the satisfaction or waiver of the conditions precedent set forth in Section 2 below, the Credit Agreement shall be and hereby is amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. The Credit Agreement (including the exhibits and schedules thereto), shall be and hereby are amended to delete the stricken (indicated textually in the same manner as the following example: stricken text) and to add the underlined text (indicated textually in the same manner as the following example: <u>double underlined text</u>) as set forth in the changed pages of the Credit Agreement attached as Annex I hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. The Borrower and the Lenders acknowledge and agree that the increase in the Commitments constitutes an Increase set forth in Section 2.17 of the Credit Agreement, and that this Amendment constitutes an Increase Request being delivered in accordance with Section 2.17 of the Agreement. The Borrower and the Lenders further acknowledge and agree that the amount available to increase the Commitments under Section 2.17 of the Credit Agreement shall be decreased by the amount by which the Commitments are increased on the effective date of this Amendment.

SECTION 2. CONDITIONS PRECEDENT.

The effectiveness of this Amendment is subject to the satisfaction of all of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. The Borrower, the Guarantor, the Lenders, and the Administrative Agent shall have executed and delivered this Amendment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. If requested by any Lender increasing its Commitment, the Administrative Agent shall have received for such Lender such Lender's duly executed Notes of the Borrower dated the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. The Administrative Agent shall have received evidence satisfactory to it that the Borrower has directed FICC to return the proceeds of the FICC Loans to the Borrower by deposit into the Settlement Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. WBI, LP shall have executed its reaffirmation, acknowledgment, and consent in the space provided for that purpose below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. The Administrative Agent shall have received good standing certificates for the Borrower and the Guarantor, dated as of a date no earlier than 30 days prior to the date hereof, from the Delaware Secretary of State.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. Legal matters incident to the execution and delivery of the Loan Documents and to the transactions contemplated hereby shall be satisfactory to the Administrative Agent and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. The Administrative Agent shall have received fees set forth in that certain letter dated October 20, 2023, between the Administrative Agent and the Borrower, including upfront fees payable to each Lender equal to 0.20% of such Lender's Commitment after giving effect to this Amendment.

SECTION 3. REPRESENTATIONS.

In order to induce the Lenders to enter into this Amendment, each of Borrower and the Guarantor (collectively, the *"Credit Parties")* hereby represents and warrants to the Administrative Agent and the Required Lenders that as of the date hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. *Authorization, Etc.* Each Credit Party has the power and authority to execute, deliver and perform this Amendment. Each Credit Party has taken all necessary action (including, without limitation, obtaining approval of its equity holders, if necessary) to authorize its execution, delivery and performance of this Amendment. No consent, approval or authorization of, or declaration or filing with, any Governmental Authority, and no consent of any other Person, is required in connection with the Credit Parties' execution, delivery and performance of this Amendment, except for those already duly obtained. This Amendment has been duly executed and delivered by the Credit Parties and constitutes the legal, valid and binding obligation of the Credit Parties, enforceable against them in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditor rights generally or by equitable principles relating to enforceability. The execution, delivery and performance of this Amendment by the Credit Parties does not (i) contravene the terms of any of such Credit Party's Organizational Documents; (ii) conflict with or constitute a violation or breach of, or constitute a default under, or result in the creation or imposition of any Lien (other than pursuant to the Loan Documents) upon the Property of such Credit Party by reason of the terms of any material contractual obligation (including without limitation contractual obligations arising from any material agreements to which such Credit Party is a party or which is binding upon it); or (hi) violate any applicable law in any material respect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. *Representations and Warranties.* After giving effect to this Amendment, the representations and warranties set forth in Section 5 of the Credit Agreement and in the other Loan Documents are and shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. *No Default.* No Default exists under the Credit Agreement or shall result after giving effect to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. *No Change to Organizational Documents.* Each Credit Party hereby certifies that: (w) except for the Limited Liability Company Agreement of the Guarantor, the copies of such Credit Party's Organizational Documents previously delivered to the Administrative Agent under the Loan Documents or otherwise delivered to the Administrative Agent in connection herewith continue to be true, correct and complete, have not been amended or otherwise modified since the date of such delivery, and are in full force and effect on the date hereof; (x) attached hereto as Annex II is a true, correct and complete copy of the Guarantor's Limited Liability Company Agreement in effect on the date hereof; (y) the resolutions of such Credit Party on file with the Administrative Agent in connection with the Credit Agreement continue to be true, correct and complete, have not been amended, modified or revoked since the date of such delivery, and are in full force and effect on the date hereof; and (z) each Person previously identified by such Credit Party to sign any Loan Document on behalf of such Credit Party continues to be so authorized on the date hereof and is authorized to sign this Amendment. The Administrative Agent and the Lenders may conclusively rely on this certification until it is otherwise notified by the applicable Credit Party in writing.

SECTION 4. REAFFIRMATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. The Borrower hereby acknowledges and agrees that the Liens created and provided for by the Loan Documents continue to secure, among other things, the Obligations arising under the Credit Agreement as amended hereby; and the Loan Documents and the rights and remedies of the Administrative Agent thereunder, the obligations of the Borrower thereunder, and the Liens created and provided for thereunder remain in full force and effect and shall not be affected, impaired or discharged hereby. Nothing herein contained shall in any manner affect or impair the priority of the Liens created and provided for by the Loan Documents as to the indebtedness which would be secured thereby prior to giving effect to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. The Guarantor hereby acknowledges that it has reviewed the terms and provisions of this Amendment and consents to any modification of the Credit Agreement and the other Loan Documents effected pursuant to this Amendment. The Guarantor hereby confirms to the Administrative Agent that, after giving effect to this Amendment, the

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Guarantee of the Guarantor and each other Loan Document to which the Guarantor is a party continues in full force and effect and is the legal, valid and binding obligation of the Guarantor, enforceable against the Guarantor in accordance with their terms except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability. The Guarantor acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Amendment, the Guarantor is not required by the terms of the Credit Agreement or any other Loan Document to consent to the waivers or modifications to the Credit Agreement effected pursuant to this Amendment and (ii) nothing in the Credit Agreement, this Amendment or any other Loan Document shall be deemed to require the consent of the Guarantor to any future waivers or modifications to the Credit Agreement.

SECTION 5. MISCELLANEOUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. Except as specifically amended herein, the Credit Agreement shall continue in full force and effect in accordance with its original terms. Reference to this specific Amendment need not be made in the Credit Agreement, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Credit Agreement, any reference in any of such items to the Credit Agreement being sufficient to refer to the Credit Agreement as amended hereby. This Amendment is not a novation nor is it to be construed as a release, waiver or modification of any of the terms, conditions, representations, warranties, covenants, rights or remedies set forth in the Credit Agreement or the other Loan Documents, except as specifically set forth herein. Without limiting the foregoing, each party to this Amendment agrees to comply with all of the terms, conditions, and provisions of the Credit Agreement and the other Loan Documents except to the extent such compliance is irreconcilably inconsistent with the express provisions of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. The Borrower agrees to pay on demand all reasonable and documented out-of-pocket costs and expenses of or incurred by the Administrative Agent in connection with the negotiation, preparation, execution and delivery of this Amendment and the other instruments and documents being executed and delivered in connection herewith and the transactions contemplated hereby, including the reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. This Amendment may be executed in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall constitute one and the same agreement. Any of the parties hereto may execute this Amendment by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be an original. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic (e.g., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of Amendment. This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

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This Fifth Amendment to Credit Agreement is entered into as of the date and year first above written.

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| | |
|:---|:---|
|  CLEAR STREET LLC, as the Borrower | CLEAR STREET LLC, as the Borrower |
| By: | /s/ Andrew Volz |
|  | Name: Andrew Volz |
|  | Title: CEO |
|  CLEAR STREET HOLDINGS LLC, as the Guarantor | CLEAR STREET HOLDINGS LLC, as the Guarantor |
| By: | /s/ Christopher Pento |
|  | Name: Christopher Pento |
|  | Title: Officer |

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[Signature Page to the Fifth Amendment to Credit Agreement]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
|  BMO BANK N.A., as a Lender and as Administrative Agent | BMO BANK N.A., as a Lender and as Administrative Agent |
| By: | /s/ Matthew Witt |
|  | Name: Matthew Witt |
|  | Title: Vice President |
|  CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
|  OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
|  CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
|  TRISTATE CAPITAL BANK, as a Lender | TRISTATE CAPITAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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[Signature Page to the Fifth Amendment to Credit Agreement]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
|  BMO BANK N.A., as a Lender and as Administrative Agent | BMO BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |
|  CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: | /s/ Morgan Donovan |
|  | Name: Morgan Donovan |
|  | Title: Managing Director |
|  OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
|  CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
|  TRISTATE CAPITAL BANK, as a Lender | TRISTATE CAPITAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

[Signature Page to the Fifth Amendment to Credit Agreement]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
|  BMO BANK N.A., as a Lender and as Administrative Agent | BMO BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |
|  CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
|  OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: | /s/ Zachary Flahaven |
|  | Name: Zachary Flahaven |
|  | Title: SVP |
|  CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
|  TRISTATE CAPITAL BANK, as a Lender | TRISTATE CAPITAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

[Signature Page to the Fifth Amendment to Credit Agreement]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
|  BMO BANK N.A., as a Lender and as Administrative Agent | BMO BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |
|  CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
|  OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
|  CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: | /s/ Brandon Troster |
|  | Name: Brandon Troster |
|  | Title: SVP, Financial Institutions |
|  TRISTATE CAPITAL BANK, as a Lender | TRISTATE CAPITAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

[Signature Page to the Fifth Amendment to Credit Agreement]

------

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
|  BMO BANK N.A., as a Lender and as Administrative Agent | BMO BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |
|  CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
|  OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
|  CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
|  TRISTATE CAPITAL BANK, as a Lender | TRISTATE CAPITAL BANK, as a Lender |
| By: | /s/ Ellen Frank |
|  | Name: Ellen Frank |
|  | Title: Senior Vice President |

---

[Signature Page to the Fifth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender | NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender |
| By: | /s/ Connor Huxtable |
|  | Name: Connor Huxtable |
|  | Title: Vice President |
|  BANK OF AMERICA, N.A., as a Lender | BANK OF AMERICA, N.A., as a Lender |
| By: | /s/ Sherman Wong |
|  | Name: Sherman Wong |
|  | Title: Director |

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[Signature Page to the Fifth Amendment to Credit Agreement]

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**REAFFIRMATION, ACKNOWLEDGEMENT, AND CONSENT OF SUBORDINATED CREDITOR** 

The undersigned, WBI, LP, heretofore executed in favor of the Administrative Agent a Debt Subordination Agreement dated December 4, 2020. The undersigned hereby consents to the Fifth Amendment to the Credit Agreement as set forth above and confirms that the Debt Subordination Agreement, and all obligations of the undersigned thereunder, remains in full force and effect and, without limiting the foregoing, the undersigned acknowledges and agrees that increase in the Commitments constitutes Superior Indebtedness under the Debt Subordination Agreement. The undersigned further agrees that the consent of the undersigned to any further amendments to the Credit Agreement shall not be required as a result of this consent having been obtained. The undersigned acknowledges that the Administrative Agent is relying on the assurances provided herein in entering into the Amendment set forth above.

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| | |
|:---|:---|
| WBI, LP | WBI, LP |
| By: | /s/ Elli Ausubel |
|  | Name: Elli Ausubel |
|  | Title: Director |

---

------

**CONFORMED CREDIT AGREEMENT** <u>Annex I</u>

**\*** **First Amendment to Credit Agreement dated as of May 13, 2021** 

**\*** **Third Amendment to Credit Agreement dated as of April 6, 2022** 

\* Proposed Fourth Amendment to Credit Agreement dated as of December 2, 2022

*THIS CONFORMED CREDIT AGREEMENT IS FOR CONVENIENT REFERENCE PURPOSES ONLY* 

*AND DOES NOT SUPERSEDE OR REPLACE THE CREDIT AGREEMENT AND ABOVE REFERENCED AMENDMENTS* 

*THERETO* 

CREDIT AGREEMENT

DATED AS OF DECEMBER 4, 2020,

AMONG

CLEAR STREET LLC,

THE LENDERS FROM TIME TO TIME PARTY HERETO,

AND

BMO HARRIS BANK N.A.,

AS ADMINISTRATIVE AGENT

BMO-HARRIS Bank N. A.,

AS SOLE LEAD ARRANGER AND SOLE BOOK RUNNER

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**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
| SECTION | HEADING | PAGE |
| SECTION 1. DEFINITIONS; INTERPRETATION | SECTION 1. DEFINITIONS; INTERPRETATION | 1 |
| Section 1.1. | Definitions | 1 |
| Section 1.2. | Interpretation | 24<u>27</u> |
| Section 1.3. | Change in Accounting Principles | 24<u>27</u> |
| Section 1.4. | Divisions | 25<u>28</u> |
| SECTION 2. THE FACILITIES | SECTION 2. THE FACILITIES | 25<u>28</u> |
| Section 2.1. | Revolving Facility | 25<u>28</u> |
| Section 2.2. | Applicable Interest Rates | 26<u>29</u> |
| Section 2.3. | Minimum Borrowing Amounts; Maximum Eurodollar Loans | 26<u>29</u> |
| Section 2.4. | Manner of Borrowing Loans and Designating Applicable Interest Rates | 26<u>29</u> |
| Section 2.5. | Maturity of Loans | 28<u>31</u> |
| Section 2.6. | Prepayments | 28<u>31</u> |
| Section 2.7. | Default Rate | 29<u>33</u> |
| Section 2.8. | Evidence of Indebtedness | 29<u>33</u> |
| Section 2.9. | Fees | 20<u>34</u> |
| Section 2.10. | Place and Application of Payments | 20<u>34</u> |
| Section 2.11. | Non-Business Days | 34<u>35</u> |
| Section 2.12. | Payments Set Aside | 34<u>35</u> |
| Section 2.13. | Account Debit | 24<u>36</u> |
| Section 2.14. | Commitment Terminations | 32<u>36</u> |
| Section 2.15. | Replacement of Lenders | 32<u>36</u> |
| Section 2.16. | Defaulting Lenders | 33<u>37</u> |
| SECTION 3. TAXES; CHANGE IN CIRCUMSTANCES, INCREASED COSTS, AND FUNDING INDEMNITY | SECTION 3. TAXES; CHANGE IN CIRCUMSTANCES, INCREASED COSTS, AND FUNDING INDEMNITY | 35<u>39</u> |
| Section 3.1. | Taxes | 35<u>39</u> |
| Section 3.2. | Increased Costs | 39<u>43</u> |
| Section 3.3. | Discretion of Lender as to Manner of Funding | 40<u>44</u> |
| Section 3.4. | Lending Offices; Mitigation Obligations | 40<u>44</u> |
| Section 3.5. | Intentionally Omitted | 40<u>45</u> |
| SECTION 4. CONDITIONS PRECEDENT | SECTION 4. CONDITIONS PRECEDENT | 40<u>45</u> |
| Section 4.1. | Initial Credit Event | 40<u>45</u> |
| Section 4.2. | All Credit Events | 43<u>47</u> |

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| | | |
|:---|:---|:---|
| SECTION 5. REPRESENTATIONS AND WARRANTIES | SECTION 5. REPRESENTATIONS AND WARRANTIES | 43<u>49</u> |
| Section 5.1. | Organization and Qualification | 43<u>49</u> |
| Section 5.2. | Subsidiaries | 44<u>49</u> |
| Section 5.3. | Authority and Validity of Obligations | 44<u>49</u> |
| Section 5.4. | Use of Proceeds | 45<u>50</u> |
| Section 5.5. | Financial Reports | 45<u>50</u> |
| Section 5.6. | No Material Adverse Change | 45<u>50</u> |
| Section 5.7. | Full Disclosure | 45<u>50</u> |
| Section 5.8. | Trademarks, Franchises, and Licenses | 45<u>51</u> |
| Section 5.9. | Governmental Authority and Licensing | 45<u>51</u> |
| Section 5.10. | Good Title | 46<u>51</u> |
| Section 5.11. | Litigation and Other Controversies | 46<u>51</u> |
| Section 5.12. | Taxes | 46<u>51</u> |
| Section 5.13. | Approvals | 46<u>51</u> |
| Section 5.14. | Affiliate Transactions | 46<u>52</u> |
| Section 5.15. | Investment Company | 46<u>52</u> |
| Section 5.16. | ERISA | 46<u>52</u> |
| Section 5.17. | Compliance with Laws | 47<u>53</u> |
| Section 5.18. | Sanctions; Anti-Money Laundering Laws and Anti-Corruption Laws | 47<u>53</u> |
| Section 5.19. | EEA Financial Institution | 48<u>53</u> |
| Section 5.20. | Other Agreements | 48<u>53</u> |
| Section 5.21. | Solvency | 48<u>53</u> |
| Section 5.22. | No Default or Termination Event | 48<u>53</u> |
| Section 5.23. | Registration; Qualifications | 48<u>54</u> |
| Section 6.22. | SIPC Assessments | 48<u>54</u> |
| Section 5.25. | Designated Examining Authority | 48<u>54</u> |
| Section 5.26. | Perfection of Security Interest | 48<u>54</u> |
| Section 5.27. | Ownership, No Liens, etc. | 49<u>54</u> |
| Section 5.28. | Valid Security Interest | 49<u>54</u> |
| Section 5.29. | Broker Fees | 49<u>54</u> |
| SECTION 6. AFFIRMATIVE COVENANTS | SECTION 6. AFFIRMATIVE COVENANTS | 49<u>55</u> |
| Section 6.1. | Maintenance of Business | 49<u>55</u> |
| Section 6.2. | Maintenance of Properties | 49<u>55</u> |
| Section 6.3. | Taxes and Assessments | 50<u>55</u> |
| Section 6.4. | Insurance | 50<u>55</u> |
| Section 6.5. | Financial Reports; Notices | 50<u>55</u> |
| Section 6.6. | Inspection | 52<u>58</u> |
| Section 6.7. | ERISA | 52<u>58</u> |
| Section 6.8. | Compliance with Laws | 53<u>58</u> |
| Section 6.9. | Compliance with Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions | 53<u>58</u> |
| Section 6.10. | Formation of Subsidiaries | 53<u>59</u> |
| Section 6.11. | Use of Proceeds | 53<u>59</u> |
| Section 6.12. | Settlement Account<u>Accounts</u> | 53<u>59</u> |

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| | | |
|:---|:---|:---|
| SECTION 7. NEGATIVE COVENANTS AND FINANCIAL COVENANTS | SECTION 7. NEGATIVE COVENANTS AND FINANCIAL COVENANTS | 53<u>59</u> |
| Section 7.1. | Borrowings and Guaranties | 53<u>59</u> |
| Section 7.2. | Liens | 55<u>60</u> |
| Section 7.3. | Investments, Acquisitions, Loans and Advances | 56<u>62</u> |
| Section 7.4. | Mergers, Consolidations, Divisions and Sales | 53<u>62</u> |
| Section 7.5. | Maintenance of Subsidiaries | 57<u>63</u> |
| Section 7.6. | Dividends and Certain Other Restricted Payments | 53<u>63</u> |
| Section 7.7. | Burdensome Contracts With Affiliates | 53<u>64</u> |
| Section 7.8. | No Changes in Fiscal Year | 53<u>64</u> |
| Section 7.9. | Change in the Nature of Business | 53<u>64</u> |
| Section 7.10. | No Restrictions | 53<u>64</u> |
| Section 7.11. | Use of Proceeds | 59<u>65</u> |
| Section 7.12. | Financial Covenants | 59<u>65</u> |
| SECTION 8. EVENTS OF DEFAULT AND REMEDIES | SECTION 8. EVENTS OF DEFAULT AND REMEDIES | 60<u>65</u> |
| Section 8.1. | Events of Default | 60<u>65</u> |
| Section 8.2. | Non-Bankruptcy Defaults | 62<u>68</u> |
| Section 8.3. | Bankruptcy Defaults | 62<u>68</u> |
| Section 8.4. | Post-Default Collections | 62<u>68</u> |
| SECTION 9. THE ADMINISTRATIVE AGENT | SECTION 9. THE ADMINISTRATIVE AGENT | 63<u>69</u> |
| Section 9.1. | Appointment and Authority | 63<u>69</u> |
| Section 9.2. | Rights as a Lender | 63<u>69</u> |
| Section 9.3. | Action by Administrative Agent; Exculpatory Provisions | 64<u>69</u> |
| Section 9.4. | Reliance by Administrative Agent | 65<u>71</u> |
| Section 9.5. | Delegation of Duties | 65<u>71</u> |
| Section 9.6. | Resignation of Administrative Agent | 65<u>71</u> |
| Section 9.7. | Non-Reliance on Administrative Agent and Other Lenders | 66<u>72</u> |
| Section 9.8. | Designation of Additional Agents | 66<u>72</u> |
| Section 9.9. | Enforcement of the Loan Documents; Possession of Collateral | 66<u>73</u> |
| Section 9.10. | Authorization to Release or Limit Liens | 67<u>73</u> |
| Section 9.11. | Authorization of Administrative Agent to File Proofs of Claim | 63<u>74</u> |
| Section 9.12. | Certain ERISA Matters | 63<u>75</u> |
| <u>Section 9.14.</u> | <u>Recovery of Erroneous Payment</u> | <u>76</u> |
| SECTION 10. THE COLLATERAL AND GUARANTIES | SECTION 10. THE COLLATERAL AND GUARANTIES | 69<u>76</u> |
| Section 10.1. | Collateral and Collateral Account | 69<u>76</u> |
| Section 10.2. | Delivery of Collateral; Inspection | 70<u>77</u> |
| Section 10.3. | Payments and Other Proceeds | 70<u>77</u> |
| Section 10.4. | Voting Rights and Income | 70<u>77</u> |
| Section 10.5. | Release of Collateral | 70<u>77</u> |
| Section 10.6. | Settlement Account | 74<u>78</u> |
| Section 10.7. | Further Acts | 74<u>78</u> |
| Section 10.8. | Remedies on Default | 72<u>79</u> |

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| | | |
|:---|:---|:---|
| Section 10.9. | Rights of Administrative Agent With Respect to Calculations | 72<u>79</u> |
| Section 10.10. | Waiver of Administrative Agent's Rights Against Collateral | 72<u>80</u> |
| Section 10.11. | Agreement Regarding Customers Securities and Firm Securities | 72<u>80</u> |
| Section 10.12. | Guaranties | 74<u>81</u> |
| SECTION 11. MISCELLANEOUS | SECTION 11. MISCELLANEOUS | 74<u>81</u> |
| Section 11.1. | Notices | 74<u>81</u> |
| Section 11.2. | Successors and Assigns | 76<u>83</u> |
| Section 11.3. | Amendments | 79<u>87</u> |
| Section 11.4. | Costs and Expenses; Indemnification | 84<u>88</u> |
| Section 11.5. | No Waiver, Cumulative Remedies | 82<u>90</u> |
| Section 11.6. | Right of Setoff | 82<u>91</u> |
| Section 11.7. | Sharing of Payments by Lenders | 82<u>91</u> |
| Section 11.8. | Survival of Representations | 84<u>92</u> |
| Section 11.9. | Survival of Indemnities | 84<u>92</u> |
| Section 11.10. | Counterparts, Integration; Effectiveness | 84<u>92</u> |
| Section 11.11. | Headings | 85<u>93</u> |
| Section 11.12. | Severability of Provisions | 85<u>93</u> |
| Section 11.13. | Construction | 85<u>93</u> |
| Section 11.14. | Excess Interest | 85<u>93</u> |
| Section 11.15. | Lender's Obligations Several | 86<u>94</u> |
| Section 11.16. | No Advisory or Fiduciary Responsibility | 86<u>94</u> |
| Section 11.17. | Governing Law; Jurisdiction; Consent to Service of Process | 87<u>95</u> |
| Section 11.18. | Waiver of Jury Trial | 88<u>95</u> |
| Section 11.19. | USA Patriot Act | 88<u>96</u> |
| Section 11.20. | Confidentiality | 88<u>96</u> |
| Section 11.21. | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 89<u>97</u> |
| Section 11.22. | Acknowledgement Regarding Any Supported QFCs | 89<u>97</u> |
| Section 11.23. | Time is of the Essence | 90<u>98</u> |
| Signature Page |  | S-l |

---

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| | |
|:---|:---|
|  EXHIBIT A | NOTICE OF BORROWING |
|  EXHIBIT B | REVOLVING NOTE |
|  EXHIBIT C | COMPLIANCE CERTIFICATE |
|  EXHIBIT D  | ELIGIBLE NSCC MARGIN DEPOSITS |
|  EXHIBIT E | ASSIGNMENT AND ASSUMPTION |
|  SCHEDULE 2.1 | COMMITMENTS |
|  SCHEDULE 5.2 | SUBSIDIARIES |

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-iv-

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**CREDIT AGREEMENT** 

This Credit Agreement is entered into as of December 4, 2020, by and among Clear Street LLC, a Delaware limited liability company (the *"Borrower"),* the several financial institutions from time to time party to this Agreement, as Lenders, and BMO Harris Bank N.A., as Administrative Agent as provided herein.

**PRELIMINARY STATEMENT** 

The Borrower has requested, and the Lenders have agreed to extend, certain credit facilities on the terms and conditions of this Agreement.

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

SECTION 1. DEFINITIONS; INTERPRETATION.

*Section 1.1. Definitions.* The following terms when used herein shall have the following meanings:

<u>"Account Debtor" means any Person obligated to make payment on any Receivable.</u>

*"Account(s)"* means one or more pledged accounts (i) maintained by the Administrative Agent with the DTC and (ii) in the name of and maintained with the Administrative Agent.

*"Adequate Assurance Deposit"* means an NSCC deposit requirement, in excess of ordinary course NSCC deposit requirements, pursuant to NSCC Rule 15, section 2(b).

*"Administrative Agent"* means BMO Harris Bank N.A., in its capacity as administrative agent hereunder, and any successor in such capacity pursuant to Section 9.6.

*"Administrative Questionnaire"* means an Administrative Questionnaire in a form supplied by the Administrative Agent.

*"Affected Financial Institution"* means (a) any EEA Financial Institution or (b) any UK Financial Institution.

*"Affiliate"* means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified; *provided that,* in any event for purposes of this definition, any Person that owns, directly or indirectly, 20% or more of the securities having the ordinary voting power for the election of directors or governing body of a corporation or 20% or more of the partnership or other ownership interest of any other Person (other than as a limited partner of such other Person) will be deemed to control such corporation or other Person.

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*"Agreement"* means this Credit Agreement, as the same may be amended, modified, restated or supplemented from time to time in accordance with the terms hereof.

*"Anti-Corruption Laws"* means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or any of its Subsidiaries from time to time concerning or relating to bribery or corruption.

*"Anti-Money Laundering Laws"* means any and all laws, statutes, regulations or obligatory government orders, decrees, ordinances or rules applicable to the Borrower or its Subsidiaries related to terrorism financing or money laundering, including any applicable provision of the Patriot Act.

*"Applicable Interest Rate*" means<u>:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a rate per annum equal to Overnight Base Rate in effect from time to time plus 1.50% for the Margin Loans, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(ii) a rate per annum equal to the Base Rate in effect from time to time plus 2.0% for FICC Loans.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(iii)</u> a rate per annum equal to Overnight Base Rate in effect from time to time plus 2.50% for the NSCC Loans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(iv) a rate per annum equal to the Base Rate in effect from time to time plus 2.0% for the Receivable Loans, and</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(v) a rate per annum equal to Overnight Base Rate in effect from time to time plus 2.50% for the</u> Reserve Loans, in each case with any

<u>Any</u> change in the Applicable Interest Rate resulting from a change in the <u>Base Rate or</u> Overnight Base Rate to be effective as of the date of the relevant change in said <u>Base Rate or</u> Overnight Base Rate.

*"Approved Fund"* means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

*"Assignment and Assumption"* means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 11.2(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit E or any other form approved by the Administrative Agent.

*"Authorized Representative"* means those persons shown on the list of officers provided by the Borrower pursuant to Section 4.1 or on any update of any such list provided by the Borrower to the Administrative Agent, or any further or different officers of the Borrower so named by any Authorized Representative of the Borrower in a written notice to the Administrative Agent.

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*"Bail-In Action"* means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an Affected Financial Institution.

*"Bail-In Legislation"* means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

<u>*"Base Rate"* means, for any day, the rate per annum equal to the greatest of: (a) the rate of interest announced or otherwise established by Administrative Agent from time to time as its prime commercial rate as in effect on such day, with any change in the Base Rate resulting from a change in said prime commercial rate to be effective as of the date of the relevant change in said prime commercial rate (it being, acknowledged and agreed that such rate may not be Administrative Agents best or lowest rate), (b) the sum of (i) the Federal Funds Rate, plus (ii) 1/2 of 1%, and (c) the sum of (i) Term SOFR for a one-month tenor in effect on such day plus (ii) 0.11448%. Any change in the Base Rate due to a change in the prime rate, the quoted federal funds rates or/Term SOFR, as applicable, shall be effective from and including the effective date of the change in such rate. If the Term SOFR is not available for any reason, then the Base Rate shall be the greater of clauses (a) and (b) above and shall be determined without reference to clause (c) above, *provided* that if Base Rate as determined above shall ever be less than 0.11448%, then Base Rate shall be deemed to be 0.11448%.</u> 

*"Beneficial Ownership Certification"* means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

*"Beneficial Ownership Regulation"* means 31 C.F.R. § 1010.230.

*"Benefit Plan*" means any of (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA, (b) a "plan" as defined in Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such "employee benefit plan" or "plan".

*"Borrower"* is defined in the introductory paragraph of this Agreement.

*"Borrowing"* means the total of Loans of a single type advanced by the Lenders. Borrowings of Loans are made and maintained ratably from each of the Lenders according to their Percentages. A Borrowing is *"advanced"* on the day Lenders advance funds comprising such Borrowing to the Borrower.

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*"Business Day*" means any day (other than a Saturday or Sunday) on which banks are not authorized or required to close in Chicago, Illinois or, with respect to calculating Term SOFR, any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

*"Capital Lease"* means any lease of Property which in accordance with GAAP is required to be capitalized on the balance sheet of the lessee.

*"Capitalized Lease Obligation"* means, for any Person, the amount of the liability shown on the balance sheet of such Person in respect of a Capital Lease determined in accordance with GAAP.

*"Change in Law*" means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority, or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; *provided* that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, regulations, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted or issued.

*"Change of Control"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Cohen Affiliates shall cease at any time and for any reason (including death or incapacity) to own, directly or indirectly, at least 50.1% of the Voting Stock of the Parent and of Clear Street Group Inc. (the *"Ultimate Parent"),*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the failure of the Parent to own, directly or indirectly, 100% of the Voting Stock of the Borrower,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Cohen Affiliates shall cease to have the ability to elect (either through share ownership or contractual voting rights) a majority of the board of directors or equivalent governing body of the Ultimate Parent,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Ultimate Parent shall (i) at any time that Parent is managed by a board of directors (or equivalent governing body), cease to have the ability to elect (either through share ownership or contractual voting rights) a majority of the board of directors or equivalent governing body of the Parent or (ii) at any time that Parent is managed by a managing member, cease to serve as the managing member of the Parent, or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Parent shall (i) at any time that Borrower is managed by a board of directors (or equivalent governing body), cease to have the ability to elect (either through share ownership or contractual voting rights) a majority of the board of directors or equivalent governing body of the Borrower or (ii) at any time that Borrower is managed by a managing member, cease to serve as the managing member of the Borrower, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any "Change of Control" (or words of like import), as defined in any agreement or indenture relating to any issue of Indebtedness of the Ultimate Parent, the Parent or the Borrower shall occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Cohen Affiliates ceases at any time and for any reason (including death or incapacity) to own, legally and beneficially, at least 50.1% of the Voting Stock of the Parent, (b) the failure of the Parent to own, directly or indirectly, less than 100% of the Voting Stock of the Borrower, (c) the failure of individuals who are members of the board of directors (or similar governing body) of the Borrower or the Parent on the Closing Date (together with any new or replacement directors whose initial nomination for election was approved by a majority of the directors who were either directors on the on date hereof or previously so approved) to constitute a majority of the board of directors (or similar governing body) of the Borrower or the Parent, as applicable, or (d) any "Change of Control" (or words of like import), as defined in any agreement or indenture relating to any issue of Indebtedness of the Parent or the Borrower shall occur.

*"Closing Date"* means the date of this Agreement or such later Business Day upon which each condition described in Section 4.1 shall be satisfied or waived in a manner acceptable to the Administrative Agent in its discretion.

*"Code"* means the Internal Revenue Code of 1986, as amended, and any successor statute thereto.

*"Cohen Affiliates"* means collectively (i) Uriel Cohen, (ii) any Family Member of Uriel Cohen, (iii) any trust or estate planning vehicle established for the benefit of Uriel Cohen or his Family Members, (iv) any charitable trust Controlled by any Person in clause (i), (ii) or (iii) above, and (v) any other Person Controlled by one or more of the Persons in clause (i), (ii), (iii) or (iv) above.

*"Collateral"* means the <u>Margin Collateral, FICC</u> Margin Collateral and NSCC Margin Collateral, as the case may be.

*"Commitment"* means, as to any Lender, the obligation of such Lender to make Loans in an aggregate principal at any one time outstanding not to exceed the amount set forth opposite such Lender's name on Schedule 2.1attached hereto and made a part hereof, as the same may be increased, reduced or modified at any time or from time to time pursuant to the terms hereof. The Borrower and the Lenders acknowledge and agree that the aggregate Commitments of the Lenders is $300,000,000 as of<u>315,000,000 on</u> the Fourth<u>Fifth</u> Amendment Effective Date.

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*"Commodity Exchange Act"* means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

*"Connection Income Taxes"* means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profit Taxes.

*"Control"* means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling" and "Controlled" have meanings correlative thereto.

*"Credit Event"* means the advancing of any Loan.

*"Credit Exposure"* means, as to any Lender at any time, the aggregate principal amount at such time of its outstanding Loans at such time.

*"Customer Loan*" means any Margin Loan that has been designated by the Borrower in the Notice of Borrowing as a "Customer Loan".

*"Customer Loan Limit"* means the Margin Borrowing Base as determined and computed with Customer Securities only.

*"Customer Obligations*" means all Obligations of the Borrower with respect to Customer Loans.

*"Customer Securities*" means, at any time, Collateral that is pledged at such time to the Administrative Agent to secure Customer Obligations.

*"Debt Subordination Agreement"* means that certain Debt Subordination Agreement dated as of December 4, 2020 from WBI, LP in favor of the Administrative Agent and the Lenders, as such Debt Subordination Agreement may be amended, modified, supplemented or restated from time to time.

*"Debtor Relief Laws*" means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.

*"Default"* means any event or condition which constitutes an Event of Default or any event or condition the occurrence of which would, with the passage of time or the giving of notice, or both, constitute an Event of Default.

*"Defaulting Lender" means,* subject to Section 2.16(b), any Lender that (a) has failed to (i) fund all or any portion of its Loans within two (2) Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender's determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the

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Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two (2) Business Days of the date when due, (b) has notified the Borrower or the Administrative Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender's obligation to fund a Loan hereunder and states that such position is based on such Lender's determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder *(provided* that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, at any time after the Closing Date (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity or (iii) become the subject of a Bail-in Action; *provided* that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.16(b)) upon delivery of written notice of such determination to the Borrower and each Lender.

*"Designated Disbursement Account"* means the account of the Borrower maintained with the Administrative Agent or its Affiliate and designated in writing to the Administrative Agent as the Borrower's Designated Disbursement Account (or such other account as the Borrower and the Administrative Agent may otherwise agree from time to time).

*"Designated Examining Authority"* means the exchange that has been designated as the Borrower's securities designated examining authority, as defined in Rule 15c3-l(c)(12) of the SEC.

*"Designated Jurisdiction*" means, at any time, any country, region or territory which is itself the subject or target of any Sanctions.

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*"Designated Self-Regulatory Organization*" shall have the meaning assigned to such term in Section 3(a)(26) of the Securities Exchange Act of 1934, as amended.

*"DTC"* means The Depository Trust Company and its successors and assigns.

*"EEA Financial Institution*" means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

*"EEA Member Country"* means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

*"EEA Resolution Authority"* means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

*"Eligible Assignee*" means any Person that meets the requirements to be an assignee under Section 11,2(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 11.2(b)(m)).

*"Eligible Bond Security*" means an Eligible Security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is either (i) a bond issued by a corporation, partnership or limited liability company with a maturity date not less than one year from the date of issuance, or (ii) a marketable obligation of a State of the United States of America or any political subdivision, agency or instrumentality of any of the foregoing, or the District of Columbia, or (iii) a marketable obligation of any territory or local government of a State of the United States or any political subdivision, agency, or instrumentality of such territory or local government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has a Market Value of not less than $5.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the issuer of such security has not defaulted in the payment when due of any principal of or interest on any debt securities issued by it or loans or other extensions of credit made to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the issuer of such security (i) is not the subject of any bankruptcy, arrangement, receivership, conservatorship, reorganization proceeding or other proceeding for relief of debtors, (ii) is not insolvent, and (iii) has not admitted its inability to pay its debts generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it is Investment Grade;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) would not cause the Market Value of such security issued by any one issuer and its Affiliates to exceed 15% of all of the Collateral; *provided,* that only the excess Market Value shall be excluded for purposes of determining the Margin Borrowing Base; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the issuer of such security is not an Affiliate of the Administrative Agent.

*"Eligible Equity Security"* means an Eligible Security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is a security consisting of common stock and other equity securities of an issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has a Market Value of at least $5.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the issuer of such security (i) is not the subject of any bankruptcy, arrangement, receivership, conservatorship, reorganization proceeding or other proceeding for relief of debtors, (ii) is not insolvent, and (iii) has not admitted its inability to pay its debts generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it would not cause the Market Value of such security to exceed 15% of the Market Value of all of the Collateral; *provided,* that only the excess Market Value shall be excluded for purposes of determining the Margin Borrowing Base; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the issuer of such security is not an Affiliate of the Administrative Agent.

*"Eligible Federal Government Security"* means an Eligible Security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is a direct obligation of the United States of America or of any agency or instrumentality thereof whose obligations constitute the full faith and credit obligations of the United States of America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the issuer of such security has not defaulted in the payment when due of any principal of or interest on any debt securities issued by it or loans or other extensions of credit made to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the issuer of such security (i) is not the subject of any bankruptcy, arrangement, receivership, conservatorship, reorganization proceeding or other proceeding for relief of debtors, (ii) is not insolvent, and (iii) has not admitted its inability to pay its debts generally; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it is Investment Grade.

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<u>"Eligible FICC Margin Deposits" means margin that is required to be posted to the FICC during the MBS Blackout Period to the extent such required margin relates to mortgaged-back securities.</u>

*"Eligible NSCC Margin Deposits"* means those NSCC Margin Deposits of the Borrower, excluding such portions of NSCC Margin Deposits that (a) relate to losses incurred by the Borrower for its own account or the account of any of its Subsidiaries or (b) as reasonably determined by the Borrower, acting in good faith, are subject to any counterclaim, deduction, defense, setoff or similar rights by NSCC or DTC other than to the extent constituting or arising out of the obligations for which such deposit was delivered (but only to the extent of any such counterclaim, deduction, defense, setoff or similar rights); *provided, however,* that the value of Eligible NSCC Margin Deposits shall not at any time exceed the NSCC Deposit Requirements applicable to the Borrower at such time.

<u>"*Eligible Receivable*" means a Receivable that:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a) has not been outstanding for more than two Business Days,</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b) is payable in U.S. Dollars.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c) is the valid, binding and legally enforceable obligation of the Account Debtor obligated thereon and such Account Debtor (i) is a customer of the Borrower, (ii) is not a Subsidiary or an Affiliate of the Borrower, (iii) is not a shareholder, director, officer, or employee of the Borrower, (iv) is not the United States of America or Canada, or any state, province, or political subdivision thereof, in any department, agency or instrumentality of any of the foregoing, (v) is not a debtor under any proceeding under any Debtor Relief Law, or (vi) is not an assignor for the benefit of creditors;</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(d) is not subject to any counterclaim or defense asserted by the Account Debtor or subject to any offset or contra account payable to the Account Debtor (unless the amount of such Receivable is net of such contra account established to the reasonable satisfaction of the Administrative Agent); and</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(e) directs the Account Debtor thereon to make payment on such monetary obligation directly into a deposit account of the Borrower maintained with the Administrative Agent.</u>

*"Eligible Security"* means a security that satisfies each of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is traded on an Exchange and is not subject to any restriction on transfer (including without limitation Rule 144 and Rule 144A promulgated by the SEC);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is not a security that has been held in the Borrower's inventory for more than thirty (30) consecutive days;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it is available to be pledged, repledged, hypothecated, rehypothecated, or otherwise transferred by the Borrower in favor the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it is subject to a perfected first priority Lien in favor of the Administrative Agent and is free of all other Liens, adverse claims and other encumbrances of every type or nature whatsoever, including without limitation any of the foregoing in favor of any brokers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it is held in an Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Market Value of such security is readily available through the Reporting Service or is otherwise available to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if such security is a callable or convertible security it has not matured or been called prior to its stated maturity date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) it is not an option, warrant, put, call, strip, repurchase agreement, reverse repurchase agreement, mutual fund share or interest, derivative or similar security; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is not otherwise deemed to be ineligible in the reasonable judgment of the Administrative Agent (it being acknowledged and agreed that with five (5) Business Days prior written notice any such security or categories thereof may be deemed ineligible by the Administrative Agent acting in its reasonable judgment).

*"ERISA*" means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

*"ERISA Affiliate"* means any trade or business (whether or not incorporated) under common control with the Borrower within the meaning of section 414(b) or (c) of the Code (and sections 414(m) and (o) of the Code for purposes of provisions relating to section 412 of the Code and section 302 of ERISA).

*"ERISA Event"* means (a) a Reportable Event with respect to a Plan; (b) the withdrawal of the Borrower or any ERISA Affiliate from a Plan subject to Section 4063 of ERISA during a plan year in which such entity was a "substantial employer" as defined in Section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate under, or the treatment of a Plan amendment as a termination under, Section 4041 or 4041A of ERISA; (e) the institution by the PBGC of proceedings to terminate a Plan; (f) any event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan; (g) the determination that any Plan is considered an at-risk plan or a plan in endangered or critical status within the meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304 and 305 of ERISA; or (h) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate.

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*"EU Bail-In Legislation Schedule*" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

*"Event of Default"* means any event or condition identified as such in Section 8.1.

*"Excess Net Capital"* means, as of any date the same is to be determined, the Borrower's net capital as shown on line 3910 of the Borrower's most recent FOCUS Part 2 report.

*"Exchange"* means a nationally recognized securities exchange located in the United States of America or on a recognized over-the-counter market located in the United States of America.

*"Excluded Accounts"* means each of the Borrower's deposit accounts maintained with the Administrative Agent as a "Special Reserve Account For the Exclusive Benefit of Customers" pursuant to Rule 15c3-3 of the Rules.

*"Excluded Taxes"* means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 2.15) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 3.1 amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient's failure to comply with Section 3.1(g), and (d) any U.S. federal withholding Taxes imposed under FATCA.

*"Family Member"* means a Person who is a spouse, child, parent, brother, sister, brother-in-law or sister-in-law.

*"FATCA*" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code, and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.

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*"Federal Funds Rate"* means, for any day, the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; *provided* that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to the Administrative Agent on such day on such transactions as determined by the Administrative Agent; *provided* that if the Federal Funds Rate as so determined would be less than one percent (1.00%), the Federal Funds Rate will be deemed to be one percent (1.00%) for purposes of this Agreement.

*''Fee Letter*" means that certain letter agreement dated as of August 21, 2020, between the Administrative Agent and the Borrower.

*<u>"FICC"</u>* <u>means Fixed Income Clearing Corp, and any successor thereto.</u>

*<u>"FICC Borrowing Base"</u>* <u>means, at any time the same is to be determined, an amount equal to 80% of the Eligible FICC Margin Deposits.</u>

*<u>"FICC Collateral"</u>* <u>means all of the Borrower's right, title and interest in (i) the right to the return from FICC of the margin deposits required by the FICC during the MBS Blackout Period, (ii) the Settlement Account, all balances in the Settlement Account, and all income, distributions, and sums distributable or payable from, upon or in respect of the foregoing, and (Hi) any and all proceeds thereof (including cash and non-cash proceeds and all income payable on any of the foregoing items (i), (ii) or (iii), whether now owned or held or hereafter acquired.</u>

*<u>"FICC Loans"</u>* <u>means Loans the proceeds of which are used to finance the margin deposits required by the FICC during the MBS Blackout Period to the extent such margin relates to mortgage-backed securities.</u>

*<u>"FICC Obligations"</u>* <u>means all obligations of the Borrower to pay principal and interest on the FICC Loans, all fees and charges payable hereunder, and all other payment obligations of the Borrower arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held, or acquired.</u>

*<u>"Fifth Amendment</u>* <u>means that certain Fifth Amendment to Credit Agreement dated as of December X 2023, by and among the Borrower, the Lenders, and the Administrative Agent.</u>

*<u>"Fifth Amendment Effective Date"</u>* <u>means the date that the Fifth Amendment becomes effective in accordance with its terms.</u>

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*"Financial Officer"* of any Person means the chief financial officer, principal accounting officer, treasurer or controller of such Person.

*"Firm Loan"* means any Margin Loan that has been designated by the Borrower in the Notice of Borrowing as a "Firm Loan".

*"Firm Loan Limit"* means the Margin Borrowing Base as determined and computed with Firm Securities only.

*"Firm Obligations"* means all Obligations of the Borrower with respect to Firm Loans to the Borrower.

*"Firm Securities"* means at any time, Collateral that is pledged at such time to the Administrative Agent to secure Obligations with respect to Firm Loans.

*"First Amendment"* means that certain First Amendment to Credit Agreement dated as of

*"First Amendment Elective Date"* means the date that the First Amendment becomes

*"Fitch*" means Fitch, Inc.

*"Foreign Lender"* means a Lender that is not a U.S. Person.

*"Fourth Amendment"* means that certain Fourth Amendment to Credit Agreement dated as of December 2, 2022, by and among the Borrower, the Lenders, and the Administrative Agent.

*"Fourth Amendment Elective Date"* means the date that the Fourth Amendment becomes effective in accordance with its terms.

*"Fund"* means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business.

*"GAAP"* means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting profession), which are applicable to the circumstances as of the date of determination.

*"Governmental Authority"* means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

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*"Guarantee"* of or by any Person (the *"guarantor")* means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the *"primary obligor")* in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such

Indebtedness or obligation; *provided* that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business.

*"Guaranty Agreement"* means the guaranty agreement executed and delivered by the Parent in order to guarantee the Obligations or any part thereof in form and substance acceptable to the Administrative Agent, as such agreement may be amended, modified, or supplemented from time to time.

*"Indebtedness*" means for any Person (without duplication) (a) all indebtedness created, assumed or incurred in any manner by such Person representing money borrowed (including by the issuance of debt securities), (b) all indebtedness for the deferred purchase price of property or services (other than trade accounts payable arising in the ordinary course of business which are not more than ninety (90) days past due), (c) all indebtedness secured by any Lien upon Property of such Person, whether or not such Person has assumed or become liable for the payment of such indebtedness, (d) all Capitalized Lease Obligations of such Person, (e) all obligations of such Person on or with respect to letters of credit, bankers' acceptances and other extensions of credit whether or not representing obligations for borrowed money, (f) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any equity interest in such Person or any other Person or any warrant, right or option to acquire such equity interest, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends, (g) all net obligations (determined as of any time based on the termination value thereof) of such Person under any interest rate, foreign currency, and/or commodity swap, exchange, cap, collar, floor, forward, future or option agreement, or any other similar interest rate, currency or commodity hedging arrangement; and (h) all Guarantees of such Person in respect of any of the foregoing. For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse to such Person.

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*"Indemnified Taxes"* means (a) all Taxes other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

*"Interest Payment Date*" means the last day of every calendar month and on the maturity date (whether by acceleration or otherwise).

*"IRS"* means the United States Internal Revenue Service.

*"Investment Grade*" means a security having a long-term rating of BBB or better by S&P, Baa or better by Moody's, or BBB or better by Fitch; *provided* that if more than one long-term rating applies to such security, then the lowest rating shall apply.

*"Legal Requirement"* means any treaty, convention, statute, law, common law, rule, regulation, ordinance, license, permit, governmental approval, injunction, judgment, order, consent decree or other requirement of any Governmental Authority, whether federal, state, or local.

*"Lenders"* means and includes BMO Harris Bank N.A. and the other Persons listed on Schedule 2.1 and any other Person that shall have become party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.

*"Lending Office"* is defined in Section 3.4.

*"Level I Termination Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the NSCC requires the Borrower to make an Adequate Assurance Deposit or any other clearinghouse imposes a similar requirement on the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) one or more Regulatory Authorities imposes fines, levies, or other monetary penalties (including the disgorgement of profits) against the Borrower in excess of $1,000,000 individually or in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Borrower enters into a settlement with any Person (including any Regulatory Authority), and the Borrower is obligated to pay an amount in excess of $1,000,000 as part of such settlement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) one or more Regulatory Authorities imposes a fine, levy or other monetary penalty against the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer in excess of $500,000; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer enters into a settlement with any Person (including any Regulatory Authority), and such Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer is obligated to pay an amount in excess of $500,000 as part of such settlement.

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*"Level II Termination Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) one or more Regulatory Authorities imposes fines, levies, or other monetary penalties (including the disgorgement of profits) against the Borrower in excess of $5,000,000 individually or in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Regulatory Authority requires that a material portion of the Borrower's business be suspended or otherwise prohibited from operating for a period of five (5) or more Business Days, including, as applicable, the suspension, revocation or termination of the Borrower as a broker-dealer with the SEC or as a member of a Regulatory Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Borrower enters into a settlement with any Person (including any Regulatory Authority), and the Borrower is obligated to pay an amount in excess of $5,000,000 as part of such settlement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) one or more Regulatory Authorities imposes a fine, levy or other monetary penalty against the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer in excess of $1,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer enters into a settlement with any Person (including any Regulatory Authority), and such Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer is obligated to pay an amount in excess of $1,000,000 as part of such settlement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer is suspended in any capacity for any reason for a period of five (5) or more Business Days or expelled by a Regulatory Authority

*"Lien*" means any mortgage, lien, security interest, pledge, charge or encumbrance of any kind in respect of any Property, including the interests of a vendor or lessor under any conditional sale, Capital Lease or other title retention arrangement.

*"Liquidity Ratio"* means, at any time the same is to be determined, the ratio of (a) the sum of the (i) value of unencumbered marketable securities (determined after taking into account prudent and customary financing haircuts as reasonably determined by the Administrative Agent) of the Borrower (exclusive of any securities on deposit in a Customer Reserve Bank Account or a PAB Reserve Bank Account, as those terms are defined in Exchange Act rule 15c3-3), *plus* (ii) unencumbered cash held by the Borrower (exclusive of any cash on deposit in a Customer Reserve Bank Account or a PAB Reserve Bank Account, as those terms are defined in Exchange Act rule 15c3-3) unless such cash on deposit is available to satisfy any obligation of the Borrower, *plus* (iii)<sub></sub> <u>the sum of Eligible FICC Margin Deposits and</u> Eligible NSCC Margin Deposits (solely to the extent

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of the lesser of (x) the amount, if any, by which the Borrowing Base at such time exceeds the aggregate outstanding amount of Loans and (y) an amount equal to the Commitment *minus* the aggregate outstanding amount of Loans), to (b) the aggregate outstanding principal amount of unsecured Indebtedness of the Borrower at such time (other than the Loans, Subordinated Debt, and intercompany Indebtedness that is subordinated to the Obligations, and exclusive of any credit balances carried for the account of any customer, broker or dealer).

*"Loan"* is defined in Section 2.1, and as so defined, includes a Margin Loan, <u>an FICC Loan,</u> an NSCC <u>Loan, a Receivable</u> Loan and a Reserve Loan, each of which is a *"type"* of Loan hereunder.

*"Loan Documents"* means this Agreement, the Notes (if any), the Guaranty Agreement, the Debt Subordination Agreement, and each other instrument or document to be delivered hereunder or thereunder or otherwise in connection therewith.

*"Margin Borrowing Base*" means, as of any time it is to be determined, the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 90% of the Market Value of Eligible Federal Government Securities; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 90% of the Market Value of Eligible Bond Securities; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 80% of the Market Value of Eligible Equity Securities.

*"Margin Collateral"* means and includes (a) the Accounts, (b) all securities and other Property described in each Borrowing request (including a Notice of Borrowing) delivered to the Administrative Agent pursuant to this Agreement, (c) all other securities or Property delivered or deliverable on the sale, exchange, collection, reclassification, conversion, merger or consolidation and other dispositions of or distributions on any of the foregoing, and (d) any and all proceeds thereof (including all income payable thereon), both cash and non-cash.

*"Margin Loans"* means Loans the proceeds of which are used to finance the purchase and settlement of securities and for the Borrower's general working capital purposes.

*"Margin Obligations"* means all obligations of the Borrower to pay principal and interest on the Margin Loans, all fees and charges payable hereunder, and all other payment obligations of the Borrower arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held, or acquired.

*"Market Value"* means, for each unit of a security of any class at a particular time, the closing price for such security for the immediately preceding Business Day reported by the Reporting Service, but excluding accrued and unpaid interest on interest-bearing securities from such determination.

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*"Material Adverse Effect"* means (a) a material adverse change in, or material adverse effect upon, the operations, business, Property, or condition (financial or otherwise) of the Borrower or of the Borrower and its Subsidiaries taken as a whole, (b) a material impairment of the ability of the Borrower to perform its obligations under any Loan Document or (c) a material adverse effect upon (i) the legality, validity, binding effect or enforceability against the Borrower of any Loan Document or the rights and remedies of the Administrative Agent and the Lenders thereunder or (ii) the perfection or priority of any Lien granted under any Loan Document.

<u>*"MBS Blackout Period"* means, with respect to any month, the period between the last Business Day of the prior month and the date that is the fifth (5<sup>th</sup>) Business Day of such month.</u> 

*"Moody's"* means Moody's Investors Service, Inc.

*"Multiemployer Plan*" means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five (5) plan years, has made or been obligated to make contributions.

*"Multiple Employer Plan"* means a Plan which has two or more contributing sponsors (including the Borrower or any ERISA Affiliate) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.

*"Non-Consenting Lender*" means any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all affected Lenders in accordance with the terms of Section 11.3 and (b) has been approved by the Required Lenders.

*"Non-Defaulting Lender"* means, at any time, each Lender that is not a Defaulting Lender at such time.

*"Note"* and *"Notes"* each is defined in Section 2.8.

*"Notice of Borrowing"* means that certain Notice of Borrowing in the form of Exhibit A attached hereto or in such other form acceptable to the Administrative Agent.

*"NSCC"* means the National Securities Clearing Corporation.

*"NSCC Borrowing Base*" means, as of any time it is to be determined, an amount equal to 80% of the excess, if any, of the Eligible NSCC Margin Deposits of the Borrower at such time over the Eligible NSCC Margin Deposits of the Borrower in effect as at the close of business on the day in the prior calendar month (or if the certificate for such prior calendar month with respect to the Borrower's Eligible NSCC Margin Deposit has not been delivered pursuant to Section 6.5 hereof, the preceding calendar month) that was the day having the 10th lowest Eligible NSCC Margin Deposits of the Borrower during such calendar month; *provided,* that the NSCC Borrowing Base (after giving effect to the advance rate) shall not, at any time, exceed the amount of the Eligible NSCC Margin Deposits of the Borrower at such time.

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*"NSCC Deposit Requirements*" means cash collateral requirements established by NSCC in connection with securities clearing services provided by NSCC, as such requirements may be amended, supplemented or otherwise modified from time to time.

*"NSCC Margin Collateral"* means all of the Borrower's right, title and interest in (i) the right to the return from NSCC of NSCC Margin Deposits pursuant to the terms of the rules and procedures of the NSCC in effect from time to time, (ii) the Settlement Account, all balances in the Settlement Account, and all income, distributions, and sums distributable or payable from, upon, or in respect of the foregoing, and (hi) any and all proceeds thereof (including cash and non-cash proceeds and all income payable on any of the foregoing items (i), (ii) or (hi), whether now owned or held or hereafter acquired.

*"NSCC Margin Deposits"* means deposits made by the Borrower with NSCC in connection with securities clearing services provided to it by NSCC.

*"NSCC Margin Loans"* means Loans the proceeds of which are used to finance NSCC Deposit Requirements.

*"NSCC Margin Obligations*" means all obligations of the Borrower to pay principal and interest on the NSCC Margin Loans, all fees and charges payable hereunder, and all other payment obligations of the Borrower arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held, or acquired.

*"Obligations*" means all obligations of the Borrower to pay principal and interest on the Loans, all fees and charges payable hereunder, and all other payment obligations of the Borrower arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held or acquired.

*"OFAC"* means the United States Department of Treasury Office of Foreign Assets Control.

*"OFAC SDN List"* means the list of the Specially Designated Nationals and Blocked Persons maintained by OF AC.

*"Organizational Documents"* means the certificate of organization, limited liability company agreement, operating agreement, or such other agreement under which the Borrower or such Subsidiary is organized, as each of the same may be amended, amended and restated, supplemented or otherwise modified from time to time in accordance with this Agreement.

*"Other Connection Taxes*" means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

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*"Other Taxes"* means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.15).

*"Overnight Base Rate*" means, for any day, the rate per annum equal to the greatest of: (a) Term SOFR for such day plus 0.11448%, (b) the Target Rate for such day, and (c) 0.25%.

*"Parent"* means Clear Street Holdings, LLC, a Delaware limited liability company.

*"Participant"* has the meaning assigned to such term in clause (d) of Section 11.2.

*"Participant Register"* has the meaning specified in clause (d) of Section 11.2.

*"Patriot Act"* means the USA Patriot Act (Title III of Pub. L. 107 56 (signed into law October 26, 2001)).

*"PBGC"* means the Pension Benefit Guaranty Corporation or any Person succeeding to any or all of its functions under ERISA.

*"Pension Funding Rules"* means the rules of the Code and ERISA regarding minimum required contributions (including any installment payment thereof) to Plans and Multiemployer Plans and set forth in, with respect to plan years ending prior to the effective date of the Pension Act, Section 412 of the Code and Section 302 of ERISA, each as in effect prior to the Pension Act and, thereafter, Section 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA, and any sections of the Code or ERISA related thereto that are enacted after the date of this Agreement.

*"Percentage"* means, for each Lender, the percentage of the total Commitments represented by such Lender's Commitment or, if the Commitments have been terminated or expired, the percentage of the total Credit Exposure then outstanding held by such Lender.

*"Person"* means any natural Person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

*"Plan"* means any employee pension benefit plan (including a Multiple Employer Plan, but excluding a Multiemployer Plan) that is maintained or is contributed to by the Borrower or any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code.

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*"Property"* means, as to any Person, all types of real, personal, tangible, intangible or mixed property owned by such Person whether or not included in the most recent balance sheet of such Person and its subsidiaries under GAAP.

*"PTE"* means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time

*<u>"Receivable Borrowing Base"</u>* <u>means, as of any time it is to be determined, the difference between (i) 80% of the aggregate unpaid amount of Eligible Receivables for which the margin has been called but not received by the Borrower; *minus* (ii) the amount by which the Eligible Receivables owing from any one Account Debtor and its Affiliates exceeds 15% of all Eligible Receivables.</u> 

*<u>"Receivable Loans"</u>* <u>means Loans the proceeds of which are used to finance the Borrower's short-term liquidity needs arising from the timing difference between the Borrower having called for margin to be provided by its customers to it and such margin being received by the Borrower.</u>

*<u>"Receivables"</u>* <u>means all rights of the Borrower to the payment of a monetary obligation, now or hereafter owing, whether evidenced by accounts, instruments, chattel paper, or general intangibles.</u>

*"Recipient"* means (a) the Administrative Agent, and (b) any Lender, as applicable.

*"Reg U"* means Regulation U of the Board of Governors of the Federal Reserve System.

*"Regulatory Authority"* means Designated Examining Authority, Designated Self-Regulatory Organization, the SEC and all other examining and regulating authorities with jurisdiction over the Borrower or any Subsidiary.

*"Related Parties"* means, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

*"Reportable Event"* means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day notice period has been waived.

*"Reporting Service"* means ISDI-Interactive Data or, to the extent pricing and other market data is not available, any other independent pricing service selected by the Administrative Agent in accordance with its ordinary and customary business practices.

*"Required Lenders"* means, at any time, two or more Lenders having Total Credit Exposures representing more than 50.0% of the Total Credit Exposures of all Lenders. To the extent provided in the last paragraph of Section 11.3, the Total Credit Exposure of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.

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*"Reserve Borrowing Base*" means, at any time, an amount equal to the difference between (A) the requested withdrawals of customers' cash from the Excluded Account, less (B) cash received by the Borrower that is required to be deposited into the Excluded Account, in each case from the last computation date of the value of the Excluded Account through the date of determination.

*"Reserve Loans*" means Loans the proceeds of which are used to finance withdrawals from the Excluded Accounts.

*"Resolution Authority"* means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

*"Responsible Officer"* of any person means any executive officer or Financial Officer of such Person and any other officer, general partner or managing member or similar official thereof with responsibility for the administration of the obligations of such person in respect of this Agreement whose signature and incumbency shall have been certified to the Administrative Agent on or after the Closing Date pursuant to an incumbency certificate of the type contemplated by Section 4.1.

*"Rules"* means the rules and regulations of the SEC under the Securities Exchange Act of 1934, as amended concerning the hypothecation of Customer Securities, including Rule 8c-1, Rule 15c2-l, and Rule 15c3-3.

*"S&P"* means Standard & Poor's Ratings Services Group, a Standard & Poor's Financial Services LLC business.

*"Sanctioned Person"* means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC (including the OFAC SDN List), the United States Department of State, the United Nations Security Council, the European Union, any European Union member state, Her Majesty's Treasury of the United Kingdom, or any other relevant sanctions authority, (b) any Person located, organized or resident in a Designated Jurisdiction or (c) any Person owned or controlled by any such Person or Persons described in clauses (a) or (b) above.

*"Sanctions"* means all economic or financial sanctions, sectoral sanctions, secondary sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the United States government (including those administered by OFAC or the United States Department of State) or (b) the United Nations Security Council, the European Union, any European Union member state, Her Majesty's Treasury of the United Kingdom, or any other relevant sanctions authority with jurisdiction over the Borrower or any of its Subsidiaries or Affiliates.

*"SEC"* means the Securities and Exchange Commission.

*"Second Amendment"* means that certain Second Amendment to Credit Agreement dated as of December 3, 2021, by and among the Borrower, the Lenders, and the Administrative Agent.

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*"Second Amendment Effective Date"* means the date that the Second Amendment becomes effective in accordance with its terms.

*"Settlement Account"* means that certain account of the Borrower (account number 265-6387) maintained with the Administrative Agent together with any account established in connection with any extension, renewal or substitution thereof, in each case as such Settlement Account may be renumbered or re-titled from time to time.

*"Settlement Bank Obligations"* means obligations of the Borrower owing to the Administrative Agent, in its capacity as the settlement bank, solely in connection with the settlement of securities.

*"SIPA*" means Securities Investor Protection Act of 1970, as amended.

*"S1PC"* means the Securities Investor Protection Corporation established pursuant to SIPA, or any other corporation that succeeds to the functions thereof.

*"Sublimit"* means $187,500,000 <u>210,000,000</u>, as such amount may be increased pursuant to Section 2.17 hereof.

*"Subordinated Debt"* means Indebtedness which (i) qualifies as the Borrower's regulatory capital calculated in accordance with Exchange Act Rule 15c3-l, (ii) is unsecured, and (hi) is subordinated in right of payment to the prior payment of the Obligations pursuant to subordination provisions reasonably acceptable to the Administrative Agent (which shall include the subordination provisions required pursuant to Appendix D to the Exchange Act Rule 15c3-l).

*"Subsidiary"* means, any corporation or other Person more than 50% of the ordinary voting shares or other equity interests of which is at the time directly or indirectly owned by such parent corporation or organization or by one or more other entities which are themselves subsidiaries of such parent corporation or organization. Unless otherwise expressly noted herein, the term *"Subsidiary"* means a Subsidiary of the Borrower or of any of its direct or indirect Subsidiaries.

*"Tangible Net Worth*" means, at any time the same is to be determined, the difference between total assets of the Borrower, *less* the sum of (i) the aggregate book value of all assets which would be classified as intangible assets under GAAP, including, without limitation, goodwill, patents, trademarks, trade names, copyrights, franchises and deferred charges (including, without limitation, unamortized debt discount and expense, organization costs and deferred research and development expense) and similar assets, (ii) the write-up of assets above cost and (hi) total liabilities and reserves of the Borrower, all as determined in accordance with GAAP.

*"Target Rate"* means, for any day, the rate per annum equal to the Federal Funds Target Range – Upper Limit as announced by the Federal Open Market Committee of the Federal Reserve Board.

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*"Taxes"* means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

*"Term SOFR*" means the Term SOFR Reference Rate for a tenor of one month on the day (such day, the *"Term SOFR Determination Day*") that is two (2) Business Days prior to such day, as such rate is published by the Term SOFR Administrator; *provided, however,* that if as of 5:00 p.m. (New York City time) on any Term SOFR Determination Day, the Term SOFR Reference Rate for a tenor of one month has not been published by the Term SOFR Administrator, then Term SOFR will be the Term SOFR Reference Rate for a tenor of one month as published by the Term SOFR Administrator on the first preceding Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding Business Day is not more than three (3) Business Days prior to such Term SOFR Determination Day.

*"Term SOFR Administrator"* means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its reasonable discretion).

*"Term SOFR Reference Rate*" means the forward-looking term rate based on the secured overnight financing rate as administered by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

*"Termination Date"* means (i) December<u>November</u> 1<u>29,</u> 2023<u>2024</u> , (ii) the date upon which a Level II Termination Event occurs unless such Level II Termination Event has been waived in accordance with this Agreement, or (iii) or such earlier date on which the Commitment is terminated in whole pursuant to Section 2.14, 8.2 or 8.3.

*"Termination Event"* means a Level I Termination Event and a Level II Termination Event.

*"Total Credit Exposure"* means, as to any Lender at any time, the unused Commitments and Credit Exposure of such Lender at such time.

*"Threshold Amount"* means $1,500,000.

*"Total Assets to Total Equity Ratio*" means, at any time the same is to be determined, the ratio of (i) total assets of the Borrower and its Subsidiaries at such time, *less* assets constituting matched repos and matched securities loans to (ii) the difference between total assets of the Borrower and its Subsidiaries, *less* total liabilities and reserves of the Borrower and its Subsidiaries at such time, all as determined on a consolidated basis in accordance with GAAP.

*"UK Financial Institution*" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

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*"UK Resolution Authority"* means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

*"U.S. Dollars"* and *"$"* each means the lawful currency of the United States of America.

*"U.S. Person*" means any Person that is a "United States Person" as defined in Section 7701(a)(30) of the Code.

*"U.S. Tax Compliance Certificate*" has the meaning assigned to such term in subsection (f) of Section 3.1.

*"Voting Stock"* of any Person means the voting power vested in capital stock or other equity interests of any class or classes (however designated) having ordinary power for the election of directors or other similar governing body of such Person, other than stock or other equity interests having such power only by reason of the happening of a contingency.

*"Wholly-owned Subsidiary"* means a Subsidiary of which all of the issued and outstanding shares of capital stock (other than directors' qualifying shares as required by law) or other equity interests are owned by the Borrower and/or one or more Wholly-owned Subsidiaries within the meaning of this definition.

*"Withholding Agent"* means the Borrower and the Administrative Agent.

*"Write-Down and Conversion Powers"* means (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

*"Zero Loan Day"* means, at any time, a Business Day in which no principal amount of the NSCC Margin Loans and Reserve Loans is outstanding.

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*Section 1.2. Interpretation.* The foregoing definitions are equally applicable to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation." The word "will" shall be construed to have the same meaning and effect as the word "shall." Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person's successors and assigns, (c) the words "herein," "hereof' and "hereunder," and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (f) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. All references to time of day herein are references to Chicago, Illinois, time unless otherwise specifically provided. Where the character or amount of any asset or liability or item of income or expense is required to be determined or any consolidation or other accounting computation is required to be made for the purposes of this Agreement, it shall be done in accordance with GAAP except where such principles are inconsistent with the specific provisions of this Agreement.

*Section 1.3. Change in Accounting Principles.* If, after the date of this Agreement, there shall occur any change in GAAP from those used in the preparation of the financial statements referred to in Section 5.5 and such change shall result in a change in the method of calculation of any financial covenant, standard or term found in this Agreement, either the Borrower or the Required Lenders may by notice to the Lenders and the Borrower, respectively, require that the Lenders and the Borrower negotiate in good faith to amend such covenants, standards, and terms so as equitably to reflect such change in accounting principles, with the desired result being that the criteria for evaluating the financial condition of the Borrower and its Subsidiaries shall be the same as if such change had not been made. No delay by the Borrower or the Required Lenders in requiring such negotiation shall limit their right to so require such a negotiation at any time after such a change in accounting principles. Until any such covenant, standard, or term is amended in accordance with this Section, financial covenants shall be computed and determined in accordance with GAAP in effect prior to such change in accounting principles. Without limiting the generality of the foregoing, the Borrower shall neither be deemed to be in compliance with any financial covenant hereunder nor out of compliance with any financial covenant hereunder if such state of compliance or noncompliance, as the case may be, would not exist but for the occurrence of a change in accounting principles after the date hereof. Notwithstanding anything to the contrary contained herein or in the definition of "Capital Lease" or "Capitalized Lease Obligation", in the event of an accounting change requiring all leases to be capitalized, only those leases (assuming for purposes hereof that such leases were in existence on the date hereof) that would constitute Capital Leases in conformity with GAAP on the date hereof shall be considered Capital Leases, and all calculations and deliverables under this Agreement or any other Loan Document shall be made or delivered, as applicable, in accordance therewith.

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*Section 1.4. Divisions.* For all purposes under the Loan Documents, in connection with any division or plan of division (whether under Delaware law or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its equity interests at such time.

SECTION 2. THE FACILITIES.

*Section 2.1. Revolving Facility.* (a) Subject to the terms and conditions hereof, each Lender, by its acceptance hereof, severally agrees to make a loan or loans (individually a *"Loan"* and collectively for all the Lenders the *"Loans*") in U.S. Dollars to the Borrower from time to time on a revolving basis up to the amount of such Lender's Commitment, subject to any reductions thereof pursuant to the terms hereof, before the Termination Date. Revolving Loans may be repaid and the principal amount thereof reborrowed before the Termination Date, subject to the terms and conditions hereof. Each Borrowing of Loans shall be made ratably by the Lenders in proportion to their respective Percentages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The foregoing notwithstanding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate principal amount of Loans at any time outstanding shall not exceed the Commitments in effect at such time,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the aggregate principal amount of Margin Loans at any time outstanding shall not exceed the Margin Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate principal amount of NSCC<u>FICC</u> Margin Loans at any time outstanding shall not exceed the NSCC<u>FICC</u> Borrowing Base as then determined and computed,<u>;</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the aggregate principal amount of Reserve<u>NSCC Margin</u> Loans at any time outstanding shall not exceed the Reserve<u>NSCC</u> Borrowing Base as then determined and computed,<u>;</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the aggregate principal amount of Customer<u>Receivable</u> Loans at any time outstanding shall not exceed the Customer Loan Limit<u>Receivable Borrowing Base as then determined and computed</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the aggregate principal amount of Firms<u>Reserve</u> Loans at any time outstanding shall not exceed the Firm Loan Limit, <u>Reserve Borrowing Base as then determined and computed;</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the aggregate principal amount of <u>Customer Loans at any time outstanding shall not exceed the Customer Loan Limit,</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(viii) the aggregate principal amount of Firm Loans at any time outstanding shall not exceed the Firm Loan Limit,</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(ix) the aggregate principal amount of FICC Loans,</u> NSCC Margin <u>Loans, Receivable</u> Loans and Reserve Loans at any time outstanding shall not exceed the Sublimit; and

(viii<u>x</u>) the Lenders shall not be obligated to make an <u>FICC Loan, an</u> NSCC Margin <u>Loan, a Receivable</u> Loan or a Reserve Loan during any calendar month if such <u>FICC Loan, an</u> NSCC Margin Loan<u>, a Receivable Loan</u> or <u>a</u> Reserve Loan would cause the number of Zero Loan Days during such calendar month to be less than eight (8).

*Section 2.2. Applicable Interest Rates.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Loan made or maintained by a Lender shall bear interest (computed on the basis of a year of 360 days and the actual days elapsed on the unpaid principal amount thereof from the date such Loan is advanced until maturity (whether by acceleration or otherwise) at the Applicable Interest Rate, payable by the Borrower on each Interest Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Rate Determinations.* The Administrative Agent shall determine each interest rate applicable to the Loans hereunder, and its determination thereof shall be conclusive and binding except in the case of manifest error.

*Section 2.3. Minimum Borrowing Amounts; Maximum Eurodollar Loans.* Each Borrowing advanced hereunder shall be in an amount not less than $100,000.

*Section 2.4. Manner of Borrowing Loans and Designating Applicable Interest Rates.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Notice to the Administrative Agent.* The Borrower shall give notice to the Administrative Agent by no later than 2:30 p.m. (Chicago time) on the date the Borrower requests the Lenders to advance a Borrowing of a Loan. The Borrower shall give all such notices requesting the advance of a Borrowing to the Administrative Agent by telephone, telecopy, or other telecommunication device acceptable to the Administrative Agent (which notice shall be irrevocable once given and, if by telephone, shall be promptly confirmed in writing in a manner acceptable to the Administrative Agent), substantially in the form the Notice of Borrowing. Each such notice shall specify the date of the Loan requested (which must be a Business Day), the amount of such Loan, whether such Loan is a Customer Loan, Firm Loan, or NSCC Margin<u>the type of</u> Loan, and, with respect to a Margin Loan, shall describe all Margin Collateral being transferred into the Account with such detail as the Administrative Agent may require, including which such securities delivered (including any securities that are listed on a schedule to be delivered) pursuant hereto are Customer Securities or Firm Securities. The Borrower shall be deemed to

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warrant to the Administrative Agent with each such delivery of securities that it has full legal power and authority to grant to the Administrative Agent a first security interest in the Margin Collateral consisting of Customer Securities. All Customer Loans shall be secured by Customer Securities and no Customer Securities will be substituted hereunder for Firm Securities. No Customer Securities shall be pledged hereunder to secure Firm Obligations. The Borrower agrees that the Administrative Agent may rely on any such telephonic, telecopy or other telecommunication notice given by any person the Administrative Agent in good faith believes is an Authorized Representative without the necessity of independent investigation, and in the event any such notice by telephone conflicts with any written confirmation such telephonic notice shall govern if the Administrative Agent has acted in reliance thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Notice to the Lenders.* The Administrative Agent shall give prompt telephonic, telecopy or other telecommunication notice to each Lender of any notice from the Borrower received pursuant to Section 2.4(a) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Disbursement of Loans.* Not later than 3:30 p.m. (Chicago time) on the date of any requested advance of a Borrowing, subject to Section 4, each Lender shall make available its Loan comprising part of such Borrowing in funds immediately available at the principal office of the Administrative Agent in Chicago, Illinois (or at such other location as the Administrative Agent shall designate). The Administrative Agent shall make the proceeds of each new Borrowing available to the Borrower at the Administrative Agent's principal office in Chicago, Illinois (or at such other location as the Administrative Agent shall designate), by depositing or wire transferring such proceeds to the credit of the Borrower's Designated Disbursement Account or as the Borrower and the Administrative Agent may otherwise agree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Administrative Agent Reliance on Lender Funding.* Unless the Administrative Agent shall have been notified by a Lender prior to 3:30 p.m. (Chicago time) on) the date on which such Lender is scheduled to make payment to the Administrative Agent of the proceeds of a Loan (which notice shall be effective upon receipt) that such Lender does not intend to make such payment, the Administrative Agent may assume that such Lender has made such payment when due and the Administrative Agent may in reliance upon such assumption (but shall not be required to) make available to the Borrower the proceeds of the Loan to be made by such Lender and, if any Lender has not in fact made such payment to the Administrative Agent, such Lender shall, on demand, pay to the Administrative Agent the amount made available to the Borrower attributable to such Lender together with interest thereon in respect of each day during the period commencing on the date such amount was made available to the Borrower and ending on (but excluding) the date such Lender pays such amount to the Administrative Agent at a rate per annum equal to: (i) from the date the related advance was made by the Administrative Agent to the date two (2) Business Days after payment by such Lender is due hereunder, the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation for each such day and (ii) from the date two (2) Business Days after the date such payment is due from such Lender to the date such payment is made by such Lender, the Base Rate in effect for each such day. If such amount is not received from such Lender

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by the Administrative Agent immediately upon demand, the Borrower will, on demand, repay to the Administrative Agent the proceeds of the Loan attributable to such Lender with interest thereon at a rate per annum equal to the interest rate applicable to the relevant Loan. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

*Section 2.5. Maturity of Loans.* Each Loan, both for principal and interest not sooner paid, shall mature and be due and payable by the Borrower on the Termination Date.

*Section 2.6. Prepayments.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Optional.* The Borrower shall have the privilege of prepaying the Loans in whole or in part (but, if in part, then in an amount not less than $100,000), at any time upon prior notice to the Administrative Agent (such notice if received subsequent to 2:30 p.m. (Chicago time) on a given day to be treated as though received at the opening of business on the next Business Day) by paying to the Administrative Agent the principal amount to be prepaid and if such a prepayment prepays the Note in full and is accompanied by the termination of the Commitment in whole, accrued interest thereon to the date of prepayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Mandatory,* (i) (A)The Borrower covenants and agrees that if at any time the sum of the principal amount of the Margin Loans then outstanding shall be in excess of the Margin Borrowing Base as then determined and computed, the Borrower<u>it</u> shall immediately and without notice or demand pay over<u>prepay</u> the amount of the excess to the Administrative Agent as and for a mandatory prepayment on such Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Borrower covenants and agrees that if at any time the sum of the principal amount of the NSCC Margin Loans then outstanding shall be in excess of the NSCC Borrowing Base as then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Administrative Agent as and for a mandatory prepayment on such Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The Borrower covenants and agrees that if at any time the sum of the principal amount of the Reserve Loans then outstanding shall be in excess of the Reserve Borrowing Base as then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Administrative Agent as and for a mandatory prepayment on such Obligations

(ii)If at any time the sum of the unpaid principal balance of the Customer Loans then outstanding shall be in excess of the Customer Loan Limit then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Administrative Agent as and for a mandatory prepayment on such Customer Loans.<u>applicable Loan in an amount by which:</u>

<u>(</u> iii<u>A)</u> <u>the sum of the principal amount of the Margin Loans then outstanding</u> <u>exceeds</u> <u>the Margin Borrowing Base as then determined and computed,</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(B) the sum of the unpaid principal balance of the Customer Loans then outstanding exceeds the Customer Loan Limit</u> <u>as then determined and computed,</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(C) the sum of the unpaid principal balance of the Firm Loans then outstanding exceeds the Firm Loan Limit as then determined and computed,</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(D)</u> <u>the sum of the principal amount of the</u> <u>FICC Loans then outstanding exceeds the FICC</u> <u>Borrowing Base as then determined and computed,</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(E) the sum of the principal amount of the NSCC Margin Loans then outstanding exceeds the NSCC Borrowing Base as then determined and computed,</u>

(<u>F</u>) <u>the sum of the principal amount of the Receivable Loans then outstanding exceeds the Receivable Borrowing Base as</u> <u>then determined and computed,</u> <u>and</u>

(<u>G</u>) If at any time the sum of the unpaid principal balance<u>amount</u> of the Firm<u>Reserve</u> Loans then outstanding shall be in excess of the Firm Loan Limit<u>exceeds the Reserve Borrowing Base as</u> then determined and computed, the,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(ii) The</u> Borrower shall immediately and<u>,</u> without notice or demand pay over the amount of the excess to the Administrative Agent as and for a mandatory prepayment on such Firm Leans, <u>prepay any FICC Loan in full on the date which is six (6) Business Days after the date such FICC Loan was advanced</u>.

(<u>iv</u><u>iii</u>) The Borrower shall, without notice or demand, prepay any NSCC Margin Loan in full on the earlier to occur of (a) the date upon which the NSCC Margin Deposits funded from the proceeds of such NSCC Margin Loan are returned to the Borrower, and (b) the date which is five (5) days<u>Business Days</u> after the date such NSCC Margin Loan was advanced.

(v

<u>(</u>iv<u>) The Borrower shall, without notice or demand, prepay any Receivable Loan in full on the date which is three 13) Business Days after the date such Receivable Loan was advanced.</u> 

(<u>c</u>) The Borrower shall, without notice or demand, prepay any Reserve Loan in full on the date which is five (5) days after the date such Reserve Loan was advanced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) On any Business Day in a calendar month (other than the last Business Day in a calendar month), if (A) the sum of (x) the number of Business Days remaining in such calendar month (not including such Business Day) plus (y) the number of Zero Loan Days occurring in such calendar month on or prior to such Business Day is less than (B) eight (8), then the Borrower shall not later than 3:00 p.m. on such Business Day, without notice or demand, prepay the full amount of all outstanding <u>FICC Loans</u> NSCC Margin <u>Loans, Receivable</u> Loans and Reserve Loans to the Administrative Agent as and for a mandatory prepayment on the Obligations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any amount of Loans paid or prepaid before the Termination Date may, subject to the terms and conditions of this Agreement, be borrowed, repaid and borrowed again.

*Section 2.7. Default Rate.* Notwithstanding anything to the contrary contained herein, while any Event of Default exists or after acceleration, the Borrower shall pay interest (after as well as before entry of judgment thereon to the extent permitted by law) on the principal amount of all Loans and other amounts at a rate per annum equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any Loan, the sum of 2.0% *plus* the Applicable Interest Rate from time to time in effect with respect to such Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any other amount owing hereunder not covered by clause (a) above, the sum of 2% *plus* the Applicable Interest Rate from time to time in effect;

*provided, however,* that in the absence of acceleration pursuant to Section 8.2 or 8.3, any adjustments pursuant to this Section shall be made at the election of the Administrative Agent, acting at the request or with the consent of the Required Lenders, with written notice to the Borrower (which election may be retroactively effective to the date of such Event of Default). While any Event of Default exists or after acceleration, interest shall be paid on demand of the Administrative Agent at the request or with the consent of the Required Lenders.

*Section 2.8. Evidence of Indebtedness*. (a) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall also maintain accounts in which it will record (i) the amount of each Loan made hereunder, the type thereof and the Interest Period with respect thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder from the Borrower and each Lender's share thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The entries in the accounts maintained pursuant to subsections (a) and (b) above shall be *prima facie* evidence of the existence and amounts of the Obligations therein recorded; *provided, however,* that the failure of the Administrative Agent or any Lender to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Obligations in accordance with their terms.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any Lender may request that its Loans be evidenced by a promissory note or notes in the forms of Exhibit B (such promissory notes being hereinafter referred to collectively as the *"Notes"* and individually as a *"Note").* In such event, the Borrower shall prepare, execute and deliver to such Lender a Note payable to such Lender or its registered assigns in the amount of the Commitment. Thereafter, the Loans evidenced by such Note or Notes and interest thereon shall at all times (including after any assignment pursuant to Section 11.2) be represented by one or more Notes payable to the order of the payee named therein or any assignee pursuant to Section 11.2, except to the extent that any such Lender or assignee subsequently returns any such Note for cancellation and requests that such Loans once again be evidenced as described in subsections (a) and (b) above.

*Section 2.9. Fees.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Commitment Fee.* The Borrower shall pay to the Administrative Agent for the ratable account of the Lenders in accordance with their Percentages a commitment fee at the rate per annum equal to 0.50% (computed on the basis of a year of 360 days and the actual number of days elapsed) times the daily amount by which the aggregate Commitments exceeds the principal amount of Loans then outstanding. Such commitment fee shall be payable quarterly in arrears on the last day of each March, June, September, and December in each year (commencing on the first such date occurring after the Closing Date) and on the Termination Date, unless the Commitments are terminated in whole on an earlier date, in which event the commitment fee for the period to the date of such termination in whole shall be paid on the date of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Administrative Agent Fees.* The Borrower shall pay to the Administrative Agent, for its own use and benefit, the fees agreed to between the Administrative Agent and the Borrower in the Fee Letter.

*Section 2.10. Place and Application of Payments.* <u>(a)</u> All payments of principal of and interest on the Loans and all other Obligations payable by the Borrower under this Agreement and the other Loan Documents, shall be made by the Borrower to the Administrative Agent by no later than 3:00 p.m. (Chicago time) on the due date thereof at the office of the Administrative Agent in Chicago, Illinois (or such other location as the Administrative Agent may designate to the Borrower), for the benefit of the Lender(s) entitled thereto. Any payments received after such time shall be deemed to have been received by the Administrative Agent on the next Business Day. All such payments shall be made in U.S. Dollars, in immediately available funds at the place of payment, in each case without set-off or counterclaim. The Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest on Loans ratably to the Lenders and like funds relating to the payment of any other amount payable to any Lender to such Lender, in each case to be applied in accordance with the terms of this Agreement. Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender, with interest thereon, for each day

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from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at a rate per annum equal to: (i) from the date the distribution was made to the date two (2) Business Days after payment by such Lender is due hereunder, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation for each such day and (ii) from the date two (2) Business Days after the date such payment is due from such Lender to the date such payment is made by such Lender, the Base Rate in effect for each such day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b) Unless the Administrative Agent shall have received notice from Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders hereunder that Borrower will not make such payment, the Administrative Agent may assume that Borrower has made such payment on such date in accordance herewith and may (but shall not be required to) in reliance upon such assumption, distribute to the applicable Lenders the amount due. With respect to any payment that the Administrative Agent makes to any Lender as to which Administrative Agent determines (in its sole and absolute discretion) that any of the following applies (such payment referred to as the *"Rescindable Amount"):* (1) Borrower has not in fact made the corresponding payment to the Administrative Agent; (2) the Administrative Agent has made a payment in excess of the amount(s) received by it from Borrower either individually or in the aggregate (whether or not then owed); or (3) Administrative Agent has for any reason otherwise erroneously made such payment; then each of the Lenders severally agrees to repay to the Administrative Agent forthwith on demand the Rescindable Amount so distributed to such Lender, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.</u> 

*Section 2.11. Non-Business Days.* If any payment hereunder becomes due and payable on a day which is not a Business Day, the due date of such payment shall be extended to the next succeeding Business Day on which date such payment shall be due and payable. In the case of any payment of principal falling due on a day which is not a Business Day, interest on such principal amount shall continue to accrue during such extension at the rate per annum then in effect, which accrued amount shall be due and payable on the next scheduled date for the payment of interest.

*Section 2.12. Payments Set Aside.* To the extent that any payment by or on behalf of the Borrower is made to the Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender severally

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agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation for each such day.

*Section 2.13. Account Debit.* The Borrower hereby irrevocably authorizes the Administrative Agent to charge any of the Borrower's deposit accounts maintained with the Administrative Agent (other than the Excluded Accounts) for the amounts from time to time necessary to pay any then due Obligations; *provided* that the Borrower acknowledges and agrees that the Administrative Agent shall not be under an obligation to do so and the Administrative Agent shall not incur any liability to the Borrower or any other Person for the Administrative Agent's failure to do so.

*Section 2.14. Commitment Terminations.* The Borrower shall have the right at any time and from time to time, upon five (5) Business Days' prior written notice to the Administrative Agent (or such shorter period of time agreed to by the Administrative Agent), to terminate the Commitments without premium or penalty and in whole or in part, any partial termination to be (i) in an amount not less than $1,000,000 and (ii) allocated ratably among the Lenders in proportion to their respective Percentages, provided that the Commitments may not be reduced to an amount less than the aggregate principal amount of Loans then outstanding. The Administrative Agent shall give prompt notice to each Lender of any such termination of the Commitments. Any termination of the Commitments pursuant to this Section may not be reinstated.

*Section 2.15. Replacement of Lenders.* If any Lender requests compensation under Section 3.2, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.1 and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with Section 3.4, or if any Lender is a Defaulting Lender or a Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 11.2), all of its interests, rights (other than its existing rights to payments pursuant to Section 3.1 or Section 3.2) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); *provided* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 11.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any such assignment resulting from a claim for compensation under Section 3.2 or payments required to be made pursuant to Section 3.1, such assignment will result in a reduction in such compensation or payments thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such assignment does not conflict with applicable law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

*Section 2.16. Defaulting Lenders.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Defaulting Lender Adjustments.* Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Waivers and Amendments.* Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Defaulting Lender Waterfall.* Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section 8 or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 11.7 hereto shall be applied at such time or times as may be determined by the Administrative Agent as follows: *first,* to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; *second,* as the Borrower may request (so long as no Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; *third,* if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this Agreement; *fourth,* to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; *fifth,* so long as no Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such

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Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; and *sixth,* to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; *provided* that if (x) such payment is a payment of the principal amount of any Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made at a time when the conditions set forth in Section 4.2 were satisfied or waived, such payment shall be applied solely to pay the Loans of all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until such time as all Loans are held by the Lenders pro rata in accordance with their Percentages of the Commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Certain Fees.* No Defaulting Lender shall be entitled to receive any commitment fee for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Defaulting Lender Cure.* If the Borrower and the Administrative Agent agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein, that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans to be held pro rata by the Lenders in accordance with their respective Percentages of the relevant Commitments, whereupon such Lender will cease to be a Defaulting Lender; *provided* that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and *provided, further,* that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender.

*Section 2.17. Increase in Commitments.* The Borrower may, on any Business Day prior to the Termination Date, with the written consent of the Administrative Agent, increase the aggregate amount of the Commitments by delivering an Increase Request substantially in the form attached hereto as Exhibit F (or in such other form acceptable to the Administrative Agent) to the Administrative Agent at least five (5) Business Days prior to the desired effective date of such increase (the *"Increase")* identifying an additional Lender (or additional Commitment for an existing Lender) and the amount of its Commitment (or additional amount of its Commitment); *provided, however,* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the aggregate amount of all such Revolver Increases shall not exceed $100,000,000 and any such Revolver Increase shall be in an amount not less than $5,000,000 (or such lesser amount then agreed to by the Administrative Agent); *<u>provided,</u>* <u>the Borrower acknowledges that an Increase under this Section 2.17 in the amount of $15,000,000 occurred in connection with the Fifth Amendment.</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default shall have occurred and be continuing at the time of the request or the effective date of the Revolver Increase; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each of the representations and warranties set forth in Section 5 and in the other Loan Documents shall be and remain true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) on the effective date of such Revolver Increase, except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date.

The effective date of the Revolver Increase shall be agreed upon by the Borrower and the Administrative Agent. Upon the effectiveness thereof, Schedule 2.1 shall be deemed amended to reflect the Revolver Increase and the new Lender (or, if applicable, existing Lender) shall advance Loans in an amount sufficient such that after giving effect to its Loans each Lender shall have outstanding its Percentage of all Loans outstanding under the Commitments. Any Revolver Increase shall increase the Sublimit by a proportionate amount (or such other amount as may be agreed upon between the Borrower and the Lender). It shall be a condition to such effectiveness that the Borrower shall not have terminated any portion of the Commitments pursuant to Section 2.14. The Borrower agrees to pay the expenses of the Administrative Agent (including reasonable attorneys' fees) relating to any Revolver Increase. Notwithstanding anything herein to the contrary, no Lender shall have any obligation to increase its Commitment and no Lender's Commitment shall be increased without its consent thereto, and each Lender may at its option, unconditionally and without cause, decline to increase its Commitment.

SECTION 3. TAXES; CHANGE IN CIRCUMSTANCES, INCREASED COSTS, AND FUNDING INDEMNITY.

*Section 3.1. Taxes.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Certain Defined Terms.* For purposes of this Section, the term "applicable law" includes FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Payments Free of Taxes.* Any and all payments by or on account of any obligation of the Parent or the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Parent or the Borrower shall be increased as necessary so that after such deduction or withholding of Indemnified Taxes has been made (including such deductions and withholdings of Indemnified Taxes applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Payment of Other Taxes by the Borrower.* The Parent and the Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Indemnification by the Borrower.* The Borrower shall indemnify each Recipient, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Indemnification by the Lenders.* Each Lender shall severally indemnify the Administrative Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes or Other Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes or Other Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender's failure to comply with the provisions of Section 11.2(d) relating to the maintenance of a Participant Register and (hi) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this subsection (e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Evidence of Payments.* As soon as practicable after any payment of Taxes by the Parent or the Borrower to a Governmental Authority pursuant to this Section, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Status of Lenders,* (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the

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Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 3.1(g)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) executed originals of IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in form and substance acceptable to the Administrative Agent to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Code (a *"U.S. Tax Compliance Certificate'")* and (y) executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate in form and substance acceptable to the Administrative Agent, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; *provided* that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate in form and substance acceptable to the Administrative Agent on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (D), *"FATCA"* shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Treatment of Certain Refunds.* If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section (including by the payment of additional amounts pursuant to this Section), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this subsection (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this subsection (h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this subsection (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts giving rise to such refund had never been paid. This subsection shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Survival.* Each party's obligations under this Section shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

*Section 3.2. Increased Costs.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Increased Costs Generally.* If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on any Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender;

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and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its obligation to make any such Loan, or to increase the cost to such Lender or such other Recipient of participating in, or to reduce the amount of any sum received or receivable by such Lender or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or other Recipient, the Borrower will pay to such Lender or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Capital Requirements.* If any Lender determines that any Change in Law affecting such Lender or any lending office of such Lender or such Lender's holding company, if any, regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on such Lender's capital or on the capital of such Lender's holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by such Lender to a level below that which such Lender or such Lender's holding company could have achieved but for such Change in Law (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender's holding company for any such reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Certificates for Reimbursement.* A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to the Borrower, shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Delay in Requests.* Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender's right to demand such compensation; *provided* that the Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs incurred or reductions suffered more than six (6) months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of such Lender's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).

*Section 3.3. Discretion of Lender as to Manner of Funding.* Notwithstanding any other provision of this Agreement, each Lender shall be entitled to fund and maintain its funding of all or any part of its Loans in any manner it sees fit.

*Section 3.4. Lending Offices; Mitigation Obligations.* Each Lender may, at its option, elect to make its Loans hereunder at the branch, office or affiliate specified in its Administrative Questionnaire (each a *"Lending Office"*) for each Loan available hereunder or at such other of its branches, offices or affiliates as it may from time to time elect and designate in a written notice to the Borrower and the Administrative Agent. If any Lender

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requests compensation under Section 3.2, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.1, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.1 or 3.2, as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

Section 3.5. *Intentionally Omitted.*

SECTION 4. CONDITIONS PRECEDENT.

*Section 4.1. Initial Credit Event.* Before or concurrently with the initial Credit Event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Administrative Agent shall have received this Agreement duly executed by the Borrower and the Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if requested by any Lender, the Administrative Agent shall have received for such Lender such Lender's duly executed Notes of the Borrower dated the date hereof and otherwise in compliance with the provisions of Section 2.8;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Administrative Agent shall have received the Guaranty Agreement duly executed by the Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Administrative Agent shall have received UCC financing statements to be filed against the Borrower, as debtor, in favor of the Administrative Agent, as secured party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Administrative Agent shall have received copies of the Parent's and the Borrower's articles of incorporation and bylaws (or comparable organizational documents) and any amendments thereto, certified in each instance by its Secretary or Assistant Secretary (or comparable Responsible Officer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Administrative Agent shall have received copies of resolutions the Parent's and the Borrower's Board of Directors (or similar governing body) authorizing the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party and the consummation of the transactions contemplated hereby and thereby, together with specimen signatures of the persons authorized to execute such documents on the Parent's and the Borrower's behalf, all certified in each instance by its Secretary or Assistant Secretary (or comparable Responsible Officer);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Administrative Agent shall have received copies of the certificates of good standing for the Parent and the Borrower (dated no earlier than 30 days prior to the date hereof) from the office of the secretary of the state of its incorporation or organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Administrative Agent shall have received a list of the Borrower's Authorized Representatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Administrative Agent shall have received a certificate as to the Borrower's Designated Disbursement Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the Administrative Agent shall have received the initial fees called for by Section 2.9, including an upfront fee equal to 0.20% of the Commitments in effect on the Closing Date, which such upfront fee shall be shared ratably with the Lenders based on the Percentages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Administrative Agent shall have received copies of all documents evidencing preferred equity and subordinated debt of the Borrower, which such documents shall be in form and substance reasonably satisfactory to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the Administrative Agent shall have received a certificate in the form of Exhibit C attached hereto dated as of the date hereof evidencing that the Borrower is in compliance with the financial covenants set forth in Section 7.12 hereof on a pro forma basis after giving effect to any Loan hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the Administrative Agent shall have received a certificate signed by an officer of the Borrower confirming that the conditions set forth in Sections 4.1, 4.2(a) and 4.2(b) hereof have been satisfied as of the date of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) the Administrative Agent shall have received evidence satisfactory to it that the Borrower is a broker-dealer regulated by the SEC and the Designated Examining Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) the Administrative Agent shall have received evidence satisfactory to it that the Borrower has directed NSCC to return NSCC Margin Deposits to the Borrower by deposit into the Settlement Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) the Administrative Agent shall have received financing statement, tax, and judgment lien search results against the Parent, the Borrower and their Property evidencing the absence of Liens thereon except as permitted by Section 7.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) the Administrative Agent shall have received pay-off letters from secured creditors of the Borrower (other than secured parties intended to remain outstanding after the Closing Date with Indebtedness and Liens permitted by Sections 7.1 and 7.2) setting forth, among other things, the total amount of indebtedness outstanding and owing to them (or outstanding letters of credit issued for the account of the Borrower), which pay-off letters shall be in form and substance acceptable to the Administrative Agent;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) the Administrative Agent shall have received the favorable written opinion of counsel to the Parent and the Borrower, in form and substance satisfactory to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) the Administrative Agent shall have received the FOCUS Part 2 of the Borrower as at September 30, 2020, which such report shall be in form and substance acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) each of the Lenders shall have received, in advance of the Closing Date, all documentation and other information requested by any such Lender required by bank regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including without limitation, the Patriot Act and the information described in Section 11.19; and the Administrative Agent shall have received a fully executed Internal Revenue Service Form W-9 (or its equivalent) for the Parent and the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) at least five days prior to the Closing Date, if the Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, the Borrower shall deliver a Beneficial Ownership Certification in relation to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Administrative Agent shall have received the fully executed Debt Subordination Agreement from WBI, LP, which such agreement shall be on terms and conditions reasonably acceptable to the Administrative Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) the Administrative Agent shall have received such other agreements, instruments, documents, certificates, and opinions as the Administrative Agent may reasonably request.

*Section 4.2. All Credit Events.* At the time of each Credit Event hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) no Default shall have occurred and be continuing or would occur as a result of such Credit Event and (ii) no Level I Termination Event has occurred that has not been waived in accordance with this Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Administrative Agent shall have received a Notice of Borrowing, which shall include evidence that after giving effect to such Credit Event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(i)</u> the aggregate principal amount of all Loans outstanding under this Agreement shall not exceed the Commitment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(ii)</u> the aggregate principal amount of Margin Loans at any time outstanding shall not exceed the Margin Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(iii)</u> the aggregate principal amount of NSCC Margin<u>FICC</u> Loans at any time outstanding shall not exceed the NSCC<u>FICC</u> Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(iv)</u> the aggregate principal amount of Reserve<u>NSCC Margin</u> Loans at any time outstanding shall not exceed the Reserve<u>NSCC</u> Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(v)</u> the aggregate principal amount of Customer<u>Receivables</u> Loans at any time outstanding shall not exceed the Customer Loan Limit,<u>Receivable Borrowing Base as then determined</u> and <u>computed</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(vi)</u> the aggregate principal amount of Firms<u>Reserve Loans at any time outstanding shall not exceed the Reserve Borrowing Base as then determined and computed,</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(vii) the aggregate principal amount of Customer Loans at any time outstanding shall not exceed the Customer Loan Limit, and</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(viii) the aggregate principal amount of Firm</u> Loans at any time outstanding shall not exceed the Firm Loan Limits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) after giving effect to such extension of credit, the number of Zero Loan Days during the current calendar month shall not be less than eight (8); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) such Credit Event shall not violate any order, judgment or decree of any court or other authority or any provision of law or regulation applicable to the Administrative Agent or any Lender (including, without limitation, Regulation U of the Board of Governors of the Federal Reserve System) as then in effect.

Each request for a Borrowing hereunder shall be deemed to be a representation and warranty by the Borrower on the date of such Credit Event as to the facts specified in subsections (a) through (d), both inclusive, of this Section.

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SECTION 5. REPRESENTATIONS AND WARRANTIES.

The Borrower represents and warrants to the Administrative Agent and the Lenders as follows:

*Section 5.1. Organization and Qualification.* The Borrower is duly organized, validly existing, and in good standing as a limited liability company under the laws of the State of Delaware, has full and adequate power to own its Property and conduct its business as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying where the failure to do so would reasonably be expected to have a Material Adverse Effect.

*Section 5.2. Subsidiaries.* Each Subsidiary is duly organized, validly existing, and in good standing under the laws of the jurisdiction in which it is incorporated or organized, as the case may be, has full and adequate power to own its Property and conduct its business as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying where the failure to do so would reasonably be expected to have a Material Adverse Effect. Schedule 5.2 hereto identifies each Subsidiary, the jurisdiction of its organization, the percentage of issued and outstanding shares of each class of its capital stock or other equity interests owned by the Borrower and the Subsidiaries and, if such percentage is not 100% (excluding directors' qualifying shares as required by law), a description of each class of its authorized capital stock and other equity interests and the number of shares of each class issued and outstanding. All of the outstanding shares of capital stock and other equity interests of each Subsidiary are validly issued and outstanding and fully paid and nonassessable and all such shares and other equity interests indicated on Schedule 5.2 as owned by the Borrower or a Subsidiary are owned, beneficially and of record, by the Borrower or such Subsidiary free and clear of all Liens. There are no outstanding commitments or other obligations of any Subsidiary to issue, and no options, warrants or other rights of any Person to acquire, any shares of any class of capital stock or other equity interests of any Subsidiary, other than with respect to shares of capital stock or other equity interests of any Subsidiary that may be acquired after the date of this Agreement.

*Section 5.3. Authority and Validity of Obligations.* The Borrower has full right and authority to enter into this Agreement and the other Loan Documents executed by it, to make the borrowings herein provided for, to grant to the Administrative Agent the Liens described in the Loan Documents, and to perform all of its obligations hereunder and under the other Loan Documents executed by it. The Loan Documents delivered by the Borrower have been duly authorized, executed, and delivered by such Persons and constitute valid and binding obligations of the Borrower enforceable against each of them in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance or similar laws affecting creditors' rights generally and general principles of equity (regardless of whether the application of such principles is considered in a proceeding in equity or at law); and this Agreement and the other Loan Documents do not, nor does the performance or observance by the Borrower of any of the matters and things herein or therein provided for, (a) contravene or constitute a default under any provision of applicable law or any judgment, injunction, order or decree binding upon the Borrower or any provision of the Organizational Documents of the Borrower, (b) contravene or constitute a default under any covenant, indenture or agreement of or affecting the Borrower or any Subsidiary or any of their respective Property, in each case where such contravention or default, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect, or (c) result in the creation or imposition of any Lien on any Property of the Borrower or any Subsidiary other than the Liens granted in favor of the Administrative Agent pursuant to the Loan Documents.

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*Section 5.4. Use of Proceeds*. The Borrower shall use the proceeds of <u>(i)</u> the <u>FICC</u> Loans solely (i)<u>to finance the Borrower's margin deposits required by the FICC during the MBS Blackout Period to the extent such margin relates to mortgage-backed securities, (ii) the Margin Loans solely</u> to finance the purchase and settlement of securities and <u>for the Borrower's general working capital purposes,</u> (ii<u>iv</u>) <u>the NSCC Loans solely</u> to finance NSCC Deposit Requirements (other than an Adequate Assurance Deposit), (iii<u>v</u><u>) the Receivable Loans solely to finance the Borrower's short-term liquidity needs arising from the timing difference between the Borrower calling for margin to be provided by its customers to (Land such margin being received by the Borrower to meet margin calls at the Borrower's U.S, futures and options clearinghouses and (vi) the Reserve Loans solely</u> to finance withdrawals from the Excluded Accounts, and (iv) for the Borrower's general working capital purposes.

*Section 5.5. Financial Reports.* The balance sheet of the Borrower as at December 31, 2019<u>2022,</u> and the related statements of income, retained earnings, and cash flows of the Borrower for the fiscal year then ended, and accompanying notes thereto, which financial statements are accompanied by the audit report of RSM US LLP, independent public accountants, and a FOCUS Part 2 of the Borrower as at September 30, 2020<u>2023,</u> and the related statements of income, retained earnings, and cash flows of the Borrower for the nine (9) months then ended, heretofore furnished to the Administrative Agent, fairly present the financial condition of the Borrower as at said dates and the results of its operations and cash flows for the periods then ended in conformity with GAAP applied on a consistent basis. The Borrower does not have any contingent liabilities which are material to it other than as indicated on such financial statements or, with respect to future periods, on the financial statements furnished pursuant to Section 6.5 hereof.

*Section 5.6. No Material Adverse Change.* Since December 31, 2022, there has been no change in the condition (financial or otherwise) or business of the Borrower or of the Borrower and its Subsidiaries taken as a whole which, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

*Section 5.7. Full Disclosure.* The statements and information furnished to the Administrative Agent and the Lenders in connection with the negotiation of this Agreement and the other Loan Documents and the commitments by the Lenders to provide all or part of the financing contemplated hereby do not contain any untrue statements of a material fact or omit a material fact necessary to make the material statements contained herein or therein not misleading, the Administrative Agent Administrative Agent and the Lenders acknowledging that as to any projections furnished to them, the Borrower only represents that the same were prepared on the basis of information, assumptions and estimates the Borrower believed to be reasonable at the time made and that actual results during the period or periods covered by any such projections may differ from projected or forecasted results.

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*Section 5.8. Trademarks, Franchises, and Licenses.* The Borrower and its Subsidiaries own, possess, or have the right to use all patents, licenses, franchises, trademarks, trade names, trade styles, copyrights, trade secrets, know how, and confidential commercial and proprietary information to conduct their business as now conducted, without known conflict with any patent, license, franchise, trademark, trade name, trade style, copyright or other proprietary right of any other Person, in each case, except as would not reasonably be expected to have a Material Adverse Effect.

*Section 5.9. Governmental Authority and Licensing.* The Borrower and its Subsidiaries have received all licenses, permits, and approvals of all federal, state, and local governmental authorities, if any, necessary to conduct their businesses, in each case where the failure to obtain or maintain the same would reasonably be expected to have a Material Adverse Effect. No investigation or proceeding which, if adversely determined, would reasonably be expected to result in revocation or denial of any material license, permit or approval is pending or, to the knowledge of the Borrower, threatened.

*Section 5.10. Good Title.* The Borrower and its Subsidiaries have good and defensible title (or valid leasehold interests) to their assets as reflected on the most recent consolidated balance sheet of the Borrower and its Subsidiaries furnished to the Administrative Agent (except for sales of assets by the Borrower and its Subsidiaries in the ordinary course of business), subject to no Liens other than such thereof as are permitted by Section 7.2 hereof and except for minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such assets for their intended purposes.

*Section 5.11. Litigation and Other Controversies.* There is no litigation or governmental or arbitration proceeding or labor controversy pending, nor to the knowledge of the Borrower threatened, against the Borrower or any Subsidiary or any of their Property which, if adversely determined would reasonably be expected to have a Material Adverse Effect.

*Section 5.12. Taxes.* All material Tax returns required to be filed by the Borrower or any Subsidiary in any jurisdiction have, in fact, been filed, and all material Taxes upon the Borrower or any Subsidiary or upon any of their Property, income or franchises, which are shown to be due and payable in such returns, have been paid, except such Taxes, if any, as are being contested in good faith and by appropriate proceedings which prevent enforcement of the matter under contest and as to which adequate reserves established in accordance with GAAP have been provided. The Borrower does not know of any proposed additional material Tax against it or its Subsidiaries for which adequate provisions in accordance with GAAP have not been made on their accounts. Adequate provisions in accordance with GAAP for Taxes on the books of the Borrower and its Subsidiaries have been made for all open years, and for the current fiscal period.

*Section 5.13. Approvals.* No authorization, consent, license or exemption from, or filing or registration with, or approval of any court or governmental department, agency or instrumentality, nor any approval or consent of any other Person, is or will be necessary to the valid execution, delivery or performance by the Borrower of any Loan Document, except for (i) such approvals which have been obtained prior to the date of this Agreement and remain in full force and effect and (ii) filings which are necessary to perfect the security interests under the Loan Documents.

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*Section 5.14. Affiliate Transactions.* Neither the Borrower nor any Subsidiary is a party to any contracts or agreements with any of its Affiliates on terms and conditions which are less favorable to the Borrower or such Subsidiary than would be usual and customary in similar contracts or agreements between Persons not affiliated with each other.

*Section 5.15. Investment Company.* Neither the Borrower nor any Subsidiary is an "investment company" or a company "controlled" by an "investment company" within the meaning of the Investment Company Act of 1940, as amended.

*Section 5.16. ERISA.* (a) Each Plan is in material compliance with the applicable provisions of ERISA, the Code and other federal or state Laws. Each Plan that is intended to be a qualified plan under Section 401(a) of the Code has received a favorable determination letter or opinion letter from the Internal Revenue Service to the effect that the form of such Plan is qualified under Section 401(a) of the Code and the trust related thereto has been determined by the Internal Revenue Service to be exempt from federal income tax under Section 501(a) of the Code, or an application for such a letter is currently being processed by the Internal Revenue Service. To the best knowledge of the Borrower, nothing has occurred that would prevent or cause the loss of such tax-qualified status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There are no pending or, to the best knowledge of the Borrower, threatened or contemplated claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that have not been corrected under established IRS or US Department of Labor correction programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No ERISA Event has occurred, and neither the Borrower nor any ERISA Affiliate is aware of any fact, event or circumstance that, either individually or in the aggregate, would reasonably be expected to constitute or result in an ERISA Event with respect to any Plan that, either individually or in the aggregate, would result in material liability.

(d)(i) the present value of all accrued benefits under each Plan (based on those assumptions used to fund such Plan) did not, as of the last annual valuation date prior to the date on which this representation is made or deemed made, exceed the value of the assets of such Plan allocable to such accrued benefits, and (ii) as of the most recent valuation date for each Multiemployer Plan, the potential liability of the Borrower or any ERISA Affiliate for a complete withdrawal from such Multiemployer Plan (within the meaning of Section 4203 or Section 4205 of ERISA), when aggregated with such potential liability for a complete withdrawal from all Multiemployer Plans, is zero.

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*Section 5.17. Compliance with Laws.* The Borrower and its Subsidiaries are in compliance with all Legal Requirements applicable to or pertaining to their Property or business operations (including, without limitation, the Occupational Safety and Health Act of 1970, the Americans with Disabilities Act of 1990, and laws and regulations establishing quality criteria and standards for air, water, land and toxic or hazardous wastes and substances), where any such non-compliance, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. Neither the Borrower nor any Subsidiary has received notice to the effect that its operations are not in compliance with any of the Legal Requirements of applicable federal, state or local environmental, health, and safety statutes and regulations or are the subject of any governmental investigation evaluating whether any remedial action is needed to respond to a release of any toxic or hazardous waste or substance into the environment, where any such non-compliance or remedial action, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

*Section 5.18. Sanctions; Anti-Money Laundering Laws and Anti-Corruption Laws,* (a) None of the Parent, the Borrower, any of their Subsidiaries, any director, officer or employee of the Parent, the Borrower or any of their Subsidiaries, nor, to the knowledge of the Borrower, any agent or representative of the Parent, the Borrower or any of their Subsidiaries, is a Sanctioned Person or currently the subject or target of any Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parent, the Borrower, each of their Subsidiaries, and each of their respective directors, officers and employees, and, to the knowledge of the Borrower, each of the Parent's, the Borrower's and their Subsidiaries' respective agents and representatives, is in compliance with all applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Parent, the Borrower and their Subsidiaries have instituted and maintain in effect policies and procedures reasonably designed to ensure compliance by the Parent, the Borrower, and their Subsidiaries' respective directors, officers, employees and agents (acting in their capacity as such) with all applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions.

*Section 5.19. EEA Financial Institution.* The Borrower is not an EEA Financial Institution.

*Section 5.20. Other Agreements.* Neither the Borrower nor any Subsidiary is in default under the terms of any covenant, indenture or agreement of or affecting the Borrower, any Subsidiary or any of their Property, which default if uncured would be expected to have a Material Adverse Effect.

*Section 5.21. Solvency.* The Borrower is solvent, able to pay its debts as they become due, and has sufficient capital to cany on its business and all businesses in which it is about to engage.

*Section 5.22. No Default or Termination Event.* No Default has occurred and is continuing. No Level II Termination Event has occurred that has not been waived in accordance with this Agreement.

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*Section 5.23. Registration; Qualifications.* The Borrower (i) has been duly registered with the SEC as a registered broker dealer, is approved as a clearing corporation of DTC and the National Securities Clearing Corporation, (iii) is an "exempted borrower" within the meaning of Reg U of the Board of Governors of the Federal Reserve System, and (iv) is excluded as a "Legal Entity Customer" for purposes of the beneficial ownership rule under 31 CFR 1010.230.

*Section 5.24. SIPC Assessments.* The Borrower is not in arrears with respect to any assessment made upon it by the SIPC.

*Section 5.25. Designated Examining Authority.* Financial Industry Regulatory Authority *("FINRA"*) has been designated as the Designated Examining Authority for the Borrower, and the Borrower's Designated Self-Regulatory Organizations are FINRA and, the New York Stock Exchange <u>and the National Futures Association.</u>

*Section 5.26. Perfection of Security Interest.* Upon the crediting of Collateral to the Accounts or as otherwise specified in Section 10 hereof, the Administrative Agent shall have "control" over such Collateral (as such term is defined under Section 8-106 of the Uniform Commercial Code) and shall have a perfected pledge of and security interest in such Collateral and all proceeds thereof (subject to Section 9-315 of the Uniform Commercial Code), which security interest shall be prior to all other interests in such Collateral to the extent provided under Articles 8 and 9 of the Uniform Commercial Code.

*Section 5.27. Ownership, No Liens, etc.* Immediately before giving effect to each delivery of Collateral by the Borrower to the Administrative Agent, the Borrower has the authority to pledge, repledge, hypothecate, rehypothecate, or otherwise transfer the Collateral and will have the right to receive all payments on such Collateral, in each case free and clear of all Liens and adverse claims other than the Lien of the Administrative Agent and any interests in such Collateral created or permitted to exist under this Agreement.

*Section 5.28. Valid Security Interest.* The delivery of Collateral to the Administrative Agent, together with the actions described in the foregoing Section 5.26, is effective to create a valid, perfected, first priority security interest in all such Collateral and all proceeds thereof, securing the Obligations. No filings or other actions will be necessary to perfect such security interest.

*Section 5.29. Broker Fees.* No broker's or finder's fee or commission will be payable with respect hereto or any of the transactions contemplated thereby; and the Borrower hereby indemnifies the Administrative Agent against, and agrees that it will hold the Administrative Agent harmless from, any claim, demand, or liability for any such broker's or finder's fees alleged to have been incurred in connection herewith or therewith and any expenses (including reasonable attorneys' fees) arising in connection with any such claim, demand, or liability.

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SECTION 6. AFFIRMATIVE COVENANTS.

The Borrower agrees that, so long as any credit is available to or in use by the Borrower hereunder, except to the extent compliance in any case or cases is waived in writing pursuant to the terms of Section 11.3:

*Section 6.1. Maintenance of Business.* The Borrower shall, and shall cause each Subsidiary to, preserve and maintain its existence, except as otherwise provided in Section 7.4(c). The Borrower shall, and shall cause each Subsidiary to, preserve and keep in force and effect all licenses, permits, franchises, approvals, patents, trademarks, trade names, trade styles, copyrights, and other proprietary rights necessary to the proper conduct of its business, except where the failure to do so, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

*Section 6.2. Maintenance of Properties.* The Borrower shall maintain, preserve, and keep its property, plant, and equipment in good repair, working order and condition (ordinary wear and tear excepted); shall from time to time make all needful and proper repairs, renewals, replacements, additions, and betterments thereto so that at all times the efficiency thereof shall be fully preserved and maintained; and shall cause each Subsidiary to do so in respect of Property owned or used by it, in each case except where the failure to do so would not reasonably be expected to have a Material Adverse Effect.

*Section 6.3. Taxes and Assessments.* The Borrower shall duly pay and discharge, and shall cause each of its Subsidiaries to duly pay and discharge, all material Taxes, rates, assessments, fees, and governmental charges upon or against it or its Property, in each case before the same become delinquent and before penalties accrue thereon, unless and to the extent that the same are being contested in good faith and by appropriate proceedings which prevent enforcement of the matter under contest and adequate reserves are provided therefor.

*Section 6.4. Insurance.* The Borrower shall insure and keep insured, and shall cause each Subsidiary to insure and keep insured, with good and responsible insurance companies all insurable Property owned by it which is of a character usually insured by Persons similarly situated and operating like Properties against loss or damage from such hazards and risks, and in such amounts, as are insured by Persons similarly situated and operating like Properties; and the Borrower shall insure, and shall cause each Subsidiary to insure, such other hazards and risks (including, without limitation, employers' and public liability risks) with good and responsible insurance companies as and to the extent usually insured by Persons similarly situated and conducting similar businesses. The Borrower shall, upon request of the Administrative Agent, furnish to the Administrative Agent a certificate setting forth in summary form the nature and extent of the insurance maintained pursuant to this Section 6.4.

*Section 6.5. Financial Reports; Notices.* The Borrower shall, and shall cause each of their Subsidiaries to, maintain proper books of records and accounts reasonably necessary to prepare financial statements required to be delivered pursuant to this Section 6.5 in accordance with GAAP and shall furnish to the Administrative Agent and each Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as soon as available, and in any event within 45 days after the last day of each month of the Borrower, a copy of financial statements and reports of the Borrower, including a calculation of the Borrower's Net Capital, for each monthly accounting period consisting of a balance sheet and a profit and loss statement of the Borrower in the form of Focus-Part 2 prepared by the Borrower as of the end of and for such month in accordance with GAAP (except for the absence of footnotes and subject to year-end audit adjustments) and certified by its chief financial officer or such other officer acceptable to the Administrative Agent;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as soon as available, and in any event within 90 days after the last day of each fiscal year of the Borrower, copies of the consolidated balance sheet of the Borrower and its Subsidiaries as of the close of such period and the consolidated statements of income, retained earnings, and cash flows of the Borrower and its Subsidiaries for such period, and accompanying notes thereto, each in reasonable detail, accompanied by an unqualified opinion (subject to normal year-end adjustments and except for qualifications relating to changes in accounting principles or practices reflecting changes in GAAP and required or approved by Borrower's independent certified public accountants) thereon of a firm of independent public accountants of recognized national standing, selected by the Borrower and reasonably satisfactory to the Administrative Agent, to the effect that the financial statements have been prepared in accordance with GAAP and present fairly in accordance with GAAP the consolidated financial condition of the Borrower and its Subsidiaries as of the close of such fiscal year and the results of their operations and cash flows for the fiscal year then ended and that an examination of such accounts in connection with such financial statements has been made in accordance with generally accepted auditing standards and, accordingly, such examination included such tests of the accounting records and such other auditing procedures as were considered necessary in the circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as soon as available, and in any event no later than 90 days after the last day of each fiscal year of Clear Street Group, Inc., a copy of the consolidated and consolidating balance sheet of Clear Street Group, Inc. and its Subsidiaries as of the last day of such period and the consolidated and consolidating statements of income, retained earnings, and cash flows of Clear Street Group, Inc. and its Subsidiaries for the fiscal year then ended, each in reasonable detail showing in comparative form the figures for the corresponding date and period in the previous fiscal year, prepared by Clear Street Group, Inc. in accordance with GAAP and certified to by its chief financial officer or such other officer acceptable to Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) as soon as available, and in any event within five (5) days after the close of each fiscal month, a certificate in the form of Exhibit D attached hereto from the Borrower indicating the Eligible NSCC <u>Margin Deposits and the Eligible FICC</u> Margin Deposits of the Borrower in effect for each Business Day in the most recently ended fiscal month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) as soon as available, and in any event within 90 days after the close of each fiscal year of the Borrower, any additional written reports or management letters concerning significant aspects of the Borrower's affairs given to its managers (or other governing body) by its independent public accountants in connection with the audit of the Borrower;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) promptly after knowledge thereof shall have come to the attention of any Responsible Officer of the Borrower, written notice of (i) any threatened or pending litigation or governmental or arbitration proceeding or labor controversy against the Parent, the Borrower or any Subsidiary or any of their Property which, if adversely determined, would reasonably be expected to have a Material Adverse Effect, or (ii) the occurrence of any Default hereunder, or, (iii) the occurrence of any Material Adverse Effect, or (iv) any ERISA Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) promptly after receipt thereof, and in any event within five (5) Business Days after receipt thereof, a copy of any financial report performed or required to be performed by any Designated Examining Authority of the Borrower and permitted to be disclosed under applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) notice of any Change of Control or the occurrence of any Termination Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) promptly after it is filed with the SEC, and in any event within five (5) Business Days after sending or filing thereof, copies of each regular, periodic or special report, registration statement or prospectus, if any (including all Form 10-K, Form 10-Q and Form 8-K reports) filed publicly by Clear Street Group, Inc., the Borrower or any Subsidiary with any securities exchange or the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) promptly after receipt thereof, a copy of notice of any material noncompliance with any applicable law, regulation or guideline relating to the Parent, the Borrower or any Subsidiary or their respective business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) as soon as available, and in any event within 45 days after the last day of each quarter, a written certificate in the form attached hereto as Exhibit C signed by a Financial Officer of the Borrower to the effect that to the best of such officer's knowledge and belief no Default has occurred during the period covered by such statements or, if any such Default has occurred during such period, setting forth a description of such Default and specifying the action, if any, taken by the Borrower or its Subsidiary to remedy the same. Such certificate shall also set forth the calculations supporting such statements in respect of Section 7.12 (Financial Covenants); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) promptly, from time to time, (i) such other information regarding the operations, business affairs and financial condition of the Parent, the Borrower or any Subsidiary, or compliance with the terms of any Loan Document, as the Administrative Agent or any Lender may reasonably request or (ii) information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with applicable "know your customer" requirements under the Patriot Act or other applicable Anti-Corruption Laws and the Beneficial Ownership Regulation.

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*Section 6.6. Inspection.* The Borrower shall, and shall cause each Subsidiary to, permit the Administrative Agent and each Lender, and each of their duly authorized representatives and agents to visit and inspect any of the Properties, corporate books and financial records of the Borrower and each Subsidiary, to examine and make copies of the books of accounts and other financial records of the Borrower and each Subsidiary, and to discuss the affairs, finances and accounts of the Borrower and each Subsidiary with, and to be advised as to the same by, its officers, employees, and independent public accountants (and by this provision the Borrower hereby authorizes such accountants to discuss with the Administrative Agent and the Lenders the finances and affairs of the Borrower and of each Subsidiary) during business hours at such reasonable times and reasonable intervals as the Administrative Agent or any such Lender may designate; *provided* that, excluding any inspections during the continuation of an Event of Default, the Administrative Agent or such Lender shall provide reasonable prior notice of its exercise of such inspection rights and the Administrative Agent and each Lender, collectively, shall not exercise such inspection rights more often than one time during any calendar year.

*Section 6.7. ERISA.* The Borrower shall, and shall cause each of its ERISA Affiliates to do, each of the following: (a) maintain each Plan in compliance in all material respects with the applicable provisions of ERISA, the Code and other applicable Laws; (b) cause each Plan which is qualified under section 401(a) of the Code to maintain such qualification; and (c) make all required contributions to any Plan subject to the Pension Funding Rules.

*Section 6.8. Compliance with Laws.* The Borrower shall, and shall cause each Subsidiary to, comply in all respects with all Legal Requirements applicable to or pertaining to its Property or business operations, where any such non-compliance, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect or result in a Lien upon any of the Collateral.

*Section 6.9. Compliance with Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions,* (a) The Borrower shall at all times comply with the requirements of all Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions applicable to the Borrower and shall cause each of its respective Subsidiaries to comply with the requirements of all Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions applicable to such Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall provide the Administrative Agent and the Lenders any information regarding the Parent, the Borrower and each of their respective owners, Affiliates, and Subsidiaries necessary for the Administrative Agent and each Lender to comply with all applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions, subject however, in the case of Affiliates, to the Borrower's ability to provide information applicable to them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower will maintain in effect and enforce policies and procedures reasonably designed to ensure compliance by the Parent, the Borrower, their Subsidiaries, and their respective directors, officers, employees and agents with applicable Anti-Corruption Laws, Anti Money-Laundering Laws and Sanctions.

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*Section 6.10. Formation of Subsidiaries.* Promptly upon the formation or acquisition of any Subsidiary, the Borrower shall provide the Administrative Agent notice thereof (at which time Schedule 5.2 shall be deemed amended to include reference to such Subsidiary).

*Section 6.11. Use of Proceeds.* The Borrower shall use the credit extended under this Agreement solely for the purposes set forth in, or otherwise permitted by, Section 5.4. None of the proceeds from the Loans shall be used to make any Adequate Assurance Deposit.

*Section 6.12. Settlement Accoun<u>t</u><u>Accounts</u>.* The Borrower shall at all times maintain the <u>Borrower's primary operating and deposit accounts (including the</u> Settlement Account<u>)</u> with the Administrative Agent and the<u>. The</u> Administrative Agent shall at all times be designated with DTC<u>,</u> and<u>FICC,</u> NSCC and <u>all other U.S. exchange clearinghouses</u> as the Administrative Agent<u>Borrower</u>'s settlement bank. The Borrower shall, and shall cause its Subsidiaries to, promptly remit all assets of the Borrower's customers <u>that are required to be deposited into an Excluded Account</u> from the Settlement Account into another account not subject to the Administrative Agent's Lien granted hereunder<u>such Excluded Account.</u>

SECTION 7. NEGATIVE COVENANTS AND FINANCIAL COVENANTS.

The Borrower agrees that, so long as any credit is available to or in use by the Borrower hereunder, except to the extent compliance in any case or cases is waived in writing pursuant to the terms of Section 11.3:

*Section 7.1. Borrowings and Guaranties.* The Borrower shall not, nor shall it permit any Subsidiary to, issue, incur, assume, create, or have outstanding any Indebtedness, or incur liabilities for interest rate, currency, or commodity cap, collar, swap, or similar hedging arrangements, or be or become liable as endorser, guarantor, surety, or otherwise for any Indebtedness or undertaking of any other Person, or otherwise agree to provide funds for payment of the obligations of another, to supply funds thereto or to invest therein, or to otherwise assure a creditor of another against loss, or apply for or become liable to the issuer of a letter of credit which supports an obligation of another, or subordinate any claim or demand it may have to the claim or demand of any other Person; *provided, however,* that the foregoing shall not restrict nor operate to prevent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Obligations of the Borrower and its Subsidiaries owing to the Administrative Agent and the Lenders under the Loan Documents, and any Indebtedness owing by the Borrower to the Administrative Agent pursuant to any uncommitted demand line of credit that may be extended by the Administrative Agent to the Borrower from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) purchase money indebtedness and Capitalized Lease Obligations of the Borrower and its Subsidiaries in an amount not to exceed $2,000,000 in the aggregate at any one time outstanding;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) obligations of the Borrower or any Subsidiaries arising out of interest rate, foreign currency, and commodity hedging agreements entered into with financial institutions in connection with bona fide hedging activities in the ordinary course of business and not for speculative purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) endorsement of items for deposit or collection of commercial paper received in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) financing of securities and other financial instruments held in the normal day to day conduct of the Borrower's or such Subsidiary's business, including but not limited to any margin facility or other margin-related Indebtedness incurred to finance such securities or instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any letters of credit (and related obligations) obtained by Borrower or any Subsidiary and provided to lessors in connection with leases of real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Subordinated Debt of the Borrower so long as (i) no Default has occurred and is continuing or would result from the incurrence thereof, (ii) after giving effect to the incurrence of such Subordinated Debt, the Borrower is in compliance with the financial covenants set forth in Section 7.12 hereof; and (iii) such Indebtedness is unsecured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) cash management obligations and Indebtedness in respect of netting services, overdraft protections and similar arrangements in each case in connection with cash management and deposit, securities and commodities accounts arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Indebtedness of any Subsidiary arising under Guarantees of Indebtedness to the extent such Indebtedness is permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Indebtedness of the Borrower owing to WBI, LP so long as such Indebtedness is subject to the Debt Subordination Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) other Indebtedness of the Borrower and its Subsidiaries in an aggregate amount not to exceed $2,000,000 at any one time so long as, at the time of issuance, incurrence, assumption or creation of such Indebtedness, no Default or Event of Default exists or would occur as a result of the incurrence of such Indebtedness.

*Section 7.2. Liens.* The Borrower shall not, nor shall it permit any of its Subsidiaries to, create, incur or permit to exist any Lien of any kind on any Property owned by any such Person; *provided, however,* that the foregoing shall not apply to nor operate to prevent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens arising by statute in connection with worker's compensation, unemployment insurance, old age benefits, social security obligations, taxes, assessments, statutory obligations or other similar charges (other than Liens arising under ERISA), good faith cash deposits in connection with tenders, contracts or

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leases to which the Borrower or any Subsidiary is a party or other cash deposits required to be made in the ordinary course of business, provided in each case that the obligation is not for borrowed money and that the obligation secured is not overdue or, if overdue, is being contested in good faith by appropriate proceedings which prevent enforcement of the matter under contest and adequate reserves have been established therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) mechanics', workmen's, materialmen's, landlords', carriers' or other similar Liens arising in the ordinary course of business with respect to obligations which are not due or which are being contested in good faith by appropriate proceedings which prevent enforcement of the matter under contest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the pledge of assets for the purpose of securing an appeal, stay or discharge in the course of any legal proceeding, provided that the aggregate amount of such judgment liens and attachments and liabilities of the Borrower and its Subsidiaries secured by a pledge of assets permitted under this subsection, including interest and penalties thereon, if any, shall not be in excess of the Threshold Amount at any one time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens on equipment of the Borrower or any Subsidiary created solely for the purpose of securing indebtedness permitted by Section 7.1(b) hereof, representing or incurred to finance the purchase price of such Property, *provided* that no such Lien shall extend to or cover other Property of the Borrower or such Subsidiary other than the respective Property so acquired, and the principal amount of indebtedness secured by any such Lien shall at no time exceed the purchase price of such Property, as reduced by repayments of principal thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any interest or title of a lessor under any operating lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) easements, rights-of-way, restrictions, and other similar encumbrances against real property incurred in the ordinary course of business which, in the aggregate, are not substantial in amount and which do not materially detract from the value of the Property subject thereto or materially interfere with the ordinary conduct of the business of the Borrower and its Subsidiaries taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) required deposits maintained with commodity or securities exchanges or their associated clearing corporations in the ordinary course of the business of the Borrower or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Liens granted in favor of the Administrative Agent pursuant hereto and the other Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens securing Indebtedness permitted under Section 7.1(e) so long as no such Liens attach to the Collateral;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Liens (i) of a collection bank arising under Section 4-210 of the Uniform Commercial Code on the items in the course of collection, (ii) attaching to commodity trading accounts or other commodities brokerage accounts or relating to pooled deposit or sweep accounts of the Borrower or any Subsidiary to permit satisfaction of overdraft or similar obligations incurred in the ordinary course of business, (hi) in favor of a banking or other financial institution arising as a matter of law encumbering deposits or other funds maintained with a financial institution (including the right of set off) and which are within the general parameters customary in the banking industry and (iv) in the nature of contractual rights of set-off relating to purchase orders and other agreements entered into with customers of the Borrower or any Subsidiary or otherwise in the ordinary course of business and customary holdbacks under credit cards or similar merchant processing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Liens arising from precautionary Uniform Commercial Code financing statement filings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Liens in connection with sales, transfers, leases, assignments or other conveyances or dispositions of securities permitted under this Agreement, including (x) Liens on securities granted or deemed to arise in connection with and as a result of the execution, delivery or performance of contracts to sell such securities if such sale is otherwise permitted hereunder, or is required by such contracts to be permitted hereunder, and (y) rights of first refusal, options or other contractual rights or obligations to sell, assign or otherwise dispose of any securities or interest therein, which rights of first refusal, option or contractual rights are granted in connection with a sale, transfer or other disposition of securities permitted hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Liens securing Indebtedness owing by any Subsidiary permitted under Section 7.1(k).

*Section 7.3. Investments, Acquisitions, Loans and Advances.* The Borrower shall not, nor shall it permit any Subsidiary to, make or retain any investment (whether through the purchase of stock, obligations or otherwise) in or make any loan or advance to, any other Person or acquire substantially as an entirety the Property or business of any other Person, to the extent prohibited by the Borrower's or such Subsidiary's Organizational Documents.

*Section 7.4. Mergers, Consolidations, Divisions and Sales.* The Borrower shall not, nor shall it permit any of its Subsidiaries to, be a party to any merger, consolidation, amalgamation or division, or sell, transfer, lease or otherwise dispose of all or any part of its Property, including any disposition of Property as part of a sale and leaseback transaction, or in any event sell or discount (with or without recourse) any of its notes or accounts receivable; *provided, however,* that this Section shall not apply to nor operate to prevent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sale of securities or other financial instruments in the ordinary course of business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the sale, transfer, or other disposition of any tangible personal property that, in the reasonable business judgment of the Borrower or its Subsidiary, has become uneconomical, obsolete, or worn out, or which is surplus property or which is no longer necessary for the proper conduct of the Borrower's business and which is disposed of in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) the amalgamation, merger or consolidation of any Person (including any Subsidiary of the Borrower) into the Borrower, *provided* the Borrower is the surviving entity and no Change of Control results from the merger, (ii) the amalgamation, merger or consolidation of any Subsidiary into or with any other Subsidiary, (iii) the sale, conveyance, transfer, lease or other disposition of some, all or substantially all of the assets of any Subsidiary to any other Subsidiary or to the Borrower, and (iv) the liquidation or dissolution of any Subsidiary if the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and not materially disadvantageous to the Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the sale of equipment in connection with a sale and leaseback transaction so long as no Default has occurred and is continuing or would result from such sale and leaseback transaction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the sale of delinquent notes or accounts receivable in the ordinary course of business for purposes of collection only (and not for the purpose of any bulk sale or securitization transaction).

*Section 7.5. Maintenance (./Subsidiaries.* The Borrower shall not assign, sell or transfer, nor shall it permit any of its Subsidiaries to issue, assign, sell or transfer, any shares of capital stock or other equity interests of a Subsidiary; *provided, however,* that the foregoing shall not operate to prevent (a) the issuance, sale and transfer to any person of any shares of capital stock of a Subsidiary solely for the purpose of qualifying, and to the extent legally necessary to qualify, such person as a director of such Subsidiary, or (b) any transaction permitted by Section 7.4(c) hereof.

*Section 7.6. Dividends and Certain Other Restricted Payments,* (a) The Borrower shall not, nor shall it permit any Subsidiary to, (i) declare or pay any dividends on or make any other distributions in respect of any class or series of its member's interests or other equity interests or (ii) directly or indirectly purchase, redeem, or otherwise acquire or retire any of its equity interests or any warrants, options or similar instruments to acquire the same (collectively *"Restricted Payments"); provided, however,* that the foregoing shall not operate to prevent (A) the making of any Restricted Payments by any Wholly-owned Subsidiary to the Borrower, or (B) the making of any Restricted Payments by the Borrower so long as (1) each such Restricted Payments is permitted under all rules and regulations applicable to the Borrower, and (2) both before and after giving effect thereto, no Default shall exist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall not permit any member of the Borrower to withdraw any capital from the Borrower without giving the Administrative Agent not less than 10 days prior notice thereof and receiving the Administrative Agent's prior approval of such withdrawal; *provided* that no such notice or approval shall be required if at the time of such withdrawal, no Default shall have occurred and be continuing or would result from such withdrawal and the Borrower is in compliance with Section 7.12 hereof.

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*Section 7.7. Burdensome Contracts With Affiliates.* The Borrower shall not, nor shall it permit any Subsidiary to, enter into any contract, agreement or business arrangement with any of its Affiliates on terms and conditions which are less favorable to the Borrower or such Subsidiary than would be usual and customary in similar contracts, agreements or business arrangements between Persons not affiliated with each other.

*Section 7.8. No Changes in Fiscal Year.* The fiscal year of the Borrower and its Subsidiaries ends on December 31 of each year; and the Borrower shall not, nor shall it permit any Subsidiary to, change its fiscal year from its present basis.

*Section 7.9. Change in the Nature of Business.* The Borrower shall not, nor shall it permit any Subsidiary to, engage in any business or activity if as a result the general nature of the business of the Borrower or any Subsidiary would be changed in any material respect from the general nature of the business engaged in by it as of the Closing Date, and any Subsidiary acquired or formed after the date hereof shall be in the same or similar line of business as the Borrower is engaged in as of the date hereof.

*Section 7.10. No Restrictions.* Except as provided herein, the Borrower shall not, nor shall it permit any Subsidiary to, directly or indirectly create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the ability of the Borrower or any Subsidiary to: (a) pay dividends or make any other distribution on any Subsidiary's capital stock or other equity interests owned by the Borrower or any other Subsidiary, (b) pay any indebtedness owed to the Borrower or any other Subsidiary, (c) make loans or advances to the Borrower or any other Subsidiary, (d) transfer any of its Property to the Borrower or any other Subsidiary, or (e) guarantee the Obligations, and/or grant Liens on its assets to the Administrative Agent as required by the Loan Documents; *provided,* the foregoing shall not operate to prevent: (i) restrictions imposed by any Legal Requirement, (ii) customary restrictions on joint ventures or interests therein arising from joint venture agreements, (iii) restrictions imposed by the holder of any Lien permitted by Section 7.2 on the transfer of the asset or assets subject thereto, (iv) customary provisions restricting subletting or assignment of any lease or license governing a leasehold interest or license interest of the Borrower or any Subsidiary, (v) customary provisions restricting assignment of any agreement entered into by the Borrower or a Subsidiary, (vi) any customary restrictions with respect to a Subsidiary or other Property imposed pursuant to an agreement that has been entered into relating to the sale of all or substantially all of the equity interests or assets of such Subsidiary or any other Property permitted under Section 7.4 pending the consummation of such sale, (vii) restrictions imposed on the ability of the Borrower to make Restricted Payments pursuant to the Borrower's or such Subsidiary's Organizational Documents, (viii) restrictions in agreements or instruments relating to any Indebtedness permitted to be incurred subsequent to the date of this Agreement pursuant to Section 7.1, and (ix) customary restrictions in connection with any depository, cash management and treasury management services and products (including clearing trades, controlled disbursement, automated clearinghouse transactions, return items, overdrafts and interstate depository network services).

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*Section 7.11. Use of Proceeds.* The Borrower will not request any Loan, and the Borrower shall not use, and shall ensure that its Subsidiaries and Affiliates, and its or their respective directors, officers, employees and agents not use, the proceeds of any Loan, directly or indirectly, (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) to fund, finance or facilitate any activities, business or transaction of or with any Sanctioned Person or in any Designated Jurisdiction, or (iii) in any other manner that would result in the violation of any Sanctions applicable to any party hereto.

*Section 7.12. Financial Covenants.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Minimum Tangible Net Worth.* The Borrower shall at all times maintain its Tangible Net Worth of not less than <u>$</u>350,000,000<u>400,000,000.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Minimum Excess Net Capital.* The Borrower shall at all times maintain Excess Net Capital of not less than $250,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Total Assets to Total Equity Ratio.* The Borrower shall not, at any time, permit the Total Assets to Total Equity Ratio to exceed 13.0 to 1.0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Minimum Liquidity Ratio.* The Borrower shall, at all times, maintain a Liquidity Ratio of not less than 1.0 to 1.0.

SECTION 8. EVENTS OF DEFAULT AND REMEDIES.

*Section 8.1. Events of Default.* Any one or more of the following shall constitute an *"Event of Default"* hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) default in the payment when due of all or any part of the principal of any Loan (whether at the stated maturity thereof or at any other time provided for in this Agreement), or default for a period of three (3) Business Days in the payment when due of any interest, fee or other Obligation payable hereunder or under any other Loan Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) default in the observance or performance of any covenant set forth in Sections 6.5, 6.11, or 6.12 or Section 7 of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) default in the observance or performance of any other provision hereof or of any other Loan Document which is not remedied within thirty (30) days after the earlier of (i) the date on which such failure shall first become known to any Responsible Officer of the Borrower or (ii) written notice thereof is given to the Borrower by the Administrative Agent;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any representation or warranty made by the Parent, the Borrower or any Subsidiary herein or in any other Loan Document or in any certificate furnished to the Administrative Agent or the Lenders pursuant hereto or thereto or in connection with any transaction contemplated hereby or thereby proves untrue in any material respect as of the date of making or deemed making thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (i) any event occurs or condition exists (other than those described in subsections (a) through (d) above) which is specified as an event of default under any of the other Loan Documents, or (ii) any of the Loan Documents shall for any reason not be or shall cease to be in full force and effect or is declared to be null and void, or (hi) any of the Loan Documents shall for any reason fail to create a valid and perfected first priority Lien in favor of the Administrative Agent in any Collateral purported to be covered thereby except as expressly permitted by the terms hereof, or (iv) the Parent or the Borrower takes any action for the purpose of terminating, repudiating or rescinding any Loan Document executed by it or any of its obligations thereunder, or (v) the Borrower makes any payment on account of any Subordinated Debt which is prohibited under the terms of any instrument subordinating such Subordinated Debt to any Obligations, or any subordination provision in any document or instrument (including, without limitation, any intercreditor or subordination agreement) relating to any Subordinated Debt shall cease to be in full force and effect, or any Person (including the holder of any Subordinated Debt) shall contest in any manner the validity, binding nature or enforceability of any such provision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) default shall occur under any Indebtedness issued, assumed or guaranteed by the Borrower or any Subsidiary aggregating more than the Threshold Amount, or under any indenture, agreement or other instrument under which the same may be issued, and such default shall continue for a period of time sufficient to permit the acceleration of the maturity of any such Indebtedness (whether or not such maturity is in fact accelerated), or any such Indebtedness shall not be paid when due (whether by demand, lapse of time, acceleration or otherwise);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any judgment or judgments, writ or writs, or warrant or warrants of attachment, or any similar process or processes in an aggregate amount in excess of the Threshold Amount (except to the extent fully covered by insurance as to which the insurer has acknowledged coverage) shall be entered or filed against the Borrower or any Subsidiary or against any of their Property and which remains unvacated, unbonded, unstayed or unsatisfied for a period of 30 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) (i) an ERISA Event occurs with respect to a Plan or Multiemployer Plan which has resulted or would reasonably be expected to result in liability of the Borrower or any Subsidiary under Title IV of ERISA to the Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of Threshold Amount, (ii) the existence of any Lien under Section 430(k) of the Code or Section 303(k) or Section 4068 of ERISA on any assets of a the Borrower, or (hi) the Borrower or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of the Threshold Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Change of Control shall occur;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the Parent, the Borrower or any Subsidiary shall (i) have entered involuntarily against it an order for relief under the United States Bankruptcy Code, as amended, (ii) not pay, or admit in writing its inability to pay, its debts generally as they become due, (iii) make an assignment for the benefit of creditors, (iv) apply for, seek, consent to or acquiesce in, the appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial part of its Property, (v) institute any proceeding seeking to have entered against it an order for relief under the United States Bankruptcy Code, as amended, to adjudicate it insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors or fail to file an answer or other pleading denying the material allegations of any such proceeding filed against it, (vi) take any corporate or similar action in furtherance of any matter described in parts (i) through (v) above, or (vii) fail to contest in good faith any appointment or proceeding described in Section 8.1(k);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) a custodian, receiver, trustee, examiner, liquidator or similar official shall be appointed for the Parent, the Borrower or any Subsidiary, or any substantial part of any of its Property, or a proceeding described in Section 8.1(j)(v) shall be instituted against the Parent, the Borrower or any Subsidiary, and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of 60 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the SIPC shall have applied or shall have announced its intention to apply for a decree adjudicating that customers of the Borrower are in need of protection under SIP A;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the Borrower shall fail to comply with the capital requirements of the SEC for a period of more than five (5) Business Days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) (i) WBI, LP takes any action for the purpose of terminating, repudiating or rescinding the Debt Subordination Agreement or any of its obligations thereunder, or (ii) the Borrower makes any payment on account of any Indebtedness owing to WBI, LP which is prohibited under the Debt Subordination Agreement, or any subordination provision in the Debt Subordination Agreement shall cease to be in full force and effect, or any Person shall contest in any manner the validity, binding nature or enforceability of any such provision.

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*Section 8.2. Non-Bankruptcy Defaults.* When any Event of Default (other than those described in subsection (j) or (k) of Section 8.1 with respect to the Borrower) has occurred and is continuing, the Administrative Agent shall, by written notice to the Borrower: (a) if so directed by the Required Lenders, terminate the remaining Commitments and all other obligations of the Lenders hereunder on the date stated in such notice (which may be the date thereof); and (b) if so directed by the Required Lenders, declare the principal of and the accrued interest on all outstanding Loans to be forthwith due and payable and thereupon all outstanding Loans, including both principal and interest thereon, shall be and become immediately due and payable together with all other amounts payable under the Loan Documents without further demand, presentment, protest or notice of any kind. In addition, the Administrative Agent may exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the Loan Documents or applicable law or equity when any such Event of Default has occurred and is continuing. The Administrative Agent shall give notice to the Borrower under Section 8.1(c) promptly upon being requested to do so by any Lender. The Administrative Agent, after giving notice to the Borrower pursuant to Section 8.1(c) or this Section 8.2, shall also promptly send a copy of such notice to the other Lenders, but the failure to do so shall not impair or annul the effect of such notice.

*Section 8.3. Bankruptcy Defaults.* When any Event of Default described in subsections (j) or (k) of Section 8.1 with respect to the Borrower has occurred and is continuing, then all outstanding Loans shall immediately become due and payable together with all other amounts payable under the Loan Documents without presentment, demand, protest or notice of any kind, the obligation of the Lenders to extend further credit pursuant to any of the terms hereof shall immediately terminate.

*Section 8.4. Post-Default Collections.* Anything contained herein or in the other Loan Documents to the contrary notwithstanding (including, without limitation, Section 2.6(b)), all payments and collections received in respect of the Obligations and all proceeds of the Collateral and payments made under or in respect of the Guaranty Agreement received, in each instance, by the Administrative Agent or any of the Lenders after acceleration or the final maturity of the Obligations or termination of the Commitments as a result of an Event of Default shall be remitted to the Administrative Agent and distributed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) first, to the payment of any outstanding costs and expenses incurred by the Administrative Agent, and any security trustee therefor, in monitoring, verifying, protecting, preserving or enforcing the Liens on the Collateral, in protecting, preserving or enforcing rights under the Loan Documents, and in any event including all costs and expenses of a character which the Borrower has agreed to pay the Administrative Agent under Section 11.4 (such funds to be retained by the Administrative Agent for its own account unless it has previously been reimbursed for such costs and expenses by the Lenders, in which event such amounts shall be remitted to the Lenders to reimburse them for payments theretofore made to the Administrative Agent);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) second, to the payment of any outstanding interest and fees due under the Loan Documents to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) third, to the payment of principal on the Loans to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) fourth, to the payment of all other unpaid Obligations and all other indebtedness, obligations, and liabilities of the Borrower secured by the Loan Documents to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) finally, to the Borrower or whoever else may be lawfully entitled thereto.

SECTION 9. THE ADMINISTRATIVE AGENT.

*Section 9.1. Appointment and Authority.* Each of the Lenders hereby irrevocably appoints BMO Harris Bank N.A. to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this Section 9 are solely for the benefit of the Administrative Agent and the Lenders, and the Borrower shall not have rights as a third-party beneficiary of any of such provisions. It is understood and agreed that the use of the term "agent" herein or in any other Loan Documents (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.

*Section 9.2. Rights as a Lender.* The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and the term "Lender" or "Lenders" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with, the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

*Section 9.3. Action by Administrative Agent; Exculpatory Provisions.* (a) The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent and its Related Parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), *provided* that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law. The Administrative Agent shall in all cases be fully justified in failing or refusing to act hereunder or under any other Loan Document unless it first receives any further assurances of its indemnification from the Lenders that it may require, including prepayment of any related expenses and any other protection it requires against any and all costs, expense, and liability which may be incurred by it by reason of taking or continuing to take any such action; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall not, except as expressly set forth herein and in the other Loan Documents, have any duty or responsibility to disclose, and shall not be liable for the failure to disclose, any information relating to the Parent, the Borrower or any of their Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Administrative Agent nor any of its Related Parties shall be liable for any action taken or not taken by the Administrative Agent under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby or thereby (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 8.2, 8.3, 8.4 and 11.3), or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment. Any such action taken or failure to act pursuant to the foregoing shall be binding on all Lenders. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent in writing by the Borrower, or a Lender.

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*Section 9.4. Reliance by Administrative Agent.* The Administrative Agent shall be entitled to rely upon, and shall be fully protected in relying and shall not incur any liability for relying upon, any notice, request, certificate, communication, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall be fully protected in relying and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender unless the Administrative Agent shall have received notice to the contrary from such Lender prior to the making of such Loan. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

*Section 9.5. Delegation of Duties*. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Section shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the facilities as well as activities as Administrative Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

*Section 9.6. Resignation of Administrative Agent.* (a) The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an office in the United States of America, or an Affiliate of any such bank with an office in the United States of America. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the *"Resignation defective Date"),* then the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above. Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With effect from the Resignation Effective Date, (i) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents, and (ii) except for any indemnity payments owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided for above. If on the Resignation Effective Date no successor has been appointed and accepted such appointment, the Administrative Agent's rights in the Loan Documents shall be assigned without representation, recourse or warranty to the Lenders as their interests may appear. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Administrative Agent (other than any rights to indemnity payments or other amounts owed to the retiring Administrative Agent), and the retiring Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring Administrative Agent's resignation hereunder and under the other Loan Documents, the provisions of this Section 9 and Section 11.4 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent.

*Section 9.7. Non-Reliance on Administrative Agent and Other Lenders.* Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

*Section 9.8. Designation of Additional Agents.* The Administrative Agent shall have the continuing right, for purposes hereof, at any time and from time to time to designate one or more of the Lenders (and/or its or their Affiliates) as "syndication agents," "documentation agents," "book runners," "lead arrangers," "arrangers," or other designations for purposes hereto, but such designation shall have no substantive effect, and such Lenders and their Affiliates shall have no additional powers, duties or responsibilities as a result thereof.

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*Section 9.9. Enforcement of the Loan Documents; Possession of Collateral.* Upon the occurrence of an Event of Default, the Administrative Agent shall take such action to enforce its Lien on the Collateral and to preserve and protect the Collateral as may be directed by the Required Lenders. Unless and until the Required Lenders give such direction, the Administrative Agent may (but shall not be obligated to) take or refrain from taking such actions as it deems appropriate and in the best interest of all the Lenders. Each Lender acknowledges and agrees that it will be bound by the terms and conditions of the Loan Documents upon the execution and delivery thereof by the Administrative Agent. The Administrative Agent shall not be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Administrative Agent's Lien thereon, or any certificate prepared by the Borrower in connection therewith, nor shall the Administrative Agent be responsible or liable to the Lenders or their Affiliates for any failure to monitor or maintain any portion of the Collateral. The Lenders hereby irrevocably authorize the Administrative Agent, based upon the instruction of the Required Lenders, to credit bid and purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral at any sale thereof conducted by the Administrative Agent (or any security trustee therefore) under the provisions of the Uniform Commercial Code, including pursuant to Sections 9-610 or 9-620 of the Uniform Commercial Code, at any sale thereof conducted under the provisions of the United States Bankruptcy Code, including Section 363 of the United States Bankruptcy Code, or at any sale or foreclosure conducted by the Administrative Agent or any security trustee therefore (whether by judicial action or otherwise) in accordance with applicable law. Except as otherwise specifically provided for herein, no Lender or their Affiliates, other than the Administrative Agent, shall have the right to institute any suit, action or proceeding in equity or at law for the foreclosure or other realization upon any Collateral or for the execution of any trust or power in respect of the Collateral or for the appointment of a receiver or for the enforcement of any other remedy under the Loan Documents; it being understood and intended that no one or more of the Lenders or their Affiliates shall have any right in any manner whatsoever to affect, disturb or prejudice the Lien of the Administrative Agent (or any security trustee therefor) under the Loan Documents by its or their action or to enforce any right thereunder, and that all proceedings at law or in equity shall be instituted, had, and maintained by the Administrative Agent (or its security trustee) in the manner provided for in the relevant Loan Documents for the benefit of the Administrative Agent and the other Secured Parties. Each Lender hereby appointed agent for the purpose of perfecting the Administrative Agent's security interest in assets which, in accordance with Article 9 of the Uniform Commercial Code or other applicable law can be perfected only by possession. Should any Lender (other than the Administrative Agent) obtain possession of any Collateral, such Lender shall notify the Administrative Agent thereof, and, promptly upon the Administrative Agent's request therefor shall deliver such Collateral to the Administrative Agent or in accordance with the Administrative Agent's instructions.

*Section 9.10. Authorization to Release or Limit Liens.* The Administrative Agent is hereby irrevocably authorized by each of the Lenders and their Affiliates to (a) release any Lien covering any Collateral that is sold, transferred, or otherwise disposed of in accordance with the terms and conditions of this Agreement (including a sale, transfer, or disposition permitted by the terms of Section 7.4 or which has otherwise been consented

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to in accordance with Section 11.3), (b) reduce or limit the amount of the indebtedness secured by any particular item of Collateral to an amount not less than the estimated value thereof to the extent necessary to reduce mortgage registry, filing and similar tax, and (c) release Liens on the Collateral following termination or expiration of the Commitments and payment in full in cash of the Obligations (other than contingent indemnification obligations). Upon the Administrative Agent's request, the Required Lenders will confirm in writing the Administrative Agent's authority to release or subordinate its interest in particular types or items of Property or to release any Person from its obligations as a guarantor under the Loan Documents.

*Section 9.11. Authorization of Administrative Agent to File Proofs of Claim.* In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to the Parent or the Borrower, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under the Loan Documents including, but not limited to, Sections 2.9, 3.2, and 11.4) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.9 and 11.4. Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

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*Section 9.12. Certain ERISA Matters,* (a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of the Administrative Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or the Parent, that at least one of the following is and will be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender is not using "plan assets" (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments or this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and not, for the avoidance of doubt, to or for the benefit of, the Parent or the Borrower, that the Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).

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<u>*Section 9.14. Recovery of Erroneous Payment.* Notwithstanding anything to the contrary in this Agreement, if at any time the Administrative Agent determines (in its sole and absolute discretion) that it has made a payment hereunder in error to any Lender, whether or not in respect of an Obligation due and owing by the Borrower at such time, where such payment is a Rescindable Amount, then in any such event, each such Person receiving a Rescindable Amount severally agrees to repay to the Administrative Agent forthwith on demand the Rescindable Amount received by such Person in immediately available funds in the currency so received, with interest thereon, for each day from and including the date such Rescindable Amount is received by it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation. Each Lender irrevocably waives any and all defenses, including any "discharge for value" (under which a creditor might otherwise claim a right to retain funds mistakenly paid by a third party in respect of a debt owed by another), "good consideration", "change of position" or similar defenses (whether at law or in equity) to its obligation to return any Rescindable Amount. Administrative Agent shall inform each Lender that received a Rescindable Amount promptly upon determining that any payment made to such Person comprised, in whole or in part, a Rescindable Amount. Each Person's obligations, agreements and waivers under this Section shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, a lender, the termination of the Commitments and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document.</u> 

SECTION 10. THE COLLATERAL AND GUARANTIES.

*Section 10.1. Collateral and Collateral Accounts.* (a) To secure the payment and performance of the Margin Obligations, the Borrower hereby grants to the Administrative Agent, for the benefit of the Lenders, a continuing lien on and security interest in, and right of set-off against, all right, title, and interest of the Borrower, whether now owned or existing or hereafter created, acquired or arising, in and to all of the Margin Collateral. All of the Margin Collateral shall be credited to one or more of the Accounts and shall be held by the Administrative Agent. No later than the close of business in Chicago, Illinois on the date of each request for a Margin Loan hereunder, the Borrower shall transfer into one or more of the Accounts Margin Collateral having a Market Value such that after giving effect to the requested Margin Loan the aggregate principal amount of all Margin Loans shall not exceed the Margin Borrowing Base as then determined and computed by the Administrative Agent. All of the Margin Collateral shall be at all times subject to the exclusive dominion and control of the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b)</u> *NSCC Margin Collateral.* To secure the payment and performance of the NSCC Margin Obligations, the Borrower hereby grants to the Administrative Agent, for the benefit of the Lenders, a continuing lien on and security interest in, and right of set-off against, all right, title, and interest of the Borrower, whether now owned or existing or hereafter created, acquired or arising, in and to all of the NSCC Margin Collateral.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c) *FICC Collateral.* To secure the payment and performance of the FICC Obligations, the Borrower hereby grants to the Administrative Agent, for the benefit of the Lenders, a continuing lien on and security interest in, and right of set-off against, all right, title, and interest of the Borrower, whether now owned or existing or hereafter created, acquired or arising, in and to all of the FICC Collateral.</u> 

*Section 10.2. Delivery of Collateral; Inspection.* The Administrative Agent shall have the right, whether before or after the occurrence of any Default hereunder, to notify any third party holding any of the Collateral of the pledge thereof hereunder and require delivery thereof to the Administrative Agent and may take such steps with respect to any Collateral to insure that the Lien of the Administrative Agent is fully perfected and protected in compliance with the Uniform Commercial Code and applicable Federal rules and regulations. The Borrower shall permit the Administrative Agent or its representatives to inspect and make copies of the books and records relating to the Collateral of the Borrower and of the DTC or any other party holding the Collateral and to conduct an audit or inventory of the Collateral at any reasonable time or times either with or without prior notice.

*Section 10.3. Payments and Other Proceeds.* All cash proceeds of the Collateral shall be promptly remitted to the Administrative Agent to be held as additional Collateral in one of the Accounts or another deposit account under control of the Administrative Agent and shall be subject to release in accordance with Section 10.5.

*Section 10.4. Voting Rights and Income.* Unless and until an Event of Default has occurred and is continuing and thereafter until notified to the contrary by the Administrative Agent pursuant to Section 10.7 hereof, (a) the Borrower shall be entitled to exercise all voting and/or consensual powers pertaining to the Collateral or any part thereof, for all purposes not inconsistent with the terms of this Agreement or any other document evidencing or otherwise relating to any Obligations; and (b) the Borrower shall be entitled to receive and retain all cash interest and other distributions paid upon or in respect of the Collateral.

*Section 10.5. Release of Collateral,* (a) If the Borrower shall at any time desire the release of any item of Margin Collateral (including any Margin Collateral consisting of cash), the Borrower shall deliver to the Administrative Agent a written request for such release and on the day the Administrative Agent receives such request (if such request is received prior to 3:00 p.m. (Chicago time) on such day), the Administrative Agent may cause such item of Margin Collateral to be released from the relevant Account to an account of the Borrower maintained with DTC or another securities intermediary, *provided* that (i) no Default shall exist both before and immediately after giving effect to such release, and (ii) the aggregate principal amount of all Margin Loans outstanding as of 5:00 p.m. (Chicago time) shall not exceed the lesser of the Commitment and the Margin Borrowing Base, as determined and computed by the Administrative Agent at such time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything contained herein to the contrary, in the event that the Administrative Agent releases the Margin Collateral in accordance with clause (a) above (the *"Released Collateral")* but the aggregate principal amount of all Loans exceed the Margin Borrowing Base at the time of such release, the Borrower hereby acknowledges and agrees that (i) the Administrative Agent continues to have a security interest in such Released Collateral and every portion or part thereof and in all proceeds thereof, (ii) the Borrower shall hold such Released Collateral and the proceeds thereof in trust for the Administrative Agent separate from all other Property of the Borrower and free and clear of all Liens and claims other than the Administrative Agent's security interest herein, and (hi) the Borrower shall promptly (but no later than the next Business Day) and without notice or demand return such Released Collateral or the proceeds thereof to the Administrative Agent as a mandatory prepayment of the Loans in the event that the Borrower has failed to comply with clause (a)(ii) above.

*Section 10.6. Settlement Account,* (i) The Borrower hereby agrees that during any period when it may itself make withdrawals, transfers or other dispositions of funds in the Settlement Account it shall do so only (A) to the extent that immediately after such withdrawal, transfer or other disposition, the sum of (x) the aggregate amount of cash in the Settlement Account (other than with respect to amounts on deposit therein that can fairly be identified by the Borrower as being attributable to the Settlement Bank Obligations) plus (y) an amount equal to 80% of the Eligible NSCC Margin Deposits is at least equal to the aggregate principal amount of NSCC Margin Loans outstanding at such time or (B) to make payments on account of the Obligations. On or prior to the date of this Agreement, the Borrower shall direct NSCC to return any NSCC Margin Deposits to be returned to the Borrower to the Settlement Account. The Borrower shall cause such direction to be in full force and effect at all times until all the Obligations have been fully paid and performed and the Commitments have been terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower agrees that the Settlement Account shall be at all times subject to the "control" (within the meaning of Section 9-104 of the UCC) of and held by the Administrative Agent as the depositary bank during the term of this Agreement, *provided* that unless an Event of Default has occurred and is continuing, the Borrower shall have the right to transfer or otherwise dispose of any funds in the Settlement Account. The Settlement Account shall be deemed to be a "deposit account" (within the meaning of Section 9-102(a)(29) of the UCC). For the purposes of this Agreement and Section 9-304 of the UCC, the Administrative Agent's jurisdiction shall be deemed to be the State of Illinois.

*Section 10.7. Further Acts.* The Borrower hereby appoints the Administrative Agent, its nominee, and any other person whom the Administrative Agent may designate, as the Borrower's attorney-in-fact, with full power, after the occurrence and during the continuation of any Event of Default, to liquidate the Collateral or any part thereof prior to its stated maturity, if any, without thereby incurring any liability whatsoever to the Borrower and, in the name of the Borrower or in the Administrative Agent's own name or both, to demand, collect, withdraw, receipt for or sue for all amounts due or to become due and payable in respect of the Collateral, to execute any withdrawal receipts respecting the Collateral, to endorse the name of the Borrower on any and all commercial paper given in

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payment thereof, and to take any other action, including, without limitation, transfer any certificate evidencing the Collateral into the Administrative Agent's own name or the name of its nominee, which the Administrative Agent deems necessary or appropriate to preserve or protect its interest in the Collateral. The Borrower hereby ratifies and approves all acts of any such attorney and agrees that neither the Administrative Agent nor any such attorney will be liable for any acts or omissions nor for any error of judgment or mistake of fact or law other than such person's gross negligence or willful misconduct. The foregoing power of attorney, being coupled with an interest, is irrevocable until the Obligations have been fully paid and satisfied and the commitment to extend additional credit to the Borrower has terminated.

*Section 10.8. Remedies on Default.* Upon the occurrence and during the continuation of any Event of Default hereunder, the Administrative Agent shall have such rights and remedies with respect to the Collateral or any part thereof and the proceeds thereof as are provided by the Uniform Commercial Code and such other rights and remedies with respect thereto which it may have at law or in equity or under this Agreement, including without limitation, to the extent not inconsistent with the provisions of the Uniform Commercial Code or other applicable law, the right to (a) transfer into the Administrative Agent's name or into the name of its nominee or nominees or into an account at DTC in the name of, and for the benefit of, the Administrative Agent all or any portion of the Collateral and thereafter receive, for the benefit of the Administrative Agent, all cash payments made thereon, vote the same, give all consents, waivers and ratifications in respect thereof and otherwise act with respect thereto as though it was the outright owner thereof, and (b) sell all or any portion of the Collateral at any broker's board or at public or private sale, without prior notice to the Borrower or any other person, except as otherwise required by law (and if notice is required by law, after 5 (five) days' prior written notice), at such place or places and at such time or times and in such manner and for such consideration as the Administrative Agent may determine, and remit all amounts realized from the Collateral to the Administrative Agent for application to the repayment of the Obligations, whether on account of principal, interest, fees, charges, advances or expenses (to the extent the Borrower is obligated to reimburse the Administrative Agent and the Lenders for such expenses hereunder or under the other Loan Documents) or otherwise as the Administrative Agent in its sole discretion may elect, and then to pay the balance, if any, to the Borrower or as otherwise required by law; and if such proceeds are insufficient to pay the Obligations in full, the Borrower shall be liable for the deficiency.

*Section 10.9. Rights of Administrative Agent With Respect to Calculations,* (a) *Schedules, Notices, Reports, etc.* The Administrative Agent shall calculate the Margin Borrowing Base on each Business Day (or with respect to the Margin Collateral consisting of Corporate Bonds, each week), and in connection with such calculations, the Administrative Agent shall (i) obtain all necessary pricing and other market data from the Reporting Service in the determination of the Margin Borrowing Base, (ii) be entitled to rely on the information provided by the Borrower in any notice of a pledge of securities with respect to ratings of, and any restrictions on resale of, the securities described therein, (hi) not give effect to any increase in either Margin Borrowing Base as a result of the transfer by the Borrower of additional Margin Collateral unless it has received and verified the pricing information applicable to such additional Margin Collateral, (iv) not give effect to any decrease in the Margin Borrowing Base as a result of a request by the Borrower for release of Collateral unless it has verified the satisfaction of the conditions set forth in Section 10.5 and (v) be entitled to rely on the information provided by the Administrative Agent or the Borrower pursuant to the other provisions hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Limitation on Liability.* In no event shall the Administrative Agent be liable to the Borrower or any other Person for the accuracy of the value of any item of the Margin Collateral, for any determinations regarding the eligibility of any securities for inclusion in the Margin Collateral or for determinations regarding the amount of any Obligation, except in the case of its gross negligence or willful misconduct. In furtherance of the foregoing, the parties hereto acknowledge and agree that the obligations of the Administrative Agent hereunder, including without limitation, to make determinations of the Margin Borrowing Base and to provide reports and notices hereunder, are based upon information provided to the Administrative Agent as set forth herein. In no event shall the Administrative Agent have any duty or obligation to independently verify the information so provided to it (or the accuracy or completeness thereof).

*Section 10.10. Waiver of Administrative Agent's Rights Against Collateral.* The Administrative Agent hereby acknowledges and agrees that any right it may now have or hereafter acquire against any item of Collateral (prior to its release pursuant to Section 10.5 hereof), by way of right of set-off, Administrative Agent's lien, by enforcement of any rights under any security agreement or otherwise, shall be used solely to satisfy outstanding Obligations in the manner provided for herein until all Obligations have been repaid in full and the Commitment has been terminated or expired.

*Section 10.11. Agreement Regarding Customers Securities and Firm Securities.* To ensure that the Borrower is in compliance with the Rules, the Borrower and the Administrative Agent hereby agree that, notwithstanding anything to the contrary contained herein or in any other Loan Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the Firm Obligations shall be secured by or be any charge against any Customer Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of the Customer Obligations shall be secured by or be any charge against securities other than Customer Securities and Firm Securities unless (i) the Borrower agrees such Customer Securities as it is informed by the Borrower, pursuant to and in compliance with the Rules, are securities for account of one or more of the Borrower's customers, will be segregated by the Administrative Agent from any other securities (and the Administrative Agent hereby agrees to make such segregation), and (ii) only Customer Securities are identified by the Administrative Agent as substitutes for other Customer Securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In consequence of (a) above, all Customer Securities shall be security for any and all Customer Obligations, *provided, however,* that any part of such Customer Obligations secured by Customer Securities may be treated as a separate Customer Loan if, and only if, upon the creation of such part the Administrative Agent approves a notation in the Notice of Borrowing to the effect that such part is to be treated as a separate Customer Loan and that the Customer Securities specifically pledged therefor are carried for the account of a single customer of the Borrower whereupon (without prejudice to the rights of the Administrative Agent in connection with any other Customer Securities) the Customer Securities specifically pledged therefor shall be held separate and apart from all other Customer Securities and shall not be security for any other part of such Customer Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No rehypothecation, assignment or other transfer of any Customer Securities or any interest therein shall be made by the Administrative Agent except subject to the limitations and restrictions contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For the purposes of this Agreement, and in addition, wherever used herein or any other Loan Document, (i) the term "Customer Securities" shall be deemed to mean securities (A) which, according to a Notice of Borrowing received by the Administrative Agent from the Borrower pursuant to and in compliance with the Rules, are securities for the account of one or more of its customers, or (B) which are securities carried for one or more of the Borrower's customers and hypothecated to secure a Customer Loan made and to be repaid on the same calendar day, and (ii) a Customer Loan shall be deemed to be a "Loan against Customer Securities" if only Customer Securities are identified by the Administrative Agent as security used for the purpose of obtaining or increasing such Customer Loan.

*Section 10.12. Guaranties.* The payment and performance of the Obligations shall at all times be guaranteed by the Parent pursuant to the Guaranty Agreement.

SECTION 11. MISCELLANEOUS.

*Section 11.1. Notices.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Notices Generally.* Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Borrower, to it at Four World Trade Center 45th Floor, 150 Greenwich Street, New York, NY 10007, Attention of Chris Pento (Telephone No. (646) 738-4068; electronic mail: [ ], and with a copy to Four World Trade Center 45th Floor, 150 Greenwich Street, New York, NY 10007 , Attention of Kenneth A. Sicklick; electronic mail: <u>legal@clearstreet.io</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to the Administrative Agent, to BMO Harris Bank N.A at 320 South Canal Street, Chicago, Illinois 60606, Attention of Futures and Securities (Facsimile No. (312) 765-8201; Telephone No. (312) 461-2491);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if to a Lender, to it at its address (or facsimile number) set forth in its Administrative Questionnaire.

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered through electronic communications, to the extent provided in subsection (b) below, shall be effective as provided in said subsection (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Electronic Communications.* Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, *provided* that the foregoing shall not apply to notices to any Lender pursuant to Sections 2.1 and 2.4 if such Lender has notified the Administrative Agent that it is incapable of receiving notices under such Sections by electronic communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; *provided* that approval of such procedures may be limited to particular notices or communications.

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; *provided* that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Change of Address, etc.* Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Platform,* (i) The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make the Communications (as defined below) available to the other Lenders by posting the Communications on Debt Domain, Intralinks, Syndtrak or a substantially similar electronic transmission system (the *"Platform").*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Platform is provided "as is" and "as available." The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or the Platform. In no event shall the Administrative Agent or any of its Related Parties (collectively, the *"Agent Parties*") have any liability to the Borrower, any Lender or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower's, or the Administrative Agent's transmission of communications through the Platform. *"Communications"* means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of the Borrower pursuant to any Loan Document or the transactions contemplated therein which is distributed to the Administrative Agent or any Lender by means of electronic communications pursuant to this Section, including through the Platform.

*Section 11.2. Successors and Assigns.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Successors and Assigns Generally.* The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of participation in accordance with the provisions of paragraph (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (e) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Assignments by Lenders.* Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitments and the Loans at the time owing to it); *provided* that any such assignment shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Minimum Amounts.* (A) in the case of an assignment of the entire remaining amount of the assigning Lender's Commitments and the Loans at the time owing to it or contemporaneous assignments to related Approved Funds that equal at least the amount specified in paragraph (b)(i)(B) of this Section in the aggregate or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in any case not described in paragraph (b)(i)(A) of this Section, the aggregate amount of the relevant Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if *"Trade Date*" is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $5,000,000, unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Proportionate Amounts.* Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Loan or the Commitment assigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Required Consents.* No consent shall be required for any assignment except to the extent required by paragraph (b)(i)(B) of this Section and, in addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment, or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; *provided* that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within ten (10) days after having received notice thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required if such assignment is to a Person that is not a Lender with a Commitment, an Affiliate of such Lender or an Approved Fund with respect to such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Assignment and Assumption.* The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; *provided* that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *No Assignment to Certain Persons.* No such assignment shall be made to (A) the Borrower's Affiliates or Subsidiaries or (B) to any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *No Assignment to Natural Persons.* No such assignment shall be made to a natural Person.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) *Certain Additional Payments.* In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent and each other Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro rata share of all Loans in accordance with its Percentage. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 3.1, 3.2 and 11.4 with respect to facts and circumstances occurring prior to the effective date of such assignment; *provided* that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Register.* The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices in Chicago, Illinois a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the *'Register'").* The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Participations.* Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural Person or the Parent, the Borrower or any of their Affiliates or Subsidiaries) (each, a *"Participant")* in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion of its Commitments and/or the Loans owing to it); *provided* that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (hi) the Borrower, the Administrative Agent and Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 11.4(c) with respect to any payments made by such Lender to its Participant(s).

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; *provided* that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver that would reduce the amount of or postpone any fixed date for payment of any Obligation in which such participant has an interest. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.1 and 3.2 (subject to the requirements and limitations therein, including the requirements under Section 3.1(g) (it being understood that the documentation required under Section 3.1(g) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; *provided* that such Participant (A) agrees to be subject to the provisions of Sections 2.15 and 3.4 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 3.1 or 3.2, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower's request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 2.15 with respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.6 (Right of Setoff) as though it were a Lender; provided that such Participant agrees to be subject to Section 11.7 (Sharing of Payments by Lenders) as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Loan Documents (the *"Participant Register"); provided* that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such

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commitment, loan, letter of credit or other obligation is in registered form under Section 5flO3-l(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Certain Pledges.* Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; *provided* that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

*Section 11.3. Amendments.* Any provision of this Agreement or the other Loan Documents may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by (a) the Borrower, (b) the Required Lenders (or the Administrative Agent acting at the direction of the Required Lenders) (except as otherwise stated below to require only the consent of the Lenders affected thereby), and (c) if the rights or duties of the Administrative Agent are affected thereby, the Administrative Agent; *provided* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no amendment or waiver pursuant to this Section 11.3 shall (A) increase any Commitment of any Lender without the consent of such Lender (it being understood that a waiver of any condition precedent set forth in Section IV or the waiver of any Default shall not constitute an extension or increase of any Commitment of any Lender) or (B) reduce the amount of or postpone the date for any scheduled payment of any principal of or interest on any Loan or of any fee payable hereunder without the consent of the Lender to which such payment is owing or which has committed to make such Loan hereunder; *provided, however,* that only the consent of the Required Lenders shall be necessary to amend the default rate provided in Section 2.7 or to waive any obligation of the Borrower to pay interest or fees at the default rate as set forth therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no amendment or waiver pursuant to this Section 11.3 shall, unless signed by each Lender, change the definition of Required Lenders, change the provisions of this Section 11.3, change Section 11.7 in a manner that would affect the ratable sharing of setoffs required thereby, change the application of payments contained in Section 2.10 or 8.4, release the Parent as the guarantor or all or substantially all of the Collateral (except as otherwise provided for in the Loan Documents), or affect the number of Lenders required to take any action hereunder or under any other Loan Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no amendment or waiver pursuant to this Section 11.3 shall, unless signed by each Lender affected thereby, extend the Termination Date; *provided,* that only the consent of the Required Lenders shall be necessary to amend or waive any Level II Termination Event; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) no waiver or amendment shall, unless signed by each Lender, change the definition of Borrowing Base or any definition thereof (or waive any mandatory prepayment due under Section 2.6(b)) so as to make more credit available as a consequence thereof.

Notwithstanding anything to the contrary herein, (1) no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x) the Commitment of any Defaulting Lender may not be increased or extended without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender more adversely than other affected Lenders shall require the consent of such Defaulting Lender, (2) if the Administrative Agent and the Borrower have jointly identified an obvious error or any error or omission of a technical nature, in each case, in any provision of the Loan Documents, then the Administrative Agent and the Borrower shall be permitted to amend such provision, (3) guarantees, collateral security documents and related documents executed by the Borrower in connection with this Agreement may be in a form reasonably determined by the Administrative Agent and may be amended, supplemented or waived without the consent of any Lender if such amendment, supplement or waiver is delivered in order to (x) comply with local law or advice of local counsel, (y) cure ambiguities, omissions, mistakes or defects or (z) cause such guarantee, collateral security document or other document to be consistent with this Agreement and the other Loan Documents, and (4) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto.

*Section 11.4. Costs and Expenses; Identification.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Costs and Expenses.* The Borrower shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent and its Affiliates (including the reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent), in connection with the syndication of the facilities, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), including, without limitation, such reasonable and documented fees and expenses incurred in connection with the creation, perfection or protection of the Liens under the Loan Documents (including all reasonable and documented title insurance fees and all search, filing and recording fees), and (ii) all out-of-pocket reasonable and documented expenses incurred by the Administrative Agent or any Lender (including the reasonable and documented fees, charges and disbursements of one counsel for the Administrative Agent or any Lender) in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made hereunder, including all such out-of-pocket reasonable and documented expenses incurred during any workout, restructuring or negotiations in respect of such Loans (including all such reasonable and

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documented costs and expenses incurred in connection with any proceeding under the United States Bankruptcy Code involving the Parent or the Borrower as a debtor thereunder). The foregoing notwithstanding, the Borrower's obligations under this Section 11.4(a) for fees and expenses of legal counsel shall be limited to fees and expenses of (x) one outside legal counsel for all Persons described in clauses (i) and (ii), taken as a whole, (y) in the case of any conflict of interest, one outside legal counsel for such affected Person or group of Persons, and (z) if necessary, one specialist counsel and local legal counsel in each material relevant jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Indemnification by the Borrower.* The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof) and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an *"Indemnitee")* against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including any third party or the Parent or the Borrower) arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, or, in the case of Administrative Agent (and any sub-agent thereof) and their Related Parties, the administration and enforcement of this Agreement and the other Loan Documents (including all such reasonable and documented costs and expenses incurred in connection with any proceeding under the United States Bankruptcy Code involving the Parent or the Borrower as a debtor thereunder), (ii) any Loan or the use or proposed use of the proceeds therefrom, or (hi) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Parent or the Borrower, and regardless of whether any Indemnitee is a party thereto (including, without limitation, any settlement arrangement arising from or relating to the foregoing); *provided* that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee, (y) result from a claim brought by the Parent or the Borrower against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder or under any other Loan Document, if the Parent or the Borrower has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction, or (z) result from a claim not involving an act or omission of the Borrower and that is brought by an Indemnitee against another Indemnitee (other than against the arranger or the Administrative Agent in their capacities as such). This subsection (b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim. The foregoing notwithstanding, the Borrower's obligations under this Section 11.4(b) for fees and expenses of legal counsel shall be limited to fees and expenses of (i) one outside legal counsel for all Indemnitees, taken as a whole, (y) in the case of any conflict of interest, one outside legal counsel for such affected Indemnitee or group of Indemnitees, and (z) if necessary, one specialist counsel and local legal counsel in each material relevant jurisdiction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Reimbursement by Lenders.* To the extent that (i) the Parent or the Borrower for any reason fail to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by any of them to the Administrative Agent (or any sub-agent thereof) or any Related Party or (ii) any liabilities, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever are imposed on, incurred by, or asserted against, Administrative Agent or a Related Party in any way relating to or arising out of this Agreement or any other Loan Document or any action taken or omitted to be taken by Administrative Agent or a Related Party in connection therewith, then, in each case, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent) or such Related Party, as the case may be, such Lender's pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based on each Lender's share of the Total Credit Exposure at such time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender). The obligations of the Lenders under this subsection (c) are subject to the provisions of Section 11.15.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Waiver of Consequential Damages, Etc.* To the fullest extent permitted by applicable law, no party shall assert, and each party hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Payments.* All amounts due under this Section shall be payable promptly after demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Survival.* Each party's obligations under this Section shall survive the termination of the Loan Documents and payment of the obligations hereunder.

*Section 11.5. No Waiver, Cumulative Remedies.* No delay or failure on the part of the Administrative Agent or any Lender, or on the part of the holder or holders of any of the Obligations, in the exercise of any power or right under any Loan Document shall operate as a waiver thereof or as an acquiescence in any default, nor shall any single or partial exercise of any power or right preclude any other or further exercise thereof or the exercise of any other power or right. The rights and remedies hereunder of the Administrative Agent, the Lenders, and of the holder or holders of any of the Obligations are cumulative to, and not exclusive of, any rights or remedies which any of them would otherwise have.

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*Section 11.6. Right of Setoff.* In addition to any rights now or hereafter granted under the Loan Documents or applicable law and not by way of limitation of any such rights, if an Event of Default shall have occurred and be continuing, each Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held, and other obligations (in whatever currency) at any time owing, by such Lender or any such Affiliate, to or for the credit or the account of the Parent or the Borrower against any and all of the obligations of the Parent or the Borrower now or hereafter existing under this Agreement or any other Loan Document to such Lender or their respective Affiliates, irrespective of whether or not such Lender or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Parent or the Borrower may be contingent or unmatured or are owed to a branch, office or Affiliate of such Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; *provided* that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.16 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the other Secured Parties, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender or their respective Affiliates may have. Each Lender agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; *provided* that the failure to give such notice shall not affect the validity of such setoff and application.

*Section 11.7. Sharing of Payments by Lenders.* If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of its Loans and accrued interest thereon or other such obligations greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them; *provided* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the provisions of this Section shall not be construed to apply to (x) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender), or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant, other than to the Parent, the Borrower or any Subsidiary thereof (as to which the provisions of this Section shall apply).

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The Parent and the Borrower consent to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Parent and the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

*Section 11.8. Survival of Representations.* All representations and warranties made herein or in any other Loan Document or in certificates given pursuant hereto or thereto shall survive the execution and delivery of this Agreement and the other Loan Documents, and shall continue in full force and effect with respect to the date as of which they were made as long as any credit is in use or available hereunder.

*Section 11.9. Survival of Indemnities.* All indemnities and other provisions relative to reimbursement to the Lenders of amounts sufficient to protect the yield of the Lenders with respect to the Loans, including, but not limited to, Sections 3.1, 3.2 and 11.4, shall survive the termination of this Agreement and the other Loan Documents and the payment of the Obligations.

*Section 11.10. Counterparts; Integration; Effectiveness.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Counterparts; Integration; effectiveness.* This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and the other Loan Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.1, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (e.g., "pdf' or "tif') format shall be effective as delivery of a manually executed counterpart of this Agreement. For purposes of determining compliance with the conditions specified in Section 4.1, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the Closing Date specifying its objection thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Electronic Execution of Loan Documents.* The words "execution," "signed," "signature," and words of like import in this Agreement and the other Loan Documents, including any Assignment and Assumption, shall be deemed to include electronic signatures and electronic records, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronics Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

*Section 11.11. Headings.* Section headings used in this Agreement are for reference only and shall not affect the construction of this Agreement.

*Section 11.12. Severability of Provisions.* Any provision of any Loan Document which is unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. All rights, remedies and powers provided in this Agreement and the other Loan Documents may be exercised only to the extent that the exercise thereof does not violate any applicable mandatory provisions of law, and all the provisions of this Agreement and other Loan Documents are intended to be subject to all applicable mandatory provisions of law which may be controlling and to be limited to the extent necessary so that they will not render this Agreement or the other Loan Documents invalid or unenforceable.

*Section 11.13. Construction.* The parties acknowledge and agree that the Loan Documents shall not be construed more favorably in favor of any party hereto based upon which party drafted the same, it being acknowledged that all parties hereto contributed substantially to the negotiation of the Loan Documents. The provisions of this Agreement relating to Subsidiaries shall only apply during such times as the Borrower has one or more Subsidiaries. NOTHING CONTAINED HEREIN SHALL BE DEEMED OR CONSTRUED TO PERMIT ANY ACT OR OMISSION WHICH IS PROHIBITED BY THE TERMS OF ANY OTHER LOAN DOCUMENT, THE COVENANTS AND AGREEMENTS CONTAINED HEREIN BEING IN ADDITION TO AND NOT IN SUBSTITUTION FOR THE COVENANTS AND AGREEMENTS CONTAINED IN SUCH OTHER LOAN DOCUMENTS.

*Section 11.14. Excess Interest.* Notwithstanding any provision to the contrary contained herein or in any other Loan Document, no such provision shall require the payment or permit the collection of any amount of interest in excess of the maximum amount of interest permitted by applicable law to be charged for the use or detention, or the forbearance in the collection, of all or any portion of the Loans or other obligations outstanding under this Agreement or any other Loan Document *("Excess Interest").* If any Excess Interest is provided for, or is adjudicated to be provided for, herein or in any other Loan Document, then in such event (a) the provisions of this Section shall govern and control, (b) neither the Borrower nor any guarantor or endorser shall be obligated to pay any Excess Interest, (c) any Excess Interest that the Administrative Agent or any Lender may have received hereunder shall, at the option of the Administrative Agent, be (i) applied as a credit against the then outstanding principal amount of Obligations hereunder and accrued and unpaid interest thereon (not to exceed the maximum amount permitted by applicable law), (ii) refunded to the Borrower, or (hi) any combination of the foregoing, (d) the interest rate payable hereunder or under any other Loan Document shall be automatically subject to reduction to the maximum lawful contract rate allowed under

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applicable usury laws (the *"Maximum Rate"),* and this Agreement and the other Loan Documents shall be deemed to have been, and shall be, reformed and modified to reflect such reduction in the relevant interest rate, and (e) neither the Borrower nor any guarantor or endorser shall have any action against the Administrative Agent or any Lender for any damages whatsoever arising out of the payment or collection of any Excess Interest. Notwithstanding the foregoing, if for any period of time interest on any of Borrower's Obligations is calculated at the Maximum Rate rather than the applicable rate under this Agreement, and thereafter such applicable rate becomes less than the Maximum Rate, the rate of interest payable on the Borrower's Obligations shall remain at the Maximum Rate until the Lenders have received the amount of interest which such Lenders would have received during such period on the Borrower's Obligations had the rate of interest not been limited to the Maximum Rate during such period.

*Section 11.15. Lender's Obligations Several.* The obligations of the Lenders hereunder are several and not joint. Nothing contained in this Agreement and no action taken by the Lenders pursuant hereto shall be deemed to constitute the Lenders a partnership, association, joint venture or other entity.

*Section 11.16. No Advisory or Fiduciary Responsibility.* In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and acknowledges its Affiliates' understanding, that: (a) (i) no fiduciary, advisory or agency relationship between the Parent, the Borrower and their Subsidiaries and the Administrative Agent or any Lender is intended to be or has been created in respect of the transactions contemplated hereby or by the other Loan Documents, irrespective of whether the Administrative Agent or any Lender has advised or is advising the Parent, the Borrower or any of their Subsidiaries on other matters, (ii) the arranging and other services regarding this Agreement provided by the Administrative Agent and the Lenders are arm's-length commercial transactions between the Parent, the Borrower and their Affiliates, on the one hand, and the Administrative Agent and the Lenders, on the other hand, (hi) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent that it has deemed appropriate and (iv) the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; and (b) (i) the Administrative Agent and the Lenders each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Parent, the Borrower or any of their Affiliates, or any other Person; (ii) none of the Administrative Agent or any Lender has any obligation to the Parent, the Borrower or any of their Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (hi) the Administrative Agent and the Lenders and their respective Affiliates may be engaged, for their own accounts or the accounts of customers, in a broad range of transactions that involve interests that differ from those of the Parent, the Borrower and their Affiliates, and none of the Administrative Agent and the Lenders has any obligation to disclose any of such interests to any of the Parent, the Borrower or their Affiliates. To the fullest extent permitted by law, the Parent and the Borrower hereby waives and releases any claims that it may have against the Administrative Agent and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

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*Section 11.17. Governing Law; Jurisdiction; Consent to Service of Process,* (a) THIS AGREEMENT, THE NOTES AND THE OTHER LOAN DOCUMENTS (EXCEPT AS OTHERWISE SPECIFIED THEREIN), AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE CONSTRUED AND DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to any Loan Document, or for recognition or enforcement of any judgment, and each party hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by applicable Legal Requirements, in such federal court. Each party hereto hereby agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable Legal Requirements. Nothing in this Agreement or any other Loan Document or otherwise shall affect any right that the Administrative Agent or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Parent or the Borrower or their respective properties in the courts of any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower hereby irrevocably and unconditionally waives, to the fullest extent permitted by applicable Legal Requirements, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in Section 11.17(b). Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable Legal Requirements, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each party to this Agreement irrevocably consents to service of process in any action or proceeding arising out of or relating to any Loan Document, in the manner provided for notices (other than telecopy or e-mail) in Section 11.1. Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by applicable Legal Requirements.

*Section 11.18. Waiver of Jury Trial.* EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LEGAL REQUIREMENTS, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF

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ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

*Section 11.19. USA Patriot Act.* Each Lender that is subject to the requirements of the Patriot Act hereby notifies the Borrower that pursuant to the requirements of the Patriot Act, it is required to obtain, verify, and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Patriot Act.

*Section 11.20. Confidentiality.* Each of the Administrative Agent and the Lenders agree to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its Related Parties that have a need to know such Information (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential); (b) to the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners); (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process; (d) to any other party hereto; (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder; (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations under this Agreement, or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder; (g) on a confidential basis to any rating agency in connection with rating the Parent, the Borrower or their Subsidiaries or the Facilities; (h) with the consent of the Borrower; or (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section, or (y) becomes available to the Administrative Agent, any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower. For purposes of this Section, *"Information"* means all information received from the WBI, LP *("WBI"),* the Parent, the Borrower or any of the Subsidiaries or from any other Person on behalf of the Borrower or any Subsidiary relating to WBI, the Parent, the Borrower or any Subsidiary or any of their respective businesses, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Parent, the Borrower or any of their Subsidiaries. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

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*Section 11.21. Acknowledgement and Consent to Bail-In of Affected Financial Institutions.* Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto (including any party becoming a party hereto by virtue of an Assignment and Assumption) acknowledges that any liability of any Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the Applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-in Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of the applicable Resolution Authority.

*Section 11.22. Acknowledgement Regarding Any Supported QFCs.* To the extent that the Loan Documents provide support, through a guarantee or otherwise, for hedging agreements or any other agreement or instrument that is a QFC (such support, *"QFC Credit Support"* and each such QFC a *"Supported QFC"),* the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the *"U.S. Special Resolution Regimes*") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event a Covered Entity that is party to a Supported QFC (each, a *"Covered Party")* becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported

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QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As used in this Section, the following terms have the following meanings:

*"BHC Act Affiliate*" of a party means an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

*"Covered Entity'''* means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §252.82(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §382.2(b).

*"Default Rights*" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§252.81, 47.2 or 3 82.1, as applicable.

*"QFC"* has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

*Section 11.23. Time is of the Essence.* Time is of the essence of this Agreement and each of the other Loan Documents.

[SIGNATURE PAGES TO FOLLOW]

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This Credit Agreement is entered into between us for the uses and purposes hereinabove set forth as of the date first above written.

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| | |
|:---|:---|
|  "*BORROWER*"<br>CLEAR STREET LLC | "*BORROWER*"<br>CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |
|  "ADMINISTRATIVE AGENT AND LENDERS"<br>BMO Harris BANK N.A., as Administrative Agent and a Lender | "ADMINISTRATIVE AGENT AND LENDERS"<br>BMO Harris BANK N.A., as Administrative Agent and a Lender |
| ByBy |  |
|  | —NameName |
|  | —TitleTitle |
| TEXAS CAPITAL BANK, NATIONAL ASSOCIATION, as a Lender | TEXAS CAPITAL BANK, NATIONAL ASSOCIATION, as a Lender |
|  CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
|  <u>OLD NATIONAL BANK, as a Lender</u> | <u>OLD NATIONAL BANK, as a Lender</u> |
| <u>By:</u> |  |
|  | <u>Name:</u> |
|  | <u>Title:</u> |
|  <u>CUSTOMERS BANK, as a Lender</u> | <u>CUSTOMERS BANK, as a Lender</u> |
| <u>By:</u> |  |
|  | <u>Name:</u> |
|  | <u>Title:</u> |

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[Signature Page to Credit Agreement]

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| | |
|:---|:---|
|  <u>TRISTATE CAPITAL BANK, as a Lender</u> | <u>TRISTATE CAPITAL BANK, as a Lender</u> |
| <u>By:</u> |  |
|  | <u>Name:</u> |
|  | <u>Title:</u> |
|  <u>NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender</u> | <u>NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender</u> |
| <u>By:</u> |  |
|  | <u>Name:</u> |
|  | <u>Title:</u> |
|  <u>BANK OF AMERICA, N.A., as a Lender</u> | <u>BANK OF AMERICA, N.A., as a Lender</u> |
| <u>By:</u> |  |
|  | <u>Name:</u> |
|  | <u>Title:</u> |

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[Signature Page to Credit Agreement]

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**EXHIBIT A** 

**NOTICE OF BORROWING** 

Date: _________, ____

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| | |
|:---|:---|
| To: | BMO Harris Bank N.A., as Administrative Agent for the Lenders party to the Credit Agreement dated as of December 4, 2020 (as extended, renewed, amended or restated from time to time, the *"Credit Agreement"),* among Clear Street LLC, certain Lenders which are signatories thereto, BMO Harris Bank N.A., as Administrative Agent  |

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Ladies and Gentlemen:

The undersigned, (the *"Borrower"),* refers to the Credit Agreement, the terms defined therein being used herein as therein defined, and hereby gives you notice irrevocably, pursuant to Section 2.4 of the Credit Agreement, of the Borrowing specified below:

(1) Borrowing Date

(2) Dollar Amount of Loan Requested

(3) <u>Dollar Amount of Loan Requested and</u> Type of Loan [Margin Loan] / [NSCC Margin Loan] / [ <u>(check all the apply):</u>

<u>$ FICC Loan</u>

<u>$ Margin Loan - Customer Loan secured by Customer Securities</u>

<u>$ Margin Loan - Firm Loan secured by Firm Securities</u>

<u>$ NSCC Margin Loan</u>

<u>$ Receivable Loan</u>

<u>$</u> Reserve Loan]

Annex I attached hereto sets forth data and computations evidencing the Borrowing Base, and all of such data and computations are true, correct and complete and have been made in accordance with the relevant sections of the Credit Agreement.

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For new value received the undersigned hereby pledges to the Administrative Agent and grants to the Administrative Agent, for the benefit of the Lenders, a security interest in the securities and other Property listed on the schedule(s) attached hereto as Annex II and made a part hereof and confirms a pledge of and security interest in the same now in effect in favor of the Administrative Agent, together with all rights related thereto and all proceeds thereof pursuant to the terms of the Credit Agreement.

The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed Loan, before and after giving effect thereto and to the application of the proceeds therefrom:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default has occurred and is continuing or would result from such proposed Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) after giving effect to the Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(i)</u> the aggregate principal amount of all Loans outstanding under this Agreement shall not exceed the Commitment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(ii)</u> the aggregate principal amount of Margin Loans at any time outstanding shall not exceed the Margin Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(iii)</u> the aggregate principal amount of NSCC Margin <u>FICC</u> Loans at any time outstanding shall not exceed the NSCC<u>FICC</u> Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(iv)</u> the aggregate principal amount of Reserve<u>NSCC Margin</u> Loans at any time outstanding shall not exceed the Reserve<u>NSCC</u> Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(v)</u> the aggregate principal amount of Customer<u>Receivables</u> Loans at any time outstanding shall not exceed the Customer Loan Limit,<u>Receivable Borrowing Base as then determined</u> and <u>computed</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(vi)</u> the aggregate principal amount of Firms<u>Reserve Loans at any time outstanding shall not exceed the Reserve Borrowing Base as then determined and computed,</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(vii) the aggregate principal amount of Customer Loans at any time outstanding shall not exceed the Customer Loan Limit, and</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(viii) the aggregate principal amount of Firm Loans</u> at any time outstanding shall not exceed the Firm Loan Limit.

(4) With respect to <u>FICC Loans,</u> NSCC Margin Loan <u>Loans, Receivable Loans</u> and Reserve Loans, the Number of Zero Loan Days during
the current month: __________________. **[Number of Zero Loan Days during any calendar month cannot be less than 8]** 

(5) To the extent such Loan is a Margin Loan, then such requested Borrowing is
(select one):

<u>[—]</u> Customer Loan secured by Customer Securities; or

<u>[—]</u> Firm Loan secured by Firm Securities.

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| | |
|:---|:---|
|  CLEAR STREET LLC | CLEAR STREET LLC |
|  By: |  |
|  | Name: |
|  | Title: |

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**ANNEX I** 

**TO** 

**NOTICE OF BORROWING** 

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| | | | |
|:---|:---|:---|:---|
|  <u>A -</u> **BORROWING BASE (MARGIN LOANS\*\*** | <u>A -</u> **BORROWING BASE (MARGIN LOANS\*\*** | <u>A -</u> **BORROWING BASE (MARGIN LOANS\*\*** | <u>A -</u> **BORROWING BASE (MARGIN LOANS\*\*** |
| (1) | Market Value of Eligible Federal Government Securities | X90% | $__________________ |
| (2) | Market Value of Eligible Bond Securities | x90% | $__________________ |
| (3) | the Market Value of Eligible Equity Securities | x80% | $__________________ |
| (4) | Sum of Lines (1), (2) and (3) |  | $__________________ |
| (5) | Outstanding Margin Loans |  | $__________________ |
| (6) | Availability (Line (4) minus Line (5)) |  | $__________________ |
|  <u>B - BORROWING BASE (FICC LOANS)</u> | <u>B - BORROWING BASE (FICC LOANS)</u> | <u>B - BORROWING BASE (FICC LOANS)</u> | <u>B - BORROWING BASE (FICC LOANS)</u> |
| <u>(1)</u> | <u>Eligible FICC Margin Deposits</u> | <u>x80%</u> | $<u>__________________</u> |
| <u>(2)</u> | <u>Outstanding JHCC Loans</u> |  | $<u>__________________</u> |
| <u>(3)</u> | <u>Availability (Line (A) minus Line</u> |  | $<u>__________________</u> |
|  <u>C -</u> **BORROWING BASE (NSCC MARGIN LOANS)** | <u>C -</u> **BORROWING BASE (NSCC MARGIN LOANS)** | <u>C -</u> **BORROWING BASE (NSCC MARGIN LOANS)** | <u>C -</u> **BORROWING BASE (NSCC MARGIN LOANS)** |
| (a)<u>(1)</u>  | Previous month 10th lowest Eligible NSCC Margin Deposits |  | $__________________ |
| (b)<u>(2)</u>  | Current Eligible NSCC Margin Deposits |  | $__________________ |

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\*\* Eligible Securities shall exclude securities held in the Borrower's inventory for more than thirty (30) consecutive days and the calculation of Eligible Bond Securities and Eligible Equity Securities shall exclude the Market Value of any security that exceeds 15% of the Borrowing Base (Margin Loans) 

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| | | | |
|:---|:---|:---|:---|
| (c)<u>(3)</u>  | Line (b<u>2</u>) minus Line (a<u>1</u>) |  | $__________________ |
| (d)<u>(4)</u>  | Line (c<u>3</u>) multiplied by 80% (to the extent positive) |  | $__________________ |
| (e)<u>(5)</u>  | Outstanding NSCC Margin Loans |  | $__________________ |
| (f)<u>(6)</u>  | Availability (Line (d<u>4</u>) minus Line (e<u>5</u>)) |  | $__________________ |
|  <u>D - **BORROWING BASE (RECEIVABLE LOANS)**</u> | <u>D - **BORROWING BASE (RECEIVABLE LOANS)**</u> | <u>D - **BORROWING BASE (RECEIVABLE LOANS)**</u> | <u>D - **BORROWING BASE (RECEIVABLE LOANS)**</u> |
| <u>(1)</u> | <u>Aggregate unpaid amount of Eligible Receivables for which the margin has been called but not received by the Borrower</u> | <u>x80%</u> | $<u>_________________</u> |
| <u>(2)</u> | <u>Ihe amount by which the Eligible Receivables owing from any one Account Debtor and its Affiliates exceeds 15% of all Eligible Receivables</u> | <u>X100%</u> | $<u>_________________</u> |
| <u>(3)</u> | <u>Line (1) minus Line (2)</u> |  | $<u>_________________</u> |
| <u>(4)</u> | <u>Outstanding Receivable Loans</u> |  | $<u>_________________</u> |
| <u>(5)</u> | <u>Availability (Line (3) minus Line</u> |  | $<u>_________________</u> |

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| | | |
|:---|:---|:---|
|  <u>E -</u> **BORROWING BASE (RESERVE LOANS)** | <u>E -</u> **BORROWING BASE (RESERVE LOANS)** | <u>E -</u> **BORROWING BASE (RESERVE LOANS)** |
| (i)<u>(1)</u>  | Amount in Reserve Account as of _____ (the *"Requested Withdrawal Date")* | $__________________ |
| (ii)<u>(2)</u>  | Requested customer withdrawals from the Requested Withdrawal Date | $__________________ |
| (iii)<u>(3)</u>  | Deposits required to be made in the Excluded Account from the Requested Withdrawal Date | $__________________ |
| (iv)<u>(4)</u>  | Line (ii<u>2</u>) minus Line (iii<u>3</u>) (to the extent positive) | $__________________ |
| (v)<u>(5)</u>  | Outstanding Reserve Loans | $__________________ |
| (vi)<u>(6)</u>  | Availability (Line (iv<u>4</u>) minus Line (v<u>5</u>) | $__________________ |
|  **LIMITATIONS ON AVAILABILITY<sup>1</sup>** | **LIMITATIONS ON AVAILABILITY<sup>1</sup>** | **LIMITATIONS ON AVAILABILITY<sup>1</sup>** |
| A. | Outstanding Loans after giving effect to such requested Borrowing (sum of Line<u>Lines</u> (<u>A)(</u>5), Line (e<u>B</u>)<u>(2), (C)(5), (D)(4),</u> and Line <u>(E)</u>(v<u>5</u>)) | $__________________ |
| B. | The lesser of (i) $4 00,000,000 <u>315,000,000</u> and (ii) Line A | $__________________ |
| C. | Outstanding <u>FICC Loans,</u> NSCC Margin Loans, <u>Receivable Loans</u> and Reserve Loans after giving effect to such requested Borrowing (sum of Line <u>(B)</u>(e<u>2), (C)(5), (D)(4),</u> and Line <u>(E)</u>(v<u>5</u>)) | $__________________ |
| D. | The lesser of (i) $250,000,000 <u>210,000,000</u> and (ii) Line C | $__________________ |

---

<sup>1</sup> NTD: With respect to the amounts listed in the chart below, please confirm whether the intent was to reflect the accordion. Or do we need to build-into new Section 2.17 the math that would adjust the $400,000,000 (or $300,000,000) and $250,000,000 (or $187,500,000) dollar amounts? 

------

**ANNEX II** 

**TO** 

**NOTICE OF BORROWING** 

------

**EXHIBIT B** 

**REVOLVING NOTE** 

---

| | |
|:---|:---|
| U.S. $________  | December 4, 2020 |

---

FOR VALUE RECEIVED, the undersigned, CLEAR STREET LLC, a Delaware limited liability company (the *"Borrower"),* hereby promises to pay to(the *"Lender")* or its registered assigns on the Termination Date of the hereinafter defined Credit Agreement, at the principal office of the Administrative Agent in Chicago Illinois (or such other location as the Administrative Agent may designate to the Borrower), in immediately available funds, the principal sum of Dollars ($) or, if less, the aggregate unpaid principal amount of all Loans made by the Lender to the Borrower pursuant to the Credit Agreement, together with interest on the principal amount of each Loan from time to time outstanding hereunder at the rates, and payable in the manner and on the dates, specified in the Credit Agreement.

This Note is one of the Notes referred to in the Credit Agreement dated as of December 4, 2020, among the Borrower, the Lenders and BMO Harris Bank N.A., as Administrative Agent (as extended, renewed, amended or restated from time to time, the *"Credit Agreement"),* and this Note and the holder hereof are entitled to all the benefits and security provided for thereby or referred to therein, to which Credit Agreement reference is hereby made for a statement thereof. All defined terms used in this Note, except terms otherwise defined herein, shall have the same meaning as in the Credit Agreement. This Note 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.

Voluntary prepayments may be made hereon, certain prepayments are required to be made hereon, and this Note may be declared due prior to the expressed maturity hereof, all in the events, on the terms and in the manner as provided for in the Credit Agreement.

The Borrower hereby waives demand, presentment, protest or notice of any kind hereunder.

---

| | |
|:---|:---|
| CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

------

**EXHIBIT C** 

**CLEAR STREET LLC** 

**COMPLIANCE CERTIFICATE** 

To: BMO Harris Bank N.A., as Administrative Agent under, and the Lenders party to, the Credit Agreement described below

This Compliance Certificate is furnished to the Administrative Agent and the Lenders pursuant to that certain Credit Agreement dated as of December 4, 2020, among Clear Street LLC, as Borrower, the Lenders party thereto from time to time, and BMO Harris Bank N.A., as Administrative Agent (as extended, renewed, amended or restated from time to time, the *"Credit Agreement").* Unless otherwise defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in the Credit Agreement.

THE UNDERSIGNED HEREBY CERTIFIES THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I am the duly elected ____________ of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I have reviewed the terms of the Credit Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of the Borrower and its Subsidiaries during the accounting period covered by the attached financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or the occurrence of any event which constitutes a Default during or at the end of the accounting period covered by the attached financial statements or as of the date of this Compliance Certificate, except as set forth below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The financial statements required by Section 6.5 of the Credit Agreement and being furnished to you concurrently with this Compliance Certificate are true, correct and complete as of the date and for the periods covered thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Schedule I hereto sets forth financial data and computations evidencing the Borrower's compliance with certain covenants of the Credit Agreement, all of which data and computations are, to the best of my knowledge, true, complete and correct and have been made in accordance with the relevant Sections of the Credit Agreement. In the event of a conflict between the attached spreadsheet and any certifications relating thereto and the Credit Agreement and related definitions used in calculating such covenants, the Credit Agreement and such related definitions shall govern and control.

------

Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

<u> </u>

<u> </u>

<u> </u>

The foregoing certifications, together with the computations set forth in Schedule I hereto and the financial statements delivered with this Certificate in support hereof, are made and delivered this ___ day of _________ 20__.

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| | |
|:---|:---|
| CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

------

Schedule I

to Compliance Certificate

Clear Street LLC

Compliance Calculations

for Credit Agreement dated as of December 4, 2020

CALCULATIONS AS OF<u> </u> ,

---

| | | |
|:---|:---|:---|
| A. | <u>Minimum Tangible Net Worth (Section 7.12(a))</u> |  |
| 1. | Tangible Net Worth | $— |
| 2. | Line Al shall not be less than | $350000000<br> <u>400000000</u> |
| 3. | The Borrower is in compliance (circle yes or no) | yes/no |
| B. | <u>Minimum Excess Net Capital (Section 7.12(b))</u> |  |
| 1. | Excess Net Capital | $— |
| 2. | Line Bl shall not be less than | $250000000 |
| 3. | The Borrower is in compliance (circle yes or no) | yes/no |
| C. | <u>Total Assets to Total Equity (Section 7.12(c))</u> |  |
| 1. | Total Assets | $— |
| 2. | Matched repurchased agreements | $— |
| 3. | Loans consisting of securities | $— |
| 4. | Line C1 minus Line C2 minus Line C3 | $— |
| 5. | Total equity | $— |
| 6. | Ratio of Line C4 to C5 | to<u> </u> |
| 7. | Line C6 shall not exceed | 13.0 to 1 |
| 8. | The Borrower's in Compliance | yes/no |
| D. | <u>Minimum Liquidity Ratio (Section 7.12(d))</u> |  |
| 1. | Unencumbered marketable securities (determined after taking into account prudent and customary financing haircuts as reasonably determined by the Administrative Agent) (exclusive of any securities on deposit in a Customer Reserve Bank Account or a PAB Reserve Bank Account, as those terms are defined in Exchange Act rule 15c3-3) | $— |

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------

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| | | |
|:---|:---|:---|
| 2. | Unencumbered cash (exclusive of any cash on deposit in a Customer Reserve Bank Account or a PAB Reserve Bank Account, as those terms are defined in Exchange Act rule 15c3-3 unless such cash on deposit is available to satisfy any obligation of the Borrower) | $— |
| 3. | <u>Sum of Eligible FICC Margin Deposits</u> and Eligible NSCC Margin Deposits (solely to the extent of the lesser of (x) the amount, if any, by which the Borrowing Base at such time exceeds the aggregate outstanding amount of Loans and (y) an amount equal to the Commitment minus the aggregate outstanding amount of Loans) | $— |
| 4. | Sum of Lines DI plus D2 plus D3 | $— |
| 5. | Unsecured Indebtedness (other than the Loans, Subordinated Debt and intercompany Indebtedness that is subordinated to the Obligations, and exclusive of any credit balances carried for the account of any customer, broker or dealer) | $— |
| 6. | Ratio of Line D4 to line D5 | to<u> </u> |
| 7. | Line D6 ratio shall not be less than | 1.0 to 1 |
| 8. | The Borrower is in compliance (circle yes or no) | yes / no |

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------

**EXHIBIT D** 

**CERTIFICATE RE: ELIGIBLE NSCC MARGIN DEPOSITS** 

To: BMO—Harris Bank N.A., asAdministrative Agent under, and the Lenders party to, the CreditAgreement described below

This Certificate re: Eligible NSCC Margin Deposits is furnished to the Administrative Agent and the Lenders pursuant to that certain Credit Agreement dated as of December 4, 2020 among, Clear Street LLC, the Lenders party thereto from time to time, and BMO Harris Bank N.A., as Administrative Agent (as extended, renewed, amended or restated from time to time, the *"Credit Agreement").* The undersigned hereby certifies that<u>the following</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a) the Eligible FICC Margin Deposit as of the last day of the most recently ended calendar month:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b)</u> the Eligible NSCC Margin Deposits in effect for each Business Day in the most recently ended calendar month were as described on the schedule attached hereto.

Unless otherwise defined herein, the terms used in this Certificate have the meanings ascribed thereto in the Credit Agreement.

IN WITNESS WHEREOF, the undersigned has hereunto set my name as of the date set forth below.

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| |
|:---|
|  CLEAR STREET LLC |
| By: |
| Name: |
| Title: |

---

Date:<u> </u>, 202<u> </u>

------

**SCHEDULE** 

**ELIGIBLE NSCC MARGIN DEPOSITS** 

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| | |
|:---|:---|
| Date of Business Day | Eligible NSCC Margin Deposits |
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  | $|
|  10th Lowest Eligible NSCC Margin Deposits during the calendar month | $|

---

------

**EXHIBIT E** 

**ASSIGNMENT AND ASSUMPTION** 

This Assignment and Assumption (the "*Assignment and Assumption*") is dated as of the Effective Date set forth below and is entered into by and between **[the][each]**<sup>2</sup><sup>1</sup> <sup>2</sup>Assignor identified in item 1 **below (\|the][each, an**] "*Assignor*") and [the][each]<sup>3</sup><sup>2</sup> Assignee identified in item 2 below ([the][each, an] "*Assignee*"). [**It is understood and agreed that the rights and obligations of [the Assignors] [the Assignees]**<sup>4</sup><sup>3</sup> **hereunder are several and not joint.]**<sup>5</sup><sup>4</sup> Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, the "*Credit Agreement*"), receipt of a copy of which is hereby acknowledged by **[the] [each]** Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, **[the] [each]** Assignor hereby irrevocably sells and assigns to **[the Assignee][the respective Assignees]**, and **[the]\|each]** Assignee hereby irrevocably purchases and assumes from **[the Assignor][the respective Assignors]**, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of **[the Assignor's] [the respective Assignors']** rights and obligations in **[its capacity as a Lender] [their respective capacities as Lenders]** under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of **[the Assignor] [the respective Assignors]** under the respective facilities identified below (including without limitation any guarantees included in such facilities), and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of \|the Assignor (in its capacity as a Lender)] [the respective Assignors (in their respective capacities as Lenders)] against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by **[the][any]**

<sup>2</sup><u>1</u> For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first bracketed language. If the assignment is from multiple Assignors, choose the second bracketed language.

<sup>3</sup><u>2</u> For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first bracketed language. If the assignment is to multiple Assignees, choose the second bracketed language.

<sup>4</sup><u>3</u> Select as appropriate.

<sup>5</sup><u>4</u> Include bracketed language if there are either multiple Assignors or multiple Assignees.

------

Assignor to **[the][any]** Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as **[the][an]** "*Assigned Interest*"). Each such sale and assignment is without recourse to **[the][any]** Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by **[the][any]** Assignor.

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| |
|:---|
| 1. Assignor[s]:<u> </u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **[Assignor [is] [is not] a Defaulting Lender]** |
| 2. Assignee [ s]:<u> </u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u> </u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **[for each Assignee, indicate [Affiliate] [Approved Fund] of *[identify Lender]*** |
| 3. Borrower: Clear Street LLC |
| 4. Administrative Agent: BMO Harris Bank N.A., as the administrative agent under the Credit Agreement |
| 5. Credit Agreement: Credit Agreement dated as of December 4, 2020 among Clear Street LLC, the Lenders parties thereto, BMO Harris Bank N.A., as Administrative Agent, and the other agents parties thereto |
| 6. Assigned Interest[s]: |

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---

| | | | | |
|:---|:---|:---|:---|:---|
| ASSIGNOR[S]<sup>6</sup><sup>5</sup> | ASSIGNEE[S]<sup>7</sup> <sup>6</sup> | FACILITY<br>ASSIGNED <sup>8</sup><sup>7</sup> | AGGREGATE<br>AMOUNT OF<br>COMMITMENT/LOANS<br>FOR ALL<br>LENDERS<sup>9</sup><sup>8</sup> | PERCENTAGE<br>ASSIGNED OF<br>COMMITMENT<br>/ LOANS<sup>10</sup><sup>9</sup> |
|  |  |  | $| $nan% |
|  |  |  | $| $nan% |
|  |  |  | $| $nan% |

---

<sup>6</sup><u>5</u> List each Assignee, as appropriate.

<sup>7</sup><u>6</u> List each Assignor, as appropriate.

<sup>8</sup><u>7</u> Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being assigned under this Assignment

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| | |
|:---|:---|
| <sup>9</sup><u>8</u> | Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.  |

---

---

| | |
|:---|:---|
| <sup>10</sup><u>9</u> | Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.  |

---

------

 [**7. Trade Date:** _______________]<sup>11</sup><sup>10</sup><br>

[PAGE BREAK]

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| | |
|:---|:---|
| <sup>11</sup><u>10</u> | To be completed if the Assignor(s) and the Assignee(s) intend that the minimum assignment amount is to be determined as of the Trade Date.  |

---

------

Effective Date: ____________, 20___ **[To be inserted by Administrative Agent and which shall be the effective date of recordation of transfer in the register therefor.]**

The terms set forth in this Assignment and Assumption are hereby agreed to:

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| | |
|:---|:---|
| ASSIGNOR[S]<sup>12</sup><sup>11</sup><br>[NAME OF ASSIGNOR] | ASSIGNOR[S]<sup>12</sup><sup>11</sup><br>[NAME OF ASSIGNOR] |
| By |  |
|  | Name<u> </u> |
|  | Title<u> </u> |

---

---

| | |
|:---|:---|
| [NAME OF ASSIGNOR] | [NAME OF ASSIGNOR] |
| By | |
|  | Name<u> </u> |
|  | Title<u> </u> |

---

---

| | |
|:---|:---|
| ASSIGNEE[S]<sup>13</sup><sup>12</sup><br>[NAME OF ASSIGNEE] | ASSIGNEE[S]<sup>13</sup><sup>12</sup><br>[NAME OF ASSIGNEE] |
| By |  |
|  | Name<u> </u> |
|  | Title<u> </u> |

---

---

| | |
|:---|:---|
| [NAME OF ASSIGNEE] | [NAME OF ASSIGNEE] |
| By | |
|  | Name<u> </u> |
|  | Title<u> </u> |

---

<sup>12</sup><u>11</u> Add additional signature blocks as needed. Include both Fund/Pension Plan and manager making the trade (if applicable).

<sup>13</sup><u>12</u> Add additional signature blocks as needed. Include both Fund/Pension Plan and manager making the trade (if applicable).

------

**[Consented to and]**<sup>14</sup><sup>13</sup> Accepted:

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| | |
|:---|:---|
| BMO Harris Bank N.A., as <br>Administrative Agent | BMO Harris Bank N.A., as <br>Administrative Agent |
| By | <u> </u> |
|  | Name<u> </u> |
|  | Title<u> </u> |

---

**[Consented to:]**<sup>15</sup><sup>14</sup>

---

| | |
|:---|:---|
| CLEAR STREET LLC | CLEAR STREET LLC |
| By | <u> </u> |
|  | Name<u> </u> |
|  | Title<u> </u> |

---

<sup>14</sup><u>13</u> To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.

<sup>15</sup><u>14</u> To be added only if the consent of the Borrower and/or other parties is required by the terms of the Credit Agreement.

------

**EXHIBIT F** 

**INCREASE REQUEST** 

Dated _____________, ______

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| | |
|:---|:---|
| To: | BMO Harris Bank N.A., as Administrative Agent for the Lenders party to the Credit Agreement dated as of December 4, 2020, as amended, among Clear Street LLC, as Borrower, the Guarantors referred to therein, the Lenders party thereto from time to time, and the Administrative Agent (as extended, renewed, amended or restated from time to time, the "*Credit Agreement*") |

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Ladies and Gentlemen:

The undersigned, Clear Street LLC, a Delaware limited liability company (the "*Borrower*"), hereby refers to the Credit Agreement and requests that the Administrative Agent consent to an increase in the aggregate Commitments (the "*Revolver Increase*"), in accordance with Section 2.17 of the Credit Agreement, to be effected by **[an increase in the Commitment of [name of existing Lender]] [the addition of [name of new Lender] (the "*New Lender*"), as a Lender under the terms of the Credit Agreement]**. Capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

After giving effect to such Revolver Increase, the Commitment of the **[Lender] [New Lender]** shall be $____________.

**[Include paragraphs 1-4 for a New Lender]** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The New Lender hereby confirms that it has received a copy of the Loan Documents and the exhibits related thereto, together with copies of the documents which were required to be delivered under the Credit Agreement as a condition to the making of the Loans and other extensions of credit thereunder. The New Lender acknowledges and agrees that it has made and will continue to make, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, its own credit analysis and decisions relating to the Credit Agreement. The New Lender further acknowledges and agrees that the Administrative Agent has not made any representations or warranties about the credit worthiness of any Loan Party or any of its Subsidiaries or any other party to the Credit Agreement or any other Loan Document or with respect to the legality, validity, sufficiency or enforceability of the Credit Agreement or any other Loan Document or the value of any security therefor.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as otherwise provided in the Credit Agreement, effective as of the date of acceptance hereof by the Administrative Agent, the New Lender (i) shall be deemed automatically to have become a party to the Credit Agreement and have all the rights and obligations of a "*Lender*" under the Credit Agreement as if it were an original signatory thereto and (ii) agrees to be bound by the terms and conditions set forth in the Credit Agreement as if it were an original signatory thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The New Lender shall deliver to the Administrative Agent a completed Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The New Lender has delivered to the Borrower and the Administrative Agent (or is delivering to the Borrower and the Administrative Agent concurrently herewith), as required, the Tax forms referred to in Section 3.1 of the Credit Agreement.

THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACTUAL OBLIGATION UNDER, AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

The Revolver Increase shall be effective when the executed consent of the Administrative Agent is received or otherwise in accordance with Section 2.17 of the Credit Agreement, but not in any case prior to __________________, ____<sup>16</sup><sup>15</sup>. It shall be a condition to the effectiveness of the Revolver Increase that all expenses referred to in Section 2.17 of the Credit Agreement shall have been paid.

The Borrower hereby certifies that (a) no Default has occurred and is continuing and (b) each of the representations and warranties set forth in Section 5 of the Credit Agreement and in the other Loan Documents are and remain true and correct in all material respects on the effective date of this Revolver Increase (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date.

[SIGNATURE PAGES TO FOLLOW]

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| | |
|:---|:---|
| <sup>16</sup><u>15</u> | **Date must be at least five Business Days from date of this notice**  |

---

------

Please indicate your consent to such Revolver Increase by signing the enclosed copy of this letter in the space provided below.

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| | |
|:---|:---|
|  Very truly yours,<br>CLEAR STREET LLC | Very truly yours,<br>CLEAR STREET LLC |
| By | |
|  | Name<u> </u> |
|  | Title<u> </u> |

---

---

| | |
|:---|:---|
|  [NEW OR EXISTING LENDER INCREASING REVOLVING CREDIT COMMITMENTS] | [NEW OR EXISTING LENDER INCREASING REVOLVING CREDIT COMMITMENTS] |
| By | |
|  | Name<u> </u> |
|  | Title<u> </u> |

---

---

| | |
|:---|:---|
|  The undersigned hereby consents on this ____ day of ________, 20___, to the above-requested Revolver Increase | The undersigned hereby consents on this ____ day of ________, 20___, to the above-requested Revolver Increase |
|  BMO HARRIS BANK N.A., as Administrative Agent | BMO HARRIS BANK N.A., as Administrative Agent |
| By: | <u> </u> |
|  | Name<u> </u> |
|  | Title<u> </u> |

---

------

**ANNEX 1** 

**STANDARD TERMS AND CONDITIONS FOR** 

**ASSIGNMENT AND ASSUMPTION** 

SECTION 1. REPRESENTATIONS AND WARRANTIES.

*Section 1.1. Assignor[s]*. **[The][Each]** Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][the relevant] Assigned Interest, (ii) **[the][such]** Assigned Interest is free and clear of any lien, encumbrance or other adverse claim, (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and (iv) it is **[not]** a Defaulting Lender; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document, or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

*Section 1.2. Assignee[s]*. **[The][Each]** Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee under Section 11,2(b)(iii), (v) and (vi) of the Credit Agreement (subject to such consents, if any, as may be required under Section 11.2(b)(iii) of the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of **[the][the relevant]** Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 6.5 thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase **[the][such]** Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption and to purchase **[the][such]** Assigned Interest, and (vii) attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by **[the][such]** Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, **[the][any]** Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

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SECTION 2. PAYMENTS.

From and after the Effective Date, the Administrative Agent shall make all payments in respect of **[the][each]** Assigned Interest (including payments of principal, interest, fees and other amounts) to **[the][the relevant]** Assignee whether such amounts have accrued prior to, on or after the Effective Date. The Assignor[s] and the Assignee[s] shall make all appropriate adjustments in payments by the Administrative Agent for periods prior to the Effective Date or with respect to the making of this assignment directly between themselves. Notwithstanding the foregoing, the Administrative Agent shall make all payments of interest, fees or other amounts paid or payable in kind from and after the Effective Date to **[the][the relevant]** Assignee.

SECTION 3. GENERAL PROVISIONS.

This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

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**SCHEDULE 2.1** 

**COMMITMENTS** 

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| | |
|:---|:---|
| NAME OF LENDER | COMMITMENT |
|  BMO Harris Bank N.A. | $100,000,000.00<br><u>125,000,000.00</u> |
|  Customers Bank | $50000000.00 |
|  CIBC Bank USA | $40000000.00 |
|  Old National Bank | $30000000.00 |
|  TriState Capital Bank | $20000000.00 |
|  Northbrook Bank & Trust Company, NA. | $20,000,000.00<br><u>30,000,000.00</u> |
|  <u>TriState Capital Bank</u> | $<u>20000000.00</u> |
|  Signature Bank | $20000000.00 |
|  Bank of America, N.A. | $20000000.00 |
|  TOTAL | $300000000<br><u>315000000.00</u> |

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**SCHEDULE 5.2** 

**SUBSIDIARIES** 

Clear Street Markets LLC

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ANNEX II

LIMITED LIABILITY COMPANY AGREEMENT

OF CLEAR STREET HOLDINGS LLC

------

EIGHTH

AMENDED AND RESTATED

LIMITED LIABILITY COMPANY OPERATING AGREEMENT

OF

CLEAR STREET HOLDINGS LLC

Dated April 14, 2023

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | Page |
| ARTICLE I GENERAL PROVISIONS | ARTICLE I GENERAL PROVISIONS | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.1 | Defined Terms | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.2 | Formation | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.3 | Company Name and Registered Agent | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.4 | Term | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.5 | Business of the Company | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.6 | Principal Place of Business | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.7 | Partition | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.8 | Fiscal Year | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.9 | Title to Company Property | 12 |
| ARTICLE II MEMBERS | ARTICLE II MEMBERS | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.1 | Admission of Members | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.2 | Role of Members | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.3 | Meetings | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.4 | Record Date | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.5 | Quorum | 13 |
| ARTICLE III MANAGEMENT | ARTICLE III MANAGEMENT | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.1 | Management of the Company Generally | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.2 | Managing Member | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.3 | Authority and Certain Powers of the Managing Member | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.4 | Compensation | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.5 | Expenses of Group Inc. | 15 |
| ARTICLE IV OFFICERS | ARTICLE IV OFFICERS | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.1 | Officers Generally | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.2 | Subordinate Officers, Committees and Agents | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.3 | Resignation | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.4 | Removal | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.5 | Vacancies | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.6 | Authority | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.7 | The Chief Executive Officer | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.8 | Fiduciary Duties | 17 |
| ARTICLE V CAPITALIZATION | ARTICLE V CAPITALIZATION | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.1 | Membership Interests | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.2 | Management Options, Rights to Units, and Restricted Units | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.3 | Conversion of Preferred Unit | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.4 | Capital Accounts | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.5 | Adjustments to Capital Accounts | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.6 | Computation of Company Items | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.7 | Adjustment to Book Values | 20 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.8 | Transferee Succeeds to Capital Account of Transferor | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.9 | No Obligation to Restore Negative Capital Account | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.10 | Capital Contributions | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.11 | No Interest on or Return of Capital | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.12 | Repurchase of Units | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.13 | Company Preferred Interest | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.14 | Group Inc. Acquisitions | 24 |
| ARTICLE VI ALLOCATIONS OF PROFIT AND LOSS | ARTICLE VI ALLOCATIONS OF PROFIT AND LOSS | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.1 | Allocations Generally | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.2 | Regulatory Allocations | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.3 | Curative Allocations | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.4 | Series B Preferred Units | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.5 | Allocation of Taxable Income or Taxable Loss and Other Allocation Rules | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.6 | Special Allocations | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.7 | Forfeiture Allocations | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.8 | Allocation of Underpayment | 35 |
| ARTICLE VII DISTRIBUTIONS | ARTICLE VII DISTRIBUTIONS | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.1 | Declaration and Payment of Distributions Generally | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.2 | Regular Distributions | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.3 | Distribution of Liquidity Event Proceeds | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.4 | Limitations on Distributions | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.5 | Amounts of Tax Paid or Withheld | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.6 | Distribution in Kind | 38 |
| ARTICLE VIII INDEMNIFICATION | ARTICLE VIII INDEMNIFICATION | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.1 | Indemnification by the Company | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.2 | Proceedings Initiated by Indemnified Representatives | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.3 | Advancing Expenses | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.4 | Securing of Indemnification Obligations | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.5 | Payment of Indemnification | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.6 | Contribution | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.7 | Contract Rights; Amendment or Repeal | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.8 | Scope of Article | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.9 | Reliance on Provisions | 41 |
| ARTICLE IX TRANSFERABILITY | ARTICLE IX TRANSFERABILITY | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.1 | Restriction on Transfer | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.2 | Effect of Transfer | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.3 | No Resignation of Members | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.4 | Successors | 43 |
| ARTICLE X DISSOLUTION AND TERMINATION | ARTICLE X DISSOLUTION AND TERMINATION | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.1 | Dissolution | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.2 | Activities of the Company Pending Liquidation | 43 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.3 | Liquidation and Termination | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.4 | Distribution of Assets | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.5 | Cancellation of Certificate | 45 |
| ARTICLE XI BOOKS; REPORTS TO MEMBERS; TAX ELECTIONS | ARTICLE XI BOOKS; REPORTS TO MEMBERS; TAX ELECTIONS | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.1 | Books and Records | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.2 | Tax Information | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.3 | Partnership Representative | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.4 | Tax Elections | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.5 | Certain Tax Actions | 48 |
| ARTICLE XII MISCELLANEOUS | ARTICLE XII MISCELLANEOUS | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.1 | Binding Effect | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.2 | Entire Agreement | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.3 | Amendments | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.4 | Power of Attorney | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.5 | Choice of Law | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.6 | Consent to Jurisdiction | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.7 | Arbitration | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.8 | Notices | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.9 | Transaction with Affiliates | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.10 | Waivers | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.11 | Severability | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.12 | No Third Party Beneficiaries | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.13 | Interpretation | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.14 | Further Assurances | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.15 | Counterparts | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.16 | Effectiveness | 52 |

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EXHIBIT A MEMBERS

iii

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This Eighth Amended and Restated Operating Agreement (this "**Agreement**") of Clear Street Holdings LLC (the "**Company**"), a Delaware limited liability company, is made as of April 14, 2023 (the "**Effective Date**"), by and among each of the Persons and entities listed on <u>Exhibit A</u> hereto and such other Persons who shall be admitted in the future in accordance with the terms hereof and shall have agreed to be bound hereby, each being hereinafter sometimes referred to individually as a "**Member**" and collectively as the "**Members**."

WHEREAS, certain of the Members entered into a Seventh Amended and Restated Operating Agreement of the Company dated as of January 10, 2023 (the "**Previous Operating Agreement**"); and

WHEREAS, the Members desire to enter into this Agreement to amend certain provisions of the Previous Operating Agreement and restate the terms of the Previous Agreement as so amended.

NOW, THEREFORE, for and in consideration of the above premises, the mutual covenants and agreements hereinafter set forth and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties hereto covenant and agree as follows:

ARTICLE I

GENERAL PROVISIONS

Section 1.1 <u>Defined Terms</u>. For purposes of this Agreement, the following terms shall have the following meanings:

"**Acquisition Agreement**" shall mean any agreement entered into by the Company for the acquisition of the equity of an entity or the assets related to a business of an entity.

"**Act**" shall mean the Delaware Limited Liability Company Act, 6 Del. Code § 18-101, et seq., as amended from time to time.

"**Act of Bankruptcy**" shall mean, with respect to any Person, such Person admitting in writing its inability to pay its debts generally, making a general assignment for the benefit of creditors, or instituting any proceeding seeking to adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition, of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of any order for relief or the appointment of a receiver, trustee, or other similar official for it or for any substantial part of its property.

"**Adjusted Capital Account**" shall mean the Capital Account maintained for each Member as of the end of each Taxable Year of the Company (a) increased by (i) an amount equal to such Member's allocable share of the Company's Minimum Gain attributable to Company Nonrecourse Liabilities as computed on the last day of such Taxable Year in accordance with the applicable Regulations; (ii) an amount equal to such Member's allocable share of the Company's Minimum Gain attributable to Member Nonrecourse Debt as computed on the last day of such Taxable Year in accordance with the applicable Regulations and (iii) the amount such Member is deemed to be obligated to restore pursuant to Regulations § 1.704-l(b)(2)(ii)(c); and (b) reduced by all reasonably expected adjustments, allocations and distributions described in Regulations §§ 1.704-l(b)(2)(ii)(d)(4), (5) and (6).

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"**Adjusted Property**" shall mean each Company property or other asset the Carrying Value of which has been adjusted pursuant to <u>Section</u> <u>5.7</u>.

"**Adjustment Year**" shall have the meaning assigned thereto in section 6225(d)(2) of the Code, as amended by the BBA.

"**Affiliate**" shall mean, with respect to a particular party hereto, those Persons Controlling, Controlled by or under common Control with such party as well as majority-owned entities of such party and of such party's other Affiliates.

"**Agreed Value**" of any Contributed Property shall mean the fair market value of such property or other consideration at the time of contribution as reasonably determined by the Managing Member. Subject to <u>Section</u> <u>5.7</u>, the Managing Member shall, in its reasonable discretion, use such method as it deems reasonable and appropriate to allocate the aggregate Agreed Value of Contributed Properties contributed to the Company in a single or integrated transaction among each separate property on a basis proportional to the fair market value of each Contributed Property.

"**Aggregate Yield**" means, as of any date, the aggregate amount of the Yield accrued on the Company Preferred Interest from and after December 31, 2021.

"**Agreement**" shall have the meaning set forth in the Preamble.

"**BBA**" shall mean the Bipartisan Budget Act of 2015, Pub. L. No. 114-74, 129 Stat. 584 (2015).

"**Book-Tax Disparities**" shall mean with respect to any item of Contributed Property or Adjusted Property, as of the date of any determination, the difference between the Carrying Value of such Contributed Property or Adjusted Property and the adjusted basis thereof for federal income tax purposes as of such date. A Member's share of the Company's Book-Tax Disparities in all of its Contributed Property and Adjusted Property will be reflected by the difference between such Member's Capital Account balance as maintained pursuant to <u>Section</u> <u>5.5</u> and the hypothetical balance of such Member's Capital Account computed as if it had been maintained strictly in accordance with federal income tax accounting principles.

"**Capital Account**" shall mean, with respect to a Member, and any Unit, Company Participating Interest or Company Preferred Interest such Member's capital account with respect thereto established and maintained in accordance with the provisions of <u>Section</u> <u>5.5</u>.

"**Capital Contribution**" shall mean, with respect to any Member, the aggregate amount of money and the fair market value of any property other than money contributed to the Company by such Member (net of any associated Liabilities assumed by the Company).

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"**Carrying Value**" shall mean (i) with respect to a Contributed Property, the Agreed Value of such property reduced (but not below zero) by all depreciation, amortization and cost recovery deductions charged to the Members' Capital Accounts in respect of such Contributed Property, (ii) with respect to an Adjusted Property, the amount determined pursuant to <u>Section</u> <u>5.7</u> as appropriate, reduced (but not below zero) by all depreciation, amortization and cost recovery charged to the Members' Capital Accounts in respect of such Adjusted Property and (iii) with respect to any other Company property, the adjusted basis of such property for federal income tax purposes, all as of the time of determination.

"**Cash Consideration**" shall mean, with respect to any Acquisition Agreement as to which Group Inc. is the acquiror, the amount of cash actually paid by Group Inc. on the Closing Date pursuant thereto.

"**Certificate**" shall have the meaning set forth in <u>Section</u> <u>1.2(a)</u>.

"**Chief Executive Officer**" shall have the meaning set forth in <u>Section</u> <u>4.2</u>.

"**Class A Member**" shall mean any Member with respect to its Class A Units.

"**Class A Units**" shall have the meaning set forth in <u>Section</u> <u>5.1</u>.

"**Class C Member**" shall mean any Member with respect to its Class C Units.

"**Class C Units**" shall have the meaning set forth in <u>Section</u> <u>5.1</u>.

"**Class D Member**" shall mean any Member with respect to its Class D Units.

"**Class D Units**" shall have the meaning set forth in <u>Section</u> <u>5.1</u>.

"**Closing Date**" shall mean, with respect to any Acquisition Agreement, the date on which the transactions contemplated by such Acquisition Agreement are consummated in accordance therewith.

"**Code**" shall mean the Internal Revenue Code of 1986, as amended from time to time (or any corresponding provisions of any succeeding law).

"**Common Units**" shall mean the Class A Units, the Class C Units and the Class D Units.

"**Company**" shall mean Clear Street Holdings LLC.

"**Company Nonrecourse Deductions**" shall mean, with respect to Company Nonrecourse Liabilities, the amount of deductions, losses and expenses equal to the net increase during the year in Minimum Gain attributable to Company Nonrecourse Liabilities, reduced (but not below zero) by the proceeds, if any, of such Company Nonrecourse Liabilities distributed during the year, as determined in accordance with the applicable Regulations.

"**Company Nonrecourse Liabilities**" shall mean nonrecourse liabilities (or portions thereof) of the Company for which no Member bears the Economic Risk of Loss.

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"**Company Participating Interest**" shall have the meaning set forth in <u>Section</u> <u>5.1</u>.

"**Company Preferred Balance**" shall mean, as of April 1, 2023, $89,668,693.

"**Company Preferred Interest**" shall have the meaning set forth in <u>Section</u> <u>5.1</u>.

"**Contributed Property**" shall mean each property or other asset, excluding cash, contributed to the Company (or deemed contributed to the Company).

"**Control**" (including, with correlative meanings, the terms "controlled by" and "under common control with") shall mean the ownership or control of securities possessing at least 50% of the voting power of all outstanding voting securities of an entity or the power to otherwise direct or cause the direction of the management and policies of such entity, whether through the ownership of voting interests or similar rights.

"**Conversion**" shall have the meaning set forth in the Preamble.

"**Corresponding Common Stock**" shall mean the Group Inc Class A Common Stock.

"**Corresponding Series A Preferred Stock**" shall mean Group Inc. Series A Perpetual Cumulative Preferred Stock.

"**Corresponding Series B Preferred Stock**" shall mean the Corresponding Series B-l Preferred Stock and the Corresponding Series B-2 Preferred Stock.

"**Corresponding Series B-l Preferred Stock**" shall mean the Group Inc. Series B-l Preferred Stock.

"**Corresponding Series B-2 Preferred Stock**" shall mean the Group Inc. Series B-2 Preferred Stock.

"**CSH USVI**" shall mean Clear Street Holdings USVI Inc., a United States Virgin Islands company.

"**CS Management**" shall mean Clear Street Management LLC, a Delaware limited liability company.

"**CS Management Participating Interest**" shall mean, as of any date, the rights of a "Class B Member" of CS Management to receive payments with respect to his or her "Net Trading Profits" as defined in and pursuant to the Summit Management Member Agreement applicable to such Class B Member and in effect on such date, as the same may be amended from time to time.

"**Curative Allocation**" shall have the meaning set forth in <u>Section</u> <u>6.3</u>.

"**Damages**" shall mean any damage, judgment, amount paid in settlement, fine, penalty, punitive or consequential damages, or cost or expense of any nature (including reasonable attorneys' fees and disbursements) arising out of an Indemnified Capacity.

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"**Deferred Cash Consideration**" shall mean, with respect to any Acquisition Agreement as to which Group Inc. is the acquiror, any deferred cash payment obligation payable by Group Inc. in respect of the equity or assets pursuant to such Acquisition Agreement after the applicable Closing Date.

"**Deferred Payment Amount**" shall have the meaning set forth in <u>Section</u> <u>5.13</u>.

"**DGCL**" shall mean the Delaware General Corporation Law, Del. Code. Tit. 8, ch. 1.

"**Dissolution Event**" shall have the meaning set forth in <u>Section</u> <u>10.1</u>.

"**Economic Risk of Loss**" shall have the meaning set forth in Regulations § 1.752-2(a).

"**Effective Date**" shall have the meaning set forth in the Preamble.

"**Exchange Agreement**" shall mean the Exchange Agreement dated as of April 13, 2022 among Group Inc., the Company, and CS USVI.

"**Fiscal Year**" shall have the meaning set forth in <u>Section</u> <u>1.8</u>.

"**Forfeiture Allocations**" shall have the meaning set forth in <u>Section</u> <u>6.7</u>.

"**GAAP**" shall mean generally accepted accounting principles in the United States of America in effect from time to time.

"**Group Inc.**" shall mean Clear Street Group Inc., a Delaware corporation.

"**Group Inc. Col**" shall mean the Sixth Amended and Restated Certificate of Incorporation of Group Inc. dated October 7, 2022 as further amended from time to time.

"**Group Inc. Option Plan**" shall mean any stock option plan that may be adopted by the board of Group Inc.

"**Group Inc. Restricted Stock Plan**" shall mean any restricted stock plan that may be adopted by the board of Group Inc.

"**Group Inc. Tax Rate**" shall mean the combined federal, state and local tax rate applicable to any allocation of Taxable Income pursuant to <u>Section</u> <u>6.5(a)</u> with respect to the allocation of any Net Income or Liquidity Event Net Income to Group Inc.

"**Imputed Underpayment**" shall have the meaning assigned thereto in Code section 6225, as amended by the BBA.

"**Indemnified Capacity**" shall mean any and all past, present and future service by an Indemnified Representative in one or more capacities as a Member, Managing Member, officer, employee or agent of the Company, or, at the request of the Company, as a member, manager, officer, employee, agent, fiduciary or trustee of another limited liability company, corporation, partnership, joint venture, trust, employee benefit plan or other entity or enterprise.

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"**Indemnified Representative**" shall mean any and all Members, the Managing Member, the Chief Executive Officer and other officers of the Company and any other Person designated as an indemnified representative by the Managing Member (which may, but need not, include any Person serving at the request of the Company, as a member, manager, officer, employee, agent, fiduciary or trustee of another limited liability company, corporation, partnership, joint venture, trust, employee benefit plan or other entity or enterprise).

"**IRS**" shall mean the Internal Revenue Service.

"**Liability**" shall mean any direct or indirect liability, indebtedness, obligation, expense, claim, loss, damage, deficiency, guaranty or endorsement of or by any Person, absolute or contingent, accrued or unaccrued, due or to become due, liquidated or unliquidated.

"**Lender**" shall have the meaning set forth in <u>Section</u> <u>9.1(b)</u>.

"**Liquidity Event**" shall mean (i) the sale (or multiple related sales) of all or substantially all of the Company's assets; (ii) the sale or transfer of all of the outstanding equity of the Company (in the case of the Class C Units or the Class D Units, taking into account the indirect sale or transfer of such Units by reason of the sale or transfer of shares of Corresponding Common Stock; (hi) a recapitalization or reorganization of the Company, (iv) the merger or consolidation of the Company with another person or entity, or (v) the liquidation of the Company, in each case in clauses (ii), (hi) and (iv) above under circumstances in which the holders of the voting power of outstanding equity of the Company, immediately prior to such transaction, own less than 50% of the voting power of the outstanding equity of the Company or the surviving or resulting entity, as the case may be, immediately following such transaction. A sale (or multiple related sales) of one or more Subsidiaries of the Company (whether by way of merger, consolidation, recapitalization, reorganization or sale of all or substantially all assets or securities) which constitutes all or substantially all of the consolidated assets of the Company shall be deemed a Liquidity Event.

"**Liquidity Event Net Income**" shall mean, with respect to any Fiscal Year and any Liquidity Event, an amount equal to the excess, if any, of the Company's aggregate income and gain with respect to such Liquidity Event for such Fiscal Year, as determined in accordance with GAAP, over the Company's items of loss, deduction and expense with respect to such Liquidity Event for such Fiscal Year, all as determined in accordance with the principles for the determination of Net Income.

"**Liquidity Event Net Loss**" shall mean, with respect to any Fiscal Year and any Liquidity Event, an amount equal to the excess, if any, of the Company's items of loss, deduction and expense with respect to such Liquidity Event for such Fiscal Year, as determined in accordance with GAAP, over the Company's aggregate income and gain with respect to such Liquidity Event for such Fiscal Year, all as determined in accordance with the principles for the determination of Net Loss.

"**Majority-In-Interest**" shall mean one or more Members holding Common Units representing in excess of 50% of the total number of outstanding Common Units voting as a single class.

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"**Managing Member**" shall mean Group Inc. or its successor.

"**Member Nonrecourse Debt**" shall mean any nonrecourse debt of the Company for which any Member bears the Economic Risk of Loss.

"**Member Nonrecourse Deductions**" shall mean, with respect to a Member Nonrecourse Debt, the amount of deductions, losses and expenses equal to the net increase during the year in Minimum Gain attributable to such Member Nonrecourse Debt, reduced (but not below zero) by the proceeds, if any, of such Member Nonrecourse Debt distributed during the year to the Members who bear the Economic Risk of Loss for such debt, as determined in accordance with the applicable Regulations.

"**Members**" shall have the meaning set forth in the Preamble.

"**Members LLC**" shall mean Clear Street Members LLC, a Delaware limited liability company.

"**Membership Interest**" shall mean all the rights of a Member, including the right to receive distributions (including liquidating distributions) from and allocations of the profits and losses, gains, deductions and credits of the Company with respect to a Company Participating Interest, a Company Preferred Interest, Common Units, Series A Preferred Units, or Series B Preferred Units.

"**Minimum Gain**" shall mean (i) with respect to Company Nonrecourse Liabilities, the amount of gain that would be realized by the Company if it disposed of (in a taxable transaction) all Company properties that are subject to Company Nonrecourse Liabilities in full satisfaction of such liabilities, computed in accordance with the applicable Regulations; or (ii) with respect to each Member Nonrecourse Debt, the amount of gain that would be realized by the Company if it disposed of (in a taxable transaction) the Company property that is subject to such Member Nonrecourse Debt in full satisfaction of such debt, computed in accordance with the applicable Regulations.

"**Net Agreed Value**" shall mean (i) in the case of any Contributed Property, the Agreed Value of such property reduced by any liabilities either assumed by the Company upon such contribution or to which such property is subject when contributed; and (ii) in the case of any property distributed to a Member by the Company, the Company's Carrying Value of such property (as adjusted pursuant to <u>Section</u> <u>5.7)</u> at the time such property is distributed, reduced by any indebtedness either assumed by such Member upon such distribution or to which such property is subject at the time of distribution, in either case, as determined under section 752 of the Code.

"**Net Income**" shall mean, with respect to each Fiscal Year or other period, the excess if any, of the Company's items of income and gain for such Fiscal Year or other period over the Company's items of loss, deduction and expense for such Fiscal Year or other period determined on an accrued basis in accordance with GAAP and with the following adjustments: (i) any expenditures of the Company described in section 705(a)(2)(B) of the Code or treated as such pursuant to Regulations § 1.704-l(b)(2)(iv)(i) and not otherwise taken into account shall be treated as an expense; (ii) any item of income, gain, deduction or loss taken into account in the

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determination of Liquidity Event Net Income or Liquidity Event Net Loss shall not be taken into account; and (iii) such adjustments as may be necessary to conform the computation of income or loss in accordance with GAAP to the requirements relating to the maintenance of capital accounts under Regulations § 1.704-l(b)(2)(iv) and any provisions of this Agreement related thereto. The items included in the calculation of Net Income shall be determined in accordance with <u>ARTICLE VI</u> and shall not include any items specially allocated under <u>Section</u> <u>6.2</u>, <u>Section</u> <u>6.3</u>, <u>Section</u> <u>6.4</u>, <u>Section</u> <u>6.7</u> or <u>Section</u> <u>6.8</u>. Once an item of income, gain, loss or deduction that has been included in the initial computation of Net Income is subjected to a Regulatory Allocation or a Curative Allocation, Net Income or Net Loss, whichever the case may be, shall be recomputed without regard to such item.

"**Net Loss**" shall mean, with respect to each Fiscal Year or other period, the excess, if any, of the Company's items of loss, deduction and expense for such Fiscal Year or other period over the Company's items of income and gain for such Fiscal Year or other period determined on an accrued basis in accordance with GAAP and with the following adjustments: (i) any expenditures of the Company described in Code section 705(a)(2)(B) or treated as such pursuant to Regulations § 1.704-l(b)(2)(iv)(i) and not otherwise taken into account shall be treated as an expense; (ii) any item of income, gain, deduction or loss taken into account in the determination of Liquidity Event Net Income or Liquidity Event Net Loss shall not be taken into account; and (iii) such adjustments as may be necessary to conform the computation of income or loss in accordance with GAAP to the requirements relating to the maintenance of capital accounts under Regulations § 1,704-l(b)(2)(iv) and any provisions of this Agreement related thereto. The items included in the calculation of Net Loss shall be determined in accordance with <u>ARTICLE VI</u> and shall not include any items specially allocated under <u>Section</u> <u>6.2</u>, <u>Section</u> <u>6.3, Section</u> <u>6.4, Section</u> <u>6.7</u> or <u>Section</u> <u>6.8</u>. Once an item of income, gain, loss or deduction that has been included in the initial computation of Net Loss is subjected to a Regulatory Allocation or a Curative Allocation, Net Income, or Net Loss, whichever the case may be, shall be recomputed without regard to such item.

"**Nonrecourse Built-in Gain**" shall mean, with respect to any Contributed Properties that are subject to a mortgage or pledge securing a Company Nonrecourse Liability, the amount of any taxable gain that would be allocated to the Members pursuant to <u>Section</u> <u>6.2(a)</u> and <u>Section</u> <u>6.2(b)</u> if such properties were disposed of in a taxable transaction in full satisfaction of such liabilities and for no other consideration.

"**Partnership Representative**" shall have the meaning set forth in <u>Section</u> <u>11.3(a)</u>.

"**Permitted Transferee**" shall mean a transferee or assignee of a Membership Interest permitted pursuant to the ROFR Agreement.

"**Person**" shall mean any natural person, business trust, corporation, partnership, limited liability company, joint stock company, proprietorship, association, trust, joint venture, unincorporated association or any other legal entity of whatever nature.

"**Preferred Interest Conversion Right**" shall have the meaning set forth in Section 5.13.

"**Previous Operating Agreement**" shall have the meaning set forth in the Preamble.

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"**Proceeding**" shall mean any threatened, pending or completed action, suit, appeal or other proceeding of any nature, whether civil, criminal, administrative or investigative, whether formal or informal, and whether brought by or in the right of the Company, a class of its Members or security holders or otherwise.

"**Recapture Income**" shall mean any gain recognized by the Company (computed without regard to any adjustment required by section 734 or 743 of the Code) upon the disposition of any property or asset of the Company, which gain is characterized as ordinary income under the Code because it represents the recapture of deductions previously taken with respect to such property or asset.

"**Regulations**" shall mean the Income Tax Regulations promulgated under the Code, as amended from time to time and any corresponding provisions of any succeeding regulations.

"**Regulatory Allocation**" shall mean an allocation of income, gain, loss or deduction pursuant to the provisions of <u>Section</u> <u>6.2</u>.

"**Remaining Balance**" shall have the meaning set forth in <u>Section</u> <u>5.13</u>.

"**Requisite Holders**" shall have the meaning set forth in the Group Inc. Col.

"**Residual Gain or Residual Loss**" shall mean any item of gain or loss, as the case may be, of the Company recognized for federal income tax purposes resulting from a sale, exchange or other disposition of a Contributed Property or an Adjusted Property, to the extent such item of gain or loss is not allocated pursuant to <u>Section</u> <u>6.5(b)(i)(x)</u> and <u>Section</u> <u>6.5(b)(ii)(x)</u> to eliminate Book-Tax Disparities.

"**Restricted Stock Agreement**" shall mean an agreement between Group Inc. and an individual who was a member of Members LLC prior to the Liquidation pursuant to which, *inter alia,* Group Inc. has the right to repurchase shares of Corresponding Common Stock held by such individual under certain circumstances.

"**Revenue Procedure**" shall have the meaning set forth in <u>Section</u> <u>11.4(c)</u>.

"**Reviewed Year**" shall have the meaning assigned thereto in section 6225(d)(1) of the Code, as amended by the BBA.

"**ROFR Agreement**" shall mean the Right of First Refusal and Co-Sale Agreement dated April 13, 2022 among Group Inc., certain of its shareholders, and CSH USVI, as further amended from time to time.

"**Series A Preferred Units**" shall have the meaning set forth in Section 5.1(a).

"**Series B Preferred Units**" shall mean the Series B-l Preferred Units and the Series B-2 Preferred Units.

"**Series B-l Preferred Units**" shall have the meaning set forth in Section 5.1(a).

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"**Series B-2 Preferred Units**" shall have the meaning set forth in Section 5.1(a).

"**Stock Consideration**" shall mean, with respect to any Acquisition Agreement, the number of shares of Corresponding Common Stock (if any) deliverable by Group Inc. or the Company pursuant to such Acquisition Agreement on or after the applicable Closing Date.

"**Subsidiary**" shall mean, with respect to any specified Person, any other Person not less than a majority of the overall economic equity in which is beneficially owned, directly or indirectly through one of more intermediaries, by, and which, directly or indirectly through one or more intermediaries, is Controlled by, such specified Person.

"**Taxable Income**" or "**Taxable Loss**" shall mean, with respect to each Taxable Year or other period, an amount equal to the Company's taxable income or loss for such Taxable Year or other period determined on the accrual method of accounting and in accordance with section 703(a) of the Code (for this purpose, all items of income, gain, loss or deduction required to be separately stated pursuant to section 703(a)(1) of the Code shall be included in such taxable income or loss).

"**Taxable Year**" shall mean the calendar year.

"**Taxing Jurisdiction**" shall mean the United States federal government and any state, local, or foreign government that collects tax, interest or penalties, however designated, on any Member's share of the income or gain attributable to the Company.

"**Transfer**" shall mean to sell, assign, transfer, give, donate, pledge, hypothecate, create a security interest in, place in trust or otherwise voluntarily or involuntarily dispose of or otherwise encumber, and the correlative terms "**Transferred**" and "**Transferring**" shall have corresponding definitions.

"**Units**" shall mean the Common Units, the Series A Preferred Units and the Series B Preferred Units.

"**Unrealized Gain**" attributable to any item of Company property shall mean, as of any date of determination, the excess, if any, of (a) the fair market value of such property as of such date, over (b) the Carrying Value of such property as of such date (prior to any adjustment to be made pursuant to <u>Section</u> <u>5.7</u> as of such date).

"**Unrealized Loss**" attributable to any item of Company property shall mean, as of any date of determination, the excess, if any, of (a) the Carrying Value of such property as of such date (prior to any adjustment to be made pursuant to <u>Section</u> <u>5.7</u> as of such date), over (b) the fair market value of such property as of such date.

"**WBI**" shall mean WBI LP, a Delaware limited partnership, as the holder of the Company Preferred Interest, or any transferee of the Company Preferred Interest.

"**Yield**" shall mean, with respect to the Company Preferred Interest, the amount accruing on a daily basis at a rate of the federal funds rate on such date plus (a) through and including February 28, 2023, 5% per annum, and (b) beginning on (and effective as of) March 1, 2023, 3.5% per annum, in each case on the Capital Account attributable to the Company Preferred Interest as on such date (without adjustment for any allocation pursuant to <u>Section</u> <u>6.1(a)(i)(F)</u> for such Fiscal Year).

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Section 1.2 <u>Formation.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company was formed pursuant to the Act upon the filing of a Certificate of Formation with the Secretary of State of the State of Delaware on February 5, 2019 (the "Certificate"). The Company was formed as a limited liability company managed by the Managing Member or managers or officers designated by the Managing Member under the laws of the State of Delaware, upon the terms and conditions hereinafter set forth. The parties intend that the Company shall be taxed as a partnership. The Members shall execute or cause to be executed all necessary certificates and documents, and shall make all such filings and recordings, and shall do all other acts as may be necessary or appropriate from time to time to comply with all requirements for the formation, continued existence and operation of a limited liability company in the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement is intended to serve as a "limited liability company agreement" as such term is defined in § 18-101(7) of the Act. This Agreement is subject to, and governed by, the Act and the Certificate. In the event of a direct conflict between the provisions of this Agreement and the mandatory provisions of the Act or the provisions of the Certificate, such provisions of the Act or the Certificate, as the case may be, will be controlling to the extent required thereby.

Section 1.3 <u>Company Name and Registered Agent</u>. The Company shall do business under the name Clear Street Holdings LLC and such other name as the Managing Member may determine from time to time. The Managing Member shall promptly notify the Members of any change of name of the Company. The initial registered agent and registered office for the Company in the State of Delaware is United Corporate Services, Inc., 874 Walker Road, Suite C, Dover, Delaware 19904. The registered office and the registered agent may be changed from time to time by action of the Managing Member by filing notice of such change with the Secretary of State of the State of Delaware. The Managing Member will promptly notify the Members of any change of the registered office or registered agent.

Section 1.4 <u>Term</u>. The Company commenced operating as of the date the Certificate was filed with the Secretary of the State of Delaware, and, unless earlier terminated or dissolved pursuant to <u>Section</u> <u>10.1</u>, the Company shall have a perpetual existence.

Section 1.5 <u>Business of the Company</u>. The Company may carry on any lawful business, purpose or activity for which limited liability companies may be organized under the Act. The Company shall possess and may exercise all the powers and privileges granted by the Act or by any other law, together with any powers incidental thereto, so far as such powers and privileges are necessary or convenient to the conduct, promotion or attainment of the business, purposes or activities of the Company.

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Section 1.6 <u>Principal Place of Business</u>. The principal place of business of the Company shall be 150 Greenwich Street, 45<sup>th</sup> Floor, New York, NY 10006. At any time, the Company may change the location of its principal place of business. The Company may also have offices at such other places within or outside of the State of Delaware as the Managing Member may from time to time determine.

Section 1.7 <u>Partition</u>. No Member, nor any successor-in-interest to any Member, shall have the right, while this Agreement remains in effect, to have the property of the Company partitioned, or to file a complaint or institute any Proceeding at law or in equity to have the property of the Company partitioned, and each of the Members, on behalf of itself and its successors, representatives and assigns, hereby irrevocably waives any such right.

Section 1.8 <u>Fiscal Year</u>. The fiscal year of the Company ("**Fiscal Year**") shall begin on January 1 and end on December 31 of each calendar year.

Section 1.9 <u>Title to Company Property</u>. All property owned by the Company, whether real or personal, tangible or intangible, shall be deemed to be owned by the Company, and no Member individually shall have any interest in such property. Title to all such property may be held in the name of the Company or a designee, which designee may be a Member or an Affiliate of a Member.

ARTICLE II

MEMBERS

Section 2.1 <u>Admission of Members</u>. <u>Exhibit A</u> sets forth the Members and the respective number and class of Membership Interests that they hold. The Managing Member shall update Exhibit A from time to time as necessary.

Section 2.2 <u>Role of Members</u>. Unless otherwise set forth herein or required by statute, the Members shall have no involvement with the management of the Company.

Section 2.3 <u>Meetings</u>. Meetings of the Members, for any purpose or purposes, unless otherwise prescribed by statute, may be called by the Managing Member, which shall designate the place for such meeting of the Members. If no designation is made, the place of meeting shall be the principal office of the Company. Members may participate in meetings by means of telephone conference or similar communications equipment that allows all persons participating in the meeting to hear each other, and such participation in a meeting shall constitute presence in person at the meeting. If all the participants are participating by telephone conference or similar communications equipment, the meeting shall be deemed to be held at the principal place of business of the Company.

Section 2.4 <u>Record Date</u>. For the purpose of determining Members entitled to notice of, or to vote at, any meeting of Members or any adjournment of the meeting, or Members entitled to receive payment of any distribution, or to make a determination of Members for any other purpose, the date on which notice of the meeting is mailed or the date on which the resolution declaring the distribution or relating to such other purpose is adopted, as the case may be, shall be the record date for the determination of Members.

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Section 2.5 <u>Quorum</u>. A meeting of Members of the Company duly called shall not be organized for the transaction of business unless a quorum is present. The presence (represented in person or by proxy) of a Majority-In-Interest of the Members shall constitute a quorum at any meeting of Members.

ARTICLE III

MANAGEMENT

Section 3.1 <u>Management of the Company Generally</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise set forth herein, the business and affairs of the Company shall be managed by the Managing Member or officers designated by the Managing Member. The Managing Member shall elect, direct and remove officers of the Company under <u>ARTICLE IV</u>. No Member shall have any power or authority to bind the Company unless the Member has been expressly authorized by the Managing Member to act as an agent of the Company. Except for situations in which the approval of one or more Members is expressly required by this Agreement or by non-waivable provision of the Act, the Managing Member shall have full and complete authority, power and discretion to direct, manage and control the business, affairs and properties of the Company, to make all decisions regarding those matters and to perform any and all other acts or activities customary or incident to the management of the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If and to the extent that any action proposed to be taken by the Managing Member, other than the redemption of the Company Preferred Interest pursuant to the terms of <u>Section</u> <u>5.13,</u> would, if taken by a Delaware corporation, require under the Delaware General Corporation Law the consent of the board of directors of such corporation, such action by the Managing Member shall require the consent of the board of directors of Group Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any action taken by the Managing Member appointing any officer of the Company pursuant to <u>Section</u> <u>4.2</u>, permitting any Capital Contribution with respect to the Company Preferred Interest pursuant to <u>Section</u> <u>5.10(c)</u>, or permitting the dissolution of the Company pursuant to <u>Section</u> <u>10.1(a)</u> shall require the consent of the board of directors of Group Inc.

Section 3.2 <u>Managing Member</u>. The Managing Member shall not be permitted to resign and, until such time as all of the Common Units are held by Group Inc., may not be removed without the prior written consent of the Requisite Holders.

Section 3.3 <u>Authority and Certain Powers of the Managing Member</u>. Without limiting the generality of <u>Section</u> <u>3.1</u> above, but subject to the terms of this Agreement and any other agreement to which the Company may be bound, the Managing Member shall have power and authority, on behalf of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To elect, direct and remove officers of the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To set and approve changes in annual compensation for all officers, including salary and bonus levels, and to enter into employment and related agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To approve an annual operating budget and capital expenditure budget;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To approve any decision to alter the nature of the Company's business, including material changes in its product line, customer base, distribution channels, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To merge, consolidate or sell substantial assets or equity interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To issue additional equity interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) To make distributions and to repurchase equity interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To approve any transactions with any Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To approve any acquisition or divestiture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) To do and perform all acts as may be necessary or appropriate to the conduct of the Company's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) To purchase, hold, sell, exchange, Transfer and otherwise acquire and dispose of and exercise all rights, powers, privileges and other incidents of ownership or possession with respect to real and personal property, whether tangible or intangible, held by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) To purchase liability and other insurance to protect the Company's property and business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) To borrow money from banks, other lending institutions, any of the Members, or Affiliates of any of the Members on such terms as they deem appropriate, and in connection therewith, to hypothecate, encumber and grant security interests in the assets of the Company to secure repayment of the borrowed sums;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) To guarantee the payment and performance of all indebtedness and other obligations related to any Subsidiary, on such terms as they deem appropriate, and in connection therewith, to hypothecate, encumber and grant security interests in and liens on the assets of the Company, and pledge its membership interests in any Subsidiary (including all rights, title and interest represented thereby), to secure such guarantee;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) To execute on behalf of the Company all instruments and documents, including checks, drafts, notes and other negotiable instruments, mortgages or deeds of trust, security agreements, financing statements, documents providing for the acquisition, mortgage or disposition of the Company's property, assignments, bills of sale, leases, partnership agreements, operating agreements of other limited liability companies and any other instruments or documents necessary, in the opinion of the Managing Member, to the business of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) To invest any of the Company funds temporarily (by way of example but not limitation) in time deposits, short-term governmental obligations, commercial paper, or other investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) To employ accountants, legal counsel, managing agents, or other experts or consultants to perform services for the Company, to define their duties and authority, which may include authority granted to the Members under the Act, and to compensate them from Company funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) To make tax, regulatory, and other filings, or render periodic reports to governmental or other agencies having jurisdiction over the business or assets of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) To approve the making of the election described in Code section 6226(a), as amended by the BBA, with respect to any Imputed Underpayment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) To settle, defend, prosecute, or otherwise take any actions on behalf of the Company with respect to any lawsuit or other legal action; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) To enter into any and all other agreements on behalf of the Company, with any other Person for any purpose, in such forms as the Managing Member may approve.

Section 3.4 <u>Compensation</u>. Without limiting <u>Section</u> <u>3.5</u>, the Managing Member shall not receive compensation from the Company for acting as such.

Section 3.5 <u>Expenses of Group Inc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall pay to Group Inc. such amounts as are necessary for Group Inc. to pay its corporate expenses (or reimburse Group Inc. for the payment of such expenses), including but not limited to director's fees, auditors', fees, legal fees, and premiums with respect to directors and officers insurance when and as requested by Group Inc. upon presentation of proper documentation thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The corporate expenses payable pursuant to this Section 3.6 shall not include any federal, state, local or foreign corporate income tax of Group Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The corporate expenses payable pursuant to this Section 3.6 shall not limit or duplicate any amount that Group Inc. is entitled to receive from the Company, any Subsidiary or Affiliate of the Company, or any third party under any cost sharing agreement or right of indemnification or otherwise.

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ARTICLE IV

OFFICERS

Section 4.1 <u>Officers Generally</u>. The officers of the Company shall be a Chief Executive Officer (the "**Chief Executive Officer**") and such other officers as may be elected in accordance with the provisions of <u>Section</u> <u>4.2</u>. Any number of offices may be held by the same Person. Each such officer shall hold office until a successor has been selected and qualified or until such officer's earlier death, resignation or removal.

Section 4.2 <u>Subordinate Officers, Committees and Agents</u>. The Managing Member may from time to time elect such other officers and appoint such committees, employees or other agents as the business of the Company may require, including one or more assistant secretaries, and one or more assistant treasurers, each of whom shall hold office for such period, have such authority, and perform such duties as are provided in this Agreement, or as the Managing Member may from time to time determine. The Managing Member may delegate to any officer or committee the power to elect subordinate officers and to retain or appoint employees or other agents, or committees thereof, and to prescribe the authority and duties of such subordinate officers, committees, employees or other agents.

Section 4.3 <u>Resignation</u>. Any officer may resign at any time upon written notice to the Company. The resignation shall be effective upon receipt thereof by the Company or at such subsequent time as may be specified in the notice of resignation or required by an applicable employment agreement.

Section 4.4 <u>Removal</u>. Any officer or agent of the Company may be removed by the Managing Member with or without cause. The removal of any officer or agent shall be without prejudice to the contract rights, if any, of any Person so removed. Election or appointment of an officer or agent shall not of itself create contract rights.

Section 4.5 <u>Vacancies</u>. A vacancy in any office because of death, resignation, removal, disqualification, or any other cause may be filled by the Managing Member or by the officer or committee to which the power to fill such office has been delegated pursuant to <u>Section</u> <u>4.2</u>, as the case may be.

Section 4.6 <u>Authority</u>. Except to the extent provided by the Managing Member or applicable law to the contrary, any officer shall have the same powers as they would have if the Company were a corporation organized under and subject to the DGCL and such officer were an officer of a Delaware corporation.

Section 4.7 <u>The Chief Executive Officer</u>. The Chief Executive Officer shall be Chris Pento. The Managing Member may remove and replace the Chief Executive Officer in its sole discretion. The Chief Executive Officer shall, unless specified otherwise by the Managing Member, have general authority over the business and operations of the Company in the ordinary course, subject, however, to the provisions of this Agreement, the discretion of the Managing Member, and the control of the Members as required by law. The Chief Executive Officer shall,

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unless specified otherwise by the Managing Member, perform all duties incident to the office of chief executive officer and such other duties as from time to time may be assigned by the Managing Member. The Chief Executive Officer shall have authority to sign, execute, and acknowledge, in the name of the Company, deeds, mortgages, bonds, contracts or other instruments, unless the signing and execution thereof is expressly delegated by the Managing Member, or by this Agreement, to some other officer or agent.

Section 4.8 <u>Fiduciary Duties</u>. To the maximum extent permitted by applicable law, each officer of the Company, in his or her capacity as an officer, shall owe the same fiduciary duties to the Company and its Members as if the Company were a corporation organized under and subject to the DGCL, such officer was an officer of a Delaware corporation, and the Members were stockholders under the DGCL.

ARTICLE V

CAPITALIZATION

Section 5.1 <u>Membership Interests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Membership Interests of the Company shall consist of (i) the "**Company Participating Interest**", (ii) the "**Company Preferred Interest**"; (hi) such number of Common Units (the "**Common Units**") as may be issued from time to time, which shall be designated either "**Class A Units**," "**Class C Units**," or "**Class D Units**;" *provided, however,* that the aggregate number of Class A Units, Class C Units and Class D Units outstanding at any time shall not exceed the aggregate number of shares of Corresponding Common Stock outstanding at such time or subject to issuance under the Exchange Agreement; (iv) and such number of Preferred Units as may be issued from time to time, which shall be designated as "**Series A Preferred Units**," "**Series B-l Preferred Units**" or "**Series B-2 Preferred Units**;" *provided, however,* that (x) aggregate number of Series A Preferred Units shall not exceed the aggregate number of shares of Corresponding Series A Preferred Stock outstanding, (y) the aggregate number of Series B-l Preferred Units outstanding at any time shall not exceed the aggregate number of shares of Corresponding Series B-l Preferred Stock, outstanding at such time and (z) the number of Series B-2 Units outstanding at any time shall not exceed the aggregate number of outstanding shares of Corresponding Series B-2 Preferred Stock outstanding at such time. Ownership of the outstanding Membership Interests as of the Effective Date is as set forth on <u>Exhibit A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon Group Inc.'s issuance of each share of Corresponding Series B-l Preferred Stock, the Company shall issue one Series B-l Preferred Unit to Group Inc. in exchange for a Capital Contribution by Group Inc. equal to the net proceeds thereof received by Group Inc. upon issuance of such share of Corresponding Series B-l Preferred Stock.

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Section 5.2 <u>Management Options, Rights to Units, and Restricted Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon Group Inc.'s issuance of each share of restricted or unrestricted common stock of Group Inc. (other than pursuant to (i) the exercise of an option to acquire a share of Group Inc. common stock, as DESCRIBED in Section 5.2(a) below, (ii) the settlement of a Group Inc. restricted stock unit or (iii) the Group Inc. Restricted Stock Plan, as described in Section 5.2(b) below), the Company shall issue automatically and without any action be deemed to one restricted or unrestricted (respectively) Series C Unit to Group Inc. In addition, if Group Inc. issues such share of common stock in exchange for consideration, then the issuance of such Series C Unit to Group Inc. shall be in exchange for a Capital Contribution by Group Inc. equal to the net proceeds received by Group Inc. upon issuance of such share of Group Inc. common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Whenever Group Inc. issues either an option to acquire a share of its common stock pursuant to a Group Inc. Option Plan or a Group Inc. restricted stock unit pursuant to a Group Inc. Restricted Stock Plan, the Company shall automatically and without any action be deemed to issue to Group Inc. an option to acquire one Class D Unit or a right to receive upon vesting a Class D Unit, respectively, on the same terms. Upon exercise of any option to acquire a share of Group Inc. common stock, Group Inc. shall exercise its option to acquire a Class D Unit on the same terms. Upon settlement of a Group Inc. restricted stock unit in a share of Group Inc. common stock, the right to receive a Class D Unit shall be settled, on the same terms, for a Class D Unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Whenever Group Inc. issues a share of restricted Group Inc. common stock pursuant to a Group Inc. Restricted Stock Plan after the Effective Date, the Company shall automatically and without any action be deemed to issue to Group Inc. a restricted Class D Unit that vests in accordance with the same terms.

Section 5.3 <u>Conversion of Preferred Units</u>. Upon the conversion of any shares of Corresponding Series B-l Preferred Stock or Corresponding Series B-2 Preferred Stock into shares of Corresponding Common Stock, the Company shall convert an equal number of Series B-l Preferred Units or Series B-2 Preferred Units, as the case may be, into Class C Units.

Section 5.4 <u>Capital Accounts</u>. The Company shall maintain a separate Capital Account with respect to each Unit, Company Participating Interest or Company Preferred Interest held by each Member determined and adjusted in accordance with the rules of Regulations § 1.704-l(b)(2)(iv). All such Capital Accounts with respect to any Member shall constitute a single capital account for federal income tax purposes.

Section 5.5 <u>Adjustments to Capital Accounts</u>. The Capital Account with respect to each Unit, Company Participating Interest or Company Preferred Interest held by each Member shall be credited with (i) the amount of cash and the Net Agreed Value of all property contributed to the Company with respect thereto; (ii) the distributive share of Net Income, Liquidity Event Net Income and Regulatory Allocations, Forfeiture Allocations and Curative Allocations in the nature of income or gain, allocated with respect thereto pursuant to <u>ARTICLE VI</u>; and (iii) with respect to any Common Unit obtained pursuant to the exercise of an option or the vesting of a right to receive a Class D Unit issued pursuant to <u>Section</u> <u>5.2(a)</u> or with respect

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to any restricted Class D Unit issued pursuant to <u>Section</u> <u>5.2(c),</u> any amounts included in the compensation income of the relevant Member with respect to such Common Unit pursuant to section 83 of the Code. The Capital Account with respect to each Unit, Company Participating Interest or Company Preferred Interest held by each Member shall be charged with (x) the amount of cash, and the Net Agreed Value of all other property, distributed or deemed to have been distributed with respect thereto pursuant to this Agreement; and (y) the distributive share of Net Loss, Liquidity Event Net Loss, Regulatory Allocations, Forfeiture Allocations and Curative Allocations in the nature of expenses or losses, allocated with respect thereto pursuant to <u>ARTICLE VI</u>.

Section 5.6 <u>Computation of Company Items</u>. For purposes of computing the amount of any item of income, gain, loss or deduction to be reflected in the Members' Capital Accounts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided in Regulations § 1.704-1(b)(2)(iv)(m), the computation of all items of income, gain, loss and deduction shall be made without regard to any election under section 754 of the Code which may be made by the Company and, as to those items described in section 705(a)(1)(B) or 705(a)(2)(B) of the Code, without regard to the fact that such items are not includable in gross income or are neither currently deductible nor capitalized for federal income tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any income, gain or loss attributable to the taxable disposition of any Company property shall be determined as if the adjusted basis of such property as of such date of disposition were equal in amount to the Company's Carrying Value with respect to such property as of such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In accordance with the requirements of section 704(b) of the Code, any deductions for depreciation, cost recovery or amortization attributable to any Contributed Property shall be determined as if the adjusted tax basis of such property on the date it was acquired by the Company were equal to the Agreed Value of such property. Upon an adjustment pursuant to <u>Section</u> <u>5.7</u> to the Carrying Value of any Company property subject to depreciation, cost recovery or amortization, any further deductions for such depreciation, cost recovery or amortization attributable to such property shall be determined (i) as if the adjusted tax basis of such property were equal to the Carrying Value of such property immediately following such adjustment and (ii) using a rate of depreciation, cost recovery or amortization derived from the same method and useful life (or, if applicable, the remaining useful life) as is applied for federal income tax purposes; *provided, however,* that if the asset has a zero adjusted basis for federal income tax purposes, depreciation, cost recovery or amortization deductions shall be determined using any reasonable method that the Managing Member may adopt; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of allocating Net Income, Net Loss, Liquidity Event Net Income or Liquidity Event Net Loss in any Fiscal Year in which the Membership Interests of the Members vary (whether by virtue of transfers of Units or the issuance of Units), the change in the relative Membership Interests of the Members shall be deemed to occur on the first day of the month in which the event giving rise to such change occurs.

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Section 5.7 <u>Adjustment to Book Values</u>. The Carrying Value of Company property and the Capital Accounts of the Members shall be adjusted in accordance with the provisions of Regulations § 1.704-l(b)(2)(iv)(f) in the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If a new or existing Member contributes cash or other property (other than a *de minimis* amount) to the Company as consideration for an interest in the Company other than as provided in <u>Section</u> <u>5.7(b)</u>, the Capital Accounts of all Members and the Carrying Value of each Company property immediately prior to such issuance shall be adjusted upward or downward, as the case may be, to reflect any Unrealized Gain or Unrealized Loss attributable to such Company property, as if such Unrealized Gain or Unrealized Loss had been recognized on an actual sale of each such Company property in a Liquidity Event immediately prior to such issuance and had been allocated to the Members at such time pursuant to <u>ARTICLE VI</u>. In determining such Unrealized Gain or Unrealized Loss, the fair market value of Company property shall be determined by the Managing Member using such reasonable method of valuation as it may adopt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any Series B Preferred Unit is converted into a Class C Unit pursuant to <u>Section</u> <u>5.3</u>, the Capital Accounts of all Members and the Carrying Value of each Company property immediately after such exercise shall be adjusted upward or downward, as the case may be, to reflect any Unrealized Gain or Unrealized Loss attributable to such Company property, as if such Unrealized Gain or Unrealized Loss had been recognized on an actual sale of each such Company property in a Liquidity Event immediately after to such exercise and had been allocated to the Members at such time pursuant to <u>ARTICLE VI</u>. In determining such Unrealized Gain or Unrealized Loss, the fair market value of Company property shall be determined by the Managing Member using such reasonable method of valuation as it may adopt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If there is a liquidation of the Company or if there is a distribution of cash or other property (other than a *de minimis* amount) by the Company to a retiring or continuing Member as consideration for an interest in the Company and the fair market value of Company property, based on the amount of such distribution and the interest redeemed differs from the Carrying Value of such Company property, the Capital Accounts of all Members and the Carrying Value of each item of Company property immediately prior to such distribution shall be adjusted upward or downward, as the case may be, to reflect any Unrealized Gain or Unrealized Loss attributable to such Company property, as if such Unrealized Gain or Unrealized Loss had been recognized in an actual sale of each such Company property in a Liquidity Event immediately prior to such distribution and had been allocated to the Members at such time pursuant to <u>ARTICLE VI</u>. In determining such Unrealized Gain or Unrealized Loss, the fair market value of Company property shall be determined by the Managing Member using such reasonable method of valuation as it may adopt.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In connection with the issuance of an interest in the Company as consideration for the provision of services to or for the benefit of the Company by an existing Member acting in a Member capacity or by a new Member acting in a Member capacity or in anticipation of becoming a Member, the Capital Accounts of all Members and the Carrying Value of each Company property immediately prior to such issuance shall be adjusted upward or downward, as the case may be, to reflect any Unrealized Gain or Unrealized Loss attributable to such Company property, as if such Unrealized Gain or Unrealized Loss had been recognized on an actual sale of each such Company property in a Liquidity Event immediately prior to such issuance and had been allocated to the Members at such time pursuant to <u>Section</u> <u>6.1</u>. In determining such Unrealized Gain or Unrealized Loss, the fair market value of Company property shall be determined by the Managing Member using such reasonable method of valuation as it may adopt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Carrying Value of each Company asset shall be increased (or decreased) to reflect any adjustments to the adjusted tax basis of such asset pursuant to Code section 734(b) or Code section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Regulations § 1.704-l(b)(2)(iv)(m) and <u>Section</u> <u>6.2(g)</u>; *provided, however,* that no adjustment shall be made pursuant to this <u>Section</u> <u>5.7(e)</u> if an adjustment is made pursuant to <u>Section</u> <u>5.7(d)</u> above in connection with the same transaction.

In each such case, if any Series B Preferred Unit is outstanding upon the occurrence of an event described in the foregoing paragraphs of this <u>Section</u> <u>5.7</u>, the Company shall adjust the Capital Accounts of all Members and the Carrying Values of each Company property to properly reflect any change in the fair market value of such outstanding Series B Preferred Unit in accordance with Regulations § 1.704-l(b)(2)(iv)(h)(2).

Section 5.8 <u>Transferee Succeeds to Capital Account of Transferor</u>. A transferee of a Membership Interest shall succeed to a pro rata portion of the Capital Account of the transferor relating to the Membership Interest so transferred.

Section 5.9 <u>No Obligation to Restore Negative Capital Account</u>. No Member shall have any obligation to restore any negative balance in its Capital Account (including in connection with the dissolution and liquidation of the Company).

Section 5.10 <u>Capital Contributions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [Intentionally Left Blank],

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as provided in <u>Section</u> <u>5.1(b)</u>, <u>Section</u> <u>5.1(c)</u>, <u>Section</u> <u>5.10(c)</u> and <u>Section</u> <u>5.14(b)</u>, no Member shall be required or permitted to contribute any capital to the Company in excess of the amounts contributed prior to the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The holder of the Company Preferred Interest may make no additional contributions to its Capital Account unless agreed by such holder and the Managing Member and the Board of Directors of Group Inc. (including one Series B Preferred Director (as defined in the Group Inc. Col)).

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Section 5.11 <u>No Interest on or Return of Capital</u>. Except as otherwise may be expressly provided herein, no Member shall be entitled to interest on any Capital Contribution or Capital Account, no Member shall have the right to demand or receive the return of all or any part of any Capital Contribution or Capital Account, and no Member shall be personally liable for the return of the Capital Contribution of any other Member. Each Member shall look solely to the Company's assets for the return of its Capital Contribution.

Section 5.12 <u>Repurchase of Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Whenever Group Inc. repurchases any share of Corresponding Common Stock pursuant to a Restricted Stock Agreement, the Company shall repurchase a Class C Unit from Group Inc. on the same terms, grossed up for the amount of federal, state and local tax that would be payable by Group Inc. on the redemption of the corresponding Class C Units, as if the redeemed Common Units were the only Membership Interest held by Group Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Whenever an option to acquire Group Inc. common stock issued pursuant to a Group Inc. Option Plan lapses, a restricted stock unit issued pursuant to a Group Inc. Restricted Stock Plan is forfeited, or a share of restricted stock issued pursuant to the Group Inc. Restricted Stock Plan is repurchased, the corresponding option to acquire a Class D Unit shall lapse, the corresponding right to receive upon vesting a Class D Unit shall be forfeited, or the Company shall repurchase the corresponding restricted Class D Unit from Group Inc. (as applicable) on the same terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall redeem the Series A Preferred Units at the same time and in the same number that Group Inc. redeems shares of the Corresponding Series A Preferred Stock. To the extent that Group Inc. pays to the holders of the Corresponding Series A Preferred Stock redemption consideration that includes amounts for accrued but unpaid dividends, the Company shall make a distribution to the holder of the Series A Preferred Units in an amount equal to the amount of the allocations required to be made to such holder pursuant to <u>Section</u> <u>6.1(a)(i)(C)</u> and <u>Section</u> <u>6.1(a)(iii)(B)</u> with respect to such dividends, and the Company shall make a further distribution to the holder of the Series A Preferred Units in an amount equal to the remainder of such redemption consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company shall redeem the Series B-l Preferred Units or the Series B-2 Preferred Units at the same time and in the same number that Group Inc. redeems shares of the Corresponding Series B-l Preferred Stock or Corresponding Series B-2 Preferred Stock, as the case may be. To the extent that Group Inc. pays to the holders of the Corresponding Series B Preferred Stock redemption consideration that includes amounts for accrued but unpaid dividends, the Company shall make a distribution to the holder of the Series B Preferred Units in an amount equal to the amount of the allocations required to be made to such holder pursuant to <u>Section</u> <u>6.1(a)(i)(I)</u> and <u>Section</u> <u>6.1(a)(iii)(G)</u> with respect to such dividends, and the Company shall make a further distribution to the holder of the Series B Preferred Units in an amount equal to the remainder of such redemption consideration.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall not redeem, repurchase, or otherwise acquire from Group Inc. any Class C Units, Class D Units, Series A Preferred Units, or Series B Preferred Units, unless substantially simultaneously therewith Group Inc. redeems, repurchases or otherwise acquires shares of the Corresponding Common Stock, shares of the Corresponding Series A Preferred Stock or shares of its Corresponding Series B Preferred Stock, as the case may be, for the same price per share.

Section 5.13 <u>Company Preferred Interest</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of any date, an amount equal to the Company Preferred Balance, plus the Aggregate Yield, and less any amount paid pursuant to <u>Section</u> <u>5.13(b)</u>, <u>Section</u> <u>5.13(c)</u>, <u>Section</u> <u>5.13(d)</u>, or <u>Section</u> <u>5.13(e)</u> shall be referred to as the "**Remaining Balance**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to clause (c) below, WBI shall have the right to require the Company to distribute with respect to the Company Preferred Interest an amount equal to (i) $3 8,000,000 at any time on or after April 13, 2023; and (ii) all of the Remaining Balance at any time on or after April 13, 2024, with each such distribution being made at such time(s) as the Chief Executive Officer determines is reasonably appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding clause (b) above, following receipt by the Company of a request from WBI for the repayment of a portion of the Remaining Balance, the Company shall be required, except in accordance with clause (e) below or if the Company receives written consent from the Requisite Holders, to defer such portion (if any) of any such repayments as is necessary to ensure that the Company would be in compliance, following such repayment, with the financial covenants applicable to the Company or any of its Subsidiaries from time to time, based on an assumed amount of Company indebtedness for borrowed money of $230,000,000 (or, if applicable, such greater dollar amount as is equal to the actual amount of the Company indebtedness).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If and to the extent that the Company defers all or a portion of any such repayment pursuant to clause (c) above (the amount deferred, the "**Deferred Payment Amount**"), then WBI shall have the right, at its discretion exercisable at any time until the Company repays the Deferred Payment Amount, (i) to demand the distribution of such Deferred Payment Amount at any time that such distribution complies with the terms set forth in clause (c) above; or (ii) to contribute the portion of the Company Preferred Interest representing the Deferred Payment Amount to Group Inc. in exchange for such number of shares of Corresponding Series B-1 Preferred Stock as is equal to (i) the Deferred Payment Amount, divided by (ii) the Applicable Original Issue Price (as defined in the Group Inc. Col) of the Corresponding Series B 1 Preferred Stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Corresponding Series B-1 Preferred Stock). This conversion right shall be referred to as the "**Preferred Interest Conversion Right**." In the event that there is any Remaining Balance on April 13, 2026, the Company shall provide WBI with written notice within 7 days after such date notifying WBI of the amount of the Remaining Balance and WBI shall elect, by providing written notice to the Company within 7 days after receipt of such notice, either: (i) to have the Remaining Balance be distributed to WBI by the Company within 7 days

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after receipt of such notification (a "Remaining Balance Redemption") or (ii) to exercise the Preferred Interest Conversion Right. If WBI does not make a timely election pursuant to the preceding sentence, then WBI shall be deemed to have elected clause (i) in the preceding sentence. If the Remaining Balance Redemption pursuant to an election or deemed election of clause (i) above would cause the Company or its subsidiaries to breach any financial covenants then applicable to the Company or such subsidiaries, then the applicable distribution shall be deferred, but only to the extent of the funds that would cause such breach, and such portion of such deferred distribution shall be distributed by the Company to WBI immediately at such time(s) and to the extent such distribution will not cause a breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall be permitted to accelerate distribution with respect to the Company Preferred Interest (whether the Initial Distribution, the Remaining Balance or any Deferred Payment Amounts) if such acceleration is approved by the Chief Executive Officer and the Board of Directors of Group Inc. (including one Series B Preferred Director (as defined in the Group Inc. Col)).

Section 5.14 <u>Group Inc. Acquisitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the applicable Closing Date with respect to any Acquisition Agreement as to which Group Inc. is the acquiror, the Company shall advance to Group Inc. an amount equal to the Cash Consideration payable by Group Inc. pursuant thereto plus the amount of Group Inc.'s expenses with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the applicable Closing Date with respect to any Acquisition Agreement as to which Group Inc. is the acquiror, Group Inc. shall contribute the equity or assets so acquired to the Company in exchange for (i) cancellation of the advance made by the Company pursuant to Section 5.14(a); and (ii) a number of Class C Units equal to the number of shares of Corresponding Common Stock issued by Group Inc. as Stock Consideration on the Closing Date; and (iii) assumption of Group Inc.'s obligations, if any, under the applicable Acquisition Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On applicable Closing Date with respect to any Acquisition Agreement as to which the Company is the acquiror, the Company shall issue a number of Class C Units equal to the number of shares of Corresponding Common Stock delivered by the Company as Stock Consideration on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that Group Inc. issues any shares of Corresponding Common Stock after the Closing Date with respect to any Acquisition Agreement and pursuant thereto, regardless of whether the acquiror is Group Inc. or the Company, the Company shall issue to Group Inc. a number of Class C Units equal to the number of shares of Corresponding Common Stock so issued.

ARTICLE VI

ALLOCATIONS OF PROFIT AND LOSS

Section 6.1 <u>Allocations Generally</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section</u> <u>6.1(b),</u> and except as otherwise provided in <u>Section</u> <u>6.2</u> or <u>Section</u> <u>6.3</u>, Net Income and Net Loss with respect to each Fiscal Year or other period shall be allocated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Net Income</u>. Net Income shall be allocated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) first, to the Company Participating Interest in an amount equal to the amount to be distributed with respect to such Company Participating Interest and such Fiscal Year pursuant to <u>Section</u> <u>7.1(a)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) then, to the Series A Preferred Units, and to each Series A Preferred Unit equally, an amount equal to the quotient determined by dividing (x) the aggregate amount of Net Loss and Liquidity Event Net Loss previously allocated to such Series A Preferred Units pursuant to <u>Section</u> <u>6.1(a)(ii)(E)</u> and <u>Section</u> <u>6.1(a)(iv)(G)</u> and not offset by prior allocations of Net Income and Liquidity Event Net Income pursuant to this <u>Section</u> <u>6.1(a)(i)(B)</u> or <u>Section</u> <u>6.1(a)(iii)(G)</u>; by (y) 1 minus the Group Inc. Tax Rate applicable to the allocation of Taxable Income that relates to the allocation of Net Income in <u>clause (x)</u>, subject to adjustment for any net operating loss carryovers or capital loss carryovers usable by Group Inc. against such allocation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) then, to the Series A Preferred Units, and to each Series A Preferred Unit equally, until the Series A Preferred Units have been allocated an amount of Net Income and Liquidity Event Net Income equal to the quotient determined by dividing (x) the cumulative amount of dividends payable with respect to the Corresponding Series A Preferred Stock and not previously allocated pursuant to this <u>Section</u> <u>6.1(a)(i)(C)</u> or <u>Section</u> <u>6.1(a)(iii)(B)</u>; by (y) 1 minus the Group Inc. Tax Rate applicable to the allocation of Taxable Income that relates to the allocation of Net Income in <u>clause (x);</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) then, to the Series B-l Preferred Units, and to each Series B-l Preferred Unit equally, and to the Series B-2 Preferred Units, and to each Series B-2 Preferred Unit equally, *pro rata* in accordance to the aggregate liquidation preferences of such Series B-l Preferred Units and Series B-2 Preferred Units, respectively, an amount equal to the quotient determined by dividing (x) the aggregate amount of Net Loss and Liquidity Event Net Loss previously allocated to such Series B-l Preferred Units and Series B-2

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Preferred Units pursuant to <u>Section</u> <u>6.1(a)(ii)(D)</u> and <u>Section</u> <u>6.1(a)(iv)(F)</u> and not offset by prior allocations of Net Income and Liquidity Event Net Income pursuant to this <u>Section</u> <u>6.1(a)(i)(D)</u> or <u>Section</u> <u>6.1(a)(iii)(C)</u>; by (y) 1 minus the Group Inc. Tax Rate applicable to the allocation of Taxable Income that relates to the allocation of Net Income in <u>clause (x)</u>, subject to adjustment for any net operating loss carryovers or capital loss carryovers usable by Group Inc. against such allocation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) then, to the Company Preferred Interest in an amount equal to the aggregate amount of Net Loss and Liquidity Event Net Loss previously allocated to such Company Preferred Interest pursuant to <u>Section</u> <u>6.1(a)(ii)(C)</u> and <u>Section</u> <u>6.1(a)(iv)(E)</u> and not offset by prior allocations pursuant to this <u>Section</u> <u>6.1(a)(i)(E)</u> or <u>Section</u> <u>6.1(a)(iii)(D)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) then, to the Company Preferred Interest in an amount equal to the sum, for each day of such Fiscal Year, of the product of (i) the Capital Account attributable to the Company Preferred Interest as on such date (without adjustment for any allocation pursuant to this <u>Section</u> <u>6.1(a)(i)(F)</u> for such Fiscal Year); and (ii) (x) the quotient determined by dividing the federal funds rate on such date plus five (5) percent by (y) 365;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) then, to each Common Unit pro rata to the amount of the Net Loss and Liquidity Event Net Loss previously allocated to such Common Unit pursuant to <u>Section</u> <u>6.1(a)(ii)(B)</u> and <u>Section</u> <u>6.1(a)(iv)(D)</u> until there has been allocated an amount equal to quotient determined by dividing (x) the aggregate amount of Net Loss and Liquidity Event Net Loss previously allocated to such Common Unit pursuant to <u>Section</u> <u>6.1(a)(ii)(B)</u> or <u>Section</u> <u>6.1(a)(iv)(D)</u> and not offset by prior allocations pursuant to this <u>Section</u> <u>6.1(a)(i)(G)</u> or <u>Section</u> <u>6.1(a)(iii)(F)</u>; by (y) 1 minus the Group Inc. Tax Rate applicable to the allocation of Taxable Income that relates to the allocation of Net Income in <u>clause (x)</u> subject to adjustment for any net operating loss carryovers or capital loss carryovers usable by Group Inc. against such allocations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) then, to each Common Unit pro rata to the amount of the Net Loss and Liquidity Event Net Loss previously allocated to such Common Unit pursuant to <u>Section</u> <u>6.1(a)(ii)(A)</u>, and <u>Section</u> <u>6.1(a)(iv)(C)</u> until there has been allocated an amount equal to the quotient determined by dividing (x) the aggregate amount of Net Loss and Liquidity Event Net Loss previously allocated to such Common Unit pursuant to <u>Section</u> <u>6.1(a)(ii)(A),</u> and <u>Section</u> <u>6.1(a)(iv)(C)</u> and not offset by prior allocations pursuant to this <u>Section</u> <u>6.1(a)(i)(H)</u> or <u>Section</u> <u>6.1(a)(iii)(F)</u>; by (y) 1 minus the Group Inc. Tax Rate applicable to the allocation of Taxable Income that relates to the allocation of Net Income in <u>clause (x)</u> subject to adjustment for any net operating loss carryovers or capital loss carryovers usable by Group Inc. against such allocations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) then, to (1) the Series B-l Preferred Units in accordance to the number of Common Units into which such Series B-l Preferred Units are convertible, and to each Series B-l Preferred Unit equally, (2) the Series B-2 Preferred Units in accordance to the number of Common Units into which such Series B-2 Preferred Units are convertible, and to each Series B-2 Preferred Unit equally, and (3) the Common Units, and to each Common Unit equally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Net Loss</u>. Net Loss with respect to each Fiscal Year or other period shall be allocated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) first, to each Common Unit pro rata until the Capital Account with respect to any Common Unit has been reduced to zero;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) then, to those Common Units that have positive Capital Account balances in proportion to, and to the extent of, those positive Capital Account balances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) then, to the Company Preferred Interest to the extent of its positive Capital Account balance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) then, to the Series B-l Preferred Units, and to each Series B-l Preferred Unit equally, and to the Series B- 2 Preferred Units, and to each Series B-2 Preferred Unit equally, *pro rata* in accordance to, and to the extent of, the aggregate liquidation preferences of such Series B-l Preferred Units and Series B-2 Preferred Units, respectively; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) then, to the Series A Preferred Units, and to each Series A Preferred Unit equally.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Liquidity Event Net Income</u>. Liquidity Event Net Income with respect to each Fiscal Year or other period shall be allocated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) first, to the Series A Preferred Units, and to each Series A Preferred Unit equally, in an amount equal to the quotient determined by dividing (x) the aggregate amount of Net Loss and Liquidity Event Net Loss previously allocated to the Series A Preferred Units pursuant to <u>Section</u> <u>6.1(a)(ii)(E)</u> and <u>Section</u> <u>6.1(a)(iv)(G)</u> and not offset by prior allocations pursuant to this <u>Section</u> <u>6.1(a)(iii)(A)</u> or <u>Section</u> <u>6.1(a)(i)(B);</u> by (y) 1 minus the Group Inc. Tax Rate applicable to the allocation of Liquidity Event Taxable Income that relates to the allocation of Net Income in <u>clause (x),</u> subject to adjustment for any net operating loss carryovers or capital loss carryovers usable by Group Inc. against such allocation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) then, to the Series A Preferred Units, and each Series A Preferred Unit equally, until the Series A Preferred Units have been allocated an amount of Net Income and Liquidity Event Net Income equal to the quotient determined by dividing (x) the cumulative amount of dividends payable with respect to the Corresponding Series A Preferred Stock and not previously allocated pursuant to this <u>Section</u> <u>6.1(a)(iii)(B)</u> or <u>Section</u> <u>6.1(a)(i)(C)</u>; by (y) 1 minus the Group Inc. Tax Rate applicable to the allocation of Taxable Income that relates to the allocation of Liquidity Event Net Income in <u>clause (x);</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) then, to the Series B-l Preferred Units, and to each Series B-l Preferred Unit equally, and to the Series B-2 Preferred Units, and to each Series B-2 Preferred Unit equally, *pro rata* in accordance to the aggregate liquidation preferences of such Series B-l Preferred Units and Series B-2 Preferred Units, respectively, in an amount equal to the quotient determined by dividing (x) the aggregate amount of Net Loss and Liquidity Event Net Loss previously allocated to the Series B-l Preferred Units and Series B-2 Preferred Units pursuant to <u>Section</u> <u>6.1(a)(ii)(D)</u> and <u>Section</u> <u>6.1(a)(iv)(F)</u> and not offset by prior allocations pursuant to this <u>Section</u> <u>6.1(a)(iii)(C)</u> or <u>Section</u> <u>6.1(a)(i)(D)</u>; by (y) 1 minus the Group Inc. Tax Rate applicable to the allocation of Taxable Income that relates to the allocation of Liquidity Event Net Income in <u>clause</u> <u>(x)</u>, subject to adjustment for any net operating loss carryovers or capital loss carryovers usable by Group Inc. against such allocation;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) then, to the Company Preferred Interest in an amount equal to the aggregate amount of Net Loss and Liquidity Event Net Loss previously allocated to such Company Preferred Interest pursuant to <u>Section</u> <u>6.1(a)(ii)(C)</u> and <u>Section</u> <u>6.1(a)(iv)(E)</u> and not offset by prior allocation of Net Income and Liquidity Event Net Income pursuant to this <u>Section</u> <u>6.1(a)(iii)(D)</u> or <u>Section</u> <u>6.1(a)(i)(E)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) then, if and to the extent that the Capital Account of a Common Unit issued upon the conversion of any Series B Preferred Unit is less than the liquidation value of such Common Unit, to each Common Unit issued upon such conversion, *pro rata,* until the Capital Account with respect to each such Common Unit, after accrual for any Taxes payable by Group Inc. with respect to the Taxable Income that relates to allocation of Liquidity Event Net Income in this <u>Section</u> <u>6.1(a)(iii)(E)</u> is equal to its *pro rata* share of the aggregate Capital Accounts of all Common Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) then, to each Common Unit pro rata to the amount of Net Loss and Liquidity Event Net Loss previously allocated to such Common Unit pursuant to <u>Section</u> <u>6.1(a)(ii)(A)</u>, <u>Section</u> <u>6.1(a)(ii)(B)</u>, <u>Section</u> <u>6.1(a)(iv)(C)</u> and <u>Section</u> <u>6.1(a)(iv)(D)</u> until there has been allocated an amount of Net Income or Liquidity Event Net Income equal to the quotient determined by dividing (x) the aggregate amount of Net Loss and Liquidity Event Net Loss previously allocated to such Common Unit pursuant to <u>Section</u> <u>6.1(a)(ii)(A), Section</u> <u>6.1(a)(ii)(B), Section</u> <u>6.1(a)(iv)(C)</u> and <u>Section</u> <u>6.1(a)(iv)(D)</u> and not offset by prior allocations of Net Income and Liquidity Event Net Income pursuant to this <u>Section</u> <u>6.1(a)(iii)(F)</u>, <u>Section</u> <u>6.1(a)(i)(G)</u>, or <u>Section</u> <u>6.1(a)(i)(H)</u>; by (y) 1 minus the Group Inc. Tax Rate applicable to the allocation of Taxable Income that relates to the allocation of Liquidity Event Net Income in <u>clause (x)</u> subject to adjustment for any net operating loss carryovers or capital loss carryovers usable by Group Inc. against such allocations; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) then, to (1) the Series B-l Preferred Units in accordance to the number of Common Units into which such Series B-l Preferred Units are convertible, and each Series B-l Preferred Unit equally, (2) the Series B-2 Preferred Units, in accordance to the number of Common Units into which such Series B-2 Preferred Units are convertible, and to each Series B-2 Preferred Unit equally, and (3) the Common Units, and to each Common Unit equally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Liquidity Event Net Loss</u>. Liquidity Event Net Loss with respect to each Fiscal Year or other period shall be allocated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) if and to the extent that the Capital Account of the Common Unit issued upon conversion of any Series B Preferred Unit is more than the liquidation value of such Common Unit, first to each such Common Unit, *pro rata,* until the Capital Account with respect to each such Common Unit is equal to its *pro rata* share of the aggregate Capital Accounts of all Common Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) upon conversion of any Series B Preferred Unit to which <u>Section</u> <u>6.1(a)(iv)(A)</u> does not apply, first to each Common Unit outstanding prior to the conversion of such Series B Preferred Unit, *pro rata,* until the Capital Account with respect to each such Common Unit is equal to the Capital Account of each Common Unit issued upon conversion of such Series B Preferred Unit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) then, to each Common Unit *pro rata* until the Capital Account with respect to any Common Unit has been reduced to zero;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) then, to those Common Units that have positive Capital Account balances in proportion to, and to the extent of, those positive Capital Account balances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) then, to the Company Preferred Interest to the extent of its positive Capital Account balance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) then, to the Series B-l Preferred Units, and to each Series B-l Preferred Unit equally, and to the Series B- 2 Preferred Units, and to each Series B-2 Preferred Unit equally, *pro rata* in accordance to and to the extent of the aggregate liquidation preferences of such Series B-l Preferred Units and Series B-2 Preferred Units, respectively; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) then, to the Series A Preferred Units and to each Series A Preferred Unit equally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the aggregate distributions with respect to the Company Participating Interest pursuant to <u>Section</u> <u>7.1(a)</u> with respect to any Fiscal Year exceed the Net Income with respect to such Fiscal Year, there shall be allocated to the Company Participating Interest, in lieu of the allocations provided for in <u>Section</u> <u>6.1(a)(i)(A)</u>, a share of each item of gross income and gain for such Fiscal Year equal, in the aggregate, to the amounts distributed to the Company Participating Interest pursuant to <u>Section</u> <u>7.1(a)</u> with respect to such Fiscal Year.

Section 6.2 <u>Regulatory Allocations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any other provision of this <u>ARTICLE VI</u>, if there is a net decrease in Minimum Gain attributable to Company Nonrecourse Liabilities during any Taxable Year, each Member shall be allocated items of Company income and gain for such period (and, if necessary, subsequent periods) in the manner and amounts provided in Regulations §§ 1.704-2(f)(6), 1.704-2(g)(2) and 1.704-l(j)(2)(i), or any successor provisions. For purposes of this <u>Section</u> <u>6.2</u>, each Member's Adjusted Capital Account balance shall be determined, and the allocation of income or gain required hereunder shall be effected, prior to the application of any other allocations pursuant to this <u>Section</u> <u>6.2</u> with respect to such Taxable Year (other than allocations pursuant to <u>Section</u> <u>6.2(e)</u> and <u>(f)</u> below). This <u>Section</u> <u>6.2(a)</u> is intended to comply with the "minimum gain chargeback" requirement of Regulations § 1.704-2(f) and shall be interpreted consistently therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the other provisions of this <u>ARTICLE VI</u> (other than <u>Section</u> <u>6.2(a)</u> above), except as provided in Regulations § 1.704-2(i)(4), if there is a net decrease in Minimum Gain attributable to Member Nonrecourse Debt during any Taxable Year, any Member with a share of Minimum Gain attributable to Member Nonrecourse Debt at the beginning of such Taxable Year shall be allocated items of Company income and gain for such period (and, if necessary, subsequent periods) in the manner and amounts provided in Regulations §§ 1.704-2(i)(4) and 1.704-2(j)(2)(ii), or any successor provisions. For purposes of this <u>Section</u> <u>6.2(b)</u>, each Member's Adjusted Capital Account balance shall be determined, and the allocation of income or gain required hereunder shall be effected, prior to the application of any other allocations pursuant to this <u>Section</u> <u>6.2</u>, other than <u>Section</u> <u>6.2(a)</u> above and <u>Section</u> <u>6.2(e)</u> and <u>(f)</u> below, with respect to such Taxable Year. This <u>Section</u> <u>6.2(b)</u> is intended to comply with the chargeback of items of income and gain requirement in Regulations § 1.704-2(i)(4) and shall be interpreted consistently therewith.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event any Member has a deficit balance in its Adjusted Capital Account at the end of any Taxable Year, such Member shall be specially allocated items of Company gross income and gain in the amount of such excess as quickly as possible; *provided, however,* that an allocation pursuant to this <u>Section</u> <u>6.2(d)</u> shall be made only if and to the extent that such Member would have a deficit balance in its Adjusted Capital Account after all other allocations provided for in this <u>Section</u> <u>6.2</u> have been tentatively made as if this <u>Section</u> <u>6.2(d)</u> were not in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Company Nonrecourse Deductions for each Taxable Year shall be allocated to the Members pro rata in accordance with their respective Capital Accounts for such Fiscal Year. If the Managing Member determines in its good faith discretion that the Company's Nonrecourse Deductions must be allocated in a different manner to satisfy the safe harbor requirements of the Regulations promulgated under section 704(b) of the Code, the Managing Member is authorized, upon notice to the Members, to revise the prescribed ratio to the numerically closest ratio that does satisfy such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Member Nonrecourse Deductions for Taxable Year shall be allocated to the Member or Members that bear the Economic Risk of Loss with respect to the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable in accordance with Regulations § 1.704-2(i). If more than one Member bears the Economic Risk of Loss with respect to a Member Nonrecourse Debt, such Member Nonrecourse Deductions attributable thereto shall be allocated between or among such Members in accordance with the ratios in which they share such Economic Risk of Loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) To the extent an adjustment to the adjusted tax basis of any Company asset pursuant to section 734(b) or 743(b) of the Code is required, pursuant to Regulations § 1.704-l(b)(2)(iv)(m), to be taken into account in determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset), or loss (if the adjustment decreases such basis), and such item of gain or loss shall be specially allocated to the Members in a manner consistent with the manner in which their Capital Accounts are required to be adjusted pursuant to the Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Managing Member is authorized to make appropriate amendments to the allocations of items pursuant to this <u>Section</u> <u>6.2</u> if necessary in order to comply with section 704 of the Code or the applicable Regulations thereunder; *provided, however,* that no such change shall have a material adverse effect upon the amount distributable or allocable to any Member hereunder. Should any Taxing Jurisdiction require an adjustment to the sharing, as between the Members, of any Company item of income, gain, loss or deduction, such adjustment shall be deemed made pursuant to this <u>Section</u> <u>6.2</u>.

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Section 6.3 <u>Curative Allocations</u>. The Regulatory Allocations are intended to comply with certain requirements of the Regulations. The Members intend, so as to preserve the intended economic arrangement among them, that, to the extent possible, all Regulatory Allocations shall be offset with other allocations ("**Curative Allocations**") of items of Company income, gain, loss and deduction pursuant to this <u>Section</u> <u>6.3</u>. Therefore, notwithstanding any other provision (other than the Regulatory Allocations), the Managing Member shall make such offsetting Curative Allocations in whatever manner it determines appropriate so that after such Curative Allocations are made, each Member's Capital Account balance is, to the extent possible, equal to the Capital Account balance such Member would have had if neither the Regulatory Allocations nor the Curative Allocations were part of the Agreement and all Company items were allocated pursuant to <u>Section</u> <u>6.1</u>.

Section 6.4 <u>Series B Preferred Units</u>. Upon the conversion of any Series B Preferred Units into Class C Units, the Company's assets shall be revalued in accordance with <u>Section</u> <u>5.7</u> and Liquidity Event Net Income or Liquidity Event Net Loss shall be allocated to each Common Unit pursuant to <u>Section</u> <u>6.1(a)(i)</u> or <u>Section</u> <u>6.1(a)(iii)</u>, as the case may be. If and to the extent that the Capital Account of any Common Unit issued upon such conversion (determined after taking into account the allocations described in the preceding sentence) is less than the liquidation value of such Common Unit, an amount equal to the excess of such liquidation value over such Capital Account shall be reallocated *pro rata* from the Capital Accounts of all Common Units outstanding prior to such conversion to the Capital Accounts of the Common Units issued upon such conversion in accordance with Regulations § 1.704- l(b)(2)(iv)(s)(3). If and to the extent that the Capital Account of any Common Unit issued upon such conversion is greater than the liquidation value of such Common Unit (determined after taking into account the allocations described in the second preceding sentence), an amount equal to the excess of such Capital Account over such liquidation value shall be reallocated *pro rata* from the Capital Accounts of the Common Units issued upon such conversion to the Capital Accounts of all Common Units outstanding prior to such conversion in accordance with Regulations § 1.704-l(b)(2)(iv)(s)(3).

Section 6.5 <u>Allocation of Taxable Income or Taxable Loss and Other Allocation Rules</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided in this <u>Section</u> <u>6.5,</u> for U.S. federal income tax purposes, (i) Taxable Income or Taxable Loss shall be allocated among the Members in accordance with the allocation of the correlative items of "book" income, gain, loss or deduction is allocated pursuant to <u>Section</u> <u>6.1</u>, <u>Section</u> <u>6.2</u>, <u>Section</u> <u>6.3</u> and <u>Section</u> <u>6.7</u> and (ii) each tax credit shall be allocated to the Members in the same manner as the receipt or expenditure giving rise to such credit is allocated pursuant to <u>Section</u> <u>6.1</u>, <u>Section</u> <u>6.2, Section</u> <u>6.3</u> and <u>Section</u> <u>6.7</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In an attempt to eliminate Book-Tax Disparities attributable to a Contributed Property or Adjusted Property, items of income, gain, loss, depreciation, amortization and cost recovery deductions shall be allocated for U.S. federal income tax purposes among the Members as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the case of a Contributed Property, (x) such items attributable thereto shall be allocated among the Members in the manner provided under section 704(c) of the Code that takes into account the variation between the Agreed Value of such property and its adjusted tax basis at the time of contribution and (y) any item of Residual Gain or Residual Loss attributable thereto shall be allocated among the Members in the same manner as its correlative item of "book" gain or loss is allocated pursuant to <u>Section</u> <u>6.1</u>, <u>Section</u> <u>6.2</u>, <u>Section</u> <u>6.3</u> and <u>Section</u> <u>6.7</u>. For purposes of implementing the foregoing, the Company shall adopt the "remedial allocation method" described in Regulations section 1.704-3(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the case of an Adjusted Property, (x) such items attributable thereto shall (A) first, be allocated among the Members in a manner consistent with the principles of section 704(c) of the Code to take into account the Unrealized Gain or Unrealized Loss attributable to such property, and (B) second, in the event such property was originally a Contributed Property, be allocated among the Members in a manner consistent with clause (i) above; and (y) any item of Residual Gain or Residual Loss attributable to an Adjusted Property shall be allocated among the Members in the same manner as its correlative item of "book" gain or loss is allocated pursuant to <u>Section</u> <u>6.1</u>, <u>Section</u> <u>6.2</u>, <u>Section</u> <u>6.3</u> and <u>Section</u> <u>6.7</u>. For purposes of implementing the foregoing, the Company shall adopt the "remedial allocation method" described in Regulations section 1.704-3(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any item of Taxable Income attributable to the sale or other taxable disposition of any Company asset which is characterized as Recapture Income shall, to the extent possible, be allocated among the Members in the same proportions and to the same extent as such Members (or their predecessors in interest) have been allocated any deductions directly or indirectly giving rise to the treatment of such gains as Recapture Income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All items of income, gain, loss, deduction and credit recognized by the Company for federal income tax purposes and allocated to the Members in accordance with the provisions hereof shall be determined without regard to any election under section 754 of the Code which may be made by the Company; *provided, however,* that such allocations, once made, shall be adjusted as necessary or appropriate to take into account those adjustments permitted or required by sections 734 and 743 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If, as a result of the conversion of any Senior Preferred Units, a Capital Account reallocation is required pursuant to <u>Section</u> <u>6.4</u>, the Company shall make corrective allocations pursuant to Regulations § 1.704-l(b)(4)(x).

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Section 6.6 <u>Special Allocations</u>. For purposes of Regulations § 1.752-3(a)(3), the Members agree that Company Nonrecourse Liabilities in excess of the sum of (A) the amount of Minimum Gain attributable to Company Nonrecourse Liabilities and (B) the total amount of Nonrecourse Built-in Gain shall be allocated among the Members pro rata in accordance with their respective Capital Accounts for such Taxable Year.

Section 6.7 <u>Forfeiture Allocations</u>. Upon a Member's forfeiture of any substantially non-vested Membership Interest, such Member shall be allocated (such allocations, "**Forfeiture Allocations**") a pro rata portion of each item of gross income and gain (as a positive amount) or gross deduction and loss (as a negative amount), to the extent such items are available, for the Fiscal Year of such forfeiture equal to (i) the positive excess, if any, of (A) the amount of distributions (including deemed distributions under section 752(b) of the Code and the adjusted tax basis of any property so distributed) to such Member with respect to such forfeited Common Unit (to the extent such distributions are not taxable under section 731 of the Code) over (B) any capital contributions made with respect to such forfeited Membership Interest (including deemed contributions under section 752(a) of the Code), minus (ii) the cumulative Net Income, Net Loss, Liquidity Event Net Income and Liquidity Event Net Loss allocated to such Member with respect to such forfeited Membership Interest.

Section 6.8 <u>Allocation of Underpayment.</u> If the Company pays an Imputed Underpayment or an underpayment in respect of any administrative adjustment pursuant to <u>Section</u> <u>11.3(d)</u> with respect to any Reviewed Year, (i) the Managing Member shall determine what, if any, portion of such underpayment (and any penalties and interest thereon) is allocable to the Series A Preferred Units or Series B Preferred Units and allocate items of gross expense to the holder of the Series A Preferred Units or Series B Preferred Units, as the case may be, and (ii) the Managing Member shall allocate any remaining amount of the underpayment (and any penalties and interest thereon) as an item of gross expense among the holders of Common Units *pro rata* to each such Member's holding of Common Units for such Reviewed Year.

ARTICLE VII

DISTRIBUTIONS

Section 7.1 <u>Declaration and Payment of Distributions Generally</u>. To the extent permissible under the Act and subject to this <u>ARTICLE VII</u>, the Members shall be entitled to receive distributions, including distributions in connection with the liquidation, dissolution or winding up of the affairs of the Company, when and as determined by the Managing Member.

Section 7.2 <u>Regular Distributions</u>. All distributions (other than distributions in connection with <u>Section</u> <u>5.13</u> or a Liquidity Event (in which case Section 7.3 below shall apply)) shall be distributed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Company Participating Interest</u>. The Company shall distribute to CS Management with respect to its Company Participating Interest and any Fiscal Year an amount equal to the amount that, and immediately prior to the time when, CS Management is obligated to distribute such amount with respect to the CS Management Participating Interest and such Fiscal Year.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Series A Preferred Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the requirements of the Act, the Company shall make distributions *pro rata* to the holders of the Series A Preferred Units in an amount equal to the allocations to such holders of (x) Net Income pursuant to <u>Section</u> <u>6.1(a)(i)(B)</u> in excess of the amount determined under <u>Section</u> <u>6.1(a)(i)(B)(x)</u> and pursuant to <u>Section</u> <u>6.1(a)(i)(C)</u> in excess of the amount determined under <u>Section</u> <u>6.1(a)(i)(C)(x)</u>; or (y) Liquidity Event Net Income pursuant to <u>Section</u> <u>6.1(a)(iii)(A)</u> in excess of the amount determined under <u>Section</u> <u>6.1(a)(iii)(A)(x)</u> and pursuant to <u>Section</u> <u>6.1(a)(iii)(B)</u> in excess of the amount determined under <u>Section</u> <u>6.1(a)(iii)(B)(x)</u>, within 90 days of the end of any Fiscal Year in which there is any allocation of Taxable Income that relates to such allocation of either Net Income or Liquidity Event Net Income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Subject to the requirements of the Act, the Company shall make distributions *pro rata* to the holders of the Series A Preferred Units in an amount equal to the amount of the dividends payable with respect to the Corresponding Series A Preferred Share, at such times at which such dividends are payable.

No distribution shall be made pursuant to this <u>Section</u> <u>7.1(b)</u> until all distributions required to be made under <u>Section</u> <u>7.1(a)</u> have been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Series B Preferred Units</u>. Subject to the requirements of the Act, the Company shall make distributions to the Series B-l Preferred Units, and to each Series B-l Preferred Unit equally, and to the Series B-2 Preferred Units, and to each Series B-2 Preferred Unit equally, *pro rata* in accordance to the aggregate liquidate preferences of such Series B-l Preferred Units and Series B-2 Preferred Units, respectively, in an amount equal to the allocations to such holders of (x) Net Income pursuant to <u>Section</u> <u>6.1(a)(i)(D)</u> in excess of the amount determined under <u>Section</u> <u>6.1(a)(i)(D)(x)</u>; or (y) Liquidity Event Net Income pursuant to <u>Section</u> <u>6.1(a)(iii)(C)</u> in excess of the amount determined under <u>Section</u> <u>6.1(a)(iii)(C)(x)</u>, within 90 days of the end of any Fiscal Year in which there is any allocation of Taxable Income that relates to such allocation of either Net Income or Liquidity Event Net Income. No distribution shall be made pursuant to this <u>Section</u> <u>7.1(c)</u> until all distributions required to be made under <u>Section</u> <u>7.1(a)</u> and <u>Section</u> <u>7.1(b)</u> have been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Common Units</u>. Subject to the requirements of the Act, the Company shall make distributions to the Common Units, and to each Common Unit equally, in an amount equal to the allocations to such holders of (x) Net Income pursuant to <u>Section</u> <u>6.1(a)(i)(G)</u> in excess of the amount determined under <u>Section</u> <u>6.1(a)(i)(G)(x)</u> and pursuant to <u>Section</u> <u>6.1(a)(i)(H)</u> in excess of the amount determined under <u>Section</u> <u>6.1(a)(i)(H)(x)</u>; or (y) Liquidity Event Net Income pursuant to <u>Section</u> <u>6.1(a)(iii)(F)</u> in excess of the amount determined under <u>Section</u> <u>6.1(a)(iii)(F)(x)</u> within 90 days of the end

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of any Fiscal Year in which there is any allocation of Taxable Income that relates to such allocation of either Net Income or Liquidity Event Net Income. No distribution shall be made pursuant to this <u>Section</u> <u>7.1(d)</u> until all distribution required to be made under <u>Section</u> <u>7.1(a)</u>, <u>Section</u> <u>7.1(b)</u> and <u>Section</u> <u>7.1(c)</u> have been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Series B Preferred Units and Common Units</u>. Subject to the requirements of the Act, the Company shall make distributions to the holder of (x) each Series B-l Preferred Unit; (y) Series B-2 Preferred Unit, and (z) Common Unit in an amount equal to the amount of the dividends payable with respect to each share of the Corresponding Series B-l Preferred Stock, Corresponding Series B-2 Preferred Stock and Corresponding Common Stock, as the case may be, at such times and in such amounts as such dividends are payable. No distribution shall be made pursuant to this <u>Section</u> <u>7.1(e)</u> until all distributions required to be made under <u>Section</u> <u>7.1(a)</u>, <u>Section</u> <u>7.1(b), Section</u> <u>7.1(c)</u> and <u>Section</u> <u>7.1(d)</u> have been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Tax Distributions</u>. The Company shall, within 30 days after the end of each quarter of each Fiscal Year, distribute to (1) the Series B-l Preferred Units in accordance to the number of Common Units into which such Series B-l Preferred Units are convertible, and to each Series B-l Preferred Unit equally, (2) the Series B-2 Preferred Units in accordance to the number of Common Units into which such Series B-2 Preferred Units are convertible, and to each Series B-2 Preferred Unit equally, and (3) the Common Units, and to each Common Unit equally, an amount of cash equal to the product of (i) the Group Inc. Tax Rate, times (ii) the Taxable Income of the Company allocable to such Units pursuant to <u>Section</u> <u>6.1(a)(i)(I)</u> and not distributed pursuant to <u>Section</u> <u>7.1(e)</u>, for such quarter.

Section 7.3 <u>Distribution of Liquidity Event Proceeds</u>. The Company shall distribute the proceeds of any Liquidity Event, less reasonable reserves as determined in good faith by the Managing Member, within 5 days after such Liquidity Event. Such Distribution shall be made (i) to the holder of the Company Participating Interest in an amount equal to the amount CS Management is obligated to distribute as a result of such Liquidity Event with respect to the CS Management Participating Interest; and (ii) with respect to each Series A Preferred Unit, Series B-l Preferred Unit, Series B-2 Preferred Unit and Common Unit (including each Class A Unit) in accordance with the preferences and entitlements of each share of Corresponding Series A Preferred Stock, Corresponding Series B-l Preferred Stock, Corresponding Series B-2 Preferred Stock, and Corresponding Common Stock, respectively set forth in the Group Inc. Col as if such Liquidity Event were a Deemed Liquidation Event (as defined in the Group Inc. Col) and increased to take into account any taxes payable by Group Inc. on any taxable income realized on such Liquidity Event; *provided, however,* that after the holder of the Corresponding Series B Preferred Stock have received their respective Liquidation Amounts (as defined in the Group Inc. Col), the Company shall distribute an amount equal to the Remaining Balance to the holder of the Company Preferred Interest.

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Section 7.4 <u>Limitations on Distributions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall not make a distribution to a Member to the extent that at the time of the distribution, after giving effect to the distribution, all Liabilities of the Company, other than Liabilities to Members on account of their interests in the Company and Liabilities for which the recourse of creditors is limited to specified property of the Company, exceed the fair value of the assets of the Company, except that the fair value of property that is subject to a Liability for which the recourse of creditors is limited shall be included in the assets of the Company only to the extent that the fair value of that property exceeds that Liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A Member who receives a distribution in violation of <u>Section</u> <u>7.4(a)</u> above, and who knew at the time of the distribution that the distribution violated this <u>Section</u> <u>7.4</u>, shall be liable to the Company for the amount of the distribution. A Member who receives a distribution in violation of this <u>Section</u> <u>7.4</u>, and who did not know at the time of the distribution that the distribution violated this <u>Section</u> <u>7.4</u>, shall not be liable for the amount of the distribution. Subject to <u>Section</u> <u>7.4(c)</u> below, this <u>Section</u> <u>7.4(b)</u> shall not affect any obligation or Liability of a Member under other applicable law for the amount of a distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A Member who receives a distribution from the Company shall have no Liability under this <u>Section</u> <u>7.4,</u> the Act or other applicable law for the amount of the distribution after the expiration of three years from the date of the distribution unless an action to recover the distribution from such Member is commenced prior to the expiration of the said three-year period and an adjudication of Liability against such Member is made in the action.

Section 7.5 <u>Amounts of Tax Paid or Withheld</u>. The Company shall pay to any Taxing Jurisdiction any amounts required to be paid with respect to distributions, allocations, or other payments to Members pursuant to any provision of law of such Taxing Jurisdiction. All amounts withheld or required to be withheld pursuant to any provision of law of any Taxing Jurisdiction with respect to any payment, distribution, or allocation to a Member shall be treated as an amount paid or distributed to the Member with respect to whom such amount was withheld pursuant to this <u>ARTICLE VII</u> and shall, without duplication, reduce the amount of future distribution that would otherwise be made to such Member for all purposes under this Agreement.

Section 7.6 <u>Distribution in Kind.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Member shall have a right to demand and receive any distribution in any form other than cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any property distributed shall be valued at its fair market value on the date of distribution by the Company, as determined by the Managing Member, and the Capital Account of each Member shall be adjusted in accordance with <u>Section</u> <u>5.5</u> as if the Company had sold such distributed property in a Liquidity Event for such fair market value and the Liquidity Event Net Income or Liquidity Event Net Loss from such sale was allocated pursuant to <u>Section</u> <u>6.1(a)(iii)</u> or <u>Section</u> <u>6.1(a)(iv)</u>.

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ARTICLE VIII

INDEMNIFICATION

Section 8.1 <u>Indemnification by the Company.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall indemnify an Indemnified Representative against any Damages incurred in connection with any Proceeding in which the Indemnified Representative may be involved as a party or otherwise by reason of the fact that such Person, or a Person of which such Person is the legal representative, is or was a Member, Managing Member, or officer of the Company, in his, her, or its capacity as such, including Damages resulting from any actual or alleged breach or neglect of duty, error, misstatement or misleading statement or negligence, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) where such indemnification is expressly prohibited by applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) where the conduct of the Indemnified Representative has been determined in a nonappealable judgment of a court of competent jurisdiction to (A) constitute willful misconduct, gross negligence, or fraud, or (B) be based upon or attributable to the receipt by the Indemnified Representative from the Company of a personal benefit to which the Indemnified Representative is not legally entitled;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to the extent such indemnification has been determined to be otherwise unlawful;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to the extent that such Damages reasonably could have been mitigated by such Indemnified Representative or such Indemnified Representative receives insurance proceeds or has rights of offset or contribution at law, in contract, or otherwise with respect to such Damages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if the Indemnified Representative is an Officer or Managing Member, to the extent that (A) such Indemnified Representative did not act in good faith; (B) such Indemnified Representative had a conflict of interest or did not reasonably believe that his or her conduct was in, or at least not opposed to, the Company's best interest; or (C) in the case of any criminal Proceeding, there is reasonable cause to believe the Indemnified Representative's conduct was unlawful; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) such Damages that arise from an action by such Indemnified Representative taken in material breach of, or in material conflict with, this Agreement or any other agreement with the Company to which such Indemnified Representative is party or bound.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If an Indemnified Representative is entitled to indemnification in respect of a portion, but not all, of any Liabilities to which such Person may be subject, the Company shall indemnify such Indemnified Representative to the maximum extent for such portion of the Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The termination of a Proceeding by settlement shall not create a presumption that the Indemnified Representative is not entitled to indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the extent that an Indemnified Representative of the Company has been successful on the merits or otherwise in defense of any Proceeding or in defense of any claim, issue or matter therein, and such Person is otherwise entitled to indemnification hereunder, such Person shall be indemnified against expenses (including attorneys' fees and disbursements) actually and reasonably incurred by such Person in connection therewith.

Section 8.2 <u>Proceedings Initiated by Indemnified Representatives</u>. Notwithstanding any other provision of this <u>ARTICLE VIII</u>, the Company shall not indemnify under this <u>ARTICLE VIII</u> an Indemnified Representative for any Damages incurred in a Proceeding initiated (which shall not be deemed to include counterclaims or affirmative defenses) or participated in as an intervenor or amicus curiae by the Indemnified Representative unless such initiation of or participation in the Proceeding is authorized, either before or after its commencement, by the Managing Member. This <u>Section</u> <u>8.2</u> does not apply to reimbursement of expenses incurred in successfully prosecuting or defending the rights of an Indemnified Representative granted by or pursuant to this <u>ARTICLE VIII</u>.

Section 8.3 <u>Advancing Expenses</u>. The Company shall pay the expenses (including attorneys' fees and disbursements) incurred in good faith by an Indemnified Representative in advance of the final disposition of a Proceeding described in <u>Section</u> <u>8.1</u> or the initiation of or participation in which is authorized pursuant to <u>Section</u> <u>8.2</u> upon receipt of an undertaking by or on behalf of the Indemnified Representative to repay the amount if it is ultimately determined that such Person is not entitled to be indemnified by the Company pursuant to this <u>ARTICLE VIII</u>. The financial ability of an Indemnified Representative to repay an advance shall not be a prerequisite to the making of such advance.

Section 8.4 <u>Securing of Indemnification Obligations</u>. To further effect, satisfy or secure the indemnification obligations provided in this <u>ARTICLE VIII</u> or otherwise, the Company may maintain insurance, obtain a letter of credit, act as self-insurer, create a reserve, trust, escrow, cash collateral or other fund or account, enter into indemnification agreements, pledge or grant a security interest in any assets or properties of the Company, or use any other mechanism or arrangement whatsoever in such amounts, at such costs, and upon such other terms and conditions as the Managing Member shall deem appropriate. Absent fraud, the determination of the Managing Member with respect to such amounts, costs, terms and conditions shall be conclusive against all Members, security holders, officers and the Managing Member and shall not be subject to voidability.

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Section 8.5 <u>Payment of Indemnification</u>. An Indemnified Representative shall be entitled to indemnification within 30 days after a written request for indemnification has been delivered to the Chief Executive Officer of the Company. The indemnification pursuant to this <u>ARTICLE VIII</u> shall be made only from the assets of the Company and no Member shall be personally liable therefor.

Section 8.6 <u>Contribution</u>. If the indemnification provided for in this <u>ARTICLE VIII</u> or otherwise is unavailable for any reason in respect of any Damages or portion thereof, the Company shall contribute to the Damages to which the Indemnified Representative may be subject in such proportion as is appropriate to reflect the intent of this <u>ARTICLE VIII</u> or otherwise.

Section 8.7 <u>Contract Rights; Amendment or Repeal</u>. All rights under this <u>ARTICLE VIII</u> shall be deemed a contract between the Company and the Indemnified Representative pursuant to which the Company and each Indemnified Representative intend to be legally bound. Any repeal, amendment or modification hereof shall be prospective only and shall not affect any rights or obligations then existing.

Section 8.8 <u>Scope of Article</u>. The rights granted by this <u>ARTICLE VIII</u> shall not be deemed exclusive of any other rights to which those seeking indemnification, contribution or advancement of expenses may be entitled under any statute, agreement, vote of disinterested Members or otherwise, both as to action in an Indemnified Capacity and as to action in any other capacity. The indemnification, contribution and advancement of expenses provided by or granted pursuant to this <u>ARTICLE VIII</u> shall continue as to a Person who has ceased to be an Indemnified Representative in respect of matters arising prior to such time, and shall inure to the benefit of the heirs, executors, administrators and personal representatives of such a Person.

Section 8.9 <u>Reliance on Provisions</u>. Each Person who shall act as an Indemnified Representative of the Company shall be deemed to be doing so in reliance upon the rights of indemnification, contribution and advancement of expenses provided by this <u>ARTICLE VIII</u>.

ARTICLE IX

TRANSFERABILITY

Section 9.1 <u>Restriction on Transfer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as set forth in <u>Section</u> <u>9.1(b)</u> and <u>Section</u> <u>9.1(c)</u> no Member shall Transfer any portion of its Membership Interest other than with the consent of the Managing Member and, in the case of the Company Preferred Interest and Company Participating Interest, the Board of Directors of Group Inc. (including one Series B Preferred Director) unless such Transfer is an Exempt Transfer (as defined in the ROFR Agreement)) For the avoidance of doubt, solely for the purposes of this Section 9.1(a), each of WBI and CS Management LLC shall be deemed to be Key Holders under the ROFR Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The holders of the Class A Units may Transfer their Class A Units to the extent provided in, and subject to compliance with, the ROFR Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The holders of the Class A Units or any Permitted Transferee (within the meaning of the Exchange Agreement) may transfer their Class A Units to Group Inc. in exchange for Corresponding Common Stock pursuant to and in accordance with the Exchange Agreement.

Section 9.2 <u>Effect of Transfer.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to satisfaction of <u>Section</u> <u>9.1</u>, no assignee or proposed transferee of all or part of a Membership Interest in the Company shall have the right to become admitted as a Member, unless and until:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the assignee or proposed transferee has executed a joinder agreement, in form approved by the Managing Member accepting and adopting the provisions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the assignee or proposed transferee has paid all reasonable expenses of the Company requested to be paid by the Managing Member in connection with the admission of such assignee or proposed transferee as a Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if requested by the Managing Member, the proposed transferee has delivered to the Company an opinion of counsel reasonably satisfactory to the Managing Member that such Transfer is exempt from the registration requirements of the Securities Act and applicable state securities laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if requested by the Managing Member, the proposed transferee has taken any other actions as deemed necessary by the Managing Member, in its sole discretion, including the execution of a voting agreement or an irrevocable proxy with respect to such Membership Interest granting to another Person the right to vote such Transferred Membership Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Members hereby authorize the Company to execute whatever documents as may be necessary to add a Permitted Transferee as a party to this Agreement, either by execution of a joinder or otherwise, and upon any such addition, the Permitted Transferee shall be deemed a Member for all purposes hereunder. A Person who is a Permitted Transferee may be admitted to the Company, subject to <u>Section</u> <u>9.2(a)</u> above, as a Member and may receive a Membership Interest in the Company without making a contribution or being obligated to make a contribution to the Company. Promptly upon the consummation of any Transfer of a Membership Interest permitted hereunder, such Transfer shall be reflected by the Company in a revised <u>Exhibit A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any Transfer in contravention of the foregoing or any other provision of this Agreement shall be null and void and ineffective to Transfer all or any part of any Membership Interest, and shall not bind, or be recognized by, or on the books of, the Company, and any transferee or assignee in such transaction shall not be or be treated as or deemed to be a Member for any purpose. In the event any Member shall at

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any time attempt or purport to Transfer a Membership Interest, or any part thereof, in contravention of any of the provisions of this Agreement, then each other Member shall, in addition to all rights and remedies at law and equity, be entitled to specific performance of the provisions of this Agreement and a decree or order restraining and enjoining any such transaction, and the offending Member shall not plead in defense thereto that there would be an adequate remedy at law, it being expressly hereby acknowledged and agreed that damages at law would be an inadequate remedy for a breach or threatened breach of the provisions of this Agreement concerning such transactions.

Section 9.3 <u>No Resignation of Members</u>. A Member may not withdraw or resign from the Company prior to dissolution or winding up of the Company.

Section 9.4 <u>Successors</u>. If a Member is dissolved or terminated, the powers of that Member may be exercised by its legal representative or successor. The successor of a Member shall succeed to the obligations of such Member hereunder and right of the Member to receive allocations and distributions hereunder, and may be admitted as a Member in accordance with the provisions of this <u>ARTICLE IX</u>, but shall not be deemed a member, and shall not be entitled to voting rights hereunder, unless and until so admitted.

ARTICLE X

DISSOLUTION AND TERMINATION

Section 10.1 <u>Dissolution</u>. The Company shall be dissolved upon the occurrence of any of the following events (each, a "**Dissolution Event**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) By the consent of the Managing Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the sale by the Company of all or substantially all of its assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the entry of a decree of judicial dissolution under Section 3-5 of the Act or an administrative dissolution under Section 18-802 of the Act.

Section 10.2 <u>Activities of the Company Pending Liquidation</u>. Upon the occurrence of a Dissolution Event, the continuing operation of the Company's business shall be confined to those activities reasonably necessary to wind up the Company's affairs, discharge its obligations, and preserve and distribute its assets and the Company shall continue in existence subject to the terms and conditions of this Agreement.

Section 10.3 <u>Liquidation and Termination.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon dissolution of the Company, the Managing Member shall act as liquidator and shall be responsible for the winding up of the affairs of the Company and the distribution of its assets. In connection with a winding up of the affairs of the Company, the Managing Member shall cause a proper accounting to be made by a recognized firm of certified public accountants of the assets and Liabilities of the

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Company. If any Liability is contingent or uncertain in amount, a reserve will be established in such amount as the Liquidator deems reasonably necessary. Upon satisfaction or other discharge of such contingency, the amount of the reserve not required, if any, will be distributed as provided in this <u>Section</u> <u>10.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Managing Member shall liquidate the assets of the Company and apply and distribute the proceeds of such liquidation in the order of priority set forth in <u>Section</u> <u>10.4,</u> unless otherwise required by mandatory provisions of applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Managing Member shall be authorized to sell any, all or substantially all of the assets of the Company for deferred payment obligations, and to hold, collect and otherwise administer any such obligations or any other deferred payment obligations held or acquired as assets of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Managing Member shall cause any notice required by law or agreement to be delivered to a known creditor of, or claimant against, the Company to be so delivered as required. A reasonable time, including any time required to collect deferred payment obligations, shall be allowed for the orderly liquidation of the assets of the Company and the discharge of Liabilities to creditors so as to enable the Managing Member to reasonably minimize any losses attendant upon the liquidation.

Section 10.4 <u>Distribution of Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of a dissolution of the Company, upon the winding up of the Company, a final allocation of Net Income Net Loss, Liquidity Event Net Income and Liquidity Event Net Loss shall be made in accordance with <u>ARTICLE VI</u>, and the Company's assets shall be distributed in the following manner and order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) First, to creditors, including Members who are creditors, to the extent otherwise permitted by law, in satisfaction of Liabilities of the Company (whether by payment or the making of reasonable provision for payment thereof) other than Liabilities for which reasonable provision for payment has been made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Second, to the establishment of any reserves as the Managing Member may deem reasonably necessary for contingent, conditional or unmatured claims or obligations of the Company arising out of or in connection with the Company or its liquidation. Such reserves shall be held by the Managing Member for the purpose of disbursing such reserves in payment of any of the aforementioned contingencies, and, as soon as practicable, to distribute the balance thereafter remaining in the manner provided in the following subdivisions of this <u>Section</u> <u>10.4</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Third, the balance (if any), of the Company's assets shall be distributed pursuant to Section 7.3.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company following dissolution shall pay or make reasonable provision to pay all claims and obligations, including all contingent, conditional or unmatured claims and obligations, known to the Company and all claims and obligations which are known to the Company but for which the identity of the claimant is unknown. If there are sufficient assets, such claims and obligations shall be paid in full and any such provision for payment made shall be made in full. If there are insufficient assets, such claims and obligations shall be paid or provided for according to their priority and, among claims and obligations of equal priority, ratably to the extent of assets available therefor. Any remaining assets shall be distributed as provided in <u>Section</u> <u>10.4(a)</u> above.

Section 10.5 <u>Cancellation of Certificate</u>. The Certificate of the Company shall be canceled upon the dissolution and the completion of winding up of the Company.

ARTICLE XI

BOOKS; REPORTS TO MEMBERS; TAX ELECTIONS

Section 11.1 <u>Books and Records.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Managing Member shall maintain separate books of account for the Company which shall show a true and accurate record of all costs and expenses incurred, all charges made, all credits made and received and all income derived in connection with the conduct of the Company and the operation of its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as and until otherwise required by the Code, the books of the Company shall be kept in accordance with the accrual method of accounting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Member of the Company has the right, subject to such reasonable standards (including standards governing what information and documents are to be furnished at what time and location and at whose expense) as may be established by the Managing Member, to obtain from the Company from time to time upon reasonable demand for any purpose reasonably related to such Member's Membership Interest:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) true and full information regarding the status of the business and financial condition of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) promptly after they become available, a copy of the federal, state and local income tax returns for each year of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a current list of the name and last known business, residence or mailing address of each Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a copy of this Agreement, the Certificate and all amendments thereto; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any other information regarding the affairs of the Company as is just and reasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company may maintain its records in other than a written form if such form is capable of conversion into written form within a reasonable time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any demand by a Member under this <u>Section</u> <u>11.1</u> shall be in writing and shall state the purpose of such demand.

Section 11.2 <u>Tax Information</u>. Within 60 days after the end of each Fiscal Year, the Company shall supply to each Member all information necessary and appropriate to be included in each Member's income tax returns for that year. If the Company makes the election under Code section 6226(a)(1), as amended by the BBA, the Company shall supply to each Member the statement required by Code section 6226(a)(2), as amended by the BBA, and any Regulations issued thereunder.

Section 11.3 <u>Partnership Representative</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Chief Executive Officer is hereby designated the "**Partnership Representative**" of the Company within the meaning of Code section 6223, as amended by the BBA. The Partnership Representative shall file a designation of itself as such with the IRS. Should the Chief Executive Officer resign as Partnership Representative in a writing directed to the Managing Member, the Managing Member shall designate a replacement Partnership Representative, such designation to take effect as of the date specified in such written resignation. Any appointment as Partnership Representative under this <u>Section</u> <u>11.3(a)</u> that is then in effect shall survive dissolution and winding up of the Company under <u>ARTICLE X</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Partnership Representative shall (i) furnish to each Member affected by an audit of the Company income tax returns a copy of each notice or other communication received from the IRS or applicable state authority, (ii) furnish each Member with a copy of any notice received in his capacity as Partnership Representative from any Taxing Jurisdiction, and (iii) keep such Member informed of any administrative or judicial Proceeding. The Partnership Representative shall only exercise its authority provided in Code section 6223(a), as amended by the BBA, with the approval of the Managing Member, including (i) subject to <u>Section</u> <u>3.3(s)</u>, making the election described in Code section 6226(a), as amended by the BBA, with respect to any Imputed Underpayment; (ii) filing an administrative adjustment request pursuant to Code section 6227(a), as amended by the BBA; and (iii) filing a petition for readjustment pursuant to Code section 6234(a), as amended by the BBA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall not be obligated to pay any fees or other compensation to the Partnership Representative in its capacity as such. However, the Company shall reimburse the expenses (including reasonable attorneys' and other professional fees) incurred by the Partnership Representative in such capacity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any Imputed Underpayment shall be paid by the Company pursuant to section 6225 of the Code, as amended by the BBA, or, if the Company makes the election provided for in section 6226 of the Code, as amended by the BBA, by the Member. Any payment by the Company of (x) any Imputed Underpayment, or (y) any underpayment in respect of any administrative adjustment request filed pursuant to Code section 6227(a), as amended by the BBA, shall be allocated pursuant to <u>Section</u> <u>6.8</u>. The Members shall cooperate with the Partnership Representative in minimizing the amount of any Imputed Underpayment by supplying the Partnership Representative with such information concerning their tax classifications, and the tax classifications of and other information regarding their direct and indirect beneficial owners, as the Partnership Representative may reasonably request from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall indemnify and hold harmless the Partnership Representative from and against any Damages sustained or incurred as a result of any act or decision concerning Company tax matters and within the scope of such Member's responsibilities as Partnership Representative, so long as such act or decision was not the result of gross negligence, fraud, bad faith or willful misconduct by the Partnership Representative. The Partnership Representative shall be entitled to rely on the advice of legal counsel as to the nature and scope of its responsibilities and authority as Partnership Representative, and any act or omission of the Partnership Representative pursuant to such advice shall in no event subject the Partnership Representative to Liability to the Company or any Member.

Section 11.4 <u>Tax Elections</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may elect to amortize organizational costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company may make the election under section 754 of the Code and shall take such action as is necessary to ensure that each of its existing and future Subsidiaries that is treated as a partnership for U.S. federal income tax purposes makes the election under section 754 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) By executing this Agreement, each Member authorizes and directs the Company to elect to have the "safe harbor" described in the proposed Revenue Procedure set forth in Internal Revenue Service Notice 2005-43 (the "**Revenue Procedure**") apply to any Membership Interest in the Company transferred to a service provider by the Company, in connection with services provided to the Company or any of its Subsidiaries on or after the effective date of such Revenue Procedure. For purposes of making such safe harbor election, the Partnership Representative is hereby designated as the "partner who has the responsibility for federal income tax reporting" by the Company within the meaning section 3.03(1) of the Revenue Procedure. The Company and each Member hereby agree to comply with all requirements of the safe harbor described in the Revenue Procedure, including, without limitation, the requirement that each Member shall prepare and file all federal income tax returns reporting the income tax effects of each Common Unit issued by the Company that qualifies for the safe harbor in a manner consistent with the requirements of the Revenue Procedure. A Member's obligations to comply with the requirements of this <u>Section</u> <u>11.4</u> shall survive such Member's ceasing

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to be a Member of the Company and/or the termination, dissolution, liquidation and winding up of the Company, and, for purposes of this <u>Section</u> <u>11.4</u>, the Company shall be treated as continuing in existence. Each Member authorizes the Partnership Representative to amend this <u>Section</u> <u>11.4</u> without such amendment constituting an amendment for purposes of <u>Section</u> <u>12.3</u>, and each Member agrees to execute such other documents, to the extent necessary to achieve substantially the same or similar tax treatment with respect to any Membership Interest transferred to a service provider in connection with services provided to the Company or any of its Subsidiaries as set forth in section 4 of the Revenue Procedure *(e.g.*, to reflect changes from the rules set forth in the Revenue Procedure in subsequent Internal Revenue Service guidance).

Section 11.5 <u>Certain Tax Actions</u>. Without the prior consent of the holders of a majority of the shares of the outstanding Corresponding Series B Preferred Stock, the Company shall not, and the Company shall cause the Partnership Representative not to, for any taxable period (or portion thereof) ending on or prior to the date on which the holders of Class A Units exchange all of their Units for Corresponding Common Stock pursuant to the Exchange Agreement, adopt, make or change any tax accounting method or policy, practice or election relating to or affecting the allocation of items of Company income, gain, expense or loss for Capital Account purposes or for tax purposes, if such action could reasonably be expected to adversely and disproportionately affect such holders of stock of Group Inc. in respect of their indirect interest in the Company.

ARTICLE XII

MISCELLANEOUS

Section 12.1 <u>Binding Effect</u>. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

Section 12.2 <u>Entire Agreement</u>. This Agreement contains the entire agreement of the parties hereto with respect to the subject matter hereof and supersedes the previous Agreement and all prior understandings and agreements of the parties with respect thereto.

Section 12.3 <u>Amendments.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to any consent required by the holders of shares of Group Inc. stock set forth in the Group Inc. Col, this Agreement may be modified or amended, and any provision hereof (or any breach hereof) may be waived, from time to time by the consent of the Members holding the majority of the Company's Common Units and the consent of the Managing Member as provided in Section 3.5; *provided, however,* that any amendment of this Agreement that is disproportionately and materially adverse to the interests of a particular Member relative to the other Members shall also require the consent of such Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The schedule of Members set forth at <u>Exhibit A</u> may be updated in writing by the Company to reflect changes of the Members. Any amendment of <u>Exhibit A</u> made in accordance with this Agreement, shall not be deemed an amendment to this Agreement.

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Section 12.4 <u>Power of Attorney</u>. Each Member hereby constitutes and appoints the Managing Member, and each of its authorized officers and attorneys-in-fact, with full power of substitution, as its true and lawful agent and attorney-in-fact, with full power and authority in its name, place and stead, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) execute, swear to, acknowledge, deliver, file and record in the appropriate public offices (A) all certificates, documents and other instruments (including this Agreement and all amendments or restatements hereof) that the Managing Member deems necessary or appropriate to form, qualify or continue the existence or qualification of the Company as a limited liability company, (B) all certificates, documents and other instruments that the Managing Member deems necessary or appropriate to reflect, in accordance with its terms, any amendment, change, modification or restatement of this Agreement, (C) all certificates, documents and other instruments that the Managing Member deems necessary or appropriate to reflect the dissolution and liquidation of the Company pursuant to the terms of this Agreement, (D) all certificates, documents and other instruments relating to the admission of any new Member pursuant to this Agreement, (E) all certificates, documents and other instruments (including agreements and a certificate of merger) relating to a merger or consolidation of the Company, and (F) any and all filings the Managing Member deems necessary to be made with any regulatory agency, commission or other organization with respect to the business of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) execute, swear to, acknowledge, deliver, file and record all consents, approvals, waivers, certificates, documents and other instruments necessary or appropriate, in the discretion of the Managing Member, to make, evidence, give, confirm or ratify any vote, consent, approval, agreement or other action that is made or given by the Managing Member or the Members hereunder or is consistent with the terms of this Agreement or is necessary or appropriate, in the discretion of the Managing Member, to effectuate the terms or intent of this Agreement;

*provided, however,* that, in each case, any such actions are permitted by, or consistent with the terms and conditions of, this Agreement.

Section 12.5 <u>Choice of Law</u>. The terms and provisions hereof shall be construed under the laws of the State of Delaware (without regard to any conflicts of law principles).

Section 12.6 <u>Consent to Jurisdiction</u>. Each Member:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) submits for itself and its property in any legal action or proceeding relating to this Agreement, or for recognition and enforcement of any judgment in respect thereof, to the nonexclusive general jurisdiction of the state courts of, and federal courts for, the State of New York;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consents that any such action or proceeding may be brought in such courts, and waives any objection that he may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to it at its address, which is set forth in <u>Exhibit A</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction.

Section 12.7 <u>Arbitration</u>. Notwithstanding <u>Section</u> <u>12.6</u>, each Member:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the maximum extent permissible under applicable law, shall and hereby does waive trial by jury and adjudication in a court for any action, proceeding or counterclaim with respect to any matter whatsoever arising out of, or in any way connected with, this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consents that any dispute with respect to the Company's securities business activities shall be submitted for binding arbitration by and in accordance with the rules of Financial Industry Regulatory Authority, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) except as provided in <u>Section</u> <u>12.7(b),</u> consents that any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including with respect to the scope or applicability of arbitration, shall be submitted exclusively for binding arbitration administered by Judicial Arbitration and Mediation Services (JAMS) pursuant to its "Streamlined Arbitration Rules and Procedures" in New York, New York before a single arbitrator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) agrees that any party hereto may commence arbitration by sending to the other parties a written notice of arbitration setting forth the nature of the matter to be resolved thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) agrees that the costs of any arbitration shall be shared equally between the parties thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) agrees that all decisions of the relevant arbitrator shall be final, binding, and conclusive on all parties, that no party has a right to appeal the decision of the arbitrator, and that judgment on the award of the arbitrator may be entered in accordance with applicable law in any court having jurisdiction thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) agrees that the foregoing are the exclusive processes for resolving disputes with respect to this Agreement and the Company; *provided, however,* that nothing in this <u>Section</u> <u>12.7</u> limits the ability of a Member or an owner of an interest in a Member to file any regulatory charge against the Company.

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Section 12.8 <u>Notices</u>. Except as otherwise provided in this Agreement, any notice, demand or communication required or permitted to be given by any provision of this Agreement shall be deemed to have been sufficiently given or served for all purposes if delivered personally or sent by electronic mail (deemed given at the time of transmission and deemed received at the time it becomes capable of being accessed from such electronic mail address of the recipient) or overnight express to the party or to the executive officer of the party named in <u>Exhibit A</u> to whom the same is directed or, if sent by registered or certified mail, postage and charges prepaid, addressed to the Member's address, which is set forth in <u>Exhibit A</u> and to the Company at its principal place of business, or at such other address as a party may direct in writing.

Section 12.9 <u>Transaction with Affiliates</u>. The Company or any of its Subsidiaries may employ or transact business with any Person, notwithstanding the fact that a Member, or an Affiliate of a Member, may be, or may have an interest in or in connection with, such Person; *provided* that any such transaction shall be on an arms-length basis and shall be disclosed to the Managing Member in advance of the consummation thereof.

Section 12.10 <u>Waivers</u>. The failure of any party to seek redress for violation of or to insist upon the strict performance of any covenant or condition of this Agreement shall not prevent a subsequent act, which act would have originally constituted a violation, from having the effect of an original violation.

Section 12.11 <u>Severability</u>. If any provision of this Agreement or its application to any Person or circumstance shall be invalid, illegal or unenforceable to any extent, the remainder of this Agreement and its application shall not be affected and shall be enforceable to the fullest extent permitted by law. To the extent any provision of this Agreement is prohibited or ineffective under the Act, this Agreement shall be considered amended to the smallest degree possible in order to make this Agreement effective under the Act. In the event the Act is subsequently amended or interpreted in such a way to make any provision of this Agreement that was formerly invalid thereafter valid, such provision shall be considered to be valid from the effective date of such interpretation or amendment.

Section 12.12 <u>No Third Party Beneficiaries</u>. None of the provisions of this Agreement shall be for the benefit of or enforceable by any Person other than the parties to this Agreement and their respective successors and assigns; *provided however,* that the holders of the Corresponding Series B Preferred Stock shall be express third party beneficiaries of this Agreement solely for purposes of enforcing the express rights granted to such Persons, the Requisite Holders or the Series B Preferred Director in this Agreement.

Section 12.13 <u>Interpretation</u>. It is the intention of the Members that the rights of the Members and their successors-in-interest shall be governed by the terms of this Agreement, and that the right of any Member or successor-in-interest to assign, Transfer, sell or otherwise dispose of any interest in the Company shall be subject to limitations and restrictions of this Agreement. Unless the context of this Agreement clearly requires otherwise, (a) references to the plural include the singular, the singular the plural, the part the whole, (b) references to one gender include all genders, and (c) "including" has the inclusive meaning frequently identified with the phrase "but not limited to." The headings contained in this Agreement are for reference purposes only and shall not control or affect the construction of this Agreement or the interpretation thereof in any respect.

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Section 12.14 <u>Further Assurances</u>. Each Member shall execute all such certificates and other documents and shall do all such other acts as the Managing Member deems appropriate to comply with (a) the requirements of law for the formation of the Company, (b) any laws, rules, regulations and third-party requests relating to the acquisition, operation or holding of the property of the Company or (c) the intent and purposes of this Agreement.

Section 12.15 <u>Counterparts</u>. This Agreement may be executed in two or more counterparts (delivery of which may occur via facsimile), each of which shall be binding as of the date first written above, and all of which shall constitute one and the same instrument. Each such copy shall be deemed an original, and it shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart. A facsimile signature or electronically scanned copy of a signature shall constitute and shall be deemed to be sufficient evidence of a party's execution of this as an amendment and restatement of the Previous Agreement, without the necessity of further proof thereof.

Section 12.16 <u>Effectiveness</u>. This Agreement shall be effective as an amendment and restatement of the Previous Agreement as of the Effective Date.

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**[SIGNATURE PAGE TO THE EIGHTH AMENDED AND RESTATED** 

**LIMITED LIABILITY COMPANY OPERATING AGREEMENT]** 

IN WITNESS WHEREOF, the undersigned Member, intending to be legally bound, has executed this Operating Agreement of Clear Street Holdings LLC as of the date first above written.

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| | |
|:---|:---|
|  **Clear Street Holdings USVI Inc.** | **Clear Street Holdings USVI Inc.** |
|  By: | /s/ Elli Ausubel |
|  | Name: Elli Ausubel |
|  | Title: Authorized Signatory |

---

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**[SIGNATURE PAGE TO THE EIGHTH AMENDED AND RESTATED** 

**LIMITED LIABILITY COMPANY OPERATING AGREEMENT]** 

IN WITNESS WHEREOF, the undersigned Member, intending to be legally bound, has executed this Operating Agreement of Clear Street Holdings LLC as of the date first above written.

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| | |
|:---|:---|
|  **Clear Street Group Inc.** | **Clear Street Group Inc.** |
|  By: | /s/ Christopher Pento |
|  | Name: Christopher Pento |
|  | Title: Chief Executive Officer |

---

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**[SIGNATURE PAGE TO THE EIGHTH AMENDED AND RESTATED** 

**LIMITED LIABILITY COMPANY OPERATING AGREEMENT]** 

IN WITNESS WHEREOF, the undersigned Member, intending to be legally bound, has executed this Operating Agreement of Clear Street Holdings LLC as of the date first above written.

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| | |
|:---|:---|
|  **Clear Street Management LLC** | **Clear Street Management LLC** |
|  By: | /s/ Christopher Pento |
|  | Name: Christopher Pento |
|  | Title: Officer |

---

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**[SIGNATURE PAGE TO THE EIGHTH AMENDED AND RESTATED** 

**LIMITED LIABILITY COMPANY OPERATING AGREEMENT]** 

IN WITNESS WHEREOF, the undersigned Member, intending to be legally bound, has executed this Operating Agreement of Clear Street Holdings LLC as of the date first above written.

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| | |
|:---|:---|
|  **WBI LP** | **WBI LP** |
|  By: | /s/ Elli Ausubel |
|  | Name: Elli Ausubel |
|  | Title: Authorized Signatory |

---

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<u>EXHIBIT A</u> 

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| | |
|:---|:---|
| Member | Membership Interest |
| WBI LP<br>6100 Red Hook Qtr.<br>St. Thomas USVI<br>Attn: Elli Ausubel | Company Preferred Interest |
| Clear Street Management LLC<br>150 Greenwich Street, 45<sup>th</sup> Floor<br>New York, NY 10006<br>Attn: Chris Pento | Company Participating Interest |
| Clear Street Holdings USVI Inc.<br>6100 Red Hook Qtr.<br>St. Thomas USVI<br>Attn: Elli Ausubel | 130,373,000 Class A Units |
| Clear Street Group Inc.<br>150 Greenwich Street, 45<sup>th</sup> Floor<br>New York, NY 10006<br>Attn: Chris Pento | 33,492,853 Class C Units<br> 300,000 Class D Units<br> 1,400,000 Series A Preferred Units<br> 52,197,604 Series B-l Preferred Units<br> 2,406,757 Series B-2 Preferred Units |

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**SIXTH AMENDMENT TO CREDIT AGREEMENT** 

This Sixth Amendment to Credit Agreement (herein, the "*Amendment*") is entered into as of November 12, 2024, by and among CLEAR STREET LLC, a Delaware limited liability company (the "*Borrower*"), CLEAR STREET HOLDINGS LLC, a Delaware limited liability company (the "*Guarantor*" or the "*Parent*"), the financial institutions party to this Amendment, as the Initial Lenders, the New Lenders (as hereinafter defined), and BMO BANK N.A., as Administrative Agent (the "*Administrative Agent*").

**PRELIMINARY STATEMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Borrower, the Initial Lenders and the Administrative Agent entered into a certain Credit Agreement, dated as of December 4, 2020, as amended (the "*Credit Agreement*"). All capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Each of Goldman Sachs Bank USA and Regions Bank (each a "*New Lender*" and together with the other financial institutions party to this Amendment, the "*Lenders*") will be joining the Credit Agreement as a New Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Borrower has asked the Lenders to make certain amendments to the Credit Agreement, and the Lenders are willing to do so under the terms and conditions set forth in this Amendment.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

SECTION 1. AMENDMENTS.

Subject to the satisfaction or waiver of the conditions precedent set forth in Section 2 below, the Credit Agreement shall be and hereby is amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. The following defined terms appearing in Section 1.1 of the Credit Agreement shall be amended and restated to read in their entirety as follows:

"*Change of Control*" means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Cohen Affiliates shall cease at any time and for any reason (including death or incapacity) to own, directly or indirectly, at least 50.1 of the Voting Stock of the Parent and of the Ultimate Parent,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the failure of the Parent to own, directly or indirectly, 100 of the Voting Stock of the Borrower,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Cohen Affiliates shall cease to have the ability to elect (either through share ownership or contractual voting rights) a majority of the board of directors or equivalent governing body of the Ultimate Parent,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Ultimate Parent shall (i) at any time that Parent is managed by a board of directors (or equivalent governing body), cease to have the ability to elect (either through share ownership or contractual voting rights) a majority of the board of directors or equivalent governing body of the Parent or (ii) at any time that Parent is managed by a managing member, cease to serve as the managing member of the Parent, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Parent shall (i) at any time that Borrower is managed by a board of directors (or equivalent governing body), cease to have the ability to elect (either through share ownership or contractual voting rights) a majority of the board of directors or equivalent governing body of the Borrower or (ii) at any time that Borrower is managed by a managing member, cease to serve as the managing member of the Borrower, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any "Change of Control" (or words of like import), as defined in any agreement or indenture relating to any issue of Indebtedness of the Ultimate Parent, the Parent or the Borrower shall occur.

"*Commitment*" means, as to any Lender, the obligation of such Lender to make Loans in an aggregate principal at any one time outstanding not to exceed the amount set forth opposite such Lender's name on Schedule 2.1attached hereto and made a part hereof, as the same may be increased, reduced or modified at any time or from time to time pursuant to the terms hereof. The Borrower and the Lenders acknowledge and agree that the aggregate Commitments of the Lenders is $440,000,000 on the Sixth Amendment Effective Date.

"*Overnight Base Rate*" means, for any day, the rate per annum equal to the greatest of: (a) Term SOFR for such day plus 0.11448 , (b) the Target Rate for such day, and (c) 0.25 . Any change in the Overnight Base Rate due to a change in the Target Rate or Term SOFR, as applicable, shall be effective from and including the effective date of the change in such rate. If the Term SOFR is not available for any reason, then the Overnight Base Rate shall be the greater of clauses (b) and (c) above and shall be determined without reference to clause (a) above.

"*Parent*" means Clear Street Holdings LLC, a Delaware limited liability company.

"*Required Lenders*" means (i) at any time there are two or fewer Lenders, 100 of the Lenders and (ii) at any time there are more than two Lenders, then two or more Lenders having Total Credit Exposures representing more than 50.0 of the Total Credit Exposures of all Lenders; *provided,* that Lenders that are Affiliates shall be deemed as single Lender for purposes of calculating the minimum number of Required Lenders. To the extent provided in the last paragraph of Section 11.3, the Total Credit Exposure of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.

"*Reserve Borrowing Base*" means, at any time, an amount equal to the difference between (A) the requested withdrawals of customers' cash from the Excluded Account (including cash of customers' PAB) , less (B) cash received by the Borrower that is required to be deposited into the Excluded Account, in each case from the last computation date of the value of the Excluded Account through the date of determination.

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"*Settlement Bank Obligations*" means any and all obligations of the Borrower owing to BMO Bank N.A. and its Affiliates, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor) in connection with depository, cash management, and treasury management services provided to the Borrower, including, without limitation, controlled disbursement, automated clearinghouse transactions, payments to clearinghouses, return items, overdrafts, interstate depository network services, transfer of funds from the Borrower to any seller of securities.

"*Sublimit*" means, at any time the same is to be determined, an amount equal to 75.0 of the Commitments in effect at such time.

"*Termination Date*" means (i) November 11, 2025, (ii) the date upon which a Level II Termination Event occurs unless such Level II Termination Event has been waived in accordance with this Agreement, or (iii) or such earlier date on which the Commitment is terminated in whole pursuant to Section 2.14, 8.2 or 8.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. Section 1.1 of the Credit Agreement shall be and hereby is amended by adding the following new defined terms thereto in proper alphabetical order:

"*Sixth Amendment*" means that certain Sixth Amendment to Credit Agreement dated as of November 12, 2024, by and among the Borrower, the Lenders, and the Administrative Agent.

"*Sixth Amendment Effective Date*" means the date that the Sixth Amendment becomes effective in accordance with its terms.

"*Ultimate Parent*" means Clear Street Group Inc., a Delaware corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. Clause (e) of the defined term "*Eligible Equity Security*" appearing in Section 1.1 of the Credit Agreement shall be amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the issuer of such security is not a Lender or an Affiliate of the Administrative Agent or any Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. Clause (a) of the defined term "*Eligible Security*" appearing in Section 1.1 of the Credit Agreement shall be amended and restated to read in its entirety as follows (a) (i) it is traded on an Exchange and is not subject to any restriction on transfer (including without limitation Rule 144 and Rule 144A promulgated by the SEC) and (ii) is not a security that is a crypto currency or where the value of such security is derived from the value of any crypto currency, including exchange traded funds and trust for Bitcoin, Ether and any other crypto currency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. The defined terms "*Sanctioned Person*" and "*Sanctions*" appearing in Section 1.1 of the Credit Agreement shall be and hereby is amended by deleting the reference to "*Her Majesty's Treasury of the United Kingdom*" to "*His Majesty's Treasury of the United Kingdom.*"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. Section 2.17(a) of the Credit Agreement shall be amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the aggregate amount of all such Revolver Increases after the Sixth Amendment Effective Date shall not exceed $100,000,000 and any such Revolver Increase shall be in an amount not less than $5,000,000 (or such lesser amount then agreed to by the Administrative Agent);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7. Section 5.6 of the Credit Agreement shall be amended and restated to read in its entirety as follows:

*Section 5.6. No Material Adverse Change.* Since December 31, 2023, there has been no change in the condition (financial or otherwise) or business of the Borrower or of the Borrower and its Subsidiaries taken as a whole which, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8. Section 5.25 of the Credit Agreement shall be amended and restated to read in its entirety as follows:

*Section 5.25. Designated Examining Authority*. Financial Industry Regulatory Authority ("*FINRA*") has been designated as the Designated Examining Authority for the Borrower, and the Borrower's Designated Self-Regulatory Organizations are FINRA, the New York Stock Exchange, the National Futures Association and CME Group, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9. Section 6.5(c) of the Credit Agreement shall be amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) as soon as available, and in any event no later than 60 days after the last day of each fiscal quarter of each fiscal year of the Ultimate Parent, a copy of the consolidated balance sheet of the Ultimate Parent and its Subsidiaries as of the last day of such fiscal quarter and the consolidated statements of income, retained earnings, and cash flows of the Ultimate Parent and its Subsidiaries for the fiscal quarter and for the fiscal year to date period then ended, each in reasonable detail showing in comparative form the figures for the corresponding date and period in the previous fiscal year, prepared by the Ultimate Parent in accordance with GAAP (subject to the absence of footnote disclosures and year end audit adjustments) and certified to by its chief financial officer or another officer of the Ultimate Parent acceptable to Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as soon as available, and in any event within 120 days after the last day of each fiscal year of the Ultimate Parent, copies of the consolidated balance sheet of the Ultimate Parent and its Subsidiaries as of the close of such period and the consolidated statements of income, retained earnings, and cash flows of the Ultimate Parent and its Subsidiaries for such period, and accompanying notes thereto, each in reasonable detail, accompanied by an unqualified opinion (subject to normal year-end adjustments and except for qualifications relating to changes in accounting principles or practices reflecting changes in GAAP and required or approved by the Ultimate Parent's independent certified public accountants) thereon of a firm of independent public accountants of recognized national standing, selected by the Ultimate Parent and reasonably satisfactory to the Administrative Agent, to the effect that the financial statements have been prepared in accordance with GAAP and present fairly in accordance with GAAP the consolidated financial condition of the Borrower and its Subsidiaries as of the close of such fiscal year and the results of their operations and cash flows for the fiscal year then ended and that an examination of such accounts in connection with such financial statements has been made in accordance with generally accepted auditing standards and, accordingly, such examination included such tests of the accounting records and such other auditing procedures as were considered necessary in the circumstances;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10. Section 7.1(j) of the Credit Agreement shall be amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Intentionally Omitted; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11. Sections 7.12(a) and (b) of the Credit Agreement shall be amended and restated to read in their entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Minimum Tangible Net Worth.* The Borrower shall at all times maintain its Tangible Net Worth of not less than $450,000,000 plus 50.0 of the aggregate Increases after the Sixth Amendment Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Minimum Excess Net Capital*. The Borrower shall at all times maintain Excess Net Capital of not less than $300,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12. Section 8.1(n) of the Credit Agreement shall be amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Intentionally Omitted*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13. Section 10.1(b) of the Credit Agreement shall be amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *NSCC Margin Collateral.* To secure the payment and performance of the NSCC Margin Obligations, the Borrower hereby grants to the Administrative Agent, for the benefit of the Lenders, a continuing lien on and security interest in, and right of set-off against, all right, title, and interest of the Borrower, whether now owned or existing or hereafter created, acquired or arising, in and to all of the NSCC Margin Collateral; *provided,* that the Administrative Agent's security in and lien on the Settlement Account granted herein shall be subordinate to the lien on the Settlement Account in favor of the Administrative Agent to secure the Settlement Bank Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14. Section 10.6(ii) of the Credit Agreement shall be amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Borrower agrees that the Settlement Account shall at all times be subject to the "control" (within the meaning of Section 9-104 of the UCC) of and held by the Administrative Agent as the depositary bank during the term of this Agreement. The Borrower shall have the right to transfer or otherwise dispose of any funds in the Settlement Account to finance the ordinary course operations of the Borrower's business unless and until the Borrower has received notice from the Administrative Agent or the Required Lenders that an Event of Default has occurred and is continuing, *provided,* that no such notice is required and the Borrower shall no longer have the right to transfer or otherwise dispose of any such funds upon the occurrence of an Event of Default described in Section 8.1(j), 8.1(k), 8.1(l) or 8.1(m).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15. The penultimate sentence of Section 11.2(d) of the Credit Agreement shall be and hereby is amended by deleting the phrase "*acting solely for this purpose as an agent of the Borrower*" and inserting in its place the phrase "*acting solely for this purpose as a non-fiduciary agent of the Borrower*".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16. Section 11.3(iii) of the Credit Agreement shall be amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no amendment shall do any of the following unless signed by each Lender affected thereby: (a) extend the Termination Date; *provided,* that only the consent of the Required Lenders shall be necessary to amend or waive any Level II Termination Event, (b) subordinate any of the Obligations owed to the Lenders in right of payment or otherwise adversely affect the priority of payment of any of such Obligations, or (c) subordinate any of the Liens securing the Obligations except to the extent such subordination is expressly permitted pursuant to Section 10.1(b) hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17. Section 11.20 of the Credit Agreement shall be and hereby is amended by deleting the period at the end of clause (i) and replacing it with "; or" and immediately thereafter inserting a new clause (j) to read in its entirety as follows:

or (j) to entities which compile and publish information about the syndicated loan market, provided that only basic information about the pricing and structure of the transaction evidenced hereby may be disclosed pursuant to this subsection (j).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18. Each of Schedule 2.1, Exhibit A and Exhibit C to the Credit Agreement shall be amended and restated in its entirety in the form of Schedule 2.1, Exhibit A and Exhibit C attached hereto.

SECTION 2. CONDITIONS PRECEDENT.

The effectiveness of this Amendment is subject to the satisfaction of all of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. The Borrower, the Guarantor, the Lenders, and the Administrative Agent shall have executed and delivered this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. If requested by any Lender increasing its Commitment, the Administrative Agent shall have received for such Lender such Lender's duly executed Notes of the Borrower dated the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. The Administrative Agent shall have received copies of the Guarantor's and the Borrower's articles of incorporation and bylaws (or comparable organizational documents) and any amendments thereto, certified in each instance by its Secretary or Assistant Secretary (or comparable Responsible Officer).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. The Administrative Agent shall have received copies (executed or certified as may be appropriate) of resolutions of the Board of Directors or other governing body of the Borrower and the Guarantor authorizing the execution, delivery, and performance of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. The Administrative Agent shall have received an incumbency certificate containing the name, title and genuine signature of the Borrower's Authorized Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. The Administrative Agent shall have received good standing certificates for the Borrower and the Guarantor, dated as of a date no earlier than 30 days prior to the date hereof, from the Delaware Secretary of State.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. Legal matters incident to the execution and delivery of the Loan Documents and to the transactions contemplated hereby shall be satisfactory to the Administrative Agent and its counsel; and the Administrative Agent shall have received the favorable written opinion of inhouse counsel for the Borrower in form and substance satisfactory to the Agent and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. The Administrative Agent shall have received fees set forth in that certain Mandate Letter dated August 27, 2024, between the Administrative Agent and the Borrower, including upfront fees payable to each Lender equal to 0.20 of such Lender's Commitment after giving effect to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9. The Administrative Agent shall have received financing statement, tax, and judgment lien search results against the Guarantor, the Borrower and their Property evidencing the absence of Liens thereon except as permitted by Section 7.2 of the Credit Agreement.

SECTION 3. REPRESENTATIONS.

In order to induce the Lenders to enter into this Amendment, each of Borrower and the Guarantor (collectively, the "*Credit Parties*") hereby represents and warrants to the Administrative Agent and the Required Lenders that as of the date hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. *Authorization, Etc.* Each Credit Party has the power and authority to execute, deliver and perform this Amendment. Each Credit Party has taken all necessary action (including, without limitation, obtaining approval of its equity holders, if necessary) to authorize its execution, delivery and performance of this Amendment. No consent, approval or authorization of, or declaration or filing with, any Governmental Authority, and no consent of any other Person, is required in connection with the Credit Parties' execution, delivery and performance of this Amendment, except for those already duly obtained. This Amendment has been duly executed and delivered by the Credit Parties and constitutes the legal, valid and binding obligation of the Credit Parties, enforceable against them in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditor rights generally or by equitable principles relating to enforceability. The execution, delivery and performance of this Amendment by the Credit Parties does not (i) contravene the terms of any of such Credit Party's Organizational Documents; (ii) conflict with or constitute a violation or breach of, or constitute a default under, or result in the creation or imposition of any Lien (other than pursuant to the Loan Documents) upon the Property of such Credit Party by reason of the terms of any material contractual obligation (including without limitation contractual obligations arising from any material agreements to which such Credit Party is a party or which is binding upon it); or (iii) violate any applicable law in any material respect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. *Representations and Warranties.* After giving effect to this Amendment, the representations and warranties set forth in Section 5 of the Credit Agreement and in the other Loan Documents are and shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. *No Default.* No Default exists under the Credit Agreement or shall result after giving effect to this Amendment.

SECTION 4. REAFFIRMATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. The Borrower hereby acknowledges and agrees that the Liens created and provided for by the Loan Documents continue to secure, among other things, the Obligations arising under the Credit Agreement as amended hereby; and the Loan Documents and the rights and remedies of the Administrative Agent thereunder, the obligations of the Borrower thereunder, and the Liens created and provided for thereunder remain in full force and effect and shall not be affected, impaired or discharged hereby. Nothing herein contained shall in any manner affect or impair the priority of the Liens created and provided for by the Loan Documents as to the indebtedness which would be secured thereby prior to giving effect to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. The Guarantor hereby acknowledges that it has reviewed the terms and provisions of this Amendment and consents to any modification of the Credit Agreement and the other Loan Documents effected pursuant to this Amendment. The Guarantor hereby confirms to the Administrative Agent that, after giving effect to this Amendment, the Guarantee of the Guarantor and each other Loan Document to which the Guarantor is a party continues in full force and effect and is the legal, valid and binding obligation of the Guarantor, enforceable against the Guarantor in accordance with their terms except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability. The Guarantor acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Amendment, the Guarantor is not required by the terms of the Credit Agreement or any other Loan Document to consent to the waivers or modifications to the Credit Agreement effected pursuant to this Amendment and (ii) nothing in the Credit Agreement, this Amendment or any other Loan Document shall be deemed to require the consent of the Guarantor to any future waivers or modifications to the Credit Agreement.

SECTION 5. NEW LENDERS; EQUALIZATION OF LOANS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. *New Lenders.* Upon the satisfaction of the conditions precedent set forth in Section 2 hereof, each New Lender (i) shall be deemed automatically to have become a party to the Credit Agreement as a Lender, and have all the rights and obligations of a "*Lender*" under the Credit Agreement, (ii) shall have a Commitment in the amount set forth on Schedule 2.1 to the Credit

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Agreement, and (iii) agrees to be bound by the terms and conditions of the Credit Agreement as if it were an original signatory thereto. Each New Lender hereby confirms that it has received a copy of the Credit Agreement and the other Loan Documents and the exhibits related thereto, together with copies of the documents which were required to be delivered under the Credit Agreement as a condition to the making of the Loans and other extensions of credit thereunder. Each New Lender acknowledges and agrees that it has made and will continue to make, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, its own credit analysis and decisions relating to the Credit Agreement. Each New Lender further acknowledges and agrees that the Administrative Agent has not made any representations or warranties about the credit worthiness of the Borrower or any other party to the Credit Agreement or any other Loan Document or with respect to the legality, validity, sufficiency or enforceability of the Credit Agreement or any other Loan Document or the value of any security therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. *Equalization of Loans.* Upon the satisfaction of the conditions precedent set forth in Section 2 hereof, the Lenders each agree to make such purchases and sales of interests in the outstanding Loans among themselves so that each Lender is then holding its Percentage of outstanding Loans. Such purchases and sales shall be arranged through the Administrative Agent and each Lender hereby agrees to execute such further instruments and documents, if any, as the Administrative Agent may reasonably request in connection therewith.

SECTION 6. MISCELLANEOUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Except as specifically amended herein, the Credit Agreement shall continue in full force and effect in accordance with its original terms. Reference to this specific Amendment need not be made in the Credit Agreement, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Credit Agreement, any reference in any of such items to the Credit Agreement being sufficient to refer to the Credit Agreement as amended hereby. This Amendment is not a novation nor is it to be construed as a release, waiver or modification of any of the terms, conditions, representations, warranties, covenants, rights or remedies set forth in the Credit Agreement or the other Loan Documents, except as specifically set forth herein. Without limiting the foregoing, each party to this Amendment agrees to comply with all of the terms, conditions, and provisions of the Credit Agreement and the other Loan Documents except to the extent such compliance is irreconcilably inconsistent with the express provisions of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. The Borrower agrees to pay on demand all reasonable and documented out-of-pocket costs and expenses of or incurred by the Administrative Agent in connection with the negotiation, preparation, execution and delivery of this Amendment and the other instruments and documents being executed and delivered in connection herewith and the transactions contemplated hereby, including the reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. This Amendment may be executed in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall constitute one and the same agreement. Any of the parties hereto may execute this Amendment by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be

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an original. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic (e.g., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of Amendment. This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). This Amendment shall be deemed a Loan Document.

[Remainder Left Intentionally Blank]

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This Sixth Amendment to Credit Agreement is entered into as of the date and year first above written.

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| | |
|:---|:---|
| CLEAR STREET LLC, as the Borrower | CLEAR STREET LLC, as the Borrower |
| By: | /s/ Andrew Volz |
|  | Name: Andrew Volz |
|  | Title: Chief Executive Officer |

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| | |
|:---|:---|
| CLEAR STREET HOLDINGS LLC, as the Guarantor | CLEAR STREET HOLDINGS LLC, as the Guarantor |
| By: | /s/ Chris Pento |
|  | Name: Chris Pento |
|  | Title: Chief Executive Officer |

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[Signature Page to the Sixth Amendment to Credit Agreement]

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| | |
|:---|:---|
| ACCEPTED AND AGREED TO.<br>BMO BANK N.A., as a Lender and as Administrative Agent | ACCEPTED AND AGREED TO.<br>BMO BANK N.A., as a Lender and as Administrative Agent |
| By: | /s/ Matthew Witt |
|  | Name: Matthew Witt |
|  | Title: Vice President |

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| | |
|:---|:---|
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| NORTHBROOK BANK & TRUST COMPANY, N.A., as a LENDER | NORTHBROOK BANK & TRUST COMPANY, N.A., as a LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| BANK OF AMERICA, N.A., as a Lender | BANK OF AMERICA, N.A., as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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[Signature Page to the Sixth Amendment to Credit Agreement]

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| | |
|:---|:---|
| ACCEPTED AND AGREED TO.<br>BMO BANK N.A., as a Lender and as Administrative Agent | ACCEPTED AND AGREED TO.<br>BMO BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: | /s/ Morgan Donovan |
|  | Name: Morgan Donovan |
|  | Title: Managing Director |

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| | |
|:---|:---|
| OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: | /s/ Brandon Troster |
|  | Name: Brandon Troster |
|  | Title: Senior Vice President |

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK, AS A LENDER | TRISTATE CAPITAL BANK, AS A LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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[Signature Page to the Sixth Amendment to Credit Agreement]

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| | |
|:---|:---|
| ACCEPTED AND AGREED TO.<br>BMO BANK N.A., as a Lender and as Administrative Agent | ACCEPTED AND AGREED TO.<br>BMO BANK N.A., as a Lender and as Administrative Agent |
| By: | /s/ Matthew Witt |
|  | Name: Matthew Witt |
|  | Title: Vice President |

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| | |
|:---|:---|
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| NORTHBROOK BANK & TRUST COMPANY, N.A., as a LENDER | NORTHBROOK BANK & TRUST COMPANY, N.A., as a LENDER |
| By: | /s/ Connor Huxtable |
|  | Name: Connor Huxtable |
|  | Title: Vice President |

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| | |
|:---|:---|
| BANK OF AMERICA, N.A., as a Lender | BANK OF AMERICA, N.A., as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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[Signature Page to the Sixth Amendment to Credit Agreement]

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| | |
|:---|:---|
| ACCEPTED AND AGREED TO.<br>BMO BANK N.A., as a Lender and as Administrative Agent | ACCEPTED AND AGREED TO.<br>BMO BANK N.A., as a Lender and as Administrative Agent |
| By: | /s/ Matthew Witt |
|  | Name: Matthew Witt |
|  | Title: Vice President |

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| | |
|:---|:---|
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| NORTHBROOK BANK & TRUST COMPANY, N.A., as a LENDER | NORTHBROOK BANK & TRUST COMPANY, N.A., as a LENDER |
| By: |  |
|  | Name:  |
|  | Title: Vice President |

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| | |
|:---|:---|
| BANK OF AMERICA, N.A., as a Lender | BANK OF AMERICA, N.A., as a Lender |
| By: | /s/ Sherman Wong |
|  | Name: Sherman Wong |
|  | Title: Director |

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| | |
|:---|:---|
| OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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[Signature Page to the Sixth Amendment to Credit Agreement]

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| | |
|:---|:---|
| ACCEPTED AND AGREED TO.<br>BMO BANK N.A., as a Lender and as Administrative Agent | ACCEPTED AND AGREED TO.<br>BMO BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: | /s/ Zachary Flahaven |
|  | Name: Zachary Flahaven |
|  | Title: SVP |

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| | |
|:---|:---|
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK, AS A LENDER | TRISTATE CAPITAL BANK, AS A LENDER |
| By: |  |
|  | Name:  |
|  | Title:  |

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[Signature Page to the Sixth Amendment to Credit Agreement]

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| | |
|:---|:---|
| ACCEPTED AND AGREED TO.<br>BMO BANK N.A., as a Lender and as Administrative Agent | ACCEPTED AND AGREED TO.<br>BMO BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK, AS A LENDER | TRISTATE CAPITAL BANK, AS A LENDER |
| By: | /s/ Ellen Frank |
|  | Name: Ellen Frank |
|  | Title: Senior Vice President |

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[Signature Page to the Sixth Amendment to Credit Agreement]

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK, as a Lender | TRISTATE CAPITAL BANK, as a Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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| | |
|:---|:---|
| REGIONS BANK, as a New Lender | REGIONS BANK, as a New Lender |
| By: | /s/ William Soo |
|  | Name: William Soo |
|  | Title: Managing Director |

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| | |
|:---|:---|
| GOLDMAN SACHS BANK USA, as a New Lender | GOLDMAN SACHS BANK USA, as a New Lender |
| By: |  |
|  | Name:  |
|  | Title:  |

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[Signature Page to the Sixth Amendment to Credit Agreement]

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| | |
|:---|:---|
| GOLDMAN SACHS BANK USA, as a New Lender | GOLDMAN SACHS BANK USA, as a New Lender |
| By: | /s/ Ananda DeRoche |
|  | Name: Ananda DeRoche |
|  | Title: Authorized Signatory |

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[Signature Page to the Sixth Amendment to Credit Agreement]

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**EXHIBIT A** 

**NOTICE OF BORROWING** 

Date: ,

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| | |
|:---|:---|
| To: | BMO Bank N.A., as Administrative Agent for the Lenders party to the Credit Agreement dated as of December 4, 2020 (as extended, renewed, amended or restated from time to time, the "*Credit Agreement*"), among Clear Street LLC, certain Lenders which are signatories thereto, BMO Bank N.A., as Administrative Agent  |

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Ladies and Gentlemen:

The undersigned,<u> </u> (the "*Borrower*"), refers to the Credit Agreement, the terms defined therein being used herein as therein defined, and hereby gives you notice irrevocably, pursuant to Section 2.4 of the Credit Agreement, of the Borrowing specified below:

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| |
|:---|
| (1) Borrowing Date<u> </u> |
| (2) Dollar Amount of Loan Requested |

---

(3) Dollar Amount of Loan Requested and Type of Loan (check all the apply):

$ FICC Loan

$ Margin Loan - Customer Loan secured by Customer Securities

$ Margin Loan - Firm Loan secured by Firm Securities

$ NSCC Margin Loan

$ Receivable Loan

$ Reserve Loan

Annex I attached hereto sets forth data and computations evidencing the Borrowing Base, and all of such data and computations are true, correct and complete and have been made in accordance with the relevant sections of the Credit Agreement.

For new value received the undersigned hereby pledges to the Administrative Agent and grants to the Administrative Agent, for the benefit of the Lenders, a security interest in the securities and other Property listed on the schedule(s) attached hereto as Annex II and made a part hereof and confirms a pledge of and security interest in the same now in effect in favor of the Administrative Agent, together with all rights related thereto and all proceeds thereof pursuant to the terms of the Credit Agreement.

------

The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed Loan, before and after giving effect thereto and to the application of the proceeds therefrom:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default has occurred and is continuing or would result from such proposed Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) after giving effect to the Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate principal amount of all Loans outstanding under this Agreement shall not exceed the Commitment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the aggregate principal amount of Margin Loans at any time outstanding shall not exceed the Margin Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate principal amount of FICC Loans at any time outstanding shall not exceed the FICC Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the aggregate principal amount of NSCC Margin Loans at any time outstanding shall not exceed the NSCC Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the aggregate principal amount of Receivables Loans at any time outstanding shall not exceed the Receivable Borrowing Base as then determined and computed

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the aggregate principal amount of Reserve Loans at any time outstanding shall not exceed the Reserve Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the aggregate principal amount of Customer Loans at any time outstanding shall not exceed the Customer Loan Limit, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the aggregate principal amount of Firm Loans at any time outstanding shall not exceed the Firm Loan Limit.

(4) With respect to FICC Loans, NSCC Margin Loans, Receivable Loans and Reserve Loans, the Number of Zero Loan Days
during the current month: . **[Number of Zero Loan Days during any calendar month cannot be less than 8]** 

------

---

| | |
|:---|:---|
|  CLEAR STREET LLC | CLEAR STREET LLC |
|  By: |  |
|  | Name: |
|  | Title: |

---

------

**ANNEX I** 

**TO** 

**NOTICE OF BORROWING** 

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| | | | |
|:---|:---|:---|:---|
|  **A - BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** | **A - BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** | **A - BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** | **A - BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** |
| (1) | Market Value of Eligible Federal Government Securities | x90 | $<u> </u> |
| (2) | Market Value of Eligible Bond Securities | x90 | $<u> </u> |
| (3) | the Market Value of Eligible Equity Securities | x80 | $<u> </u> |
| (4) | Sum of Lines (1), (2) and (3) |  | $<u> </u> |
| (5) | Outstanding Margin Loans |  | $<u> </u> |
| (6) | Availability (Line (4) minus Line (5)) |  | $<u> </u> |
|  **B - BORROWING BASE (FICC LOANS)** | **B - BORROWING BASE (FICC LOANS)** | **B - BORROWING BASE (FICC LOANS)** | **B - BORROWING BASE (FICC LOANS)** |
| (1) | Eligible FICC Margin Deposits | x80 | $<u> </u> |
| (2) | Outstanding FICC Loans |  | $<u> </u> |
| (3) | Availability (Line (A) minus Line (B)) |  | $<u> </u> |
|  **C - BORROWING BASE (NSCC MARGIN L OANS)** | **C - BORROWING BASE (NSCC MARGIN L OANS)** | **C - BORROWING BASE (NSCC MARGIN L OANS)** | **C - BORROWING BASE (NSCC MARGIN L OANS)** |
| (1) | Previous month 10th lowest Eligible NSCC Margin Deposits |  | $<u> </u> |
| (2) | Current Eligible NSCC Margin Deposits |  | $<u> </u> |
| (3) | Line (2) minus Line (1) |  | $<u> </u> |
| (4) | Line (3) multiplied by 80 (to the extent positive) |  | $<u> </u> |
| (5) | Outstanding NSCC Margin Loans |  | $<u> </u> |
| (6) | Availability (Line (4) minus Line (5)) |  | $<u> </u> |

---

\*\* (i) Eligible Securities shall exclude securities held in the Borrower's inventory for more than thirty (30) consecutive days and (ii) Eligible Bond Securities and Eligible Equity Securities of an issuer and its Affiliates of such Eligible Bond Security or Eligible Equity Security shall be excluded if the Market Value of such Eligible Bond Securities or Eligible Equity Securities exceeds 15% of all of the Collateral; provided, that only the excess Market Value shall be excluded for purposes of determining the Margin Borrowing Base.

------

---

| | | | |
|:---|:---|:---|:---|
|  **D - BORROWING BASE (RECEIVABLE LOANS)** | **D - BORROWING BASE (RECEIVABLE LOANS)** | **D - BORROWING BASE (RECEIVABLE LOANS)** | **D - BORROWING BASE (RECEIVABLE LOANS)** |
| (1) | Aggregate unpaid amount of Eligible Receivables for which the margin has been called but not received by the Borrower | x80 | $<u> </u> |
| (2) | The amount by which the Eligible Receivables owing from any one Account Debtor and its Affiliates exceeds 15 of all Eligible Receivables | X100 | $<u> </u> |
| (3) | Line (1) minus Line (2) |  | $<u> </u> |
| (4) | Outstanding Receivable Loans |  | $<u> </u> |
| (5) | Availability (Line (3) minus Line (4)) |  | $<u> </u> |
|  **E - BORROWING BASE (RESERVE LOANS)** | **E - BORROWING BASE (RESERVE LOANS)** | **E - BORROWING BASE (RESERVE LOANS)** | **E - BORROWING BASE (RESERVE LOANS)** |
| (1) | Amount in Reserve Account as of<u> </u> (the "*Requested Withdrawal Date*") |  | $<u> </u> |
| (2) | Requested customer withdrawals from the Requested Withdrawal Date |  | $<u> </u> |
| (3) | Deposits required to be made in the Excluded Account from the Requested Withdrawal Date |  | $<u> </u> |
| (4) | Line (2) minus Line (3) (to the extent positive) |  | $<u> </u> |
| (5) | Outstanding Reserve Loans |  | $<u> </u> |
| (6) | Availability (Line (4) minus Line (5) |  | $<u> </u> |

---

------

---

| | | |
|:---|:---|:---|
|  **LIMITATIONS ON AVAILABILITY** | **LIMITATIONS ON AVAILABILITY** | **LIMITATIONS ON AVAILABILITY** |
| A. | Outstanding Loans after giving effect to such requested Borrowing (sum of Lines (A)(5), (B)(2), (C)(5), (D)(4), and (E)(5)) | $<u> </u> |
| B. | The lesser of (i) $440,000,000 and (ii) Line A | $<u> </u> |
| C. | Outstanding FICC Loans, NSCC Margin Loans, Receivable Loans and Reserve Loans after giving effect to such requested Borrowing (sum of (B)(2), (C)(5), (D)(4), and (E)(5)) | $<u> </u> |
| D. | The lesser of (i) 75.0 of the Commitments and (ii) Line C | $<u> </u> |

---

------

Annex II

to

Notice of Borrowing

------

**EXHIBIT C** 

**CLEAR STREET LLC** 

**COMPLIANCE CERTIFICATE** 

To: BMO Bank N.A., as Administrative Agent under, and the Lenders party to, the Credit Agreement described below

This Compliance Certificate is furnished to the Administrative Agent and the Lenders pursuant to that certain Credit Agreement dated as of December 4, 2020, among Clear Street LLC, as Borrower, the Lenders party thereto from time to time, and BMO Bank N.A., as Administrative Agent (as extended, renewed, amended or restated from time to time, the "*Credit Agreement*"). Unless otherwise defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in the Credit Agreement.

THE UNDERSIGNED HEREBY CERTIFIES THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I am the duly elected<u> </u> of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I have reviewed the terms of the Credit Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of the Borrower and its Subsidiaries during the accounting period covered by the attached financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or the occurrence of any event which constitutes a Default during or at the end of the accounting period covered by the attached financial statements or as of the date of this Compliance Certificate, except as set forth below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The financial statements required by Section 6.5 of the Credit Agreement and being furnished to you concurrently with this Compliance Certificate are true, correct and complete as of the date and for the periods covered thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Schedule I hereto sets forth financial data and computations evidencing the Borrower's compliance with certain covenants of the Credit Agreement, all of which data and computations are, to the best of my knowledge, true, complete and correct and have been made in accordance with the relevant Sections of the Credit Agreement. In the event of a conflict between the attached spreadsheet and any certifications relating thereto and the Credit Agreement and related definitions used in calculating such covenants, the Credit Agreement and such related definitions shall govern and control.

Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

------

The foregoing certifications, together with the computations set forth in Schedule I hereto and the financial statements delivered with this Certificate in support hereof, are made and delivered this<u> </u>day of<u> </u> 20___.

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| | |
|:---|:---|
|  CLEAR STREET LLC | CLEAR STREET LLC |
|  By: |  |
|  | Name: |
|  | Title: |

---

------

**SCHEDULE I** 

**TO COMPLIANCE CERTIFICATE** 

**CLEAR STREET LLC** 

**COMPLIANCE CALCULATIONS** 

**FOR CREDIT AGREEMENT DATED AS OF DECEMBER 4, 2020** 

CALCULATIONS AS OF ,<u> </u> 

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| | |
|:---|:---|
| A. <u>Minimum Tangible Net Worth (Section 7.12(a))</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Tangible Net Worth | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Line A1 shall not be less than | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower is in compliance (circle yes or no) | yes/no |
| B. <u>Minimum Excess Net Capital (Section 7.12(b))</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Excess Net Capital | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Line B1 shall not be less than | $300000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower is in compliance (circle yes or no) | yes/no |
| C. <u>Total Assets to Total Equity (Section 7.12(c))</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Total Assets | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Matched repurchased agreements | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Loans consisting of securities | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Line C1 minus Line C2 minus Line C3 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Total equity | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Ratio of Line C4 to C5 | to |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Line C6 shall not exceed | 13.0 to 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The Borrower's in Compliance | yes/no |
| D. <u>Minimum Liquidity Ratio (Section 7.12(d))</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Unencumbered marketable securities (determined after taking into account prudent and customary financing haircuts as reasonably determined by the Administrative Agent) (exclusive of any securities on deposit in a Customer Reserve Bank Account or a PAB Reserve Bank Account, as those terms are defined in Exchange Act rule 15c3-3) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Unencumbered cash (exclusive of any cash on deposit in a Customer Reserve Bank Account or a PAB Reserve Bank Account, as those terms are defined in Exchange Act rule 15c3-3 unless such cash on deposit is available to satisfy any obligation of the Borrower) | $— |

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------

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Sum of Eligible FICC Margin Deposits and Eligible NSCC Margin Deposits (solely to the extent of the lesser of (x) the amount, if any, by which the Borrowing Base at such time exceeds the aggregate outstanding amount of Loans and (y) an amount equal to the Commitment minus the aggregate outstanding amount of Loans) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Sum of Lines D1 plus D2 plus D3 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Unsecured Indebtedness (other than the Loans, Subordinated Debt and intercompany Indebtedness that is subordinated to the Obligations, and exclusive of any credit balances carried for the account of any customer, broker or dealer) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Ratio of Line D4 to line D5 | to |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Line D6 ratio shall not be less than | 1.0 to 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The Borrower is in compliance (circle yes or no) | yes / no |

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------

**SCHEDULE 2.1** 

**COMMITMENTS** 

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| | |
|:---|:---|
| NAME OF LENDER | COMMITMENT |
|  BMO Bank N.A. | $125000000.00 |
|  CIBC Bank USA | $60000000.00 |
|  Customers Bank | $50000000.00 |
|  Regions Bank | $50000000.00 |
|  Northbrook Bank & Trust Company, N.A. | $40000000.00 |
|  Bank of America, N.A. | $40000000.00 |
|  Old National Bank | $35000000.00 |
|  TriState Capital Bank | $20000000.00 |
|  Goldman Sachs Bank USA | $20000000.00 |
|  TOTAL | $440000000.00 |

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------

**SEVENTH AMENDMENT TO CREDIT AGREEMENT** 

This Seventh Amendment to Credit Agreement (herein, the "*Amendment*") is entered into as of February 5, 2025, by and among CLEAR STREET LLC, a Delaware limited liability company (the "*Borrower*"), CLEAR STREET HOLDINGS LLC, a Delaware limited liability company (the "*Guarantor*" or the "*Parent*"), the financial institutions party to this Amendment, as Lenders, and BMO BANK N.A., as Administrative Agent (the "*Administrative Agent*").

**PRELIMINARY STATEMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Borrower, the Lenders and the Administrative Agent entered into a certain Credit Agreement, dated as of December 4, 2020, as amended (the "*Credit Agreement*"). All capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Borrower has asked the Required Lenders to make certain amendments to the Credit Agreement, and the Lenders are willing to do so under the terms and conditions set forth in this Amendment.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

SECTION 1. AMENDMENTS.

Subject to the satisfaction or waiver of the conditions precedent set forth in Section 2 below, the Credit Agreement shall be and hereby is amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. The defined term "*Total Assets to Total Equity Ratio*" appearing in Section 1.1 of the Credit Agreement shall be amended and restated to read in its entirety as follows:

"*Total Assets to Total Equity Ratio*" means, at any time the same is to be determined, the ratio of (i) total assets of the Borrower and its Subsidiaries at such time, less assets constituting matched repos and matched securities loans (including synthetic stock loans) to the extent that there is an offsetting liability, less customer segregated cash and debt securities issued by the United States Treasury solely in connection with the futures commission merchant business to (ii) the difference between total assets of the Borrower and its Subsidiaries, less total liabilities and reserves of the Borrower and its Subsidiaries at such time, all as determined on a consolidated basis in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. Section 7.12(c) of the Credit Agreement shall be amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Total Assets to Total Equity Ratio. The Borrower shall not, at any time, permit the Total Assets to Total Equity Ratio to exceed 9.0 to 1.0.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. Exhibit C to the Credit Agreement shall be amended and restated in the form of Exhibit C attached hereto.

SECTION 2. CONDITIONS PRECEDENT.

The effectiveness of this Amendment is subject to the satisfaction of all of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. The Borrower, the Guarantor, the Required Lenders, and the Administrative Agent shall have executed and delivered this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. Legal matters incident to the execution and delivery of this Amendment and to the transactions contemplated hereby shall be satisfactory to the Administrative Agent and its counsel.

SECTION 3. REPRESENTATIONS.

In order to induce the Lenders to enter into this Amendment, each of Borrower and the Guarantor (collectively, the "Credit Parties") hereby represents and warrants to the Administrative Agent and the Required Lenders that as of the date hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. *Authorization, Etc*. Each Credit Party has the power and authority to execute, deliver and perform this Amendment. Each Credit Party has taken all necessary action (including, without limitation, obtaining approval of its equity holders, if necessary) to authorize its execution, delivery and performance of this Amendment. No consent, approval or authorization of, or declaration or filing with, any Governmental Authority, and no consent of any other Person, is required in connection with the Credit Parties' execution, delivery and performance of this Amendment, except for those already duly obtained. This Amendment has been duly executed and delivered by the Credit Parties and constitutes the legal, valid and binding obligation of the Credit Parties, enforceable against them in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditor rights generally or by equitable principles relating to enforceability. The execution, delivery and performance of this Amendment by the Credit Parties does not (i) contravene the terms of any of such Credit Party's Organizational Documents; (ii) conflict with or constitute a violation or breach of, or constitute a default under, or result in the creation or imposition of any Lien (other than pursuant to the Loan Documents) upon the Property of such Credit Party by reason of the terms of any material contractual obligation (including without limitation contractual obligations arising from any material agreements to which such Credit Party is a party or which is binding upon it); or (iii) violate any applicable law in any material respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. *Representations and Warranties*. After giving effect to this Amendment, the representations and warranties set forth in Section 5 of the Credit Agreement and in the other Loan Documents are and shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. *No Default*. No Default exists under the Credit Agreement or shall result after giving effect to this Amendment.

SECTION 4. REAFFIRMATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. The Borrower hereby acknowledges and agrees that the Liens created and provided for by the Loan Documents continue to secure, among other things, the Obligations arising under the Credit Agreement as amended hereby; and the Loan Documents and the rights and remedies of the Administrative Agent thereunder, the obligations of the Borrower thereunder, and the Liens created and provided for thereunder remain in full force and effect and shall not be affected, impaired or discharged hereby. Nothing herein contained shall in any manner affect or impair the priority of the Liens created and provided for by the Loan Documents as to the indebtedness which would be secured thereby prior to giving effect to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. The Guarantor hereby acknowledges that it has reviewed the terms and provisions of this Amendment and consents to any modification of the Credit Agreement and the other Loan Documents effected pursuant to this Amendment. The Guarantor hereby confirms to the Administrative Agent that, after giving effect to this Amendment, the Guarantee of the Guarantor and each other Loan Document to which the Guarantor is a party continues in full force and effect and is the legal, valid and binding obligation of the Guarantor, enforceable against the Guarantor in accordance with their terms except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability. The Guarantor acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Amendment, the Guarantor is not required by the terms of the Credit Agreement or any other Loan Document to consent to the waivers or modifications to the Credit Agreement effected pursuant to this Amendment and (ii) nothing in the Credit Agreement, this Amendment or any other Loan Document shall be deemed to require the consent of the Guarantor to any future waivers or modifications to the Credit Agreement.

SECTION 5. MISCELLANEOUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. Except as specifically amended herein, the Credit Agreement shall continue in full force and effect in accordance with its original terms. Reference to this specific Amendment need not be made in the Credit Agreement, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Credit Agreement, any reference in any of such items to the Credit Agreement being sufficient to refer to the Credit Agreement as amended hereby. This Amendment is not a novation nor is it to be construed as a release, waiver or modification of any of the terms, conditions, representations, warranties, covenants, rights or remedies set forth in the Credit Agreement or the other Loan Documents, except as specifically set forth herein. Without limiting the foregoing, each party to this Amendment agrees to comply with all of the terms, conditions, and provisions of the Credit Agreement and the other Loan Documents except to the extent such compliance is irreconcilably inconsistent with the express provisions of this Amendment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. The Borrower agrees to pay on demand all reasonable and documented out-of-pocket costs and expenses of or incurred by the Administrative Agent in connection with the negotiation, preparation, execution and delivery of this Amendment and the other instruments and documents being executed and delivered in connection herewith and the transactions contemplated hereby, including the reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. This Amendment may be executed in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall constitute one and the same agreement. Any of the parties hereto may execute this Amendment by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be an original. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic (e.g., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of Amendment. This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). This Amendment shall be deemed a Loan Document.

[Remainder Left Intentionally Blank]

------

This Seventh Amendment to Credit Agreement is entered into as of the date and year first above written.

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| | |
|:---|:---|
| CLEAR STREET LLC, as the Borrower | CLEAR STREET LLC, as the Borrower |
| By: | /s/ Andrew Volz |
|  | Name: Andrew Volz |
|  | Title: Chief Executive Officer |
| CLEAR STREET HOLDINGS LLC, as the Guarantor | CLEAR STREET HOLDINGS LLC, as the Guarantor |
| By: | /s/ Ed Tilly |
|  | Name: Ed Tilly |
|  | Title: Co-Chief Executive Officer |

---

[Signature Page – Clear Street]

------

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
| BMO BANK N.A., as a Lender and as Administrative Agent | BMO BANK N.A., as a Lender and as Administrative Agent |
| By: | /s/ Krupa Tantuwaya |
|  | Name: Krupa Tantuwaya |
|  | Title: Managing Director |
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender | NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| BANK OF AMERICA, N.A., as a Lender | BANK OF AMERICA, N.A., as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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[Signature Page – Clear Street]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
| BMO BANK N.A., as a Lender and as Administrative Agent | BMO BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: | /s/ Morgan Donovan |
|  | Name: Morgan Donovan |
|  | Title: Managing Director |
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender | NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| BANK OF AMERICA, N.A., as a Lender | BANK OF AMERICA, N.A., as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

[Signature Page – Clear Street]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
| BMO BANK N.A., as a Lender and as Administrative Agent | BMO BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: | /s/ Brandon Troster |
|  | Name: Brandon Troster |
|  | Title: SVP |
| NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender | NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| BANK OF AMERICA, N.A., as a Lender | BANK OF AMERICA, N.A., as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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[Signature Page – Clear Street]

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| | |
|:---|:---|
| BMO BANK N.A., as a Lender and as<br>Administrative Agent | BMO BANK N.A., as a Lender and as<br>Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender | NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender |
| By: | /s/ Connor Huxtable |
|  | Name: Connor Huxtable |
|  | Title: Vice President |
| BANK OF AMERICA, N.A., as a Lender | BANK OF AMERICA, N.A., as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

[Signature Page – Clear Street]

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---

| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
| BMO BANK N.A., as a Lender and as Administrative Agent | BMO BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender | NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| BANK OF AMERICA, N.A., as a Lender | BANK OF AMERICA, N.A., as a Lender |
| By: | /s/ Sherman Wong |
|  | Name: Sherman Wong |
|  | Title: Managing Director |
| OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

[Signature Page – Clear Street]

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| | |
|:---|:---|
| Accepted and agreed to. | Accepted and agreed to. |
| BMO BANK N.A., as a Lender and as Administrative Agent | BMO BANK N.A., as a Lender and as Administrative Agent |
| By: |  |
|  | Name: |
|  | Title: |
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| CUSTOMERS BANK, as a Lender | CUSTOMERS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender | NORTHBROOK BANK & TRUST COMPANY, N.A., as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| BANK OF AMERICA, N.A., as a Lender | BANK OF AMERICA, N.A., as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| OLD NATIONAL BANK, as a Lender | OLD NATIONAL BANK, as a Lender |
| By: | /s/ Zachary Flahaven |
|  | Name: Zachary Flahaven |
|  | Title: SVP |

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[Signature Page – Clear Street]

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK, as a Lender | TRISTATE CAPITAL BANK, as a Lender |
| By: | /s/ Ellen Frank |
|  | Name: Ellen Frank |
|  | Title: Senior Vice President |
| REGIONS BANK, as a Lender | REGIONS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| GOLDMAN SACHS BANK USA, as a Lender | GOLDMAN SACHS BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| M&T BANK, as a Lender | M&T BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| U.S. BANK, NATIONAL ASSOCIATION, as a Lender | U.S. BANK, NATIONAL ASSOCIATION, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

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[Signature Page – Clear Street]

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK, as a Lender | TRISTATE CAPITAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| REGIONS BANK, as a Lender | REGIONS BANK, as a Lender |
| By: | /s/ William Soo |
|  | Name: William Soo |
|  | Title: Managing Director |
| GOLDMAN SACHS BANK USA, as a Lender | GOLDMAN SACHS BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| M&T BANK, as a Lender | M&T BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| U.S. BANK, NATIONAL ASSOCIATION, as a Lender | U.S. BANK, NATIONAL ASSOCIATION, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

[Signature Page – Clear Street]

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK, as a Lender | TRISTATE CAPITAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| REGIONS BANK, as a Lender | REGIONS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| GOLDMAN SACHS BANK USA, as a Lender | GOLDMAN SACHS BANK USA, as a Lender |
| By: | /s/ Priyankush Goswami |
|  | Name: Priyankush Goswami |
|  | Title: Authorized Signatory |
| M&T BANK, as a Lender | M&T BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| U.S. BANK, NATIONAL ASSOCIATION, as a Lender | U.S. BANK, NATIONAL ASSOCIATION, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

[Signature Page – Clear Street]

------

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK, as a Lender | TRISTATE CAPITAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| REGIONS BANK, as a Lender | REGIONS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| GOLDMAN SACHS BANK USA, as a Lender | GOLDMAN SACHS BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| M&T BANK, as a Lender | M&T BANK, as a Lender |
| By: | /s/ Isaac Bailey |
|  | Name: Isaac Bailey |
|  | Title: Vice President |
| U.S. BANK, NATIONAL ASSOCIATION, as a Lender | U.S. BANK, NATIONAL ASSOCIATION, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |

---

[Signature Page – Clear Street]

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| | |
|:---|:---|
| TRISTATE CAPITAL BANK, as a Lender | TRISTATE CAPITAL BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| REGIONS BANK, as a Lender | REGIONS BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| GOLDMAN SACHS BANK USA, as a Lender | GOLDMAN SACHS BANK USA, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| M&T BANK, as a Lender | M&T BANK, as a Lender |
| By: |  |
|  | Name: |
|  | Title: |
| U.S. BANK, NATIONAL ASSOCIATION, as a Lender | U.S. BANK, NATIONAL ASSOCIATION, as a Lender |
| By: | /s/ Chris Doering |
|  | Name: Chris Doering |
|  | Title: Senior Vice President |

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[Signature Page – Clear Street]

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**EIGHTH AMENDMENT TO CREDIT AGREEMENT** 

This Eighth Amendment to Credit Agreement (herein, the *"Amendment"*) is entered into as of November 7, 2025, by and among CLEAR STREET LLC, a Delaware limited liability company (the *"Borrower"*), CLEAR STREET HOLDINGS LLC, a Delaware limited liability company (the *"Guarantor"* or the *"Parent"*), the financial institutions party to this Amendment, as the Initial Lenders, the New Lenders (as hereinafter defined), and BMO BANK N.A., as Administrative Agent (the *"Administrative Agent"*).

**PRELIMINARY STATEMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Borrower, the Initial Lenders and the Administrative Agent entered into a certain Credit Agreement, dated as of December 4, 2020, as amended (the *"Credit Agreement"*). All capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Borrower has asked the Lenders to make certain amendments to the Credit Agreement, and the Lenders are willing to do so under the terms and conditions set forth in this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Each of the financial institutions executing this Amendment as a "New Lender" (each a *"New Lender"* and together with the Initial Lenders, the "*Lenders*") will be joining the Credit Agreement as a New Lender.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

SECTION 1. AMENDMENTS.

Subject to the satisfaction or waiver of the conditions precedent set forth in Section 2 below, the Credit Agreement shall be and hereby is amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. The following defined terms appearing in Section 1.1 of the Credit Agreement shall be amended and restated to read in their entirety as follows:

*"Change of Control"* means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to the occurrence of a Qualifying IPO, the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Cohen Affiliates shall cease at any time and for any reason (including death or incapacity) to own, directly or indirectly, at least 50.1% of the Voting Stock of the Parent and of the Ultimate Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the failure of the Parent to own, directly or indirectly, 100% of the Voting Stock of the Borrower,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Cohen Affiliates shall cease to have the ability to elect (either through share ownership or contractual voting rights) a majority of the board of directors or equivalent governing body of the Ultimate Parent,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Ultimate Parent shall (i) at any time that Parent is managed by a board of directors (or equivalent governing body), cease to have the ability to elect (either through share ownership or contractual voting rights) a majority of the board of directors or equivalent governing body of the Parent or (ii) at any time that Parent is managed by a managing member, cease to serve as the managing member of the Parent, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Parent shall (i) at any time that Borrower is managed by a board of directors (or equivalent governing body), cease to have the ability to elect (either through share ownership or contractual voting rights) a majority of the board of directors or equivalent governing body of the Borrower or (ii) at any time that Borrower is managed by a managing member, cease to serve as the managing member of the Borrower, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at any time upon or after the consummation of a Qualifying IPO, the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its Subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) other than the Cohen Affiliates becomes the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934), directly or indirectly, of 50% or more of the Voting Stock of Ultimate Parent on a fully-diluted basis (it being understood that any Person or group shall not be deemed to beneficially own equity interests or Voting Stock subject to a stock or asset purchase agreement, merger agreement, option agreement, warrant agreement or similar agreement (or voting or option or similar agreement related thereto) until the consummation of the acquisition of the equity interests or Voting Stock in connection with the transactions contemplated by such agreement); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the failure of individuals who are members of the board of directors (or similar governing body) of the Borrower on the date of Qualifying IPO (together with any new or replacement directors whose initial nomination for election was approved by a majority of the directors who were either directors on the date of Qualifying IPO or previously so approved) to constitute a majority of the board of directors (or similar governing body) of the Borrower; *provided*, this clause (ii) shall not constitute a Change of Control if, at the time of such board change, the Cohen Affiliates continue to own, directly or indirectly, at least 50.1% of the Voting Stock of the Parent and of the Ultimate Parent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any "Change of Control" (or words of like import), as defined in any agreement or indenture relating to any issue of Indebtedness of the Ultimate Parent, the Parent or the Borrower shall occur.

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*"Commitment"* means, as to any Lender, the obligation of such Lender to make Loans in an aggregate principal at any one time outstanding not to exceed the amount set forth opposite such Lender's name on Schedule 2.1attached hereto and made a part hereof, as the same may be increased, reduced or modified at any time or from time to time pursuant to the terms hereof. The Borrower and the Lenders acknowledge and agree that the aggregate Commitments of the Lenders is $980,000,000.00 as of the Eighth Amendment Effective Date.

*"Excess Net Capital"* means, as of any date the same is to be determined, the Borrower's net capital as shown on line 3910 of the Borrower's most recent FOCUS Part 2 report; *provided,* that capital charges related to contractual commitments in connection with underwriting the issuance of equity securities that are at least ninety percent (90%) presold may be added back to the determination of Excess Net Capital.

*"Level I Termination Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the NSCC requires the Borrower to make an Adequate Assurance Deposit or any other clearinghouse imposes a similar requirement on the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) one or more Regulatory Authorities imposes fines, levies, or other monetary penalties (including the disgorgement of profits) against the Borrower in excess of $15,000,000 individually or in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Borrower enters into a settlement with any Person (including any Regulatory Authority), and the Borrower is obligated to pay an amount in excess of $15,000,000 as part of such settlement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) one or more Regulatory Authorities imposes a fine, levy or other monetary penalty against the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer in excess of $1,000,000; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer enters into a settlement with any Person (including any Regulatory Authority), and such Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer is obligated to pay an amount in excess of $1,000,000 as part of such settlement.

*"Level II Termination Event"* means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) one or more Regulatory Authorities imposes fines, levies, or other monetary penalties (including the disgorgement of profits) against the Borrower in excess of $20,000,000 individually or in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Regulatory Authority requires that a material portion of the Borrower's business be suspended or otherwise prohibited from operating for a period of five (5) or more Business Days, including, as applicable, the suspension, revocation or termination of the Borrower as a broker-dealer with the SEC or as a member of a Regulatory Authority;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Borrower enters into a settlement with any Person (including any Regulatory Authority), and the Borrower is obligated to pay an amount in excess of $20,000,000 as part of such settlement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) one or more Regulatory Authorities imposes a fine, levy or other monetary penalty against the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer, in their capacity as such, in excess of $2,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer, in their capacity as such, enters into a settlement with any Person (including any Regulatory Authority), and such Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer, in their capacity as such, is obligated to pay an amount in excess of $2,000,000 as part of such settlement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer is suspended in any capacity for any reason for a period of five (5) or more Business Days or expelled by a Regulatory Authority.

*"Receivable Borrowing Base"* means, as of any time it is to be determined, the difference between (i) 80% of the aggregate unpaid amount of Eligible Receivables for which the margin has been called but not received by the Borrower; *minus* (ii) the amount by which the Eligible Receivables owing from a single Account Debtor (including the Affiliates of such Account Debtor) exceeds 25% of all Eligible Receivables, *minus* (iii) the amount by which the Eligible Receivables owing from any Account Debtor and its Affiliates (other than the single Account Debtor and its Affiliates set forth in clause (ii) above) exceeds 15% of all Eligible Receivables.

*"Sublimit"* means, at any time the same is to be determined, an amount equal to 80.0% of the Commitments in effect at such time.

*"Termination Date"* means the earliest to occur of: (i) November 6, 2026, (ii) the date upon which a Level II Termination Event occurs unless such Level II Termination Event has been waived in accordance with this Agreement, or (iii) the date upon which the Commitment is terminated in whole pursuant to Section 2.14, 8.2 or 8.3.

*"Total Assets to Total Equity Ratio"* means, at any time the same is to be determined, the ratio of (i)(A) total assets of the Borrower and its Subsidiaries at such time, *less* (B) assets constituting matched repos to the extent that there is an offsetting liability, *less* (C) the sum of matched stock loans, matched synthetic securities financing (including but not limited to SPX box option trades) to the extent that there is an offsetting liability and futures related customer balances to (ii) total shareholders' equity of the Borrower and its Subsidiaries at such time, all as determined on a consolidated basis in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. The defined term *"Applicable Interest Rate"* appearing in Section 1.1 of the Credit Agreement shall be and hereby is amended by amending and restating clauses (ii) and (iv) therein to read in their entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a rate per annum equal to the Overnight Base Rate in effect from time to time plus 4.0% for FICC Loans

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a rate per annum equal to the Overnight Base Rate in effect from time to time plus 4.0% for the Receivable Loans, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. The defined term *"Eligible Bond Security"* appearing in Section 1.1 of the Credit Agreement shall be and hereby is amended by amending and restating clause (g) therein to read in their entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the issuer of such security is not the Administrative Agent or a Lender or an Affiliate of the Administrative Agent or any Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. The defined term *"Eligible Security"* appearing in Section 1.1 of the Credit Agreement shall be and hereby is amended by amending and restating clause (e) therein to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (i) it is held in an Account, and (ii) the issuer of such security is not an Affiliate of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. Section 1.1 of the Credit Agreement shall be and hereby is amended by inserting new defined terms in their appropriate alphabetical order, each such defined term to read in its entirety as follows:

"*Eighth Amendment*" means that certain Eighth Amendment to Credit Agreement dated as of November 7, 2025, by and among the Borrower, the Lenders, and the Administrative Agent.

"*Eighth Amendment Effective Date*" means the date that the Eighth Amendment becomes effective in accordance with its terms.

"*Qualifying IPO*" means (i) the sale or issuance by Parent or any direct or indirect parent of Parent of its equity interests in an underwritten primary public offering (other than a public offering pursuant to a registration statement on Form S-8) pursuant to an effective registration statement filed with the SEC in accordance with the Securities Act (whether alone or in connection with a secondary public offering) or (ii) a transaction or series of transactions by Parent or any direct or indirect parent of Parent that results in the Equity Interests of Parent or any direct or indirect parent of Parent being registered under the Securities Act and listed on a national securities exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. Section 5.4(v) of the Credit Agreement shall be amended and restated to read in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Receivable Loans solely to finance the Borrower's short-term liquidity needs arising from the timing difference between the Borrower calling for margin to be provided by its customers to it and such margin being received by the Borrower to meet margin calls at the Borrower's futures and options clearinghouses and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7. Section 5.6 of the Credit Agreement shall be amended and restated to read in its entirety as follows:

*Section 5.6. No Material Adverse Change.* Since December 31, 2024, there has been no change in the condition (financial or otherwise) or business of the Borrower or of the Borrower and its Subsidiaries taken as a whole which, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8. Sections 7.12(a) and (b) of the Credit Agreement shall be amended and restated to read in their entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Minimum Tangible Net Worth.* The Borrower shall at all times maintain its Tangible Net Worth of not less than $600,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Minimum Excess Net Capital*. The Borrower shall at all times maintain Excess Net Capital of not less than $350,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8. The first sentence appearing in Section 11.4(d) of the Credit Agreement shall be amended and restated to read in its entirety as follows:

To the fullest extent permitted by applicable law, no party shall assert, and each party hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof; *provided,* that nothing in this clause (d) shall relieve the Borrower of any obligation it may have to indemnify an Indemnitee against special, indirect, consequential or punitive damages asserted against such Indemnitee by a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9. Each of Schedule 2.1, Exhibit A and Exhibit C to the Credit Agreement shall be amended and restated in its entirety in the form of Schedule 2.1, Exhibit A and Exhibit C attached hereto.

SECTION 2. CONDITIONS PRECEDENT.

The effectiveness of this Amendment is subject to the satisfaction of all of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. The Borrower, the Guarantor, the Lenders, and the Administrative Agent shall have executed and delivered this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. If requested by any Lender, the Administrative Agent shall have received for such Lender such Lender's duly executed Note of the Borrower dated the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. The Administrative Agent shall have received copies of the Guarantor's and the Borrower's articles of incorporation and bylaws (or comparable organizational documents) and any amendments thereto, certified in each instance by its Secretary or Assistant Secretary (or comparable Responsible Officer).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. The Administrative Agent shall have received copies (executed or certified as may be appropriate) of resolutions of the Board of Directors or other governing body of the Borrower and the Guarantor authorizing the execution, delivery, and performance of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. The Administrative Agent shall have received an incumbency certificate containing the name, title and genuine signature of the Borrower's and the Guarantor's Authorized Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. The Administrative Agent shall have received good standing certificates for the Borrower and the Guarantor, dated as of a date no earlier than 30 days prior to the date hereof, from the Delaware Secretary of State.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. Legal matters incident to the execution and delivery of this Amendment and the other Loan Documents required hereby and to the transactions contemplated hereby shall be satisfactory to the Administrative Agent and its counsel; and the Administrative Agent shall have received the favorable written opinion of in-house counsel for the Borrower in form and substance satisfactory to the Agent and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. The Administrative Agent shall have received fees set forth in that certain Mandate Letter dated September 26, 2025, between the Administrative Agent and the Borrower, including upfront fees payable to each Lender equal to 0.20% of such Lender's Commitment after giving effect to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9. The Administrative Agent shall have received financing statement, tax, and judgment lien search results against the Guarantor, the Borrower and their Property evidencing the absence of Liens thereon except as permitted by Section 7.2 of the Credit Agreement.

SECTION 3. REPRESENTATIONS.

In order to induce the Lenders to enter into this Amendment, each of Borrower and the Guarantor (collectively, the *"Credit Parties"*) hereby represents and warrants to the Administrative Agent and the Required Lenders that as of the date hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. *Authorization, Etc.* Each Credit Party has the power and authority to execute, deliver and perform this Amendment. Each Credit Party has taken all necessary action (including, without limitation, obtaining approval of its equity holders, if necessary) to authorize its execution, delivery and performance of this Amendment. No consent, approval or authorization of, or declaration or filing with, any Governmental Authority, and no consent of any other Person, is required in connection with the Credit Parties' execution, delivery and performance of this Amendment, except for those already duly obtained. This Amendment has been duly executed and delivered by the Credit Parties and constitutes the legal, valid and binding obligation of the Credit Parties, enforceable against them in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditor rights generally or by equitable principles relating to enforceability. The execution, delivery and performance of this Amendment by the Credit Parties does not (i) contravene the terms of any of such Credit Party's Organizational Documents; (ii) conflict with or constitute a violation or breach of, or constitute a default under, or result in the creation or imposition of any Lien (other than pursuant to the Loan Documents) upon the Property of such Credit Party by reason of the terms of any material contractual obligation (including without limitation contractual obligations arising from any material agreements to which such Credit Party is a party or which is binding upon it); or (iii) violate any applicable law in any material respect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. *Representations and Warranties.* After giving effect to this Amendment, the representations and warranties set forth in Section 5 of the Credit Agreement and in the other Loan Documents are and shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. *No Default.* No Default exists under the Credit Agreement or shall result after giving effect to this Amendment.

SECTION 4. REAFFIRMATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. The Borrower hereby acknowledges and agrees that the Liens created and provided for by the Loan Documents continue to secure, among other things, the Obligations arising under the Credit Agreement as amended hereby; and the Loan Documents and the rights and remedies of the Administrative Agent thereunder, the obligations of the Borrower thereunder, and the Liens created and provided for thereunder remain in full force and effect and shall not be affected, impaired or discharged hereby. Nothing herein contained shall in any manner affect or impair the priority of the Liens created and provided for by the Loan Documents as to the indebtedness which would be secured thereby prior to giving effect to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. The Guarantor hereby acknowledges that it has reviewed the terms and provisions of this Amendment and consents to any modification of the Credit Agreement and the other Loan Documents effected pursuant to this Amendment. The Guarantor hereby confirms to the Administrative Agent that, after giving effect to this Amendment, the Guarantee of the Guarantor and each other Loan Document to which the Guarantor is a party continues in full force and effect and is the legal, valid and binding obligation of the Guarantor, enforceable against the Guarantor in accordance with their terms except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability. The Guarantor acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Amendment, the Guarantor is not required by the terms of the Credit Agreement or any other Loan Document to consent to the waivers or modifications to the Credit Agreement effected pursuant to this Amendment and (ii) nothing in the Credit Agreement, this Amendment or any other Loan Document shall be deemed to require the consent of the Guarantor to any future waivers or modifications to the Credit Agreement.

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SECTION 5. NEW LENDERS; EQUALIZATION OF LOANS; DESIGNATION OF ADDITIONAL AGENTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. *New Lenders.* Upon the satisfaction of the conditions precedent set forth in Section 2 hereof, each New Lender (i) shall be deemed automatically to have become a party to the Credit Agreement as a Lender, and have all the rights and obligations of a *"Lender"* under the Credit Agreement, (ii) shall have a Commitment in the amount set forth on Schedule 2.1 to the Credit Agreement, and (iii) agrees to be bound by the terms and conditions of the Credit Agreement as if it were an original signatory thereto. Each New Lender hereby confirms that it has received a copy of the Credit Agreement and the other Loan Documents and the exhibits related thereto, together with copies of the documents which were required to be delivered under the Credit Agreement as a condition to the making of the Loans and other extensions of credit thereunder. Each New Lender acknowledges and agrees that it has made and will continue to make, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, its own credit analysis and decisions relating to the Credit Agreement. Each New Lender further acknowledges and agrees that the Administrative Agent has not made any representations or warranties about the credit worthiness of the Borrower or any other party to the Credit Agreement or any other Loan Document or with respect to the legality, validity, sufficiency or enforceability of the Credit Agreement or any other Loan Document or the value of any security therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. *Equalization of Loans.* Upon the satisfaction of the conditions precedent set forth in Section 2 hereof, the Lenders each agree to make such purchases and sales of interests in the outstanding Loans among themselves so that each Lender is then holding its Percentage of outstanding Loans. Such purchases and sales shall be arranged through the Administrative Agent and each Lender hereby agrees to execute such further instruments and documents, if any, as the Administrative Agent may reasonably request in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. *Designation of Additional Agents.* The Administrative Agent appoints Bank of America, N.A., Regions Bank and UBS Securities LLC as Co-Documentation Agents in accordance with Section 9.8 of the Credit Agreement.

SECTION 6. MISCELLANEOUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Except as specifically amended herein, the Credit Agreement shall continue in full force and effect in accordance with its original terms. Reference to this specific Amendment need not be made in the Credit Agreement, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Credit Agreement, any reference in any of such items to the Credit Agreement being sufficient to refer to the Credit Agreement as amended hereby. This Amendment is not a novation nor is it to be construed as a release, waiver or modification of any of the terms, conditions, representations, warranties, covenants, rights or remedies set forth in the Credit Agreement or the other Loan Documents, except as specifically set forth herein. Without limiting the foregoing, each party to this Amendment agrees to comply with all of the terms, conditions, and provisions of the Credit Agreement and the other Loan Documents except to the extent such compliance is irreconcilably inconsistent with the express provisions of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. The Borrower agrees to pay on demand all reasonable and documented out-of-pocket costs and expenses of or incurred by the Administrative Agent in connection with the negotiation, preparation, execution and delivery of this Amendment and the other instruments and documents being executed and delivered in connection herewith and the transactions contemplated hereby, including the reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. This Amendment may be executed in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall constitute one and the same agreement. Any of the parties hereto may execute this Amendment by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be an original. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic (e.g., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of Amendment. This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). This Amendment shall be deemed a Loan Document.

[Remainder Left Intentionally Blank]

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This Eighth Amendment to Credit Agreement is entered into as of the date and year first above written.

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| | |
|:---|:---|
| CLEAR STREET LLC, as the Borrower | CLEAR STREET LLC, as the Borrower |
| By: | /s/ Andrew Volz |
|  | Name: Andrew Volz |
|  | Title: Chief Executive Officer |
| CLEAR STREET HOLDINGS LLC, as the Guarantor | CLEAR STREET HOLDINGS LLC, as the Guarantor |
| By: | /s/ Ed Tilly |
|  | Name: Ed Tilly |
|  | Title: Co-Chief Executive Officer |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  Accepted and agreed to.<br>BMO BANK N.A., as an Initial Lender and as Administrative Agent | Accepted and agreed to.<br>BMO BANK N.A., as an Initial Lender and as Administrative Agent |
| By: | /s/ Matthew Witt |
|  | Name: Matthew Witt |
|  | Title: Vice President |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  BANK OF AMERICA, N.A., as an Initial Lender and as a Co-Documentation Agent | BANK OF AMERICA, N.A., as an Initial Lender and as a Co-Documentation Agent |
| By: | /s/ Sherman Wong |
|  | Name: Sherman Wong |
|  | Title: Managing Director |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
| Accepted and agreed to.<br>REGIONS BANK, as a Lender | Accepted and agreed to.<br>REGIONS BANK, as a Lender |
| By: | /s/ Brian Sandler |
|  | Name: Brian Sandler |
|  | Title: Managing Director |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
| CIBC BANK USA, as an Initial Lender | CIBC BANK USA, as an Initial Lender |
| By: | /s/ Morgan Donovan |
|  | Name: Morgan Donovan |
|  | Title: Managing Director |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
| CUSTOMERS BANK, as an Initial Lender | CUSTOMERS BANK, as an Initial Lender |
| By: | /s/ Brandon Troster |
|  | Name: Brandon Troster |
|  | Title: SVP |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  GOLDMAN SACHS BANK USA, as an Initial Lender | GOLDMAN SACHS BANK USA, as an Initial Lender |
| By: | /s/ Dan Starr |
|  | Name: Dan Starr |
|  | Title: Authorized Signatory |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  M&T BANK, as an Initial Lender | M&T BANK, as an Initial Lender |
| By: | /s/ Isaac Bailey |
|  | Name: Isaac Bailey |
|  | Title: Vice President |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  U.S. BANK, NATIONAL ASSOCIATION, as an Initial Lender | U.S. BANK, NATIONAL ASSOCIATION, as an Initial Lender |
| By: | /s/ Chris Doering |
|  | Name: Chris Doering |
|  | Title: SVP |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  NORTHBROOK BANK & TRUST COMPANY, N.A., as an Initial Lender | NORTHBROOK BANK & TRUST COMPANY, N.A., as an Initial Lender |
| By: | /s/ Connor Huxtable |
|  | Name: Connor Huxtable |
|  | Title: Vice President |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  OLD NATIONAL BANK, as an Initial Lender | OLD NATIONAL BANK, as an Initial Lender |
| By: | /s/ Jack Arends |
|  | Name: Jack Arends |
|  | Title: Authorized Signatory |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  TRISTATE CAPITAL BANK, as an Initial Lender | TRISTATE CAPITAL BANK, as an Initial Lender |
| By: | /s/ Ellen Frank |
|  | Name: Ellen Frank |
|  | Title: Senior Vice President |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  UBS AG, STAMFORD BRANCH, as a New Lender and as a Co-Documentation Agent | UBS AG, STAMFORD BRANCH, as a New Lender and as a Co-Documentation Agent |
| By: | /s/ Joselin Fernandes |
|  | Name: Joselin Fernandes |
|  | Title: Director |

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| | |
|:---|:---|
| By: | /s/ Muhammad Afzal |
|  | Name: Muhammad Afzal |
|  | Title: Director |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  BARCLAYS BANK PLC, as a New Lender | BARCLAYS BANK PLC, as a New Lender |
| By: | /s/ Edward Pan |
|  | Name: Edward Pan |
|  | Title: Director |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  THE HUNTINGTON NATIONAL BANK, as a New Lender | THE HUNTINGTON NATIONAL BANK, as a New Lender |
| By: | /s/ Amy Prager |
|  | Name: Amy Prager |
|  | Title: Managing Director |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  MORGAN STANLEY SENIOR FUNDING, INC., as a New Lender | MORGAN STANLEY SENIOR FUNDING, INC., as a New Lender |
| By: | /s/ Michael King |
|  | Name: Michael King |
|  | Title: Authorized Signatory |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  ROYAL BANK OF CANADA, as a New Lender | ROYAL BANK OF CANADA, as a New Lender |
| By: | /s/ Staci Sunshine Gola |
|  | Name: Stacy Sunshine Gola |
|  | Title: Authorized Signatory |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  THE TORONTO-DOMINION BANK, NEW YORK BRANCH, as a New Lender | THE TORONTO-DOMINION BANK, NEW YORK BRANCH, as a New Lender |
| By: | /s/ Tracy Win |
|  | Name: Tracy Win |
|  | Title: Authorized Signatory |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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| | |
|:---|:---|
|  THE BANK OF NEW YORK MELLON, as a New Lender | THE BANK OF NEW YORK MELLON, as a New Lender |
| By: | /s/ Sonia Malhotra |
|  | Name: Sonia Malhotra |
|  | Title: Director |

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[Signature Page to the Eighth Amendment to Credit Agreement]

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**EXHIBIT A** 

**NOTICE OF BORROWING** 

Date: ____________, ____

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| | |
|:---|:---|
| To: | BMO Bank N.A., as Administrative Agent for the Lenders party to the Credit Agreement dated as of December 4, 2020 (as extended, renewed, amended or restated from time to time, the *"Credit Agreement"*), among Clear Street LLC, certain Lenders which are signatories thereto, BMO Bank N.A., as Administrative Agent |

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Ladies and Gentlemen:

The undersigned, __________________________ (the *"Borrower"*), refers to the Credit Agreement, the terms defined therein being used herein as therein defined, and hereby gives you notice irrevocably, pursuant to Section 2.4 of the Credit Agreement, of the Borrowing specified below:

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| | |
|:---|:---|
| (1) |  |
| (2) |  |
| (3) | Dollar Amount of Loan Requested and Type of Loan (check all the apply): |
|  | $FICC Loan |
|  | $Margin Loan - Customer Loan secured by Customer Securities |
|  | $Margin Loan - Firm Loan secured by Firm Securities |
|  | $NSCC Margin Loan |
|  | $Receivable Loan |
|  | $Reserve Loan |

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Annex I attached hereto sets forth data and computations evidencing the Borrowing Base, and all of such data and computations are true, correct and complete and have been made in accordance with the relevant sections of the Credit Agreement.

For new value received the undersigned hereby pledges to the Administrative Agent and grants to the Administrative Agent, for the benefit of the Lenders, a security interest in the securities and other Property listed on the schedule(s) attached hereto as Annex II and made a part hereof and confirms a pledge of and security interest in the same now in effect in favor of the Administrative Agent, together with all rights related thereto and all proceeds thereof pursuant to the terms of the Credit Agreement.

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The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed Loan, before and after giving effect thereto and to the application of the proceeds therefrom:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default has occurred and is continuing or would result from such proposed Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) after giving effect to the Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate principal amount of all Loans outstanding under this Agreement shall not exceed the Commitment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the aggregate principal amount of Margin Loans at any time outstanding shall not exceed the Margin Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate principal amount of FICC Loans at any time outstanding shall not exceed the FICC Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the aggregate principal amount of NSCC Margin Loans at any time outstanding shall not exceed the NSCC Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the aggregate principal amount of Receivables Loans at any time outstanding shall not exceed the Receivable Borrowing Base as then determined and computed

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the aggregate principal amount of Reserve Loans at any time outstanding shall not exceed the Reserve Borrowing Base as then determined and computed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the aggregate principal amount of Customer Loans at any time outstanding shall not exceed the Customer Loan Limit, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the aggregate principal amount of Firm Loans at any time outstanding shall not exceed the Firm Loan Limit.

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(4) With respect to FICC Loans, NSCC Margin Loans, Receivable Loans and Reserve Loans, the Number of Zero Loan Days
during the current month: **[Number of Zero Loan Days during any calendar month cannot be less than 8]** 

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| | |
|:---|:---|
| CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

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**ANNEX I** 

**TO** 

**NOTICE OF BORROWING** 

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| | | | |
|:---|:---|:---|:---|
|  **A - BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** | **A - BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** | **A - BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** | **A - BORROWING BASE (MARGIN LOANS)<sup>\*\*</sup>** |
| (1) | Market Value of Eligible Federal Government Securities | x 90% | $____________ |
| (2) | Market Value of Eligible Bond Securities | x 90% | $____________ |
| (3) | the Market Value of Eligible Equity Securities | x 80% | $____________ |
| (4) | Sum of Lines (1), (2) and (3) |  | $____________ |
| (5) | Outstanding Margin Loans |  | $____________ |
| (6) | Availability (Line (4) minus Line (5)) |  | $____________ |
|  **B - BORROWING BASE (FICC LOANS)** | **B - BORROWING BASE (FICC LOANS)** | **B - BORROWING BASE (FICC LOANS)** | **B - BORROWING BASE (FICC LOANS)** |
| (1) | Eligible FICC Margin Deposits | x 80% | $____________ |
| (2) | Outstanding FICC Loans |  | $____________ |
| (3) | Availability (Line (A) minus Line (B)) |  | $____________ |
|  **C - BORROWING BASE (NSCC MARGIN LOANS)** | **C - BORROWING BASE (NSCC MARGIN LOANS)** | **C - BORROWING BASE (NSCC MARGIN LOANS)** | **C - BORROWING BASE (NSCC MARGIN LOANS)** |
| (1) | Previous month 10<sup>th</sup> lowest Eligible NSCC Margin Deposits |  | $____________ |
| (2) | Current Eligible NSCC Margin Deposits |  | $____________ |
| (3) | Line (2) minus Line (1) |  | $____________ |
| (4) | Line (3) multiplied by 80% (to the extent positive) |  | $____________ |
| (5) | Outstanding NSCC Margin Loans |  | $____________ |
| (6) | Availability (Line (4) minus Line (5)) |  | $____________ |

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| | |
|:---|:---|
| <sup>\*\*</sup> | (i) Eligible Securities shall exclude securities held in the Borrower's inventory for more than thirty (30) consecutive days and (ii) Eligible Bond Securities and Eligible Equity Securities of an issuer and its Affiliates of such Eligible Bond Security or Eligible Equity Security shall be excluded if the Market Value of such Eligible Bond Securities or Eligible Equity Securities exceeds 15% of all of the Collateral; *provided,* that only the excess Market Value shall be excluded for purposes of determining the Margin Borrowing Base  |

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| | | | |
|:---|:---|:---|:---|
|  **D - BORROWING BASE (RECEIVABLE LOANS)** | **D - BORROWING BASE (RECEIVABLE LOANS)** | **D - BORROWING BASE (RECEIVABLE LOANS)** | **D - BORROWING BASE (RECEIVABLE LOANS)** |
| (1) | Aggregate unpaid amount of Eligible Receivables for which the margin has been called but not received by the Borrower | x 80% | $____________ |
| (2) | The amount by which the Eligible Receivables owing from a single Account Debtor (including the Affiliates of such Account Debtor) exceeds 25% of all Eligible Receivables | X 100% | $____________ |
| (3) | The amount by which the Eligible Receivables owing from any one Account Debtor and its Affiliates exceeds 15% of all Eligible Receivables | X 100% | $____________ |
| (4) | Line (1) minus Line (2) minus Line (3) |  | $____________ |
| (5) | Outstanding Receivable Loans |  | $____________ |
| (6) | Availability (Line (4) minus Line (5)) |  | $____________ |
|  **E - BORROWING BASE (RESERVE LOANS)** | **E - BORROWING BASE (RESERVE LOANS)** | **E - BORROWING BASE (RESERVE LOANS)** | **E - BORROWING BASE (RESERVE LOANS)** |
| (1) | Amount in Reserve Account as of _______ (the *"Requested Withdrawal Date"*) |  | $____________ |
| (2) | Requested customer withdrawals from the Requested Withdrawal Date |  | $____________ |
| (3) | Deposits required to be made in the Excluded Account from the Requested Withdrawal Date |  | $____________ |
| (4) | Line (2) minus Line (3) (to the extent positive) |  | $____________ |
| (5) | Outstanding Reserve Loans |  | $____________ |
| (6) | Availability (Line (4) minus Line (5) |  | $____________ |

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| | | |
|:---|:---|:---|
|  **LIMITATIONS ON AVAILABILITY** | **LIMITATIONS ON AVAILABILITY** | **LIMITATIONS ON AVAILABILITY** |
| A. | Outstanding Loans after giving effect to such requested Borrowing (sum of Lines (A)(5), (B)(2), (C)(5), (D)(5), and (E)(5)) | $____________ |
| B. | The lesser of (i) the Commitments and (ii) Line A | $____________ |
| C. | Outstanding FICC Loans, NSCC Margin Loans, Receivable Loans and Reserve Loans after giving effect to such requested Borrowing (sum of (B)(2), (C)(5), (D)(5), and (E)(5)) | $____________ |
| D. | The lesser of (i) the Sublimit and(ii) Line C | $____________ |

---

------

Annex II

to

Notice of Borrowing

------

**EXHIBIT C** 

**CLEAR STREET LLC** 

**COMPLIANCE CERTIFICATE** 

To: BMO Bank N.A., as Administrative Agent under, and the Lenders party to, the Credit Agreement described below

This Compliance Certificate is furnished to the Administrative Agent and the Lenders pursuant to that certain Credit Agreement dated as of December 4, 2020, among Clear Street LLC, as Borrower, the Lenders party thereto from time to time, and BMO Bank N.A., as Administrative Agent (as extended, renewed, amended or restated from time to time, the *"Credit Agreement"*). Unless otherwise defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in the Credit Agreement.

THE UNDERSIGNED HEREBY CERTIFIES THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I am the duly elected ______________ of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I have reviewed the terms of the Credit Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of the Borrower and its Subsidiaries during the accounting period covered by the attached financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or the occurrence of any event which constitutes a Default during or at the end of the accounting period covered by the attached financial statements or as of the date of this Compliance Certificate, except as set forth below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The financial statements required by Section 6.5 of the Credit Agreement and being furnished to you concurrently with this Compliance Certificate are true, correct and complete as of the date and for the periods covered thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Schedule I hereto sets forth financial data and computations evidencing the Borrower's compliance with certain covenants of the Credit Agreement, all of which data and computations are, to the best of my knowledge, true, complete and correct and have been made in accordance with the relevant Sections of the Credit Agreement. In the event of a conflict between the attached spreadsheet and any certifications relating thereto and the Credit Agreement and related definitions used in calculating such covenants, the Credit Agreement and such related definitions shall govern and control.

------

Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

The foregoing certifications, together with the computations set forth in Schedule I hereto and the financial statements delivered with this Certificate in support hereof, are made and delivered this ____________ day of _______________ 20__.

---

| | |
|:---|:---|
| CLEAR STREET LLC | CLEAR STREET LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

------

**SCHEDULE I** 

**TO COMPLIANCE CERTIFICATE** 

**CLEAR STREET LLC** 

**COMPLIANCE CALCULATIONS** 

**FOR CREDIT AGREEMENT DATED AS OF DECEMBER 4, 2020** 

CALCULATIONS AS OF ___________________, __________

A. <u>Minimum Tangible Net Worth (Section 7.12(a))</u> 

1. Tangible Net Worth $____________

2. Line A1 shall not be less than $600,000,000

3. The Borrower is in compliance (circle yes or no) yes/no

B. <u>Minimum Excess Net Capital (Section 7.12(b))</u> 

1. Excess Net Capital $____________

2. Line B1 shall not be less than $350,000,000

3. The Borrower is in compliance (circle yes or no) yes/no

C. <u>Total Assets to Total Equity (Section 7.12(c))</u> 

1. Total Assets $____________

2. Assets constituting matched repos to the extent that there is an offsetting liability $____________

3. The sum of matched stock loans, matched synthetic securities financing (including but not limited to SPX box option trades) to the extent that there is an offsetting liability and futures related customer balances $____________

4. Line C1 minus Line C2 minus Line C3

5. Total shareholders' equity of the Borrower and its Subsidiaries $____________

6. Ratio of Line C4 to C5 ______ to ___

7. Line C6 shall not exceed 9.0 to 1.0

8. The Borrower's in Compliance yes/no

------

D. <u>Minimum Liquidity Ratio (Section 7.12(d))</u> 

1. Unencumbered marketable securities (determined after taking into account prudent and customary financing haircuts as reasonably determined by the Administrative Agent) (exclusive of any securities on deposit in a Customer Reserve
Bank Account or a PAB Reserve Bank Account, as those terms are defined in Exchange Act rule 15c3- 3) $____________

2. Unencumbered cash (exclusive of any cash on deposit in a Customer Reserve Bank Account or a PAB Reserve Bank Account, as those terms are defined in Exchange Act rule 15c3-3 unless such cash
on deposit is available to satisfy any obligation of the Borrower) $____________

3. Sum of Eligible FICC Margin Deposits and Eligible NSCC Margin Deposits (solely to the extent of the lesser of (x) the amount, if any, by which the Borrowing Base at such time exceeds the aggregate outstanding amount of Loans
and (y) an amount equal to the Commitment minus the aggregate outstanding amount of Loans) $____________

4. Sum of Lines D1 plus D2 plus D3 $____________

5. Unsecured Indebtedness (other than the Loans, Subordinated Debt and intercompany Indebtedness that is subordinated to the Obligations, and exclusive of any credit balances carried for the account of any customer, broker or
dealer) $____________

6. Ratio of Line D4 to line D5 ___ to ___

7. Line D6 ratio shall not be less than 1.0 to 1.0

8. The Borrower is in compliance (circle yes or no) yes/no

------

**SCHEDULE 2.1** 

**COMMITMENTS** 

---

| | |
|:---|:---|
| **NAME OF LENDER** | **COMMITMENT** |
|  BMO Bank N.A. | $125000000.00 |
|  Bank of America, N.A. | $75000000.00 |
|  Regions Bank | $75000000.00 |
|  UBS AG, Stamford Branch | $75000000.00 |
|  CIBC Bank USA | $65000000.00 |
|  Barclays Bank PLC | $50000000.00 |
|  Customers Bank | $50000000.00 |
|  Goldman Sachs Bank USA | $50000000.00 |
|  The Huntington National Bank | $50000000.00 |
|  M&T Bank | $50000000.00 |
|  Morgan Stanley Senior Funding, Inc. | $50000000.00 |
|  Royal Bank of Canada | $50000000.00 |
|  The Toronto-Dominion Bank, New York Branch | $50000000.00 |
|  U.S. Bank National Association | $50000000.00 |
|  Northbrook Bank & Trust Company, N.A. | $45000000.00 |
|  Old National Bank | $35000000.00 |
|  TriState Capital Bank | $25000000.00 |
|  The Bank of New York Mellon | $10000000.00 |
|  Total | $980000000.00 |

---

## Exhibit 10.22

**Exhibit 10.22** 

CREDIT AGREEMENT

DATED AS OF SEPTEMBER 23, 2025

AMONG

CLEAR STREET UK LIMITED, as a Borrower

THE LENDERS FROM TIME TO TIME PARTY HERETO,

AND

BMO BANK N.A.,

AS ADMINISTRATIVE AGENT

BMO CAPITAL MARKETS, AS SOLE LEAD ARRANGER AND SOLE BOOK RUNNER

------

**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
| SECTION | HEADING | PAGE |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 1. | DEFINITIONS; INTERPRETATION | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.1. | Definitions | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.2. | Interpretation | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.3. | Change in Accounting Principles | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.4. | Divisions | 21 |
|  SECTION 2. | THE FACILITIES | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.1. | The Facility | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.2. | Interest Rates | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.3. | Minimum Borrowing Amounts | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.4. | Manner of Borrowing Loans | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.5. | Maturity of Loans | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.6. | Prepayments | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.7. | Default Rate | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.8. | Evidence of Indebtedness | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.9. | Commitment Terminations | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.10. | Replacement of Lenders | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.11. | Defaulting Lenders | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.12. | Fees | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.13. | Increase in Commitments | 27 |
|  SECTION 3. | COLLATERAL AND GUARANTIES | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.1. | Collateral | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.2. | Guaranties | 28 |
|  SECTION 4. | TAXES AND INCREASED COSTS | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.1. | Taxes | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.2. | Increased Costs | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.3. | Lending Offices; Mitigation Obligations | 35 |
|  SECTION 5. | PLACE AND APPLICATION OF PAYMENTS | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.1. | Place and Application of Payments | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.2. | Non-Business Days | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.3. | Payments Set Aside | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.4. | Account Debit | 37 |
|  SECTION 6. | REPRESENTATIONS AND WARRANTIES | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.1. | Organization and Qualification | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.2. | Subsidiaries | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.3. | Authority and Validity of Obligations | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.4. | Use of Proceeds; Margin Stock | 38 |

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-i-

------

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.5. | Financial Reports | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.6. | No Material Adverse Change | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.7. | Full Disclosure | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.8. | Trademarks, Franchises, and Licenses | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.9. | Governmental Authority and Licensing | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.10. | Good Title | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.11. | Litigation and Other Controversies | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.12. | Taxes | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.13. | Approvals | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.14. | Affiliate Transactions | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.15. | Investment Company | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.16. | ERISA | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.17. | Compliance with Laws | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.18. | Sanctions; Anti-Money Laundering Laws and Anti-Corruption Laws | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.19. | Other Agreements | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.20. | Solvency | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.21. | No Default | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.22. | No Broker Fees | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.23. | Registration, Regulation U; Beneficial Ownership | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.24. | Regulatory Approvals | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.25. | Termination Event | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.26. | Senior Indebtedness | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.27. | Centre of Main Interests and Establishments | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.28. | No Filing or Stamp Taxes | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.29. | Deduction of Tax. | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.30. | UK and EU Regulated Status of Borrower | 42 |
|  SECTION 7. | CONDITIONS PRECEDENT | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.1. | All Credit Events | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.2. | Initial Credit Event | 42 |
|  SECTION 8. | COVENANTS | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.1. | Maintenance of Business | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.2. | Maintenance of Properties | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.3. | Taxes and Assessments | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.4. | Insurance | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.5. | Financial Reports | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.6. | Inspection; Field Audits | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.7. | Borrowings and Guaranties | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.8. | Liens | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.9. | Investments, Acquisitions, Loans and Advances | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.10. | Mergers, Consolidations and Sales | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.11. | Maintenance of Subsidiaries | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.12. | Dividends and Certain Other Restricted Payments | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.13. | ERISA | 52 |

---

-ii-

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.14. | Compliance with Laws | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.15. | Compliance with Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.16. | Burdensome Contracts With Affiliates | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.17. | No Changes in Fiscal Year | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.18. | Formation of Subsidiaries | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.19. | Change in the Nature of Business | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.20. | Use of Proceeds | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.21. | No Restrictions | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.22. | Most Favored Nations | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.23. | Financial Covenants | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.24. | Post-Closing Obligations | 55 |
|  SECTION 9. | EVENTS OF DEFAULT AND REMEDIES | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.1. | Events of Default | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.2. | Non-Bankruptcy Defaults | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.3. | Bankruptcy Defaults | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.4. | Post-Default Collections | 57 |
|  SECTION 10. | THE ADMINISTRATIVE AGENT | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.1. | Appointment and Authority | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.2. | Rights as a Lender | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.3. | Action by Administrative Agent; Exculpatory Provisions | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.4. | Reliance by Administrative Agent | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.5. | Delegation of Duties | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.6. | Resignation of Administrative Agent | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.7. | Non-Reliance on Administrative Agent and Other Lenders | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.8. | Designation of Additional Agents | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.9. | Authorization of Administrative Agent to File Proofs of Claim | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.10. | Certain ERISA Matters | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.11. | Recovery of Erroneous Payments | 63 |
|  SECTION 11. | MISCELLANEOUS | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.1. | Notices | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.2. | Successors and Assigns | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.3. | Amendments | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.4. | Costs and Expenses; Indemnification | 70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.5. | No Waiver, Cumulative Remedies | 72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.6. | Right of Setoff | 72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.7. | Sharing of Payments by Lenders | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.8. | Survival of Representations | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.9. | Survival of Indemnities | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.10. | Counterparts; Integration; Effectiveness | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.11. | Headings | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.12. | Severability of Provisions | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.13. | Construction | 74 |

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-iii-

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.14. | Excess Interest | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.15. | Lender's Obligations Several | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.16. | No Advisory or Fiduciary Responsibility | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.17. | Governing Law; Jurisdiction; Consent to Service of Process | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.18. | Waiver of Jury Trial | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.19. | USA Patriot Act | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.20. | Confidentiality | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.21. | Time is of the Essence | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.21. | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 78 |
|  Signature Page |  |  |

---

---

| | |
|:---|:---|
|  EXHIBIT A | Note |
|  EXHIBIT B | Compliance Certificate |
|  EXHIBIT C | Notice of Borrowing |
|  EXHIBIT D | Assignment and Assumption |
|  EXHIBIT E | Increase Request |
|  SCHEDULE 2.1 | Commitments |
|  SCHEDULE 6.2 | Subsidiaries |

---

-iv-

------

**CREDIT AGREEMENT** 

This Credit Agreement is entered into as of September 23, 2025 by and among CLEAR STREET UK LIMITED, a private limited company with company number 15000549 and having its registered office at1 Bartholomew Lane, 2nd Floor, London, England, EC2N 2AX (the "Borrower"), the several financial institutions from time to time party to this Agreement, as Lenders, and BMO BANK N.A., as Administrative Agent as provided herein.

**PRELIMINARY STATEMENT** 

The Borrower has requested, and the Lenders have agreed to extend, certain credit facilities on the terms and conditions of this Agreement.

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

SECTION 1. DEFINITIONS; INTERPRETATION.

*Section 1.1. Definitions*. The following terms when used herein shall have the following meanings:

"*Account Debtor*" means any Person obligated to make payment on any Receivable.

"*Act*" means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

"*Administrative Agent*" means BMO in its capacity as Administrative Agent hereunder, and any successor in such capacity pursuant to Section 10.6.

"*Administrative Questionnaire*" means an Administrative Questionnaire in a form supplied by the Administrative Agent.

"Affected Financial Institution" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"*Affiliate*" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified; *provided that*, in any event for purposes of this definition, any Person that owns, directly or indirectly, 5% or more of the securities having the ordinary voting power for the election of directors or governing body of a corporation or 5% or more of the partnership or other ownership interest of any other Person (other than as a limited partner of such other Person) will be deemed to control such corporation or other Person.

"*Agreement*" means this Credit Agreement, as the same may be amended, modified, restated or supplemented from time to time pursuant to the terms hereof.

------

"*Anti-Corruption Law*" means all Laws of any jurisdiction applicable to the Borrower or any of its Subsidiaries from time to time concerning or relating to bribery or corruption including, but not limited to, the UK Bribery Act 2010.

"*Anti-Money Laundering Laws*" means any and all Laws applicable to the Borrower or its Subsidiaries related to terrorism financing or money laundering, including any applicable provision of the Patriot Act.

"*Applicable Interest Rate*" means, for any day, a rate per annum equal to the rate of interest announced by the Administrative Agent from time to time as its prime commercial rate as in effect on such day (it by acknowledged and agreed that such rate may not be the Administrative Agent's lowest or best rate) in effect from time to time, with any change in the Applicable Interest Rate resulting from a change in the prime commercial rate to be effective as of the date of the relevant change in such prime commercial rate.

"*Approved Fund*" means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

"*Assignment and Assumption*" means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 11.2(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit D or any other form approved by the Administrative Agent.

"*Authorized Representative*" means those persons shown on the list of directors provided by the Borrower pursuant to Section 7.2 or on any update of any such list provided by the Borrower to the Administrative Agent, or any further or different directors of the Borrower so named by any Authorized Representative of the Borrower in a written notice to the Administrative Agent.

"*Bail-In Action*" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"*Bail-In Legislation*" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"*Beneficial Ownership Certification*" means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

"*Beneficial Ownership Regulation*" means 31 C.F.R. § 1010.230.

"*BMO*" means BMO Bank N.A., and its successors and assigns.

------

"*Borrower*" is defined in the introductory paragraph of this Agreement.

"*Borrower DTTP Filing*" means an HMRC Form DTTP2, duly completed and filed by the Borrower within 30 days of a Lender providing its scheme reference number and jurisdiction of tax residence to the Borrower or the Administrative Agent in accordance with Section 4.1(g)(iv).

"*Borrowing*" means Loans advanced by the Lenders on a single day. Borrowings of Loans are made and maintained ratably from each of the Lenders according to their Percentages. A Borrowing is "*advanced*" on the day Lenders advance funds comprising such Borrowing to the Borrower.

"*Borrowing Base*" means, as of any time it is to be determined, an amount equal to 80% of an amount equal to the aggregate unpaid amount of the Borrower's Eligible Receivable for which the margin has been called but not received by the Borrower.

"*Business Day*" means any U.S. Business Day on which banks are not authorized or required to close in London, England.

"*Capital Lease*" means any lease of Property which in accordance with IFRS is required to be capitalized on the balance sheet of the lessee.

"*Capitalized Lease Obligation*" means, for any Person, the amount of the liability shown on the balance sheet of such Person in respect of a Capital Lease determined in accordance with IFRS.

"*Change in Law*" means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority, or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; *provided* that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, regulations, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted or issued.

"*Change of Control*" means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Cohen Affiliates shall cease at any time and for any reason (including death or incapacity) to own, directly or indirectly, at least 50.1% of the Voting Stock of the Parent and of the Ultimate Parent,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the failure of the Parent to own, directly or indirectly, 100% of the Voting Stock of the Borrower,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Cohen Affiliates shall cease to have the ability to elect (either through share ownership or contractual voting rights) a majority of the board of directors or equivalent governing body of the Ultimate Parent,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Ultimate Parent shall (i) at any time that Parent is managed by a board of directors (or equivalent governing body), cease to have the ability to elect (either through share ownership or contractual voting rights) a majority of the board of directors or equivalent governing body of the Parent or (ii) at any time that Parent is managed by a managing member, cease to serve as the managing member of the Parent, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Parent shall cease to have the ability to elect (either through share ownership or contractual voting rights) the sole director, or where there is more than one director a majority of the board of directors, of the Borrower, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any "Change of Control" (or words of like import), as defined in any agreement or indenture relating to any issue of Indebtedness of the Ultimate Parent, the Parent or the Borrower shall occur.

"*Clearing House*" means each of the following central counterparty clearing houses:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) LME Clear Limited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Chicago Mercantile Exchange; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other future or options clearinghouse selected from time to time by the Borrower.

"*Closing Date*" means the date of this Agreement or such later Business Day upon which each condition described in Section 7.2 shall be satisfied or waived in a manner acceptable to the Administrative Agent in its discretion.

"*Code*" means the Internal Revenue Code of 1986, as amended, and any successor statute thereto.

"*Cohen Affiliates*" means collectively (i) Uriel Cohen, (ii) any Family Member of Uriel Cohen, (iii) any trust or estate planning vehicle established for the benefit of Uriel Cohen or his Family Members, (iv) any charitable trust Controlled by any Person in clause (i), (ii) or (iii) above, and (v) any other Person Controlled by one or more of the Persons in clause (i), (ii), (iii) or (iv) above.

"*Commission*" means the U.S. Commodity Futures Trading Commission.

"*Commitment*" means, as to any Lender, the obligation of such Lender to make Loans in an aggregate principal at any one time outstanding not to exceed the amount set forth opposite such Lender's name on Schedule 2.1 attached hereto and made a part hereof, as the same may be increased, reduced or modified at any time or from time to time pursuant to the terms hereof. The Borrower and the Lenders acknowledge and agree that the Commitments of the Lenders aggregate $55,000,000 as of the Closing Date.

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"*Control*" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling" and "Controlled" have meanings correlative thereto.

"*Controlled Group*" means all members of a controlled group of corporations and all trades or businesses (whether or not incorporated) under common control which, together with the Borrower, are treated as a single employer under Section 414 of the Code.

"*Credit Event*" means the advancing of any Loan. "CTA" means the UK Corporation Tax Act 2009.

"*Custody Agreement*" means the Custodial Services Agreement between Citibank, N.A. and the Borrower.

"*Debtor Relief Laws*" means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.

"*Default*" means any event or condition which constitutes an Event of Default or any event or condition the occurrence of which would, with the passage of time or the giving of notice, or both, constitute an Event of Default.

"*Default Funds*" means the default fund contributions placed by or on behalf of the Borrower with a Clearing House.

"*Default Fund Proceeds*" means any proceeds actually received from time to time by the Borrower following payment of the same to the Borrower by a Clearing House in respect of Default Funds (which for the avoidance of doubt shall be subject to any netting or set-off arrangements between the Borrower and a Clearing House in accordance with the applicable rules of such Clearing House).

"*Defaulting Lender*" means, subject to Section 2.11(b), any Lender that (a) has failed to (i) fund all or any portion of its Loans within two (2) U.S. Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender's determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, or any other Lender any other amount required to be paid by it hereunder within two (2) U.S. Business Days of the date when due, (b) has notified the Borrower and the Administrative Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender's obligation to fund a Loan hereunder and states that such position is based on such Lender's determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three (3) U.S. Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative

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Agent and the Borrower that it will comply with its prospective funding obligations hereunder (*provided* that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, at any time after the Closing Date (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; *provided* that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.11(b)) upon delivery of written notice of such determination to the Borrower and each Lender.

"*Designated Jurisdiction*" means, at any time, any country, region or territory which is itself the subject or target of any Sanctions.

"*Direction*" means a direction given (and not revoked) by an officer of HMRC under section 931 of the ITA.

"*Dividing Person*" has the meaning assigned to it in the definition of "Division."

"*Division*" means the division of the assets, liabilities and/or obligations of a Person (the "*Dividing Person*") among two or more Persons (whether pursuant to a "plan of division" or similar arrangement), which may or may not include the Dividing Person and pursuant to which the Dividing Person may or may not survive.

"*Division Successor*" means any Person that, upon the consummation of a Division of a Dividing Person, holds all or any portion of the assets, liabilities and/or obligations previously held by such Dividing Person immediately prior to the consummation of such Division. A Dividing Person which retains any of its assets, liabilities and/or obligations after a Division shall be deemed a Division Successor upon the occurrence of such Division

"*EEA Financial Institution*" means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

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"*EEA Member Country*" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"*EEA Resolution Authority*" means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"*Eligible Assignee*" means any Person that meets the requirements to be an assignee under Section 11.2(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 11.2(b)(iii)).

"*Eligible Receivable*" means a Receivable that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has not been outstanding for more than four (4) Business Days,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is payable in USD, EUR or GBP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is the valid, binding and legally enforceable obligation of the Account Debtor obligated thereon and such Account Debtor (i) is a customer of the Borrower, (ii) is not a Subsidiary or an Affiliate of the Borrower, (iii) is not a shareholder, director, officer, or employee of the Borrower, (iv) is not the United States of America or Canada, or any state, province, or political subdivision thereof, or any department, agency or instrumentality of any of the foregoing, (v) is not a debtor under any proceeding under any Debtor Relief Law, or (vi) is not an assignor for the benefit of creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is not subject to any counterclaim or defense asserted by the Account Debtor or subject to any offset or contra account payable to the Account Debtor (unless the amount of such Receivable is net of such contra account established to the reasonable satisfaction of the Administrative Agent); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) would not cause the total Receivables owing from any one Account Debtor and its Affiliates to exceed 20% for all Receivables.

"*ERISA*" means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute thereto.

"*EU Bail-In Legislation Schedule*" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"*EUR*". "€" and "euro" denotes the single currency of the Participating Member States.

"*Event of Default*" means any event or condition identified as such in Section 9.1.

"*Excluded Account*" means one or more bank accounts of the Borrower specified as a Client Bank Account within the meaning of the rules of the UK Financial Conduct Authority and which holds client money (as defined by those rules) of one or more clients of the Borrower.

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"*Excluded Taxes*" means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income, profits, and/or gains (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized or incorporated under the laws of, or (if different) treated as resident for tax purposes of, or having its principal office or, in the case of any Lender, its applicable Lending Office (or any other branch, office or affiliate through which it makes its Loans under this Agreement) located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, UK withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to its interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment or (ii) such Lender changes its Lending Office (the "*Relevant Date*"), except where such Lender is a UK Qualifying Lender (provided that if, on the date of the relevant payment, the Lender is not or has ceased to be a UK Qualifying Lender other than as a result of any change after the Relevant Date in (or in the interpretation, administration, or application of) any law or Treaty or any published practice or published concession of any relevant taxing authority, such UK withholding Taxes shall not fall within this exception (and therefore shall be Excluded Taxes)), (c) Taxes attributable to such Recipient's failure to comply with Section 4.1(g), (d) any Taxes imposed under FATCA and (e) Other Connection Taxes.

"*Facility*" means the credit facility for making Loans.

"*Family Member*" means a Person who is a spouse, child, parent, brother, sister, brother- in-law or sister-in-law.

"*FATCA*" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code, and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.

"*FATCA Deduction*" is defined in Section 4.1(g)(ii)(D).

"*Federal Funds Rate*" means the fluctuating interest rate per annum equal to the sum of (i) the rate determined by the Administrative Agent to be the average (rounded upward, if necessary, to the next higher 1/100 of 1%) of the rates per annum quoted to the Administrative Agent at approximately 10:00 a.m. (Chicago time) (or as soon thereafter as is practicable) on such day (or, if such day is not a U.S. Business Day, on the immediately preceding U.S. Business Day) by two or more Federal funds brokers selected by the Administrative Agent for sale to the Administrative Agent at face value of Federal funds in the secondary market in an amount equal or comparable to the principal amount for which such rate is being determined, *plus* (ii) 1/2 of 1%.

"*Fee Letter*" means that certain letter dated as of January 29, 2025, between the Borrower and the Administrative Agent (as such letter may be amended, modified, restated or supplemented from time to time) relating to fees payable by the Borrower relating to the Facility.

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"*Financial Officer*" of any Person means the chief financial officer, principal accounting officer, treasurer or controller of such Person.

"*Foreign Lender*" means a Lender that is not a U.S. Person.

"*Fund*" means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business.

"*GBP*", "*£*" and "*sterling*" denotes the lawful currency of the United Kingdom.

"*Governmental Authority*" means the government of the United States of America or any other nation, including, but not limited to, the government of the United Kingdom, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

"*Guarantee*" of or by any Person (the "*guarantor*") means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the "*primary obligor*") in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; *provided* that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business.

"*Guaranty Agreement*" means the guaranty agreement executed and delivered by the Parent in order to guarantee the Obligations or any part thereof in form and substance acceptable to the Administrative Agent, as such agreement may be amended, modified, or supplemented from time to time.

"*HMRC*" means HM Revenue and Customs, which refers to the tax authority of the UK government.

"*IFRS*" means international financial reporting standards and interpretations issued by the International Accounting Standards Board or any successor thereto, as in effect from time to time.

"*Increase*" is defined in Section 2.13.

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"*Indebtedness*" means for any Person (without duplication) (a) all indebtedness created, assumed or incurred in any manner by such Person representing money borrowed (including by the issuance of debt securities), (b) all indebtedness for the deferred purchase price of property or services (other than trade accounts payable arising in the ordinary course of business which are not more than ninety (90) days past due), (c) all indebtedness secured by any Lien upon Property of such Person, whether or not such Person has assumed or become liable for the payment of such indebtedness, (d) all Capitalized Lease Obligations of such Person, (e) all obligations of such Person on or with respect to letters of credit, bankers' acceptances and other extensions of credit whether or not representing obligations for borrowed money, (f) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any equity interest in such Person or any other Person or any warrant, right or option to acquire such equity interest, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends, (g) all net obligations (determined as of any time based on the termination value thereof) of such Person under any interest rate, foreign currency, and/or commodity swap, exchange, cap, collar, floor, forward, future or option agreement, or any other similar interest rate, currency or commodity hedging arrangement; and (h) all Guarantees of such Person in respect of any of the foregoing. For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse to such Person.

"*Indemnified Taxes*" means (a) all Taxes other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

"*Intercompany Debt*" means Indebtedness owing by the Borrower to any Affiliate of the Borrower. For purposes hereof, ordinary course operating debt shall be excluded from the determination of Intercompany Debt.

"*IRS*" means the United States Internal Revenue Service.

"*ITA*" means the UK Income Tax Act 2007.

"*Laws*" means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, regulations, ordinances, codes, obligatory government orders, decrees and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law.

"*Legal Requirement*" means any treaty, convention, statute, law, common law, rule, regulation, ordinance, license, permit, governmental approval, injunction, judgment, order, consent decree or other requirement of any Governmental Authority, whether federal, state, or local.

"*Lenders*" means and includes BMO and the other Persons listed on Schedule 2.1 and any other Person that shall have become party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.

"*Lending Office*" is defined in Section 4.3.

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"*Lien*" means any mortgage, lien, security interest, pledge, charge or encumbrance of any kind in respect of any Property, including the interests of a vendor or lessor under any conditional sale, Capital Lease or other title retention arrangement.

"*Loan*" is defined in Section 2.1.

"*Loan Documents*" means this Agreement, the Notes (if any), the Security Agreement, the Guaranty Agreement, and each other instrument or document to be delivered hereunder or thereunder or otherwise in connection therewith.

"*Loan Party*" has the meaning given to such term in Section 4.1(i)(i).

"*Margin Stock*" means "margin stock" as such term is defined in Regulation U of the Federal Reserve Board.

"*Material Adverse Effect*" means (a) a material adverse change in, or material adverse effect upon, the operations, business, Property, condition (financial or otherwise) or prospects of the Borrower, (b) a material impairment of the ability of the Borrower to perform its obligations under this Agreement or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against the Borrower of any Loan Document or the rights and remedies of the Administrative Agent and the Lenders thereunder.

"*Non-Consenting Lender*" means any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all affected Lenders in accordance with the terms of Section 11.3 and (b) has been approved by the Required Lenders.

"*Non-Defaulting Lender*" means, at any time, each Lender that is not a Defaulting Lender at such time.

"*Note*" and "*Notes*" each is defined in Section 2.8.

"*Obligations*" means all obligations of the Borrower to pay principal and interest on the Loans, all fees and charges payable hereunder, and all other payment obligations of the Borrower arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held or acquired.

"*OFAC*" means the United States Department of Treasury Office of Foreign Assets Control.

"*OFAC SDN*" means the list of the Specially Designated Nationals and Blocked Persons maintained by OFAC.

"*Organizational Documents*" means, with respect to a Person, the articles of incorporation, articles of organization, articles and memorandum of association, certificate of limited partnership, declaration of trust, by-laws, limited liability company agreement, operating agreement, partnership agreement, or such other agreement under which such Person is organized.

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"*Other Connection Taxes*" means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

"*Other Taxes*" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such aforementioned Taxes imposed with respect to an assignment and/or registration (other than an assignment and/or registration (i) made pursuant to Section 2.10 (other than in respect of (A) an assignment and/or registration by or on behalf of a Defaulting Lender and/or (B) any Lender who has failed to use reasonable efforts to approve or designate a different lending office or to approve or assign its rights and obligations hereunder to an Eligible Assignee); (ii) made when any Event of Default has occurred and is continuing; or (iii) which are required to enforce, perfect or preserve a Recipient's rights under any Loan Document or the Security Agreement).

"*Own Funds*" means Own Funds as defined in MIFIDPRU3 as issued by the Financial Conduct Authority.

"*Parent*" means Clear Street Holdings LLC, a Delaware limited liability company.

"*Participant*" has the meaning assigned to such term in clause (d) of Section 11.2.

"*Participant Register*" has the meaning specified in clause (d) of Section 11.2.

"*Participating Member State*" means any member state of the European Union that has the euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union.

"*Payment in Full*" means as of any date of determination, (i) the indefeasible payment in full in cash of the Loans, together with accrued and unpaid interest thereon; (ii) the Commitment to lend under this Agreement is terminated; and (iii) the indefeasible payment in full in cash of all fees, reimbursable expenses and other Obligations.

"*PBGC*" means the Pension Benefit Guaranty Corporation or any Person succeeding to any or all of its functions under ERISA.

"*Percentage*" means, for each Lender, the percentage of the total Commitments represented by such Lender's Commitment or, if the Commitments have been terminated or expired, the percentage of the Total Credit Exposure then outstanding held by such Lender.

"*Person*" means any natural Person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

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"*Plan*" means any employee pension benefit plan covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code that either (a) is maintained by a member of the Controlled Group for employees of a member of the Controlled Group or (b) is maintained pursuant to a collective bargaining agreement or any other arrangement under which more than one employer makes contributions and to which a member of the Controlled Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions.

"*Premises*" means the real property owned or leased by the Borrower.

"*Principal Accounts*" means the following principal non-segregated bank accounts of the Borrower maintained at Citibank N.A. London Branch.

"*Property*" means, as to any Person, all types of real, personal, tangible, intangible or mixed property owned by such Person whether or not included in the most recent balance sheet of such Person and its subsidiaries under IFRS.

"*Receivables*" means all rights of the Borrower to the payment of a monetary obligation, now or hereafter owing, whether evidenced by accounts, instruments, chattel paper, or general intangibles.

"*Recipient*" means (a) the Administrative Agent and (b) any Lender.

"*Regulatory Authority*" means the Financial Conduct Authority whose registered office is at 12 Endeavour Square, London, England E20 1JN.

"*Regulatory Capital Requirements*" means, at any time, any requirement contained in the laws, regulations, requirements, guidelines and policies then in effect in the United Kingdom relating to capital adequacy and applicable to the Borrower.

"*Regulatory Minimum Net Capital*" means, as of any date the same is to be determined with respect to the Borrower, the Borrower's minimum capital requirement, as determined in accordance with the then prevailing Regulatory Capital Requirements as of such determination date.

"*Related Parties*" means, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"*Relevant Jurisdiction*" means, in relation to the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the United Kingdom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any jurisdiction where any asset in respect of which a security interest is or is intended to be granted pursuant to the Security Agreement is situated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any jurisdiction where it conducts its business; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the jurisdiction whose laws govern the perfection of any security interest granted pursuant to the Security Agreement.

"*Required Lenders*" means, at any time, (x) if there are fewer than three (3) Lenders that are not Affiliates, 100% of the Lenders, and (y) if there are three (3) or more Lenders, Lenders having Total Credit Exposures representing more than 50.0% of the Total Credit Exposures of all Lenders. To the extent provided in the last paragraph of Section 11.3, the Total Credit Exposure of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.

"*Rescindable Amount*" is defined in Section 5.1.

"*Resolution Authority*" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"*Responsible Officer*" of any Person means any executive officer or Financial Officer of such Person and any other officer, or managing member or similar official thereof with responsibility for the administration of the obligations of such Person in respect of this Agreement whose signature and incumbency shall have been certified to the Administrative Agent on or after the Closing Date pursuant to an incumbency certificate of the type contemplated by Section 7.2.

"*Sanctioned Person*" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC (including the OFAC SDN List), the United States Department of State, the United Nations Security Council, the European Union, any European Union member state, His Majesty's Treasury of the United Kingdom, or any other relevant sanctions authority, (b) any Person located, organized or resident in a Designated Jurisdiction or (c) any Person owned or controlled by any such Person or Persons described in clauses (a) or (b) above.

"*Sanctions*" means all economic or financial sanctions, sectoral sanctions, secondary sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the United States government (including those administered by OFAC or the United States Department of State), or (b) the United Nations Security Council, the European Union, any European Union member state, His Majesty's Treasury of the United Kingdom, or any other relevant sanctions authority with jurisdiction over the Borrower or any of its respective Subsidiaries or Affiliates.

"*Securities Financing*" means any transaction where securities are used to borrow cash or where cash or securities are used to borrow securities, including but not limited to repurchase transactions, securities lending and sell-back or buy-back transactions.

"*Security Agreement*" means the English law security agreement entered into between the Borrower and the Administrative Agent on or about the date of this Agreement in relation to the Default Fund Proceeds, as such security agreement may be amended, modified, restated or supplemented from time to time.

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"*Subsidiary*" means, as to any particular parent corporation or organization, any other corporation or organization more than 50% of the outstanding Voting Stock of which is at the time directly or indirectly owned by such parent corporation or organization or by any one or more other entities which are themselves subsidiaries of such parent corporation or organization. Unless otherwise expressly noted herein, the term "*Subsidiary*" means a Subsidiary of the Borrower or of any of its direct or indirect Subsidiaries.

"*Tax Confirmation*" means a confirmation by a Lender that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either (a) a company resident in the United Kingdom for United Kingdom tax purposes; (b) a partnership each member of which is (i) a company so resident in the United Kingdom, or (ii) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or (c) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.

"*Tax Deduction*" means a deduction or withholding for or on account of Tax from a payment under the Loan Documents, other than a FATCA Deduction.

"*Taxes*" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"*Termination Date*" means September 22, 2026, or such earlier date on which the Commitments are terminated in whole pursuant to Section 2.9, 9.2 or 9.3.

"*Termination Event*" means the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Regulatory Authority imposes fines, levies, or other monetary penalties (including the disgorgement of profits) against the Borrower in excess of $1,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Regulatory Authority requires that a material portion of the Borrower's business be suspended or otherwise prohibited from operating for a period of five (5) or more Business Days, including the suspension, revocation or termination of the Borrower as an investment firm authorized by the Regulatory Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Borrower enters into a settlement with any Person (including the Regulatory Authority), and the Borrower is obligated to pay an amount in excess of $5,000,000 as part of such settlement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Regulatory Authority imposes a fine, levy or other monetary penalty against the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer in excess of $500,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer enters into a settlement with any Person (including the Regulatory Authority), and such Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer is obligated to pay an amount in excess of $1,000,000 as part of such settlement; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Borrower's then current Chief Executive Officer, Chief Financial Officer or Chief Compliance Officer is suspended in any capacity for any reason for a period of five (5) or more Business Days or expelled by the Regulatory Authority.

"*Threshold Amount*" means $1,000,000.

"*Total Credit Exposure*" means, as to any Lender at any time, the unused Commitments and the aggregate principal amount at such time of its outstanding Loans.

"*UCC*" means the Uniform Commercial Code of the State of New York in effect from time to time.

"*UK Financial Institution*" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority), which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"*UK Entity*" means the Borrower and each Subsidiary incorporated in England and Wales.

"*UK Insolvency Event*" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any UK Entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is unable or admits inability to pay its debts as they fall due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is deemed to, or is declared to, be unable to pay its debts under applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) suspends or threatens to suspend making payments on any of its debts; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors (excluding any Lender in its capacity as such) with a view to rescheduling any of its indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the value of the assets of any UK Entity is less than its liabilities (taking into account contingent and prospective liabilities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a moratorium is declared in respect of any indebtedness of any UK Entity. If a moratorium occurs, the ending of the moratorium will not remedy any Event of Default caused by that moratorium;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any corporate action, legal proceedings or other procedure or step is taken in relation to:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of any UK Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a composition, compromise, assignment or arrangement with any creditor of any UK Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager or other similar officer in respect of any UK Entity or any of its assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) enforcement of any mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect over any assets of any UK Entity,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) or any analogous procedure or step is taken in any jurisdiction, provided that this paragraph (d) shall not apply to any winding-up petition which is frivolous or vexatious and is discharged, stayed or dismissed within 14 days of commencement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any expropriation, attachment, sequestration, distress or execution or any analogous process in any jurisdiction affects any asset or assets of any UK Entity having an aggregate value of $500,000 and is not discharged within 60 days.

"*UK Prudential Regulation Authority*" means the Prudential Regulation Authority whose registered office is at 20 Moorgate, London, EC2R 6DA.

"*UK Non-Bank Lender*" means a Lender which gives a Tax Confirmation in the documentation which it executes on becoming a party to this Agreement as a Lender.

"*UK Qualifying Lender*" means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a Lender which is beneficially entitled to interest payable to that Lender in respect of an advance under a
Loan Document and is

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) which is a bank (as defined for the purpose of section 879 of the ITA) making an advance under a Loan Document
and is within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance or would be within such charge as respects such payments apart from section 18A of the CTA; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in respect of an advance made under a Loan Document by a person that was a bank (as defined for the purpose of
section 879 of the ITA) at the time that that advance was made and is within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a Lender which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a company resident in the United Kingdom for United Kingdom tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a partnership each member of which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a company so resident in the United Kingdom; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a
permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of
the CTA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a
permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of
the CTA,

except where the Borrower is required to make a Tax Deduction on a payment to such Lender solely because a Direction has been made which relates to such payment and the Borrower has provided that Lender with a certified copy of the Direction or the Lender has not given a Tax Confirmation to the Borrower and the payment could have been made to the Lender without any Tax Deduction if the Lender had given a Tax Confirmation to the Borrower, on the basis that the Tax Confirmation would have enabled the Borrower to have formed a reasonable belief that the payment was an "excepted payment" for the purpose of section 930 of the ITA; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a UK Treaty Lender, except where the Borrower is required to make a Tax Deduction on a payment to such Lender
and is able to demonstrate that the payment could have been made without the Tax Deduction had such Lender complied with its obligations under the first sentence of Section 4.1(g)(i) and (iii); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a Lender which is a building society (as defined for the purpose of section 880 of the ITA) making an advance
under a Loan Document.

"*UK Resolution Authority*" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

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"*UK Treaty Lender*" means a Lender which (a) is treated as a resident of a UK Treaty State for the purposes of the Treaty, (b) does not carry on a business in the United Kingdom through a permanent establishment with which that Lender's participation in the Loan is effectively connected and (c) fulfils any other conditions which must be fulfilled under the relevant Treaty by residents of that Treaty State (subject to the completion of any necessary procedural or filing requirements) for such residents to obtain full exemption from United Kingdom taxation on interest payable to that Lender.

"*UK Treaty State*" means a jurisdiction having a double taxation agreement (a "*Treaty*") with the United Kingdom which makes provision for full exemption from tax imposed by the United Kingdom on interest.

"*Ultimate Parent*" means Clear Street Group Inc., a Delaware corporation.

"*Unfunded Vested Liabilities*" means, for any Plan at any time, the amount (if any) by which the present value of all vested nonforfeitable accrued benefits under such Plan exceeds the fair market value of all Plan assets allocable to such benefits, all determined as of the then most recent valuation date for such Plan, but only to the extent that such excess represents a potential liability of a member of the Controlled Group to the PBGC or the Plan under Title IV of ERISA.

"*U.S. Business Day*" means any day (other than a Saturday or Sunday) on which banks are not authorized or required to close in Chicago, Illinois and New York.

"*U.S. Dollars*" and "$*"* each means the lawful currency of the United States of America.

"*U.S. Person*" means any Person that is a "United States Person" as defined in Section 7701(a)(30) of the Code.

"*U.S. Tax Compliance Certificate*" has the meaning assigned to such term in subsection (g) of Section 4.1.

"*VAT*" means (a) any value added tax imposed by the UK Value Added Tax Act 1994, (b) any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112), and (c) any other tax of a similar nature, whether imposed in the United Kingdom or in a member state of the European Union in substitution for, or levied in addition to, such tax referred to in paragraphs (a) or (b), or imposed elsewhere.

"*Voting Stock*" of any Person means the voting power vested in capital stock or other equity interests of any class or classes (however designated) having ordinary power for the election of directors or other similar governing body of such Person, other than stock or other equity interests having such power only by reason of the happening of a contingency.

"*Welfare Plan*" means a "welfare plan" as defined in Section 3(1) of ERISA.

"*Withholding Agent*" means the Borrower and the Administrative Agent.

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"*Write-Down and Conversion Powers*" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

"*Zero Loan Day*" means, at any time, a U.S. Business Day in which no principal amount of the Loans is outstanding.

*Section 1.2. Interpretation*. The foregoing definitions are equally applicable to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation." The word "will" shall be construed to have the same meaning and effect as the word "shall." Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person's successors and assigns, (c) the words "herein," "hereof" and "hereunder," and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, (f) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights and (g) any reference to an "officer" in respect of a UK Entity shall be construed as being a reference to a director of such UK Entity. All references to time of day herein are references to Chicago, Illinois, time unless otherwise specifically provided. Where the character or amount of any asset or liability or item of income or expense is required to be determined or any consolidation or other accounting computation is required to be made for the purposes of this Agreement, it shall be done in accordance with IFRS except where such principles are inconsistent with the specific provisions of this Agreement.

*Section 1.3. Change in Accounting Principles*. If, after the date of this Agreement, there shall occur any change in IFRS from those used in the preparation of the financial statements referred to in Section 6.5 and such change shall result in a change in the method of calculation of any financial covenant, standard or term found in this Agreement, either the Borrower or the Required Lenders may by notice to the Lenders and the Borrower, respectively, require that the Lenders and the Borrower negotiate in good faith to amend such covenants, standards, and terms so as equitably to reflect such change in accounting principles, with the desired result being that the criteria for evaluating the financial condition of the Borrower and its Subsidiaries shall be the same as if such change had not been made. No delay by the Borrower or the Required Lenders in

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requiring such negotiation shall limit their right to so require such a negotiation at any time after such a change in accounting principles. Until any such covenant, standard, or term is amended in accordance with this Section, financial covenants shall be computed and determined in accordance with IFRS in effect prior to such change in accounting principles. Without limiting the generality of the foregoing, the Borrower shall neither be deemed to be in compliance with any financial covenant hereunder nor out of compliance with any financial covenant hereunder if such state of compliance or noncompliance, as the case may be, would not exist but for the occurrence of a change in accounting principles after the date hereof.

*Section 1.4. Divisions*. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its equity interests at such time.

SECTION 2. THE FACILITIES.

*Section 2.1. The Facility*. Subject to the terms and conditions hereof, each Lender, by its acceptance hereof, severally agrees to make a loan or loans (individually a "*Loan*" and collectively for all the Lenders the "*Loans*") in U.S. Dollars to the Borrower from time to time on a revolving basis up to the amount of such Lender's Commitment, subject to any reductions thereof pursuant to the terms hereof, before the Termination Date. The aggregate principal amount of Loans at any time outstanding shall not exceed the lesser of (i) the Commitments in effect at such time and (ii) the Borrowing Base as then determined and computed. Each Borrowing of Loans shall be made ratably by the Lenders in proportion to their respective Percentages. Loans may be repaid and the principal amount thereof reborrowed before the Termination Date, subject to the terms and conditions hereof.

*Section 2.2. Interest Rates*. Each Loan made or maintained by a Lender shall bear interest (computed on the basis of a year of 360 days and the actual days elapsed) on the unpaid principal amount thereof from the date such Loan is advanced until maturity (whether by acceleration or otherwise) at a rate per annum equal to the Applicable Interest Rate, payable by the Borrower monthly in arrears on the last day of each month of each year and at maturity (whether by acceleration or otherwise). The Administrative Agent shall determine each interest rate applicable to the Loans hereunder, and its determination thereof shall be conclusive and binding except in the case of manifest error.

*Section 2.3. Minimum Borrowing Amounts*. Each Borrowing of Loans shall be in an amount not less than $100,000.

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*Section 2.4. Manner of Borrowing Loans*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Notice to the Administrative Agent*. The Borrower shall give notice to the Administrative Agent by no later than 2:30 p.m. (Chicago time) on the date the Borrower requests the Lenders to advance a Borrowing. The Borrower shall give all such notices requesting the advance of a Borrowing to the Administrative Agent by telephone, telecopy, or other telecommunication device acceptable to the Administrative Agent (which notice shall be irrevocable once given and, if by telephone, shall be promptly confirmed in writing in a manner acceptable to the Administrative Agent), substantially in the form attached hereto as Exhibit C (Notice of Borrowing) or in such other form acceptable to the Administrative Agent. All such notices concerning the advance of a Borrowing shall specify the date of the requested advance (which shall be a U.S. Business Day) and the amount of the requested Borrowing to be advanced. The Borrower agrees that the Administrative Agent may rely on any such telephonic, telecopy or other telecommunication notice given by any person the Administrative Agent in good faith believes is an Authorized Representative without the necessity of independent investigation, and in the event, any such notice by telephone conflicts with any written confirmation such telephonic notice shall govern if the Administrative Agent has acted in reliance thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Notice to the Lenders*. The Administrative Agent shall give prompt telephonic, telecopy or other telecommunication notice to each Lender of any notice from the Borrower received pursuant to Section 2.4(a) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Disbursement of Loans*. Not later than 3:30 p.m. (Chicago time) on the date of any requested advance of a new Borrowing, subject to Section 7, each Lender shall make available its Loan comprising part of such Borrowing in funds immediately available at the principal office of the Administrative Agent in Chicago, Illinois (or at such other location as the Administrative Agent shall designate). The Administrative Agent shall make the proceeds of each new Borrowing available to the Borrower at the Administrative Agent's principal office in Chicago, Illinois (or at such other location as the Administrative Agent shall designate), by depositing or wire transferring such proceeds to the credit of one of the Principal Accounts or as the Borrower and the Administrative Agent may otherwise agree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Administrative Agent Reliance on Lender Funding*. Unless the Administrative Agent shall have been notified by a Lender prior to the date on which such Lender is scheduled to make payment to the Administrative Agent of the proceeds of a Loan (which notice shall be effective upon receipt) that such Lender does not intend to make such payment, the Administrative Agent may assume that such Lender has made such payment when due and the Administrative Agent may in reliance upon such assumption (but shall not be required to) make available to the Borrower the proceeds of the Loan to be made by such Lender and, if any Lender has not in fact made such payment to the Administrative Agent, such Lender shall, on demand, pay to the Administrative Agent the amount made available to the Borrower attributable to such Lender together with interest thereon in respect of each day during the period commencing on the date such amount was made available to the Borrower and ending on (but excluding) the date such Lender pays such amount to the Administrative Agent at a rate per annum equal to: (i) from the date the related advance was made by the Administrative Agent to the date two (2) U.S. Business Days after payment by such Lender is due hereunder, the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation for each such day, and (ii) from the date two (2) U.S. Business Days after the date such payment is due from such Lender to the date such payment is made by such Lender, the Applicable Interest Rate in effect for each such day. If such amount is not received from such Lender by the Administrative Agent immediately upon demand, the Borrower will, on demand, repay to the Administrative Agent the proceeds of the Loan attributable to such Lender with interest thereon at a rate per annum equal to the interest rate applicable to the relevant Loan. Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

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*Section 2.5. Maturity of Loans*. Each Loan, both for principal and interest not sooner paid, shall mature and be due and payable by the Borrower on the Termination Date.

*Section 2.6. Prepayments*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Optional*. The Borrower may prepay in whole or in part (but, if in part, then, in an amount not less than $100,000) with notice delivered by the Borrower to the Administrative Agent no later than 2:30 p.m. (Chicago time) on the date of prepayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Mandatory*. (i) The Borrower covenants and agrees that if at any time the aggregate principal amount of the Loans then outstanding shall be in excess of the Borrowing Base as then determined and computed, the Borrower shall immediately and without notice or demand pay over the amount of the excess to the Administrative Agent for the account of the Lenders as and for a mandatory prepayment on the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the extent any Loan remains outstanding for three (3) or more U.S. Business Days after such Loan was advanced by the Lenders, the Borrower shall immediately and without notice or demand pay over the full amount of such Loan to the Administrative Agent for the account of the Lenders as and for a mandatory prepayment on the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Promptly upon the receipt of any Default Fund Proceeds, the Borrower shall prepay the Obligations by the amount which is the lesser of (A) 100% of the amount of such Default Fund Proceeds and (B) the amount of the outstanding Obligations and until any prepayment which is required by this clause has been made, the Borrower shall hold the relevant Default Fund Proceeds on trust for the Administrative Agent. Upon making any such prepayment (or if no Obligations are outstanding) any (excess) Default Fund Proceeds shall be freely useable and/or disposable by the Borrower and shall cease to be held on trust for other otherwise secured in favour of the Administrative Agent or the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Borrower shall immediately and without notice or demand pay over to the Administrative Agent for the account of the Lenders as and for a mandatory prepayment on the Obligations the amount which is the lesser of (A) the amount of any Receivable in excess of $1,000,000 and (B) the amount of the outstanding Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Immediately upon the occurrence of any Termination Event, the Borrower shall, without notice or demand, pay over the full amount of the Loans to the Administrative Agent for the account of the Lenders as and for a mandatory prepayment on the Obligations.

*Section 2.7. Default Rate*. Notwithstanding anything to the contrary contained herein, while any Event of Default exists or after acceleration, the Borrower shall pay interest (after as well as before entry of judgment thereon to the extent permitted by law) on the principal amount of all Loans and other amounts at a rate per annum equal to the sum of 2.0% *plus* the Applicable Interest Rate; *provided, however*, that in the absence of acceleration pursuant to Section 9.2 or 9.3, any adjustments pursuant to this Section shall be made at the election of the Administrative Agent, acting at the request or with the consent of the Required Lenders, with written notice to the Borrower (which election may be retroactively effective to the date of such Event of Default). While any Event of Default exists or after acceleration, interest shall be paid on demand of the Administrative Agent at the request or with the consent of the Required Lenders.

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*Section 2.8. Evidence of Indebtedness*. (a) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall also maintain accounts in which it will record (i) the amount of each Loan made hereunder, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder, and (iii) the amount of any sum received by the Administrative Agent hereunder from the Borrower and each Lender's share thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The entries recorded in the accounts maintained pursuant to subsections (a) and (b) above shall be *prima facie* evidence of the existence and amounts of the Obligations therein recorded; *provided, however*, that the failure of the Administrative Agent or any Lender to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Obligations in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any Lender may request that its Loans be evidenced by a promissory note in the form of Exhibit A attached hereto (each a "*Note*" and collectively with all Notes issued to the Lenders, the "*Notes*"). In such event, the Borrower shall prepare, execute and deliver to such Lender a Note payable to such Lender or its registered assigns in the amount of such Lender's Commitment. Thereafter, the Loans evidenced by such Note or Notes and interest thereon shall at all times (including after any assignment pursuant to Section 11.2) be represented by one or more Notes payable to the order of the payee named therein or any assignee pursuant to Section 11.2, except to the extent that any such Lender or assignee subsequently returns any such Note for cancellation and requests that such Loans once again be evidenced as described in subsections (a) and (b) above.

*Section 2.9. Commitment Terminations*. The Borrower shall have the right at any time and from time to time, upon five (5) Business Days prior written notice to the Administrative Agent (or such shorter period of time agreed to by the Administrative Agent), to terminate the Commitments without premium or penalty and in whole or in part, any partial termination to be (i) in an amount not less than $1,000,000 and (ii) allocated ratably among the Lenders in proportion to their Percentages, *provided* that the Commitments may not be reduced to an amount less than the aggregate principal amount of Loans then outstanding. The Administrative Agent shall give prompt notice to each Lender of any such termination of the Commitments.

*Section 2.10. Replacement of Lenders*. If any Lender requests compensation under Section 4.2, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 4.1 and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with Section 4.3, or if any Lender is a Defaulting Lender or a Non-Consenting Lender,

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then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 11.2), all of its interests, rights (other than its existing rights to payments pursuant to Section 4.1 or Section 4.2) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); *provided* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 11.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any such assignment resulting from a claim for compensation under Section 4.2 or payments required to be made pursuant to Section 4.1, such assignment will result in a reduction in such compensation or payments thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such assignment does not conflict with applicable law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

*Section 2.11. Defaulting Lenders*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Defaulting Lender Adjustments*. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Waivers and Amendments*. Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Defaulting Lender Waterfall*. Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section 9 or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 11.7 hereto shall be applied at such time or times as may be determined by the Administrative Agent as follows: *first*, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; *second*, as the Borrower may request (so long as

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no Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; *third*, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released in order to satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this Agreement; *fourth*, to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; *fifth*, so long as no Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; and *sixth*, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; *provided* that if (x) such payment is a payment of the principal amount of any Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made at a time when the conditions set forth in Section 7.1 were satisfied or waived, such payment shall be applied solely to pay the Loans of all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until such time as all Loans are held by the Lenders pro rata in accordance with their Percentages of the Commitments. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Certain Fees*. No Defaulting Lender shall be entitled to receive any commitment fee for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Defaulting Lender Cure*. If the Borrower and the Administrative Agent agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein, that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans to be held pro rata by the Lenders in accordance with their respective Percentages of the Commitments, whereupon such Lender will cease to be a Defaulting Lender; *provided* that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and *provided*, *further*, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender.

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*Section 2.12. Fees*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Commitment Fee*. The Borrower shall pay to the Administrative Agent for the ratable account of the Lenders in accordance with their Percentages a commitment fee at the rate per annum equal to one-half of one percent (0.50%) (computed on the basis of a year of 360 days and the actual number of days elapsed) times the daily amount by which the aggregate Commitments exceeds the principal amount of Loans then outstanding. Such commitment fee shall be payable quarterly in arrears on the last day of each March, June, September, and December in each year (commencing on the first such date occurring after the Closing Date) and on the Termination Date, unless the Commitments are terminated in whole on an earlier date, in which event the commitment fee for the period to the date of such termination in whole shall be paid on the date of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Administrative Agent Fees*. The Borrower shall pay to the Administrative Agent, for its own use and benefit, the fees agreed to between the Administrative Agent and the Borrower pursuant to the Fee Letter.

*Section 2.13. Increase in Commitments*. The Borrower may, on any Business Day prior to the Termination Date, with the written consent of the Administrative Agent, increase the aggregate amount of the Commitments by delivering an Increase Request substantially in the form attached hereto as Exhibit E (or in such other form acceptable to the Administrative Agent) to the Administrative Agent at least five (5) Business Days prior to the desired effective date of such increase (the "*Increase*") identifying an additional Lender (or additional Commitment for an existing Lender) and the amount of its Commitment (or additional amount of its Commitment); *provided, however*, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the aggregate amount of all such Increases shall not exceed $10,000,000 and any such Increase shall be in an amount not less than $5,000,000 (or such lesser amount then agreed to by the Administrative Agent);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default shall have occurred and be continuing at the time of the request or the effective date of the Increase; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each of the representations and warranties set forth in Section 6 and in the other Loan Documents shall be and remain true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) on the effective date of such Increase, except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date.

The effective date of the Increase shall be agreed upon by the Borrower and the Administrative Agent. Upon the effectiveness thereof, Schedule 2.1 shall be deemed amended to reflect the Increase and the new Lender (or, if applicable, existing Lender) shall advance Loans in an amount sufficient such that after giving effect to its Loans each Lender shall have outstanding its Percentage of all Loans outstanding under the Commitments. It shall be a condition to such effectiveness that the Borrower shall not have terminated any portion of the Commitments pursuant to Section 2.9. The Borrower agrees to pay the expenses of the Administrative Agent (including reasonable attorneys' fees) relating to any Increase. Notwithstanding anything herein to the contrary, no Lender shall have any obligation to increase its Commitment and no Lender's Commitment shall be increased without its consent thereto, and each Lender may at its option, unconditionally and without cause, decline to increase its Commitment.

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SECTION 3. COLLATERAL AND GUARANTIES.

*Section 3.1. Collateral*. (a) To secure the payment and performance of the Obligations, the Borrower shall grant security over all of the Borrower's right, title and interest in the Default Fund Proceeds and the Receivables to the extent set forth in the Security Agreement (collectively, the "*Collateral*"); *provided*, that for purposes hereof, the Receivables related to any Securities Financing shall be excluded from the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower will use commercially reasonable efforts to preserve and protect the Administrative Agent's security interest in the Default Fund Proceeds and will do all such acts and things and execute and deliver all such documents and instruments as the Administrative Agent in its sole discretion may reasonably deem necessary or advisable from time to time in order to preserve, protect and perfect such security interest.

*Section 3.2. Guaranties*. The payment and performance of the Obligations shall at all times be guaranteed by the Parent pursuant to the Guaranty Agreement.

SECTION 4. TAXES AND INCREASED COSTS.

*Section 4.1. Taxes*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Certain Defined Terms*. For purposes of this Section, the term "applicable law" includes FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Payments Free of Taxes*. Any and all payments by or on account of any obligation of the Borrower or the Parent under any Loan Document shall be made without any Tax Deduction, except as required by applicable law. If the Borrower or the \|Parent is required by applicable law to make a Tax Deduction, then the Borrower or the Parent shall be entitled to make such Tax Deduction in the minimum amount required by law and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower or the Parent shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Payment of Other Taxes by the Borrower*. The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Indemnification by the Borrower*. The Borrower shall indemnify each Recipient, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) and any reasonable expenses arising therefrom or with respect thereto, which that Recipient determines, in its absolute discretion, acting in good faith, has been or will be directly or indirectly suffered by that Recipient in respect of any Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Indemnification by the Lenders*. Each Lender shall severally indemnify the Administrative Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes or Other Taxes attributable to such Lender (but only to the extent that the Borrower and the Parent have not already indemnified the Administrative Agent for such Indemnified Taxes or Other Taxes and without limiting the obligation of the Borrower and the Parent to do so), (ii) any Taxes attributable to such Lender's failure to comply with the provisions of Section 11.2(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this subsection (e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Evidence of Payments*. As soon as reasonably practicable after any payment of an amount equal to any Tax Deduction or any Other Taxes by the Borrower or the Parent to a Governmental Authority pursuant to this Section, the Borrower or the Parent shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, or other evidence of such payment reasonably satisfactory to the Administrative Agent. This subsection shall not be construed to require the Borrower or the Parent to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the Administrative Agent or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Status of Lenders*. (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) executed originals of IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate in form and substance reasonably acceptable to the Administrative Agent to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Code (a "U.S. Tax Compliance Certificate") and (y) executed originals of IRS Form W-8BEN; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, a U.S. Tax Compliance Certificate in form and substance reasonably acceptable to the Administrative Agent and/or other certification documents from each beneficial owner, as applicable; *provided* that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate in form and substance reasonably acceptable to the Administrative Agent on behalf of each such direct and indirect partner;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if a payment made to a Lender under any Loan Document would be subject to withholding Tax imposed by FATCA (a "*FATCA Deduction*") if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by applicable law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (D), "*FATCA*" shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall promptly notify the Borrower and update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A UK Treaty Lender that (a) holds a passport under the HMRC DT Treaty Passport Scheme and (b) wishes such scheme to apply to this Agreement, shall provide its scheme reference number and its jurisdiction of tax residence in writing to the Borrower on or prior to the date of this Agreement and, upon doing so, such Lender shall have satisfied its obligation under the first sentence of Section 4.1(g)(i) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If a Lender has confirmed its scheme reference number and its jurisdiction of tax residence in accordance with paragraph (iii) above, the Borrower shall make a Borrower DTTP Filing with respect to such Lender, provided that, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Borrower has not made a Borrower DTTP Filing in respect of such Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Borrower has made a Borrower DTTP Filing in respect of such Lender but:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Borrower DTTP Filing has been rejected by HMRC;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) HMRC has not given the Borrower authority to make payments to such Lender without a deduction for tax within 60 days of the date of such Borrower DTTP Filing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) HMRC has given the Borrower authority to make payments to such UK Treaty Lender without a Tax Deduction, but such authority has subsequently been revoked or expired, or is due to otherwise terminate or expire within the next three months,

and in each case, the Borrower has notified such UK Treaty Lender in writing, then such UK Treaty Lender and the Borrower shall co-operate in completing any additional procedural formalities necessary for the Borrower to obtain authorization to make that payment without a Tax Deduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If a Lender has not confirmed its scheme reference number and jurisdiction of tax residence in accordance with paragraph (iii) above, the Borrower shall not make a Borrower DTTP Filing or file any other form relating to the HMRC DT Treaty Passport scheme in respect of that Lender's Commitments or its participation in any Loan unless the Lender otherwise agrees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The Borrower shall, promptly on making a Borrower DTTP Filing, deliver a copy of that Borrower DTTP Filing to the Administrative Agent for delivery to the relevant Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) A UK Non-Bank Lender shall promptly notify the Borrower if there is any change in the position from that set out in the Tax Confirmation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Each Original Lender confirms, without liability to the Borrower, that it is a UK Qualifying Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Each Lender which becomes a party to this Agreement after the date of this Agreement shall indicate, in the documentation which it executes on becoming a party to this Agreement as a Lender, and for the benefit of the Administrative Agent and without liability to the Borrower, which of the following categories it falls in: (i) not a UK Qualifying Lender, (ii) a UK Qualifying Lender (other than a UK Treaty Lender) or (iii) a UK Treaty Lender. If such Lender fails to indicate its status in accordance with this paragraph (ix) then such Lender shall be treated for the purposes of this Agreement as if it is not a UK Qualifying Lender until such time as it notifies the Administrative Agent which category applies (and the Administrative Agent, upon receipt of such notification, shall promptly inform the Borrower). For the avoidance of doubt, the documentation which a Lender executes on becoming a party to this Agreement as a Lender shall not be invalidated by any failure of that Lender to comply with this paragraph (ix).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Treatment of Certain Refunds*. If a Recipient determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section (including by the payment of additional amounts pursuant to this Section), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to

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such refund), net of all reasonable out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the written request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this subsection (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this subsection (h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this subsection (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts giving rise to such refund had never been paid. This subsection shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *VAT*. (i) All amounts expressed to be payable under a Loan Document by any party to a Lender or the Administrative Agent (the "Loan Parties") which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply, and accordingly, subject to paragraph (ii) below, if VAT is or becomes chargeable on any supply made by any Loan Party to any party under a Loan Document and such Loan Party is required to account to the relevant tax authority for the VAT, that party must pay to such Loan Party (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and such Loan Party must promptly provide an appropriate VAT invoice to that party).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If VAT is or becomes chargeable on any supply made by any Loan Party (the "Supplier") to any other Loan Party (the "VAT Recipient") under a Loan Document, and any party other than the VAT Recipient (the "Relevant Party") is required by the terms of any Loan Document to pay an amount equal to the consideration for that supply to the Supplier (rather than being required to reimburse or indemnify the VAT Recipient in respect of that consideration):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) where the Supplier is the person required to account to the relevant tax authority for the VAT) the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to the amount of the VAT. The VAT Recipient must (where this paragraph (A) applies) promptly pay to the Relevant Party an amount equal to any credit or repayment the VAT Recipient receives from the relevant tax authority which the VAT Recipient reasonably determines relates to the VAT chargeable on that supply; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) (where the VAT Recipient is the person required to account to the relevant tax authority for the VAT) the Relevant Party must promptly, following demand from the VAT Recipient, pay to the VAT Recipient an amount equal to the VAT chargeable on that supply but only to the extent that the VAT Recipient reasonably determines that it is not entitled to credit or repayment from the relevant tax authority in respect of that VAT.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Where a Loan Document requires any party to reimburse or indemnify a Loan Party for any cost or expense, that party shall reimburse or indemnify (as the case may be) such Loan Party for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that such Loan Party reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any reference in this Section 4.1(i) to any party shall, at any time when such party is treated as a member of a group or unity (or fiscal unity) for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the person who is treated at that time as making the supply, or (as appropriate) receiving the supply, under the grouping rules (as provided for in Article 11 of the Council Directive 2006/112/EC (or as implemented by the relevant member state of the European Union) or any other similar provision in any jurisdiction which is not a member state of the European Union) so that a reference to a party shall be construed as a reference to that party or the relevant group or unity (or fiscal unity) of which that party is a member for VAT purposes at the relevant time or the relevant representative member (or head) of that group or unity (or fiscal unity) at the relevant time (as the case may be).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) In relation to any supply made by a Loan Party to any party under a Loan Document, if reasonably requested by such Loan Party, that party must promptly provide such Loan Party with details of that party's VAT registration and such other information as is reasonably requested in connection with such Loan Party's VAT reporting requirements in relation to such supply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *FATCA Deduction*. Each party may make any deduction it is required to make by FATCA, and any payment required in connection with that FATCA deduction, and no party shall be required to increase any payment in respect of which it makes such a FATCA deduction or otherwise compensate the recipient of the payment for that FATCA deduction. Each party shall promptly, upon becoming aware that it must make a FATCA deduction (or that there is any change in the rate or the basis of such FATCA deduction), notify the party to whom it is making the payment and, in addition, shall notify the Parent and the Administrative Agent and the Administrative Agent shall notify the other parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Survival*. Each party's obligations under this Section shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

*Section 4.2. Increased Costs*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Capital Requirements*. If any Lender determines that any Change in Law affecting such Lender or any lending office of such Lender or such Lender's holding company, if any, regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on such Lender's capital or on the capital of such Lender's holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by such Lender, to a level below that which such Lender or such Lender's holding company could have achieved but for such Change in Law (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender, such additional amount or amounts as will compensate such Lender or such Lender's holding company for any such reduction suffered.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Certificates for Reimbursement*. A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in subsection (a) of this Section and delivered to the Borrower, shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Delay in Requests*. Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender's right to demand such compensation; *provided* that the Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs incurred or reductions suffered more than six (6) months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of such Lender's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).

*Section 4.3. Lending Offices; Mitigation Obligations*. Each Lender may, at its option, elect to make its Loans hereunder at the branch, office or affiliate specified in its Administrative Questionnaire (each a "*Lending Office*") for each type of Loan available hereunder or at such other of its branches, offices or affiliates as it may from time to time elect and designate in a written notice to the Borrower and the Administrative Agent. If any Lender requests compensation under Section 4.2, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 4.1, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 4.1 or 4.2, as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

SECTION 5. PLACE AND APPLICATION OF PAYMENTS.

*Section 5.1. Place and Application of Payments*. All payments of principal of and interest on the Loans and all other Obligations payable by the Borrower under this Agreement and the other Loan Documents, shall be made by the Borrower to the Administrative Agent by no later than 3:00 p.m. (Chicago time) on the due date thereof at the office of the Administrative Agent in Chicago, Illinois (or such other location as the Administrative Agent may designate to the Borrower), for the benefit of the Lender(s) entitled thereto. Any payments received after such time shall be deemed to have been received by the Administrative Agent on the next U.S. Business Day. All such payments shall be made in U.S. Dollars, in immediately available funds at the place of

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payment, in each case without set-off or counterclaim. The Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest on Loans ratably to the Lenders and like funds relating to the payment of any other amount payable to any Lender to such Lender, in each case to be applied in accordance with the terms of this Agreement. Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to Administrative Agent for the account of the Lenders hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may (but shall not be required to) in reliance upon such assumption, distribute to the applicable Lenders, as the case may be, the amount due. With respect to any payment that Administrative Agent makes to any Lender as to which Administrative Agent determines (in its sole and absolute discretion) that any of the following applies (such payment referred to as the "*Rescindable Amount*"): (1) Borrower has not in fact made the corresponding payment to Administrative Agent; (2) Administrative Agent has made a payment in excess of the amount(s) received by it from Borrower either individually or in the aggregate (whether or not then owed); or (3) Administrative Agent has for any reason otherwise erroneously made such payment; then each of the Lenders severally agrees to repay to Administrative Agent forthwith on demand the Rescindable Amount so distributed to such Lender, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by Administrative Agent in accordance with banking industry rules on interbank compensation.

*Section 5.2. Non-Business Days*. If any payment hereunder becomes due and payable on a day which is not a U.S. Business Day, the due date of such payment shall be extended to the next succeeding U.S. Business Day on which date such payment shall be due and payable. In the case of any payment of principal falling due on a day which is not a U.S. Business Day, interest on such principal amount shall continue to accrue during such extension at the rate per annum then in effect, which accrued amount shall be due and payable on the next scheduled date for the payment of interest.

*Section 5.3. Payments Set Aside*. To the extent that any payment by or on behalf of the Borrower is made to the Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation for each such day.

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*Section 5.4. Account Debit*. The Borrower hereby irrevocably authorizes the Administrative Agent to charge any of the Borrower's deposit accounts (other than any Excluded Account) maintained with the Administrative Agent for the amounts from time to time necessary to pay any then due Obligations; *provided* that the Borrower acknowledges and agrees that the Administrative Agent shall not be under an obligation to do so and the Administrative Agent shall not incur any liability to the Borrower or any other Person for the Administrative Agent's failure to do so.

SECTION 6. REPRESENTATIONS AND WARRANTIES.

The Borrower represents and warrants to the Administrative Agent and the Lenders as follows:

*Section 6.1. Organization and Qualification*. The Borrower is duly incorporated, validly existing, and in good standing as a corporation under the laws of the jurisdiction in which it is incorporated, has full and adequate power to own its Property and conduct its business as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying, except where the failure to do so would not have a Material Adverse Effect.

*Section 6.2. Subsidiaries*. Each Subsidiary is duly organized or incorporated, validly existing, and (to the extent such concept exists in the relevant jurisdiction) in good standing under the laws of the jurisdiction in which it is organized or incorporated, has full and adequate power to own its Property and conduct its business as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying, except where the failure to do so would not have a Material Adverse Effect. Schedule 6.2 hereto identifies each Subsidiary, the jurisdiction of its organization, the percentage of issued and outstanding shares of each class of its capital stock or other equity interests owned by the Borrower and its Subsidiaries and, if such percentage is not 100% (excluding directors' qualifying shares as required by law), a description of each class of its authorized capital stock and other equity interests and the number of shares of each class issued and outstanding. All of the outstanding shares of capital stock and other equity interests of each Subsidiary are validly issued and outstanding and fully paid and nonassessable and all such shares and other equity interests indicated on Schedule 6.2 as owned by the relevant Borrower or another Subsidiary are owned, beneficially and of record, by the Borrower or such Subsidiary free and clear of all Liens. There are no outstanding commitments or other obligations of the Borrower or Subsidiary to issue, and no options, warrants or other rights of any Person to acquire, any shares of any class of capital stock or other equity interests of the Borrower or Subsidiary.

*Section 6.3. Authority and Validity of Obligations*. The Borrower has full right and authority to enter into this Agreement and the other Loan Documents executed by it, to make the borrowings provided for herein and to perform all of its obligations hereunder and under the other Loan Documents executed by it. The Loan Documents delivered by the Borrower has been duly authorized, executed, and delivered by such Persons and constitute legal, valid and binding obligations of the Borrower enforceable against it in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance or similar laws affecting creditors' rights generally and general principles of equity (regardless of whether the

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application of such principles is considered in a proceeding in equity or at law); and this Agreement and the other Loan Documents do not, nor does the performance or observance by the Borrower or any Subsidiary of any of the matters and things herein or therein provided for, (a) contravene or constitute a default under any provision of law or any judgment, injunction, order or decree binding upon the Borrower or any Subsidiary, or any provision of the Organizational Documents of the Borrower or any Subsidiary, (b) contravene or constitute a default under any covenant, indenture or agreement of or affecting the Borrower, any Subsidiary or any of their Property, in each case where such contravention or default, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, or (c) result in the creation or imposition of any Lien on any Property of the Borrower or any Subsidiary other than the Liens granted in favor of the Administrative Agent pursuant to the Loan Documents.

*Section 6.4. Use of Proceeds; Margin Stock*. The Borrower shall use the proceeds of the Loans (i) to finance the Borrower's short-term liquidity needs arising from the timing difference between the Borrower calling for margin to be provided by its customers to it and such margin being received by the Borrower for the Clearing Houses and (ii) subject to the terms and conditions set forth herein, to refinance any amounts advanced pursuant to clause (i) hereof. The Borrower shall not use the proceeds of any Loan or any other extension of credit made hereunder to (x) purchase or carry any such Margin Stock or (y) extend credit to others for the purpose of purchasing or carrying any such Margin Stock. No Margin Stock, directly or indirectly, secures the Obligations.

*Section 6.5. Financial Reports*. The balance sheet and profit and loss statement of the Borrower as of and for the twelve (12) month period ended December 31, 2024, heretofore furnished to the Administrative Agent and the Lenders, fairly present the financial condition of the Borrower and its Subsidiaries as at said dates and the results of its operations and cash flows for the periods then ended in conformity with IFRS applied on a consistent basis. Neither the Borrower nor any of its Subsidiaries has contingent liabilities which are material to it other than as indicated on such financial statements or, with respect to future periods, on the financial statements furnished pursuant to Section 8.5.

*Section 6.6. No Material Adverse Change*. Since December 31, 2024, there has been no change in the condition (financial or otherwise) or business prospects of the Borrower except those occurring in the ordinary course of business, none of which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect.

*Section 6.7. Full Disclosure*. The statements and information furnished to the Administrative Agent and the Lenders in connection with the negotiation of this Agreement and the other Loan Documents and the commitments by the Lenders to provide all or part of the financing contemplated hereby do not contain any untrue statements of a material fact or omit a material fact necessary to make the material statements contained herein or therein not misleading, the Administrative Agent and the Lenders acknowledging that as to any projections furnished to the Administrative Agent and the Lenders, the Borrower only represents that the same were prepared on the basis of information and estimates the Borrower believes to be reasonable at the time made and that actual results during the period or periods covered by any such projections may differ from projected or forecasted results.

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*Section 6.8. Trademarks, Franchises, and Licenses*. The Borrower and its Subsidiaries own, possess, or have the right to use all necessary patents, licenses, franchises, trademarks, trade names, trade styles, copyrights, trade secrets, know how, and confidential commercial and proprietary information to conduct their businesses as now conducted, without known conflict with any patent, license, franchise, trademark, trade name, trade style, copyright or other proprietary right of any other Person in each case, except as would not reasonably be expected to have a Material Adverse Effect.

*Section 6.9. Governmental Authority and Licensing*. The Borrower and its Subsidiaries have received all licenses, permits, and approvals of all federal, state, and local Government Authorities, if any, necessary to conduct their business, in each case where the failure to obtain or maintain the same could reasonably be expected to have a Material Adverse Effect. No investigation or proceeding which, if adversely determined, could reasonably be expected to result in revocation or denial of any material license, permit or approval is pending or, to the knowledge of the Borrower, threatened.

*Section 6.10. Good Title*. The Borrower and its Subsidiaries have good and defensible title (or valid leasehold interests) to its assets as reflected on the most recent consolidated balance sheet of the Borrower and its Subsidiaries furnished to the Administrative Agent and the Lenders (except for sales of assets in the ordinary course of business), subject to no Liens other than such thereof as are permitted by Section 8.8.

*Section 6.11. Litigation and Other Controversies*. There is no litigation or governmental or arbitration proceeding or labor controversy pending, nor to the knowledge of the Borrower threatened, against the Borrower or any of its Subsidiary or any of their respective Property which if adversely determined, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

*Section 6.12. Taxes*. The Borrower is not (and none of its Subsidiaries is) materially overdue in the filing of any Tax returns required by law to be filed, and it is not (and none of its Subsidiaries is) overdue in the payment of any material amount in respect of Taxes, except and to the extent that (i) such Taxes, if any, are being contested in good faith; (ii) adequate reserves established in accordance with IFRS are being maintained for those Taxes and the costs required to contest them; and (iii) such payment can be lawfully withheld. No claims or investigations are being, or so far as the Borrower is aware, are reasonably likely to be, made or conducted against it (or any of its Subsidiaries) with respect to Taxes. The Borrower is resident for tax purposes only in the United Kingdom.

*Section 6.13. Approvals*. No authorization, approval, consent, license or exemption from or other action by, or notice to or filing or registration with, any court or Governmental Authority, department, agency or instrumentality, nor any approval or consent of any other Person, is or will be necessary to the valid execution, delivery or performance by the Borrower or any Subsidiary of any Loan Document, except for such approvals which have been obtained prior to the date of this Agreement and remain in full force and effect and (ii) filings which are necessary to perfect the security interests under the Loan Documents.

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*Section 6.14. Affiliate Transactions*. Neither the Borrower nor any Subsidiary is a party to any contracts or agreements with any of its Affiliates on terms and conditions which are less favorable to the Borrower or such Subsidiary than would be usual and customary in similar contracts or agreements between Persons not affiliated with each other; *provided* that the foregoing shall not apply to internal transfer pricing and/or outsourcing arrangements or agreements, in each case transacted on an arm's length basis.

*Section 6.15. Investment Company*. The Borrower is not required to register as an "investment company" within the meaning of the Investment Company Act of 1940, as amended.

*Section 6.16. ERISA*. The Borrower and each other member of its Controlled Group has fulfilled its obligations under the minimum funding standards of and is in compliance in all material respects with ERISA and the Code to the extent applicable to it and has not incurred any liability to the PBGC or a Plan under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA. Neither the Borrower nor any of its Subsidiaries has any contingent liabilities with respect to any post-retirement benefits under a Welfare Plan, other than liability for continuation coverage described in article 6 of Title I of ERISA.

*Section 6.17. Compliance with Laws*. The Borrower and its Subsidiaries are in compliance with all Legal Requirements applicable to or pertaining to their Property or business operations (including, without limitation laws and regulations establishing quality criteria and standards for air, water, land and toxic or hazardous wastes and substances), where any such non-compliance, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. The Borrower has not received any notice to the effect that the Borrower's or any Subsidiary's operations are not in compliance with any of the requirements of applicable federal, state or local environmental, health, and safety statutes and regulations or is the subject of any governmental investigation evaluating whether any remedial action is needed to respond to a release of any toxic or hazardous waste or substance into the environment, where any such non-compliance or remedial action, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

*Section 6.18. Sanctions; Anti-Money Laundering Laws and Anti-Corruption Laws*. (a) None of the Parent, the Borrower, any of their Subsidiaries, any director, officer or employee of the Parent, the Borrower or any of their Subsidiaries, nor, to the knowledge of the Borrower, any agent or representative of the Parent, the Borrower or any of their Subsidiaries, is a Sanctioned Person or currently the subject or target of any Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall provide the Administrative Agent and the Lenders any information regarding the Parent, the Borrower and each of their respective owners, Affiliates, and Subsidiaries necessary for the Administrative Agent and each Lender to comply with all applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions, subject however, in the case of Affiliates, to the Borrower's ability to provide information applicable to them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower will maintain in effect and enforce policies and procedures reasonably designed to ensure compliance by the Parent, the Borrower, their Subsidiaries, and their respective directors, officers, employees and agents with applicable Anti-Corruption Laws, Anti Money- Laundering Laws and Sanctions.

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*Section 6.19. Other Agreements*. Neither the Borrower nor any Subsidiary is in default under the terms of any covenant, indenture or agreement of or affecting such Person or any of its Property, which default if uncured could reasonably be expected to have a Material Adverse Effect.

*Section 6.20. Solvency*. The Borrower is solvent, able to pay its debts as they become due, and has sufficient capital to carry on its business and all businesses in which it is about to engage.

*Section 6.21. No Default*. No Default has occurred and is continuing.

*Section 6.22. No Broker Fees*. No broker's or finder's fee or commission will be payable by the Borrower with respect hereto or any of the transactions contemplated thereby; and the Borrower hereby agrees to indemnify the Administrative Agent and the Lenders against, and agrees that it will hold the Administrative Agent, and the Lenders harmless from, any claim, demand, or liability for any such broker's or finder's fees alleged to have been incurred by the Borrower in connection herewith or therewith and any expenses (including reasonable attorneys' fees) arising in connection with any such claim, demand, or liability.

*Section 6.23. Registration, Regulation U; Beneficial Ownership*. The Borrower is an investment firm authorized and regulated by the Regulatory Authority (FCA No. 1006193). There is no investigation or proceeding which, if adversely determined, could reasonably be expected to result in revocation or denial of such authorisation by the Regulatory Authority or is pending or, to the knowledge of the Borrower, threatened. The Borrower is excluded from inclusion as a "legal entity customer" for purposes of the beneficial ownership rule under 31 CFR 1010.230.

*Section 6.24. Regulatory Approvals*. All regulatory approvals necessary for the execution and delivery by the Borrower of this Agreement and the other Loan Documents have been obtained and are in full force and effect.

*Section 6.25. Termination Event*. No Termination Event has occurred.

*Section 6.26. Senior Indebtedness*. The Obligations under this Agreement and each of the other Loan Documents ranks and shall continue to be pari passu or senior in priority of payment to all other Indebtedness of the Borrower (including any Intercompany Debt).

*Section 6.27. Centre of Main Interests and Establishments*. In respect of each UK Entity and for the purposes of Regulation (EU) 2015/848 of 20 May 2015 on insolvency proceedings (recast) (the "Regulation"), its centre of main interest (as that term is used in Article 3(1) of the Regulation) is situated in England and Wales and it has no "establishment" (as that term is used in Article 2(10) of the Regulation) in any other jurisdiction.

*Section 6.28. No Filing or Stamp Taxes*. Under the laws of the Borrower's Relevant Jurisdiction it is not necessary that the Loan Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration, notarial or similar Taxes or fees be paid on or in relation to the Loan Documents or the transactions contemplated by the Loan Documents.

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*Section 6.29. Deduction of Tax*. The Borrower is not required to make any Tax Deduction from any payment it may make under any Loan Document to a Lender which is (i) a UK Qualifying Lender (a) falling within paragraph (a)(i) of the definition of UK Qualifying Lender or (b) except where a Direction has been given in relation to the payment concerned, falling within paragraph (a)(ii) of the definition of UK Qualifying Lender; or (c) falling within paragraph (b) of the definition of UK Qualifying Lender (ii) a UK Treaty Lender and the payment is one specified in a direction given by the Commissioners of Revenue & Customs under Regulation 2 of the UK Double Taxation Relief (Taxes on Income) (General) Regulations 1970 (SI 1970/488).

*Section 6.30. UK and EU Regulated Status of Borrower*. The Borrower is not authorized by the UK Prudential Regulation Authority and the Borrower is not an EEA Financial Institution.

SECTION 7. CONDITIONS PRECEDENT.

*Section 7.1. All Credit Events*. At the time of each Credit Event hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default shall have occurred and be continuing or would occur as a result of such Credit Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Borrower shall have provided its Notice of Borrowing providing for, among other things, evidence that after giving effect to such Credit Event, the aggregate principal amount of all Loans outstanding under this Agreement shall not exceed the lesser of (i) the Commitments and (ii) the Borrowing Base as then determined and computed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) after giving effect to such Credit Event, there shall have been at least one Zero Loan Days during the thirty (30) days immediately preceding such Credit Event; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) such Credit Event shall not violate any order, judgment or decree of any court or other authority or any provision of law or regulation applicable to the Administrative Agent or any Lender (including, without limitation, Regulation U of the Board of Governors of the Federal Reserve System) as then in effect.

Each request for a Borrowing hereunder shall be deemed to be a representation and warranty by the Borrower on the date of such Credit Event as to the facts specified in subsections (a), (b) and (c) of this Section.

*Section 7.2. Initial Credit Event* Before or concurrently with the initial Credit Event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Administrative Agent shall have received this Agreement duly executed by the Borrower and the Lenders;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if requested by any Lender, the Administrative Agent shall have received for such Lender such Lender's duly executed Notes of the Borrower dated the date hereof and otherwise in compliance with the provisions of Section 2.8;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Administrative Agent shall have received (i) the Security Agreement duly executed by the Borrower and (ii) the Guaranty Agreement duly executed by the Parent and executed copies of any document required to be delivered under the Security Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Administrative Agent shall have received copies of the Borrower's and the Parent's Organizational Documents, certified in each instance by a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Administrative Agent shall have received copies of resolutions of the Borrower's and the Parent's Board of Directors (or similar governing body) authorizing the execution, delivery and performance of this Agreement and the other Loan Documents and the consummation of the transactions contemplated hereby and thereby, together with specimen signatures of the persons authorized to execute such documents on the Borrower's and the Parent's behalf, all certified in each instance by a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Administrative Agent shall have received copies of the certificates of good standing for the Borrower and the Parent or its equivalent (dated no earlier than 30 days prior to the date hereof) from (i) in respect of the Borrower Companies House in the UK and (ii) in respect of the Parent, the office of the secretary of the state of its incorporation or organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Administrative Agent shall have received a list of the Borrower's Authorized Representatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Administrative Agent shall have received a certificate authorizing the disbursement of proceeds from the Loan to one of the Borrower's Principal Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Administrative Agent shall have received the initial fees called for by the Fee Letter, including an upfront fee in an amount equal to 0.20% of each Lender's Commitment on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) each Lender shall have received (i) company prepared financial statements of the Borrower for the period ended December 31, 2024, and (ii) a certificate from a Responsible Officer of the Borrower certifying that since December 31, 2024, no Material Adverse Effect has occurred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Administrative Agent shall have received financing statement, tax, charges, and judgment lien search results against the Borrower and the Parent and their Property evidencing the absence of Liens thereon except as permitted by Section 8.8;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the Administrative Agent shall have received pay-off and lien release letters and/or deeds of release from secured creditors of the Borrower (other than secured parties intended to remain outstanding after the Closing Date with Indebtedness and Liens permitted by Sections 8.7 and 8.8) setting forth, among other things, the total amount of

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indebtedness outstanding and owing to them (or outstanding letters of credit issued for the account of the Borrower) and containing an undertaking to cause to be delivered to the Administrative Agent any lien release instruments necessary to release their Liens on the assets of the Borrower, which pay-off and lien release letters and/or deeds of release shall be in form and substance acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the Administrative Agent shall have received (i) the favorable written opinion of the Borrower's New York counsel, and (ii) the favorable written enforceability opinion of the UK counsel to the Administrative Agent; in each case, in form and substance acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) each of the Lenders shall have received, sufficiently in advance of the Closing Date, all documentation and other information requested by any such Lender required by bank regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including without limitation, the United States Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) including, without limitation, the information described in Section 11.19; and the Administrative Agent shall have received a fully executed Internal Revenue Service Form W-8 (or its equivalent) for the Borrower and the Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) the Administrative Agent shall have approved all payment, covenant, default, subordination and other material terms and conditions of the Borrower's subordinated debt and preferred equity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) the Administrative Agent shall have received such other agreements, instruments, documents, certificates, and opinions as the Administrative Agent may reasonably request.

SECTION 8. COVENANTS.

The Borrower agrees that, so long as any credit is available to or in use by the Borrower hereunder, except to the extent compliance in any case or cases is waived in writing pursuant to the terms of Section 11.3.

*Section 8.1. Maintenance of Business*. The Borrower shall, and shall cause each of its Subsidiaries to, preserve and maintain its existence, except as otherwise provided in Section 8.10(c); *provided, however*, that nothing in this Section shall prevent the Borrower from dissolving any of its Subsidiaries if such action is, in the reasonable business judgment of the Borrower, desirable in the conduct of its business and is not disadvantageous in any material respect to the Lenders. The Borrower shall, and shall cause each of its Subsidiaries to preserve and keep in force and effect all licenses, permits, franchises, approvals, patents, trademarks, trade names, trade styles, copyrights, and other proprietary rights necessary to the proper conduct of its business where the failure to do so could reasonably be expected to have a Material Adverse Effect.

*Section 8.2. Maintenance of Properties*. The Borrower shall, and shall cause each of its Subsidiaries to, maintain, preserve, and keep its property, plant, and equipment in good repair, working order and condition (ordinary wear and tear excepted), and shall from time to time make all needful and proper repairs, renewals, replacements, additions, and betterments thereto so that at all times the efficiency thereof shall be fully preserved and maintained, except to the extent that, in the reasonable business judgment of such Person, any such Property is no longer necessary for the proper conduct of the business of such Person, except where the failure to do so would not reasonably be expected to have a Material Adverse Effect.

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*Section 8.3. Taxes and Assessments*. The Borrower shall, and shall cause each of its Subsidiaries to, duly pay and discharge all material Taxes imposed upon it or its assets within the time period allowed and prior to penalties accruing thereon, unless and to the extent that the same are being contested in good faith and by appropriate proceedings, adequate reserves are provided therefor and such payment can be lawfully withheld. The Borrower shall not, and shall ensure that each of its Subsidiaries shall not, change its residence for Tax purposes.

*Section 8.4. Insurance*. The Borrower shall insure and keep insured, and shall cause each of its Subsidiaries to insure and keep insured, with good and responsible insurance companies, all insurable Property owned by it which is of a character usually insured by Persons similarly situated and operating like Properties against loss or damage from such hazards and risks, and in such amounts and with such deductibles, as are insured by Persons similarly situated and operating like Properties. The Borrower shall insure, and shall cause each Subsidiary to insure, such other hazards and risks (including, without limitation, employers' and public liability risks) with good and responsible insurance companies as and to the extent usually insured by Persons similarly situated and conducting similar businesses. The Borrower shall, upon request of the Administrative Agent, furnish to the Administrative Agent a certificate setting forth in summary form the nature and extent of the insurance maintained pursuant to this Section 8.4.

*Section 8.5. Financial Reports*. The Borrower shall, and shall cause each of its Subsidiaries to, maintain proper books of records and accounts reasonably necessary to prepare financial statements required to be delivered pursuant to this Section 8.5 in accordance with IFRS and shall furnish to the Administrative Agent and each Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as soon as available, and in any event within 45 days after the last day of each fiscal quarter of the Borrower, a copy of financial statements and reports of the Borrower for each quarterly accounting period consisting of a balance sheet and a profit and loss statement of the Borrower prepared by the Borrower as of the end of and for such calendar quarter in accordance with IFRS (except for the absence of footnotes and subject to year-end audit adjustments) and certified by a Financial Officer or such other officer reasonably acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as soon as available, and in any event no later than 120 days after the last day of each fiscal year of the Borrower, a copy of the consolidated balance sheet of the Borrower and its Subsidiaries as of the last day of the fiscal year then ended and the consolidated and consolidating statements of income, retained earnings, and cash flows of the Borrower and its Subsidiaries for the fiscal year then ended, and accompanying notes thereto, each in reasonable detail showing in comparative form the figures for the previous fiscal year, accompanied by an unqualified opinion thereon of Ernst & Young or another firm of independent public accountants of recognized national standing, selected by the Borrower and reasonably satisfactory to the Administrative Agent, to the effect that the consolidated financial statements have been prepared in accordance with IFRS and present

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fairly in accordance with IFRS the consolidated financial condition of the Borrower and its Subsidiaries as of the close of such fiscal year and the results of their operations and cash flows for the fiscal year then ended and that an examination of such accounts in connection with such financial statements has been made in accordance with generally accepted auditing standards and, accordingly, such examination included such tests of the accounting records and such other auditing procedures as were considered necessary in the circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as soon as available, and in any event no later than 60 days after the last day of each fiscal quarter of each fiscal year of the Ultimate Parent, a copy of the consolidated balance sheet of the Ultimate Parent and its Subsidiaries as of the last day of such fiscal quarter and the consolidated statements of income, retained earnings, and cash flows of the Ultimate Parent and its Subsidiaries for the fiscal quarter and for the fiscal year to date period then ended, each in reasonable detail showing in comparative form the figures for the corresponding date and period in the previous fiscal year, prepared by the Ultimate Parent in accordance with GAAP (subject to the absence of footnote disclosures and year end audit adjustments) and certified to by its chief financial officer or another officer of the Ultimate Parent acceptable to Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) as soon as available, and in any event within 120 days after the last day of each fiscal year of the Ultimate Parent, copies of the consolidated balance sheet of the Ultimate Parent and its Subsidiaries as of the close of such period and the consolidated statements of income, retained earnings, and cash flows of the Ultimate Parent and its Subsidiaries for such period, and accompanying notes thereto, each in reasonable detail, accompanied by an unqualified opinion (subject to normal year-end adjustments and except for qualifications relating to changes in accounting principles or practices reflecting changes in GAAP and required or approved by the Ultimate Parent's independent certified public accountants) thereon of a firm of independent public accountants of recognized national standing, selected by the Ultimate Parent and reasonably satisfactory to the Administrative Agent, to the effect that the financial statements have been prepared in accordance with GAAP and present fairly in accordance with GAAP the consolidated financial condition of the Borrower and its Subsidiaries as of the close of such fiscal year and the results of their operations and cash flows for the fiscal year then ended and that an examination of such accounts in connection with such financial statements has been made in accordance with generally accepted auditing standards and, accordingly, such examination included such tests of the accounting records and such other auditing procedures as were considered necessary in the circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) as soon as available, and in any event within 90 days after the close of each fiscal year of the Borrower, any additional written reports or management letters or other detailed information contained in writing concerning significant aspects of the Borrower's or any Subsidiary's affairs given to its managers (or other governing body) by its independent public accountants in connection with the audit of the Borrower;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) promptly after receipt thereof, a copy of any audits, examinations or financial report that may be conducted by the Regulatory Authority that note noncompliance that could reasonably be expected to have a Material Adverse Effect and permitted to be disclosed under applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) notice of any Change of Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) notice of any Termination Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) promptly after knowledge thereof shall have come to the attention of any Responsible Officer of the Borrower, written notice of (i) any threatened or pending litigation or governmental or arbitration proceeding or labor controversy (including any litigation or proceeding brought by the Regulatory Authority) against the Parent, the Borrower, any Subsidiary or any of their Property which, if adversely determined, could reasonably be expected to have a Material Adverse Effect, (ii) the occurrence of any Material Adverse Effect, or (iii) the occurrence of any Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) as soon as available, and in any event no later than 45 days after the last day of each fiscal quarter of the Borrower, a written certificate in the form attached hereto as Exhibit B signed by a Financial Officer of the Borrower to the effect that to the best of such officer's knowledge and belief no Default has occurred during the period covered by such statements or, if any such Default has occurred during such period, setting forth a description of such Default and specifying the action, if any, taken by the Borrower or its Subsidiaries to remedy the same. Such certificate shall also set forth the calculations supporting such statements in respect of Section 8.23 (Financial Covenants); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) promptly, from time to time, such other information regarding the operations, business affairs and financial condition of the Parent, the Borrower or any Subsidiary, or compliance with the terms of any Loan Document, as the Administrative Agent or any Lender may reasonably request.

*Section 8.6. Inspection; Field Audits*. The Borrower shall, and shall cause each of its Subsidiaries to, permit the Administrative Agent and each Lender, and each of their duly authorized representatives and agents (at all times subject to their adherence to Borrower's data and security policies and procedures) to visit and inspect any of its Property, corporate books, and financial records, to examine and make copies of its books of accounts and other financial records, and to discuss its affairs, finances, and accounts with, and to be advised as to the same by, its officers, employees and independent public accountants (and by this provision the Borrower hereby authorizes such accountants to discuss with the Administrative Agent and such Lenders the finances and affairs of the Borrower and its Subsidiaries) at such reasonable times and intervals as the Administrative Agent or any such Lender may designate and, so long as no Default exists, with reasonable prior notice to the Borrower. The Borrower shall pay to the Administrative Agent reasonable charges for inspections and visits to Property, inspections of corporate books and financial records, examinations and copies of books of accounts and financial record and other activities permitted in this Section performed by the Administrative Agent or its agents or third party firms, in such amounts as the Administrative Agent may incur and from time to time request; *provided, however*, that in the absence of any Default, the Borrower shall not be required to pay the Administrative Agent for more than one (1) audit per calendar year.

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*Section 8.7. Borrowings and Guaranties*. The Borrower shall not, nor shall it permit any of its Subsidiaries to, issue, incur, assume, create, or have outstanding any Indebtedness or be or become liable as endorser, guarantor, surety, or otherwise for any Indebtedness or undertaking of any other Person, or otherwise agree to provide funds for payment of the obligations of another, to supply funds thereto or to invest therein, or to otherwise assure a creditor of another against loss, or apply for or become liable to the issuer of a letter of credit which supports an obligation of another, or subordinate any claim or demand it may have to the claim or demand of any other Person; *provided, however*, that the foregoing shall not restrict nor operate to prevent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Obligations of the Borrower and its Subsidiaries owing to the Administrative Agent and the Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) purchase money indebtedness and Capitalized Lease Obligations of the Borrower and its Subsidiaries in an amount not to exceed $5,000,000 in the aggregate at any one time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) obligations of the Borrower or any Subsidiaries arising out of interest rate, foreign currency, and commodity hedging agreements entered into with financial institutions in connection with bona fide hedging activities in the ordinary course of business and not for speculative purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) endorsement of items for deposit or collection of commercial paper received in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) secured Indebtedness in connection with (i) Securities Financing, (ii) the Custody Agreement (as such security interest is defined as of the date of this Agreement), and (iii) the financing of securities and other financial instruments bought or sold in the normal day to day conduct of any Loan Party's or Subsidiary's business, including but not limited to any margin facility or other margin-related Indebtedness incurred to finance such securities or instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any letters of credit (and related obligations) obtained by Borrower or any Subsidiary and provided to lessors in connection with leases of real property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Subordinated Debt of the Borrower so long as (i) no Default has occurred and is continuing or would result from the incurrence thereof, (ii) after giving effect to the incurrence of such Subordinated Debt, the Borrower is in compliance with the financial covenants set forth in Section 8.23 hereof; and (iii) such Indebtedness is unsecured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) cash management obligations and Indebtedness in respect of netting services, overdraft protections and similar arrangements in each case in connection with cash management and deposit, securities and commodities accounts arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Indebtedness of any Subsidiary arising under Guarantees of Indebtedness to the extent such Indebtedness is permitted hereunder;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Intercompany Debt so long as (i) no Default has occurred and is continuing or would result from the incurrence of such Intercompany Debt, (ii) the Borrower is in compliance with the financial covenants set forth in Section 8.23 hereof (other than Section 8.23(b) hereof) on a pro forma basis after giving effect to the incurrence of such Intercompany Debt, (iii) such Intercompany Debt is unsecured; (iv) such Intercompany Debt is subordinated to the Obligations on terms and conditions acceptable to the Administrative Agent, and (v) the amount of such Intercompany Debt outstanding does not exceed $70,000,000 in the aggregate at any one time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) other Indebtedness of the Borrower and its Subsidiaries so long as (i) no Default or Event of Default has occurred and is continuing or would occur as a result of the incurrence of such Indebtedness, and (ii) to the extent any Loans are outstanding, the aggregate amount of such Indebtedness shall not exceed $2,000,000 at any one time.

*Section 8.8. Liens*. The Borrower shall not, nor shall it permit any of its Subsidiaries to, create, incur or permit to exist any Lien of any kind on any Property owned by any such Person; *provided, however*, that the foregoing shall not apply to nor operate to prevent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens arising by statute in connection with worker's compensation, unemployment insurance, old age benefits, social security obligations, Taxes, assessments, statutory obligations or other similar charges (other than Liens arising under ERISA), good faith cash deposits in connection with tenders, contracts or leases to which the Borrower or any Subsidiary is a party or other cash deposits required to be made in the ordinary course of business, provided in each case that the obligation is not for borrowed money and that the obligation secured is not overdue or, if overdue, is being contested in good faith by appropriate proceedings which prevent enforcement of the matter under contest and adequate reserves have been established therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) mechanics', workmen's, materialmen's, landlords', carriers' or other similar Liens arising in the ordinary course of business with respect to obligations which are not due or which are being contested in good faith by appropriate proceedings which prevent enforcement of the matter under contest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) judgment liens and judicial attachment liens not constituting an Event of Default under Section 9.1(g) and the pledge of assets for the purpose of securing an appeal, stay or discharge in the course of any legal proceeding, provided that the aggregate amount of such judgment liens and attachments and liabilities of the Borrower and its Subsidiary secured by a pledge of assets permitted under this subsection, including interest and penalties thereon, if any, shall not be in excess of the Threshold Amount at any one time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens on equipment of the Borrower or any Subsidiary created solely for the purpose of securing indebtedness permitted by Section 8.7(b) hereof, representing or incurred to finance the purchase price of such Property, *provided* that no such Lien shall extend to or cover other Property of the Borrower or such Subsidiary other than the respective Property so acquired, and the principal amount of indebtedness secured by any such Lien shall at no time exceed the purchase price of such Property, as reduced by repayments of principal thereon;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any interest or title of a lessor under any operating lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) required deposits maintained with commodity or securities exchanges or their associated clearing corporations in the ordinary course of the business of the Borrower or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Liens securing Indebtedness permitted under Section 8.7(c);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Liens in favor of (i) collecting banks arising by operation of law under Section 4-210 of the UCC and (ii) depositary banks in connection with statutory, common law and contractual rights of set-off and recoupment with respect to the Borrower's deposit accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens granted in favor of the Administrative Agent pursuant to the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) easements, rights-of-way, restrictions, and other similar encumbrances against real property incurred in the ordinary course of business which, in the aggregate, are not substantial in amount and which do not materially detract from the value of the Property subject thereto or materially interfere with the ordinary conduct of the business of the Borrower and its Subsidiaries taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Liens securing Indebtedness permitted under Section 8.7(e) so long as no such Liens attach to the Collateral (except, with respect to the Custody Agreement, the Borrower's rights to Receivables from the custody account);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Liens in connection with sales, transfers, leases, assignments or other conveyances or dispositions of securities permitted under this Agreement, including (x) Liens on securities granted or deemed to arise in connection with and as a result of the execution, delivery or performance of contracts to sell such securities if such sale is otherwise permitted hereunder, or is required by such contracts to be permitted hereunder, and (y) rights of first refusal, options or other contractual rights or obligations to sell, assign or otherwise dispose of any securities or interest therein, which rights of first refusal, option or contractual rights are granted in connection with a sale, transfer or other disposition of securities permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Liens securing Indebtedness permitted under Section 8.7(k); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Liens on Margin Stock.

*Section 8.9. Investments, Acquisitions, Loans and Advances*. Other than (i) investments in securities or other financial instruments in the ordinary course of business and (ii) loans and advances in the form of securities lending, the Borrower shall not, nor shall it permit any of its Subsidiaries to, directly or indirectly, make, retain or have outstanding any investments (whether through purchase of stock or obligations or otherwise) in, or loans or advances to (other than for

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travel advances and other similar cash advances made to employees in the ordinary course of business), any other Person, or acquire all or any substantial part of the assets or business of any other Person or division thereof, to the extent prohibited by the Borrower's or such Subsidiary's Organizational Documents.

*Section 8.10. Mergers, Consolidations and Sales*. The Borrower shall not, nor shall it permit any of its Subsidiaries to, be a party to any merger or consolidation or amalgamation, or sell, transfer, lease or otherwise dispose of all or any part of its Property, including any disposition of Property as part of a sale and leaseback transaction, or in any event sell or discount (with or without recourse) any of its notes or accounts receivable; *provided, however*, that this Section shall not apply to nor operate to prevent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sale of securities or other financial instruments in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the sale, transfer, or other disposition of any tangible personal property that, in the reasonable business judgment of the Borrower, has become uneconomical, obsolete, or worn out, or which is surplus property or which is no longer necessary for the proper conduct of the Borrower's business and which is disposed of in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) the amalgamation, merger or consolidation of any Person (including any Subsidiary of the Borrower) into the Borrower, *provided* the Borrower is the surviving entity and no Change of Control results from the merger. (ii) the amalgamation, merger or consolidation of any Subsidiary into or with any other Subsidiary, (iii) the sale, conveyance, transfer, lease or other disposition of some, all or substantially all of the assets of any Subsidiary to any other Subsidiary or to the Borrower, and (iv) the liquidation or dissolution of any Subsidiary if the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and not materially disadvantageous to the Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the sale of equipment in connection with a sale and leaseback transaction so long as no Default has occurred and is continuing or would result from such sale and leaseback transaction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the sale of delinquent notes or accounts receivable in the ordinary course of business for purposes of collection only (and not for the purpose of any bulk sale or securitization transaction).

*Section 8.11. Maintenance of Subsidiaries*. The Borrower shall not issue, assign, sell or transfer, any shares of capital stock or other equity interests of a Subsidiary; *provided, however*, that the foregoing shall not operate to prevent (a) the issuance, sale, and transfer to any person of any shares of capital stock of a Subsidiary solely for the purpose of qualifying, and to the extent legally necessary to qualify, such person as a director of such Subsidiary and (b) any transaction permitted by Section 8.10(c) above.

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*Section 8.12. Dividends and Certain Other Restricted Payments*. The Borrower shall not, nor shall it permit any of its Subsidiaries to, (a) declare or pay any dividends on or make any other distributions in respect of any class or series of its capital stock or other equity interests (other than dividends or distributions payable solely in its capital stock or other equity interests), or (b) directly or indirectly purchase, redeem, or otherwise acquire or retire any of its capital stock or other equity interests or any warrants, options, or similar instruments to acquire the same (collectively referred to herein as "*Restricted Payments*"); *provided, however*, that the foregoing shall not operate to prevent (i) the making of dividends or distributions by any Subsidiary to the Borrower, and (ii) the making of any Restricted Payment by the Borrower so long as (A) each such Restricted Payments is permitted under all rules and regulations applicable to the Borrower, and (B) no Default has occurred and is continuing or would result therefrom after giving to such Restricted Payment.

*Section 8.13. ERISA*. The Borrower shall, and shall cause each of its Subsidiaries to, promptly pay and discharge all obligations and liabilities arising under ERISA of a character which if unpaid or unperformed could reasonably be expected to result in the imposition of a Lien against any of its Property. The Borrower shall, and shall cause each of its Subsidiaries to, promptly notify the Administrative Agent and each Lender of: (a) the occurrence of any reportable event (as defined in ERISA) with respect to a Plan, (b) receipt of any notice from the PBGC of its intention to seek termination of any Plan or appointment of a trustee therefor, (c) its intention to terminate or withdraw from any Plan, and (d) the occurrence of any event with respect to any Plan which would result in the incurrence by the Borrower or any Subsidiary of any material liability, fine or penalty, or any material increase in the contingent liability of the Borrower or any Subsidiary with respect to any post-retirement Welfare Plan benefit.

*Section 8.14. Compliance with Laws*. The Borrower shall, and shall cause each of its Subsidiaries to, comply in all respects with all Legal Requirements applicable to or pertaining to its Property or business operations, where any such non-compliance, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect or result in a Lien upon any of its Property.

*Section 8.15. Compliance with Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions*. (a) The Borrower shall at all times comply with the requirements of all Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions applicable to the Borrower and shall cause each of its respective Subsidiaries to comply with the requirements of all Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions applicable to such Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall provide the Administrative Agent and the Lenders any information regarding the Parent, the Borrower and each of their respective owners, Affiliates, and Subsidiaries necessary for the Administrative Agent and each Lender to comply with all applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions, subject however, in the case of Affiliates, to the Borrower's ability to provide information applicable to them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower will maintain in effect and enforce policies and procedures reasonably designed to ensure compliance by the Parent, the Borrower, their Subsidiaries, and their respective directors, officers, employees and agents with applicable Anti-Corruption Laws, Anti Money- Laundering Laws and Sanctions.

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*Section 8.16. Burdensome Contracts With Affiliates*. The Borrower shall not, nor shall it permit any of its Subsidiaries to, enter into any contract, agreement or business arrangement with any of its Affiliates on terms and conditions which are less favorable to the Borrower or such Subsidiary than would be usual and customary in similar contracts, agreements or business arrangements between Persons not affiliated with each other; *provided* that the foregoing shall not apply to internal transfer pricing and/or outsourcing arrangements or agreements, in each case transacted on an arm's length basis.

*Section 8.17. No Changes in Fiscal Year*. The fiscal year of the Borrower ends on December 31 of each year; and the Borrower shall not, nor shall it permit any Subsidiary to, change its fiscal year from its present basis unless the Borrower has provided the Administrative Agent with prior written notice of such change.

*Section 8.18. Formation of Subsidiaries*. Promptly upon the formation or acquisition of any Subsidiary, the Borrower shall provide the Administrative Agent and the Lenders notice thereof (at which time Schedule 6.2 shall be deemed amended to include reference to such Subsidiary).

*Section 8.19. Change in the Nature of Business*. The Borrower shall not, nor shall it permit any of its Subsidiaries to, engage in any business or activity if as a result the general nature of the business of the Borrower or any of its Subsidiaries would be changed in any material respect from the general nature of the business engaged in by it as of the Closing Date.

*Section 8.20. Use of Proceeds*. The Borrower shall use the credit extended under this Agreement solely for the purposes set forth in, or otherwise permitted by, Section 6.4. The Borrower will not request any Loan, and Borrower shall not use, and shall ensure that its Subsidiaries and Affiliates, and its or their respective directors, officers, employees and agents not use, the proceeds of any Loan, directly or indirectly, (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) to fund, finance or facilitate any activities, business or transaction of or with any Sanctioned Person or in any Designated Jurisdiction, or (iii) in any other manner that would result in the violation of any Sanctions applicable to any party hereto.

*Section 8.21. No Restrictions*. Except as provided herein, the Borrower shall not, nor shall it permit any Subsidiary to, directly or indirectly create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the ability of the Borrower or any Subsidiary to: (a) pay dividends or make any other distribution on any Subsidiary's capital stock or other equity interests owned by the Borrower or any other Subsidiary, (b) pay any indebtedness owed to the Borrower or any other Subsidiary, (c) make loans or advances to the Borrower or any other Subsidiary, (d) transfer any of its Property to the Borrower or any other Subsidiary, or (e) guarantee the Obligations, and/or grant Liens on its assets to the Administrative Agent as required by the Loan Documents; *provided*, the foregoing shall not operate to prevent: (i) restrictions imposed by any Legal Requirement, (ii) customary restrictions on joint ventures or interests therein arising from joint venture agreements, (iii) restrictions imposed by the holder of any Lien permitted by Section 8.8 on the transfer of the asset or assets subject thereto, (iv) customary provisions restricting subletting or assignment of any lease or license governing a leasehold interest or license interest of the Borrower or any Subsidiary, (v) customary provisions restricting assignment of any agreement entered into by the Borrower or a

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Subsidiary, (vi) any customary restrictions with respect to a Subsidiary or other Property imposed pursuant to an agreement that has been entered into relating to the sale of all or substantially all of the equity interests or assets of such Subsidiary or any other Property permitted under Section 8.10 pending the consummation of such sale, (vii) restrictions imposed on the ability of the Borrower to make Restricted Payments pursuant to the Borrower's or such Subsidiary's Organizational Documents, (viii) restrictions in agreements or instruments relating to any Indebtedness permitted to be incurred subsequent to the date of this Agreement pursuant to Section 8.7, and (ix) customary restrictions in connection with any depository, cash management and treasury management services and products (including clearing trades, controlled disbursement, automated clearinghouse transactions, return items, overdrafts and interstate depository network services).

*Section 8.22. Most Favored Nations*. In the event that the Borrower or any of its Subsidiaries shall, directly or indirectly, be a party to or enter into or otherwise consent to any agreement or instrument (or any amendment, supplement or modification thereto) under which, directly or indirectly, any Person or Persons undertakes to make or provide credit or loans to the Borrower or any of its Subsidiaries (including, without limitation, any instrument, document or indenture relating to any Indebtedness), which agreement (or amendment thereto) provides such Person with more restrictive covenants than are provided to the Administrative Agent and/or the Lenders in this Agreement, the Borrower shall notify the Administrative Agent and the Lenders of the existence of such more restrictive covenants and such more restrictive covenants shall automatically be deemed to be incorporated into this Agreement, and the Administrative Agent and the Lenders shall have the benefits of such more restrictive covenants as if specifically set forth herein and applied for the benefit of the holders of the Obligations (and no amendment, modification, or waiver of any such more restrictive covenants incorporated herein by reference shall be effective against the Administrative Agent or the Lenders unless consented to by the Required Lenders). For the avoidance of doubt, the Borrower shall not provide the Administrative or the Lenders with a copy of any agreement (or amendment thereto) containing such more restrictive covenants without the written consent of such Person or Persons undertaking to make or provide such credit or loans to the Borrower or any of its Subsidiaries. Upon the written request of the Administrative Agent or the Required Lenders, the Borrower shall promptly enter into an amendment to this Agreement to include such more restrictive covenants (provided that the Administrative Agent and the Lenders shall maintain the benefit of such more restrictive covenants even if the Administrative Agent or Required Lenders fail to make such request or the Borrower fails to provide such amendment).

*Section 8.23. Financial Covenants*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Regulatory Minimum Net Capital Requirement*. The Borrower shall, at all times, maintain Own Funds of not less than the greater of (i) $10,000,000 more than the Regulatory Minimum Net Capital or (ii) 135% of the Regulatory Minimum Net Capital applicable to the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Minimum Own Funds*. The Borrower shall not, at any time, permit the Own Funds to be less than $33,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Zero Loan Days*. At any time the same is to be determined, the Borrower have at least one Zero Loan Days during the thirty (30) day period from the determination date.

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*Section 8.24. Post-Closing Obligations*. The Borrower shall send out the notification(s) specified in the Security Agreement on the date(s) specified in the Security Agreement.

SECTION 9. EVENTS OF DEFAULT AND REMEDIES.

*Section 9.1. Events of Default*. Any one or more of the following shall constitute an "*Event of Default*" hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) default in the payment when due of all or any part of the principal of any Loan (whether at the stated maturity thereof or at any other time provided for in this Agreement), or default for a period of three (3) U.S. Business Days in the payment when due of any interest, fee or other Obligation payable hereunder or under any other Loan Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) default in the observance or performance of any covenant set forth in Sections 8.1, 8.5, 8.7, 8.8, 8.9, 8.10, 8.11, 8.12, 8.16, 8.19, 8.20, 8.21, 8.22, or 8.23; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) default in the observance or performance of any other provision hereof or of any other Loan Document which is not remedied within thirty (30) days after the earlier of (i) the date on which such failure shall first become known to any Responsible Officer of the Borrower or (ii) written notice thereof is given to the Borrower by the Administrative Agent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any representation or warranty made herein or in any other Loan Document or in any certificate furnished to the Administrative Agent or the Lenders pursuant hereto or thereto or in connection with any transaction contemplated hereby or thereby proves untrue in any material respect as of the date of the issuance or making or deemed making thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (i) any event occurs or condition exists (other than those described in subsections (a) through (d) above) which is specified as an event of default under any of the other Loan Documents, or (ii) any of the Loan Documents shall for any reason not be or shall cease to be in full force and effect or is declared to be null and void, or (iii) the Parent or the Borrower takes any action for the purpose of terminating, repudiating or rescinding any Loan Document executed by it or any of its obligations thereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) default shall occur under any Indebtedness issued, assumed or guaranteed by the Borrower or any Subsidiary aggregating more than the Threshold Amount, or under any indenture, agreement or other instrument under which the same may be issued, and such default shall continue for a period of time sufficient to permit the acceleration of the maturity of any such Indebtedness (whether or not such maturity is in fact accelerated), or any such Indebtedness shall not be paid when due (whether by demand, lapse of time, acceleration or otherwise); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (i) any judgment or judgments, writ or writs or warrant or warrants of attachment, or any similar process or processes, shall be entered or filed against the Parent, the Borrower or any Subsidiary, or against any of their respective Property, in an aggregate amount for all such Persons in excess of the Threshold Amount (except to the extent fully

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covered by insurance pursuant to which the insurer has accepted liability therefor), and which remains undischarged, unvacated, unbonded or unstayed for a period of 30 days, or any action shall be legally taken by a judgment creditor to attach or levy upon any Property of the Parent or the Borrower or any Subsidiary to enforce any such judgment, or (ii) the Parent, the Borrower or any Subsidiary shall fail within thirty (30) days to discharge one or more non-monetary judgments or orders which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, which judgments or orders, in any such case, are not stayed on appeal or otherwise being appropriately contested in good faith by proper proceedings diligently pursued; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Borrower or any Subsidiary, or any member of its Controlled Group shall fail to pay when due an amount or amounts aggregating for all such Persons in excess of the Threshold Amount which it shall have become liable to pay to the PBGC or to a Plan under Title IV of ERISA; or notice of intent to terminate a Plan or Plans having aggregate Unfunded Vested Liabilities in excess of the Threshold Amount (collectively, a "*Material Plan*") shall be filed under Title IV of ERISA by the Borrower or any Subsidiary, or any other member of its Controlled Group, any plan administrator or any combination of the foregoing; or the PBGC shall institute proceedings under Title IV of ERISA to terminate or to cause a trustee to be appointed to administer any Material Plan or a proceeding shall be instituted by a fiduciary of any Material Plan against the Borrower or any Subsidiary, or any member of its Controlled Group to enforce Section 515 or 4219(c)(5) of ERISA and such proceeding shall not have been dismissed within thirty (30) days thereafter; or a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any Material Plan must be terminated; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) dissolution or termination of the existence of the Parent, Borrower or any Subsidiary (except as permitted by Section 8.1), or any Change of Control shall occur; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the Parent, the Borrower or any Subsidiary shall (i) have entered involuntarily against it an order for relief under the United States Bankruptcy Code, as amended, (ii) not pay, or admit in writing its inability to pay, its debts generally as they become due, (iii) make an assignment for the benefit of creditors, (iv) apply for, seek, consent to, or acquiesce in, the appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial part of its Property, (v) the occurrence or existence of a UK Insolvency Event shall occur; (vi) institute any proceeding seeking to have entered against it an order for relief under the United States Bankruptcy Code, as amended, to adjudicate it insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors or fail to file an answer or other pleading denying the material allegations of any such proceeding filed against it, (vii) take any corporate or similar action in furtherance of any matter described in parts (i) through (vi) above, or (viii) fail to contest in good faith any appointment or proceeding described in Section 9.1(k) hereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) a custodian, receiver, trustee, examiner, liquidator or similar official shall be appointed for the Parent, the Borrower or any Subsidiary or any substantial part of any of their Property, or a proceeding described in Section 9.1(j)(vi) shall be instituted against the Parent, the Borrower or any Subsidiary, and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of 60 days; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the occurrence of any event or the existence of any condition specified as an "Event of Default" under any document evidencing or governing the Intercompany Debt, or any demand for payment is made on the Borrower for the payment of any Intercompany Debt.

*Section 9.2. Non-Bankruptcy Defaults* When any Event of Default (other than those described in subsection (j) or (k) of Section 9.1) has occurred and is continuing, the Administrative Agent shall, by written notice to the Borrower: (a) if so directed by the Required Lenders, terminate the remaining Commitments and all other obligations of the Lenders hereunder on the date stated in such notice (which may be the date thereof); and (b) if so directed by the Required Lenders, declare the principal of and the accrued interest on all outstanding Loans to be forthwith due and payable and thereupon all outstanding Loans, including both principal and interest thereon, shall be and become immediately due and payable together with all other amounts payable under the Loan Documents without further demand, presentment, protest or notice of any kind. In addition, the Administrative Agent may exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the Loan Documents or applicable law or equity when any such Event of Default has occurred and is continuing. The Administrative Agent shall give notice to the Borrower under Section 9.1(c) promptly upon being requested to do so by any Lender. The Administrative Agent, after giving notice to the Borrower pursuant to Section 9.1(c) or this Section 9.2, shall also promptly send a copy of such notice to the other Lenders, but the failure to do so shall not impair or annul the effect of such notice.

*Section 9.3. Bankruptcy Defaults*. When any Event of Default described in subsections (j) or (k) of Section 9.1 has occurred and is continuing, then all outstanding Loans shall immediately become due and payable together with all other amounts payable under the Loan Documents without presentment, demand, protest or notice of any kind and the obligation of the Lenders to extend further credit pursuant to any of the terms hereof shall immediately terminate. In addition, the Administrative Agent may exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the Loan Documents or applicable law or equity when any such Event of Default has occurred and is continuing.

*Section 9.4. Post-Default Collections*. Anything contained herein or in the other Loan Documents to the contrary notwithstanding, all payments and collections received in respect of the Obligations, and all proceeds of the Collateral and payments made under or in respect of the Guaranty Agreement received, in each instance by the Administrative Agent or any of the Lenders after acceleration or the final maturity of the Obligations or termination of the Commitments as a result of an Event of Default shall be remitted to the Administrative Agent and distributed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) first, to the payment of any outstanding costs and expenses incurred by the Administrative Agent in protecting, preserving or enforcing rights under the Loan Documents, and in any event including all costs and expenses of a character which the Borrower has agreed to pay the Administrative Agent under Section 12.4 (such funds to be retained by the Administrative Agent for its own account unless it has previously been reimbursed for such costs and expenses by the Lenders, in which event such amounts shall be remitted to the Lenders to reimburse them for payments theretofore made to the Administrative Agent);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) second, to the payment of any outstanding interest and fees due under the Loan Documents to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) third, to the payment of principal on the Loans to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) fourth, to the payment of all other unpaid Obligations to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) finally, to the Borrower or whoever else may be lawfully entitled thereto.

SECTION 10. THE ADMINISTRATIVE AGENT.

*Section 10.1. Appointment and Authority*. (i) Each of the Lenders hereby irrevocably appoints BMO to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this Section 10 are solely for the benefit of the Administrative Agent and the Lenders, and the Borrower shall not have rights as a third-party beneficiary of any of such provisions. It is understood and agreed that the use of the term "agent" herein or in any other Loan Documents (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the foregoing, each of the Lenders hereby irrevocably appoints the Administrative Agent to act on its behalf as security agent hereunder and under the other Loan Documents, and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this provision are solely for the benefit of the Administrative Agent and the Lenders, and the Borrower shall not have rights as a third-party beneficiary of any of such provisions. The Administrative Agent declares that it holds the security created or expressed to be created in favour of the Administrative Agent pursuant to the Security Agreement on trust for the Lenders on the terms contained in this Agreement and in the other Loan Documents. Each Lender (other than the Administrative Agent) authorises the Administrative Agent to exercise any rights, powers, authorities and discretions in connection with the Loan Documents together with any other incidental rights, powers, authorities and discretions.

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*Section 10.2. Rights as a Lender*. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and the term "Lender" or "Lenders" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

*Section 10.3. Action by Administrative Agent; Exculpatory Provisions*. (a) The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent and its Related Parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), *provided* that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law. The Administrative Agent shall in all cases be fully justified in failing or refusing to act hereunder or under any other Loan Document unless it first receives any further assurances of its indemnification from the Lenders that it may require, including prepayment of any related expenses and any other protection it requires against any and all costs, expense, and liability which may be incurred by it by reason of taking or continuing to take any such action; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall not, except as expressly set forth herein and in the other Loan Documents, have any duty or responsibility to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Administrative Agent nor any of its Related Parties shall be liable for any action taken or not taken by the Administrative Agent under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby or thereby (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 9.2, 9.3, 9.4 and 12.3, or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment. Any such action taken or failure to act pursuant to the foregoing shall be binding on all Lenders. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent in writing by the Borrower or a Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither the Administrative Agent nor any of its Related Parties shall be responsible for or have any duty or obligation to any Lender or participant or any other Person to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Section 7.1 or 7.2 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

*Section 10.4. Reliance by Administrative Agent*. The Administrative Agent shall be entitled to rely upon, and shall be fully protected in relying and shall not incur any liability for relying upon, any notice, request, certificate, communication, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and reasonably believed by it to have been made by the proper Person, and shall be fully protected in reasonably relying and shall not incur any liability for reasonably relying thereon. In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender unless the Administrative Agent shall have received notice to the contrary from such Lender prior to the making of such Loan. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

*Section 10.5. Delegation of Duties*. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Section shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the Facility as well as activities as Administrative Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

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*Section 10.6. Resignation of Administrative Agent*. (a) The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an office in the United States of America, or an Affiliate of any such bank with an office in the United States of America. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the "*Resignation Effective Date*"), then the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above. Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With effect from the Resignation Effective Date, (i) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents, and (ii) except for any indemnity payments owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided for above. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Administrative Agent (other than any rights to indemnity payments or other amounts owed to the retiring Administrative Agent), and the retiring Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring Administrative Agent's resignation hereunder and under the other Loan Documents, the provisions of this Section 10 and Section 11.4 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent.

*Section 10.7. Non-Reliance on Administrative Agent and Other Lenders*. Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

*Section 10.8. Designation of Additional Agents.* The Administrative Agent shall have the continuing right, for purposes hereof, at any time and from time to time to designate one or more of the Lenders (and/or its or their Affiliates) as "syndication agents," "documentation agents," "book runners," "lead arrangers," "arrangers," or other designations for purposes hereto, but such designation shall have no substantive effect, and such Lenders and their Affiliates shall have no additional powers, duties or responsibilities as a result thereof.

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*Section 10.9. Authorization of Administrative Agent to File Proofs of Claim* In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to the Parent, the Borrower, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of Lenders, and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, and the Administrative Agent under the Loan Documents including, but not limited to, Sections 4.2, and 12.4) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.12 and 12.4. Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

*Section 10.10. Certain ERISA Matters*. (a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, the Sole Lead Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or the Parent, that at least one of the following is and will be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender is not using "plan assets" (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Plans in connection with the Loan, the Commitment or this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class

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exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loan, the Commitment and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loan, the Commitment and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Commitment and this Agreement satisfies the requirements of sub- sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitment and this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, unless sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or such Lender has not provided another representation, warranty and covenant as provided in sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, the Sole Lead Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or the Parent, that the Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender's entrance into, participation in, administration of and performance of the Loan, the Commitment and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).

*Section 10.11. Recovery of Erroneous Payments* Notwithstanding anything to the contrary in this Agreement, if at any time Administrative Agent determines (in its sole and absolute discretion) that it has made a payment hereunder in error to any Lender, whether or not in respect of an Obligation due and owing by the Borrower, the Guarantor or any Persons at such time, where such payment is a Rescindable Amount, then in any such event, each such Person receiving a Rescindable Amount severally agrees to repay to Administrative Agent forthwith on demand the Rescindable Amount received by such Person in immediately available funds in the currency so received, with interest thereon, for each day from and including the date such Rescindable Amount is received by it to but excluding the date of payment to Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by Administrative Agent in accordance with banking industry rules on interbank compensation. Each Lender irrevocably waives any and all defenses, including any "discharge for value" (under which a creditor might otherwise claim a right to retain funds mistakenly paid by a third party in respect of a debt owed by another), "good consideration", "change of position" or similar defenses (whether at law or in equity) to its obligation to return any Rescindable Amount. Administrative Agent shall inform each Lender that received a

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Rescindable Amount promptly upon determining that any payment made to such Person comprised, in whole or in part, a Rescindable Amount. Each Person's obligations, agreements and waivers under this Section 10.11 shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, a Lender, the termination of the Commitment and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document.

SECTION 11. MISCELLANEOUS.

*Section 11.1. Notices*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Notices Generally*. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Borrower and the Guarantor, to it at Second Floor, 1 Bartholomew Lane, EC2N 2AX, Attention: CFO with a copy to uklegal@clearstreet.io), Guarantor, to it at 150 Greenwich Street, 45th fl, New York, NY 10007, Attention: CFO, with a copy to legal@clearstreet.io.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to the Administrative Agent, to BMO Bank N.A. at 320 South Canal Street, Chicago, Illinois 60606, Attention of Futures and Securities (E-mail: adam.tarr@bmo.com; Telephone No. (312) 461-3022);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if to a Lender, to it at its address (or facsimile number) set forth in its Administrative Questionnaire.

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received. Notices delivered through electronic communications, to the extent provided in subsection (b) below, shall be effective as provided in said subsection (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Electronic Communications. Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender pursuant to Section 2.4 if such Lender, has notified the Administrative Agent that it is incapable of receiving notices under such Sections by electronic communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the

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deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Change of Address, etc*. Any party hereto may change its address (including such party's e-mail address) for notices and other communications hereunder by notice to the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Platform*. (i) The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make the Communications (as defined below) available to the Lenders by posting the Communications on Debt Domain, Intralinks, Syndtrak or a substantially similar electronic transmission system (the "*Platform*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Platform is provided "as is" and "as available." The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or the Platform. In no event shall the Administrative Agent or any of its Related Parties (collectively, the "*Agent Parties*") have any liability to the Borrower, any Lender or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower's or the Administrative Agent's transmission of communications through the Platform. "Communications" means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of the Borrower pursuant to any Loan Document or the transactions contemplated therein which is distributed to the Administrative Agent or any Lender by means of electronic communications pursuant to this Section, including through the Platform.

*Section 11.2. Successors and Assigns*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Successors and Assigns Generally*. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of participation in accordance with the provisions of paragraph (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (e) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Assignments by Lenders*. Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitments and the Loans at the time owing to it); *provided* that (in each case with respect to any Facility) any such assignment shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Minimum Amounts*. (A) in the case of an assignment of the entire remaining amount of the assigning Lender's Commitments and the Loans at the time owing to it or contemporaneous assignments to related Approved Funds that equal at least the amount specified in paragraph (b)(i)(B) of this Section in the aggregate or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in any case not described in paragraph (b)(i)(A) of this Section, the aggregate amount of the relevant Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if "*Trade Date*" is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $5,000,000, unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Proportionate Amounts*. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Loan or the Commitment assigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Required Consents*. No consent shall be required for any assignment except to the extent required by paragraph (b)(i)(B) of this Section and, in addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment, or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund so long as, in the case of assignments pursuant to this clause (y), any such Lender, Affiliate or Approved Fund is, at the time of such assignment, (1) a UK Qualifying Lender other than a UK Treaty Lender or (2) a UK Treaty Lender *provided* that there are no Loans then outstanding; *provided* that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments in respect of the Loans or the Commitments if such assignment is to a Person that is not a Lender with a Commitment, an Affiliate of such Lender or an Approved Fund with respect to such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Assignment and Assumption*. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; *provided* that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) No *Assignment to Certain Persons*. No such assignment shall be made to (A) the Borrower or the Borrower's Affiliates or Subsidiaries or (B) to any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *No Assignment to Natural Persons*. No such assignment shall be made to a natural Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) *Certain Additional Payments*. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent and each Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro rata share of all Loans in accordance with its Percentage. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue

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to be entitled to the benefits of Sections 11.4 and 11.6 with respect to facts and circumstances occurring prior to the effective date of such assignment; *provided* that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Register*. The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices in Chicago, Illinois a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the "*Register*"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Participations*. Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than: (A) a natural Person or (B) the Parent or the Borrower or (C) the Parent's or the Borrower's Affiliates or Subsidiaries (each, a "*Participant*") in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion of its Commitments and/or the Loans owing to it); *provided* that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower, the Administrative Agent and Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 11.4 with respect to any payments made by such Lender to its Participant(s).

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; *provided* that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver that would reduce the amount of or postpone any fixed date for payment of any Obligation in which such Participant has an interest. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 4.1 and 4.2 (subject to the requirements and limitations therein, including the requirements under Section 4.1(g) (it being understood that the documentation required under Section 4.1(g) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; *provided* that such Participant (A) agrees to be subject to the provisions of Sections 2.10 and 4.3 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 4.1 or 4.2, with respect to any participation, than its participating Lender would have been entitled to receive. Each Lender that sells a participation agrees, at the Borrower's request and expense, to

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use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 2.10 with respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.6 (Right of Setoff) as though it were a Lender; *provided* that such Participant agrees to be subject to Section 11.7 (Sharing of Payments by Lenders) as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Loan Documents (the "*Participant Register*"); *provided* that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Certain Pledges*. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; *provided* that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

*Section 11.3. Amendments*. Any provision of this Agreement or the other Loan Documents may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by (a) the Borrower, (b) the Required Lenders (except as otherwise stated below to require only the consent of the Lenders affected thereby), and (c) if the rights or duties of the Administrative Agent are affected thereby, the Administrative Agent; *provided* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no amendment or waiver pursuant to this Section 11.3 shall (A) increase any Commitment of any Lender without the consent of such Lender or (B) reduce the amount of or postpone the date for any scheduled payment of any principal of or interest on any Loan or of any fee payable hereunder without the consent of the Lender to which such payment is owing or which has committed to make such Loan hereunder; *provided, however*, that only the consent of the Required Lenders shall be necessary to amend the default rate provided in Section 2.7 or to waive any obligation of the Borrower to pay interest or fees at the default rate as set forth therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no amendment or waiver pursuant to this Section 11.3 shall, unless signed by each Lender, change the definition of Required Lenders, change the provisions of this Section 11.3, change Section 11.7 in a manner that would affect the ratable sharing of setoffs required thereby, or change the application of payments contained in Section 5.1 or 9.4), or affect the number of Lenders required to take any action hereunder or under any other Loan Document; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no amendment or waiver pursuant to this Section 11.3 shall, unless signed by each Lender affected thereby, extend the Termination Date; *provided, however*, that only the consent of the Required Lenders shall be necessary to amend or waive any Termination Event.

Notwithstanding anything to the contrary herein, (1) no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x) the Commitment of any Defaulting Lender may not be increased or extended without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender more adversely than other affected Lenders shall require the consent of such Defaulting Lender, and (2) if the Administrative Agent and the Borrower have jointly identified an obvious error or any error or omission of a technical nature, in each case, in any provision of the Loan Documents, then the Administrative Agent and the Borrower shall be permitted to amend such provision.

*Section 11.4. Costs and Expenses; Indemnification*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Costs and Expenses*. The Borrower shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent and its Affiliates (including the reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent), in connection with the syndication of the facilities, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), including, without limitation, such reasonable and documented fees and expenses incurred in connection with the creation, perfection or protection of the Liens under the Loan Documents (including all reasonable and documented title insurance fees and all search, filing and recording fees), and (ii) all out-of-pocket reasonable and documented expenses incurred by the Administrative Agent or any Lender (including the reasonable and documented fees, charges and disbursements of one counsel for the Administrative Agent or any Lender) in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made hereunder, including all such out-of-pocket reasonable and documented expenses incurred during any workout, restructuring or negotiations in respect of such Loans (including all such reasonable and documented costs and expenses incurred in connection with any proceeding under the United States Bankruptcy Code involving the Parent or the Borrower as a debtor thereunder). The foregoing notwithstanding, the Borrower's obligations under this Section 11.4(a) for fees and expenses of legal counsel shall be limited to fees and expenses of (x) one outside legal counsel for all Persons described in clauses (i) and (ii), taken as a whole, (y) in the case of any conflict of interest, one outside legal counsel for such affected Person or group of Persons, and (z) if necessary, one specialist counsel and local legal counsel in each material relevant jurisdiction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Indemnification by the Borrower*. The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof) and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an "*Indemnitee*") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including any third party or the Parent or the Borrower) arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, or, in the case of Administrative Agent (and any sub-agent thereof) and their Related Parties, the administration and enforcement of this Agreement and the other Loan Documents (including all such reasonable and documented costs and expenses incurred in connection with any proceeding under the United States Bankruptcy Code involving the Parent or the Borrower as a debtor thereunder), (ii) any Loan or the use or proposed use of the proceeds therefrom, or (iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Parent or the Borrower, and regardless of whether any Indemnitee is a party thereto (including, without limitation, any settlement arrangement arising from or relating to the foregoing); *provided* that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee, (y) result from a claim brought by the Parent or the Borrower against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder or under any other Loan Document, if the Parent or the Borrower has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction, or (z) result from a claim not involving an act or omission of the Borrower and that is brought by an Indemnitee against another Indemnitee (other than against the arranger or the Administrative Agent in their capacities as such). This subsection (b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim. The foregoing notwithstanding, the Borrower's obligations under this Section 11.4(b) for fees and expenses of legal counsel shall be limited to fees and expenses of (i) one outside legal counsel for all Indemnitees, taken as a whole, (y) in the case of any conflict of interest, one outside legal counsel for such affected Indemnitee or group of Indemnitees, and (z) if necessary, one specialist counsel and local legal counsel in each material relevant jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Reimbursement by Lenders*. To the extent that (i) the Parent or the Borrower for any reason fails to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by any of them to the Administrative Agent (or any sub-agent thereof), or any Related Party or (ii) any liabilities, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever are imposed on, incurred by, or asserted against, Administrative Agent or a Related Party in any way relating to or arising out of this Agreement or any other Loan Document or any action taken or omitted to be taken by Administrative Agent or a Related Party in connection therewith, then, in each case, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent) or such Related Party, as the case may be, such Lender's pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based on each Lender's share of the Total Credit Exposure at such time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender). The obligations of the Lenders under this subsection (c) are subject to the provisions of Section 11.15.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Waiver of Consequential Damages, Etc.* To the fullest extent permitted by applicable law, the parties hereto shall not assert, and hereby waive, any claim against any other party hereto and any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof. Except as otherwise provided in Section 11.20, no Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Payments*. All amounts due under this Section shall be payable promptly after demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Survival*. Each party's obligations under this Section shall survive the termination of the Loan Documents and payment of the obligations hereunder.

*Section 11.5. No Waiver, Cumulative Remedies*. No delay or failure on the part of any party hereto in the exercise of any power or right shall operate as a waiver thereof or as an acquiescence in any default, nor shall any single or partial exercise of any power or right preclude any other or further exercise thereof or the exercise of any other power or right. The rights and remedies hereunder are cumulative to, and not exclusive of, any rights or remedies which any of them would otherwise have.

*Section 11.6. Right of Setoff*. In addition to any rights now or hereafter granted under the Loan Documents or applicable law and not by way of limitation of any such rights, if an Event of Default shall have occurred and be continuing, each Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency, but excluding any deposits located in any Excluded Account) at any time held, and other obligations (in whatever currency) at any time owing, by such Lender or any such Affiliate, to or for the credit or the account of the Parent or the Borrower against any and all of the obligations of the Parent or the Borrower now or hereafter existing under this Agreement or any other Loan Document to such Lender or their respective Affiliates, irrespective of whether or not such Lender or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Parent or the Borrower may be contingent or unmatured or are owed to a branch, office or Affiliate of such Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; *provided* that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.11 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, or their respective Affiliates may have. Each Lender agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; *provided* that the failure to give such notice shall not affect the validity of such setoff and application.

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*Section 11.7. Sharing of Payments by Lenders*. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of its Loans and accrued interest thereon or other such obligations greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them; *provided* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the provisions of this Section shall not be construed to apply to (x) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender), or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant, other than any Subsidiary thereof (as to which the provisions of this Section shall apply).

The Parent and the Borrower consent to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Parent and the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

*Section 11.8. Survival of Representations*. All representations and warranties made herein or in any other Loan Document or in certificates given pursuant hereto or thereto shall survive the execution and delivery of this Agreement and the other Loan Documents, and shall continue in full force and effect with respect to the date as of which they were made as long as any credit is in use or available hereunder.

*Section 11.9. Survival of Indemnities*. All indemnities and other provisions relative to reimbursement to the Lenders of amounts sufficient to protect the yield of the Lenders with respect to the Loans, including, but not limited to, Sections 4.1, 4.2, and 11.4, shall survive the termination of this Agreement and the other Loan Documents and the payment of the Obligations.

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*Section 11.10. Counterparts; Integration; Effectiveness*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Counterparts; Integration; Effectiveness*. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and the other Loan Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 7.2, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (e.g., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of this Agreement. For purposes of determining compliance with the conditions specified in Section 7.2, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the Closing Date specifying its objection thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Electronic Execution of Assignments*. The words "execution," "signed," "signature," and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronics Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

*Section 11.11. Headings*. Section headings used in this Agreement are for reference only and shall not affect the construction of this Agreement.

*Section 11.12. Severability of Provisions*. Any provision of any Loan Document which is unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. All rights, remedies and powers provided in this Agreement and the other Loan Documents may be exercised only to the extent that the exercise thereof does not violate any applicable mandatory provisions of law, and all the provisions of this Agreement and other Loan Documents are intended to be subject to all applicable mandatory provisions of law which may be controlling and to be limited to the extent necessary so that they will not render this Agreement or the other Loan Documents invalid or unenforceable.

*Section 11.13. Construction*. The parties acknowledge and agree that the Loan Documents shall not be construed more favorably in favor of any party hereto based upon which party drafted the same, it being acknowledged that all parties hereto contributed substantially to the negotiation of the Loan Documents. The provisions of this Agreement relating to Subsidiaries shall only apply during such times as the Borrower has one or more Subsidiaries.

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*Section 11.14. Excess Interest*. Notwithstanding any provision to the contrary contained herein or in any other Loan Document, no such provision shall require the payment or permit the collection of any amount of interest in excess of the maximum amount of interest permitted by applicable law to be charged for the use or detention, or the forbearance in the collection, of all or any portion of the Loans or other obligations outstanding under this Agreement or any other Loan Document ("*Excess Interest*"). If any Excess Interest is provided for, or is adjudicated to be provided for, herein or in any other Loan Document, then in such event (a) the provisions of this Section shall govern and control, (b) neither the Borrower nor any guarantor or endorser shall be obligated to pay any Excess Interest, (c) any Excess Interest that the Administrative Agent or any Lender may have received hereunder shall, at the option of the Administrative Agent, be (i) applied as a credit against the then outstanding principal amount of Obligations hereunder and accrued and unpaid interest thereon (not to exceed the maximum amount permitted by applicable law), (ii) refunded to the Borrower, or (iii) any combination of the foregoing, (d) the interest rate payable hereunder or under any other Loan Document shall be automatically subject to reduction to the maximum lawful contract rate allowed under applicable usury laws (the "*Maximum Rate*"), and this Agreement and the other Loan Documents shall be deemed to have been, and shall be, reformed and modified to reflect such reduction in the relevant interest rate, and (e) neither the Borrower nor any guarantor or endorser shall have any action against the Administrative Agent or any Lender for any damages whatsoever arising out of the payment or collection of any Excess Interest. Notwithstanding the foregoing, if for any period of time interest on any of Borrower's Obligations is calculated at the Maximum Rate rather than the applicable rate under this Agreement, and thereafter such applicable rate becomes less than the Maximum Rate, the rate of interest payable on the Borrower's Obligations shall remain at the Maximum Rate until the Lenders have received the amount of interest which such Lenders would have received during such period on the Borrower's Obligations had the rate of interest not been limited to the Maximum Rate during such period.

*Section 11.15. Lender's Obligations Several*. The obligations of the Lenders hereunder are several and not joint. Nothing contained in this Agreement and no action taken by the Lenders pursuant hereto shall be deemed to constitute the Lenders a partnership, association, joint venture or other entity.

*Section 11.16. No Advisory or Fiduciary Responsibility*. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and acknowledges its Affiliates' understanding, that: (a) (i) no fiduciary, advisory or agency relationship between the Parent, Borrower and their Subsidiaries and the Administrative Agent, or any Lender is intended to be or has been created in respect of the transactions contemplated hereby or by the other Loan Documents, irrespective of whether the Administrative Agent or any Lender has advised or is advising the Parent, the Borrower or any of their Subsidiaries on other matters, (ii) the arranging and other services regarding this Agreement provided by the Administrative Agent and the Lenders are arm's-length commercial transactions between the Parent, the Borrower and their Affiliates, on the one hand, and the Administrative Agent and the Lenders, on the other hand, (iii) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent that it has deemed appropriate and (iv) the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; and (b) (i) the Administrative Agent and the Lenders each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Parent, Borrower or any of their Affiliates, or any other Person; (ii) none of the

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Administrative Agent and the Lenders has any obligation to the Parent, the Borrower or any of their Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent and the Lenders and their respective Affiliates may be engaged, for their own accounts or the accounts of customers, in a broad range of transactions that involve interests that differ from those of the Parent, the Borrower and their Affiliates, and none of the Administrative Agent and the Lenders has any obligation to disclose any of such interests to the Parent, the Borrower or their Affiliates. To the fullest extent permitted by law, each of the Parent and the Borrower hereby waives and releases any claims that it may have against the Administrative Agent and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

*Section 11.17. Governing Law; Jurisdiction; Consent to Service of Process*. (a) THIS AGREEMENT, THE NOTES AND THE OTHER LOAN DOCUMENTS (EXCEPT AS OTHERWISE SPECIFIED THEREIN), AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE CONSTRUED AND DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to any Loan Document, or for recognition or enforcement of any judgment, and each party hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by applicable Legal Requirements, in such federal court. Each party hereto hereby agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable Legal Requirements. Nothing in this Agreement or any other Loan Document or otherwise shall affect any right that the Administrative Agent or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Parent, the Borrower or its respective properties in the courts of any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower hereby irrevocably and unconditionally waives, to the fullest extent permitted by applicable Legal Requirements, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in Section 11.17(b). Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable Legal Requirements, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each party to this Agreement irrevocably consents to service of process in any action or proceeding arising out of or relating to any Loan Document, in the manner provided for notices (other than telecopy or e-mail) in Section 11.1. Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by applicable Legal Requirements. The Borrower hereby appoints Clear Street Holdings LLC ("*Clear Street US*"), at its registered office from time to time as its agent for service of process in New York in connection with this Agreement or any other Loan Documents, and failure by Clear Street US to notify the Borrower of the process will not invalidate the proceedings concerned.

*Section 11.18. Waiver of Jury Trial*. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LEGAL REQUIREMENTS, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

*Section 11.19. USA Patriot Act*. Each Lender that is subject to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "*Act*") hereby notifies the Borrower that pursuant to the requirements of the Act, it is required to obtain, verify, and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Act.

*Section 11.20. Confidentiality*. Each of the Administrative Agent and the Lenders agree to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its Related Parties that have a need to know such Information (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential); (b) to the extent required or requested by any Governmental Authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners); (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process; (d) to any other party hereto; (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder; (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations under this Agreement, or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder; (g) on a confidential basis to (i) any rating agency in connection with rating the Parent or the Borrower or its Subsidiaries or the Facility or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers; (h) with the consent of the Borrower; or (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section, or (y) becomes available to the Administrative Agent, any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower. For purposes of this Section, "*Information*" means all information

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received from the Parent, the Borrower or any of its Subsidiaries relating to the Parent, the Borrower or any of their Subsidiaries or any of their respective businesses, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Parent, the Borrower or any of their Subsidiaries; *provided* that, in the case of information received from the Parent, the Borrower or any of their Subsidiaries after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. For the avoidance of doubt, nothing in this Section is intended to prohibit any Person or its Affiliates' officers, directors, employees and representatives from communicating or disclosing information regarding suspected violations of laws, rules, or regulations to a governmental, regulatory, or self-regulatory authority in accordance with applicable laws, rules, regulations, or regulatory guidance.

*Section 11.21. Time is of the Essence*. Time is of the essence of this Agreement and each of the other Loan Documents.

*Section 11.22. Acknowledgement and Consent to Bail-In of Affected Financial Institutions*. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-In Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of the applicable Resolution Authority.

[SIGNATURE PAGES TO FOLLOW]

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This Credit Agreement is entered into between us for the uses and purposes hereinabove set forth as of the date first above written.

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| | |
|:---|:---|
| "BORROWER" | "BORROWER" |
| CLEAR STREET UK LIMITED | CLEAR STREET UK LIMITED |
| By | /s/ Carlos Fernandez |
|  | Name: Carlos Fernandez |
|  | Title: Director |

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[Signature Page to Credit Agreement]

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| | |
|:---|:---|
| "ADMINISTRATIVE AGENT AND LENDERS" | "ADMINISTRATIVE AGENT AND LENDERS" |
| BMO BANK N.A., as Administrative Agent and as a Lender | BMO BANK N.A., as Administrative Agent and as a Lender |
| By | /s/ Matthew Witt |
|  | Name: Matthew Witt |
|  | Title: Vice President |
| CIBC BANK USA, as a Lender | CIBC BANK USA, as a Lender |
| By | /s/ Morgan Donovan |
|  | Name: Morgan Donovan |
|  | Title: Managing Director |

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[Signature Page to Credit Agreement]

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| | |
|:---|:---|
| BARCLAYS BANK PLC, as a Lender | BARCLAYS BANK PLC, as a Lender |
| By | /s/ Edward Pan |
|  | Name: Edward Pan |
|  | Title: Director |

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[Signature Page to Credit Agreement]

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**EXHIBIT A** 

**NOTE** 

[ ], 2025

FOR VALUE RECEIVED, the undersigned, CLEAR STREET UK LIMITED, a private limited company with company number 15000549 (the "Borrower"), hereby promises to pay to<u> </u> (the "Lender") or its registered assigns on the Termination Date of the hereinafter defined Credit Agreement, at the principal office of the Administrative Agent in Chicago Illinois (or such other location as the Administrative Agent may designate to the Borrower), in immediately available funds, the aggregate unpaid principal amount of all Loans made by the Lender to the Borrower pursuant to the Credit Agreement, together with interest on the principal amount of each Loan from time to time outstanding hereunder at the rates, and payable in the manner and on the dates, specified in the Credit Agreement.

This Note is one of the Notes referred to in the Credit Agreement dated as of September 23, 2025, among the Borrower, the Lenders from time to time party thereto, and BMO Bank N.A., as Administrative Agent (as extended, renewed, amended or restated from time to time, the "Credit Agreement"), and this Note and the holder hereof are entitled to all the benefits provided for thereby or referred to therein, to which Credit Agreement reference is hereby made for a statement thereof. All defined terms used in this Note, except terms otherwise defined herein, shall have the same meaning as in the Credit Agreement. This Note shall be governed by and construed in accordance with the internal laws of the State of NEW YORK.

Voluntary prepayments may be made hereon, certain prepayments are required to be made hereon, and this Note may be declared due prior to the expressed maturity hereof, all in the events, on the terms and in the manner as provided for in the Credit Agreement.

The Borrower hereby waives demand, presentment, protest or notice of any kind hereunder.

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| | |
|:---|:---|
| CLEAR STREET UK LIMITED | CLEAR STREET UK LIMITED |
| By |  |
|  | Name: |
|  | Title: |

---

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**EXHIBIT B** 

**CLEAR STREET UK LIMITED** 

**COMPLIANCE CERTIFICATE** 

To: BMO Bank, N.A., as Administrative Agent

under, and the Lenders party to, the Credit

Agreement described below

This Compliance Certificate is furnished to the Administrative Agent and the Lenders pursuant to that certain Credit Agreement dated as of September 23, 2025 among CLEAR STREET UK LIMITED, a private limited company with company number 15000549, as Borrower, the Lenders party thereto from time to time, and BMO Bank, N.A., as Administrative Agent (as extended, renewed, amended or restated from time to time, the "Credit Agreement"). Unless otherwise defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in the Credit Agreement.

THE UNDERSIGNED HEREBY CERTIFIES THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I am the duly elected of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I have reviewed the terms of the Credit Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of the Borrower and its Subsidiaries during the accounting period covered by the attached financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or the occurrence of any event which constitutes a Default during or at the end of the accounting period covered by the attached financial statements or as of the date of this Compliance Certificate, except as set forth below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The financial statements required by Section 8.5 of the Credit Agreement and being furnished to you concurrently with this Compliance Certificate are true, correct and complete as of the date and for the periods covered thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Schedule I hereto sets forth financial data and computations evidencing the Borrower's compliance with certain covenants of the Credit Agreement, all of which data and computations are, to the best of my knowledge, true, complete and correct and have been made in accordance with the relevant Sections of the Credit Agreement. In the event of a conflict between the attached spreadsheet and any certifications relating thereto and the Credit Agreement and related definitions used in calculating such covenants, the Credit Agreement and such related definitions shall govern and control.

Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

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The foregoing certifications, together with the computations set forth in Schedule I hereto and the financial statements delivered with this Certificate in support hereof, are made and delivered this ____ day of<u> </u> 20___.

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| | |
|:---|:---|
|  CLEAR STREET UK LIMITED | CLEAR STREET UK LIMITED |
| By |  |
|  | Name: |
|  | Title: |

---

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**SCHEDULE I** 

**TO COMPLIANCE CERTIFICATE** 

**CLEAR STREET UK LIMITED** 

Compliance Calculations for Credit Agreement

Dated as of September 23, 2025

Calculations as of ___________, ____

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| | |
|:---|:---|
| A. Regulatory Minimum Net Capital Requirement (Section 8.23(a)) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Own Funds<sup>1</sup> | $___________ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Regulatory Minimum Net Capital | $___________ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower is in compliance (circle yes or no) | yes/no |
| B. Minimum Own Funds (Section 8.23(b)) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Own Funds | $___________ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Line B1 must be at least | $33000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower is in compliance (circle yes or no) | yes/no |

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<sup>1</sup> Line A1 shall not be less than then the greater of (a) $10,000,000 more than the Regulatory Minimum Net Capital or (b) 135% of Regulatory Minimum Net Capital applicable to the Borrower 

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**EXHIBIT C** 

**NOTICE OF BORROWING** 

**CLEAR STREET UK LIMITED** 

**FORM OF BORROWING NOTICE** 

Date: __________, _____

To: BMO Bank N.A., as Administrative Agent

320 South Canal Street

Chicago, Illinois 60603

Ladies and Gentlemen:

Reference is made to that certain Credit Agreement, dated as of September 23, 2025 (as amended, supplemented or otherwise modified from time to time, the "Credit Agreement"), by and among CLEAR STREET UK LIMITED, a private limited company with company number 15000549 (the "Borrower"), the Lenders which are signatories thereto, and BMO Bank N.A., as Administrative Agent. Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Credit Agreement.

The Borrower hereby gives you notice irrevocably, pursuant to Section 2.4 of the Credit Agreement as specified below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The U.S. Business Day of the proposed Borrowing is __________, _____.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The aggregate amount of the proposed Borrowing is $_________.

The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed Borrowing, before and after giving effect thereto and to the application of the proceeds therefrom:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the representations and warranties of the Borrower contained in Section 6 of the Credit Agreement are true and correct as of the date of the proposed Borrowing (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default has occurred and is continuing or would result from such proposed Borrowing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) after giving effect to such proposed Borrowing, the aggregate principal amount of all Loans outstanding does not exceed the lesser of the (i) Commitment and (ii) the Borrowing Base;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Annex 1 attached hereto sets forth data and computations evidencing the Borrowing Base, and all of such data and computations are true, correct and complete and have been made in accordance with the relevant sections of the Credit Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) after giving effect to such proposed Borrowing, the Borrower will remain in compliance with all financial covenants as documented below (today's date):

Own Funds: ___________________ (must be not less than the greater of $10,000,000 more than the Regulatory Minimum Net Capital or 135% of Regulatory Minimum Net Capital)

Minimum Own Funds: _____________________________________ (must exceed $33,000,000)

Number of Zero Loan Days during the past 30 days (must be more than one): _______________

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| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| CLEAR STREET UK LIMITED | CLEAR STREET UK LIMITED |
| By |  |
|  | Name: |
|  | Title: |

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**ANNEX 1** 

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| | | |
|:---|:---|:---|
| **BORROWING BASE** | **BORROWING BASE** | **BORROWING BASE** |
| (1) | Aggregate unpaid amount of the Borrower's Eligible Receivable for which the margin has been called but not received by the Borrower |  |
| (2) | Line (1) | x 80% |
| (3) | Outstanding Loans |  |
| (4) | Availability ((i) the lesser of Line (2) and the Commitment minus (ii) Line (3)) |  |

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**EXHIBIT D** 

**ASSIGNMENT AND ASSUMPTION** 

This Assignment and Assumption (the "*Assignment and Assumption*") is dated as of the Effective Date set forth below and is entered into by and between **[the][each]**<sup>2</sup> Assignor identified in item 1 below (**[the][each, an]** "*Assignor*") and **[the][each]**<sup>3</sup> Assignee identified in item 2 below ([the][each, an] "*Assignee*"). **[It is understood and agreed that the rights and obligations of [the Assignors][the Assignees]**<sup>4</sup> **hereunder are several and not joint.]**<sup>5</sup> Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, the "*Credit Agreement*"), receipt of a copy of which is hereby acknowledged by **[the][each]** Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, **[the][each]** Assignor hereby irrevocably sells and assigns to **[the Assignee][the respective Assignees]**, and **[the][each]** Assignee hereby irrevocably purchases and assumes from **[the Assignor][the respective Assignors]**, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of **[the Assignor's][the respective Assignors']** rights and obligations in **[its capacity as a Lender][their respective capacities as Lenders]** under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of **[the Assignor][the respective Assignors]** under the respective facilities identified below, and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of **[the Assignor (in its capacity as a Lender)][the respective Assignors (in their respective capacities as Lenders)]** against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by **[the][any]** Assignor to **[the][any]** Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as **[the][an]** "Assigned Interest"). Each such sale and assignment is without recourse to **[the][any]** Assignor and, except

<sup>2</sup> For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first bracketed language. If the assignment is from multiple Assignors, choose the second bracketed language.

<sup>3</sup> For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first bracketed language. If the assignment is to multiple Assignees, choose the second bracketed language.

<sup>4</sup> Select as appropriate.

<sup>5</sup> Include bracketed language if there are either multiple Assignors or multiple Assignees.

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as expressly provided in this Assignment and Assumption, without representation or warranty by **[the][any]** Assignor.

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| | |
|:---|:---|
| 1. | Assignor[s]: |
|  | **[Assignor [is] [is not] a Defaulting Lender]** |
| 2. | Assignee[s]: |
|  | **[for each Assignee, indicate [Affiliate][Approved Fund] of [*identify Lender*]** |
| 3. | Borrower: CLEAR STREET UK LIMITED |
| 4. | Administrative Agent: BMO Bank N.A., as the administrative agent under the Credit Agreement |
| 5. | Credit Agreement: Credit Agreement dated as of September 23, 2025 among CLEAR STREET UK LIMITED, a private limited company with company number 15000549, the Lenders parties thereto, and BMO Bank N.A., as Administrative Agent |
| 6. | Assigned Interest[s]: |

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| | | | | |
|:---|:---|:---|:---|:---|
| ASSIGNOR[S]<sup>6</sup> | ASSIGNEE[S]<sup>7</sup> | FACILITY<br>ASSIGNED<sup>8</sup> | AGGREGATE AMOUNT<br> OF<br> COMMITMENT/LOANS<br> FOR ALL LENDERS<sup>9</sup> | PERCENTAGE<br>ASSIGNED OF<br>COMMITMENT/<br> LOANS<sup>10</sup> |
|  |  |  | $| $% |
|  |  |  | $| $% |
|  |  |  | $| $% |

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<sup>6</sup> List each Assignor, as appropriate.

<sup>7</sup> List each Assignee, as appropriate.

<sup>8</sup> Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being assigned under this Assignment (e.g., "Commitment", etc.)

<sup>9</sup> Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date. 

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| | |
|:---|:---|
| <sup>1</sup><sup>0</sup> | Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The Assignee confirms, for the benefit of the Administrative Agent and without liability to the Borrower, that
it is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [a UK Qualifying Lender (other than a UK Treaty Lender);]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [a UK Treaty Lender;]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [not a UK Qualifying Lender].<sup>11</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The Assignee confirms that the person beneficially entitled to interest payable to that Lender in respect of an
advance under a Loan Document is either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a company resident in the United Kingdom for United Kingdom tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a partnership each member of which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a company so resident in the United Kingdom; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a
permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of
the CTA; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a
permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that
company.<sup>12</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The Assignee confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [ ])
and is tax resident in [ ]<sup>13</sup>, so that interest payable to it by borrowers is generally subject to full exemption from United Kingdom taxation on interest and hereby notifies the Borrower and
the Administrative Agent that it wishes that scheme to apply to the Credit Agreement.<sup>14</sup>

<sup>11</sup> Delete as applicable. Each Assignee is required to confirm which of these three categories it falls within.

<sup>1</sup><sup>2</sup> Include if Assignee comes within paragraph (a)(ii) of the definition of UK Qualifying Lender.

<sup>1</sup><sup>3</sup> Insert jurisdiction of tax residence.

<sup>14</sup> Include if the New Lender holds a passport under the HMRC DT Treaty Passport scheme and wishes that scheme to apply to the Facilities Agreement.

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**[9. Trade Date: _______________]<sup>15</sup>** 

<sup>15</sup> To be completed if the Assignor(s) and the Assignee(s) intend that the minimum assignment amount is to be determined as of the Trade Date. 

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Effective Date: ____________, 20___ **[To be inserted by Administrative Agent and which shall be the effective date of recordation of transfer in the register therefor.]**

The terms set forth in this Assignment and Assumption are hereby agreed to:

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| | |
|:---|:---|
| ASSIGNOR[S]<sup>16</sup> | ASSIGNOR[S]<sup>16</sup> |
| [NAME OF ASSIGNOR] | [NAME OF ASSIGNOR] |
| By |  |
|  | Name: |
|  | Title: |
| [NAME OF ASSIGNOR] | [NAME OF ASSIGNOR] |
| By |  |
|  | Name: |
|  | Title: |
| ASSIGNEE[S]<sup>17</sup> | ASSIGNEE[S]<sup>17</sup> |
| [NAME OF ASSIGNEE] | [NAME OF ASSIGNEE] |
| By |  |
|  | Name: |
|  | Title: |
| [NAME OF ASSIGNEE] | [NAME OF ASSIGNEE] |
| By |  |
|  | Name: |
|  | Title: |

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<sup>16</sup> Add additional signature blocks as needed. Include both Fund/Pension Plan and manager making the trade (if applicable).

<sup>17</sup> Add additional signature blocks as needed. Include both Fund/Pension Plan and manager making the trade (if applicable).

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| | |
|:---|:---|
| **[Consented to and]**<sup>18</sup> Accepted: | **[Consented to and]**<sup>18</sup> Accepted: |
| BMO BANK N.A., as | BMO BANK N.A., as |
| Administrative Agent | Administrative Agent |
| By |  |
|  | Name: |
|  | Title: |
| **[Consented to:]**<sup>19</sup> | **[Consented to:]**<sup>19</sup> |
| CLEAR STREET UK LIMITED | CLEAR STREET UK LIMITED |
| By |  |
|  | Name: |
|  | Title: |

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<sup>18</sup> To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.

<sup>19</sup> To be added only if the consent of the Borrower is required by the terms of the Credit Agreement.

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**ANNEX 1** 

**STANDARD TERMS AND CONDITIONS FOR** 

**ASSIGNMENT AND ASSUMPTION** 

SECTION 1. REPRESENTATIONS AND WARRANTIES.

*Section 1.1. Assignor[s]*. **[The][Each]** Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][the relevant] Assigned Interest, (ii) **[the][such]** Assigned Interest is free and clear of any lien, encumbrance or other adverse claim, (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and (iv) it is [not] a Defaulting Lender; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder (if any), (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document, or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

*Section 1.2. Assignee[s]*. **[The][Each]** Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee under Section 12.2(b)(iii), (v) and (vi) of the Credit Agreement (subject to such consents, if any, as may be required under Section 12.2(b)(iii) of the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of **[the][the relevant]** Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 8.5 thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase **[the][such]** Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption and to purchase **[the][such]** Assigned Interest, and (vii) attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by **[the][such]** Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, **[the][any]** Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

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SECTION 2. PAYMENTS.

From and after the Effective Date, the Administrative Agent shall make all payments in respect of [**the][each]** Assigned Interest (including payments of principal, interest, fees and other amounts) to **[the][the relevant]** Assignee whether such amounts have accrued prior to, on or after the Effective Date. The Assignor[s] and the Assignee[s] shall make all appropriate adjustments in payments by the Administrative Agent for periods prior to the Effective Date or with respect to the making of this assignment directly between themselves. Notwithstanding the foregoing, the Administrative Agent shall make all payments of interest, fees or other amounts paid or payable in kind from and after the Effective Date to **[the][the relevant]** Assignee.

SECTION 3. GENERAL PROVISIONS.

This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

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**EXHIBIT E** 

**INCREASE REQUEST** 

Dated __________, _____

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| | |
|:---|:---|
| To: | BMO Bank N.A., as Administrative Agent for the Lenders party to the Credit Agreement dated as of September 23, 2025, as amended, among Clear Street UK Limited, as Borrower, the Lenders party thereto from time to time, and the Administrative Agent (as extended, renewed, amended or restated from time to time, the "Credit Agreement")  |

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Ladies and Gentlemen:

The undersigned, CLEAR STREET UK LIMITED, a private limited company with company number 15000549 (the "Borrower"), hereby refers to the Credit Agreement and requests that the Administrative Agent consent to an increase in the aggregate Commitments (the "Increase"), in accordance with Section 2.13 of the Credit Agreement, to be effected by **[an increase in the Commitment of [name of existing Lender]] [the addition of [name of new Lender] (the "New Lender"), as a Lender under the terms of the Credit Agreement]**. Capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

After giving effect to such Increase, the Commitment of the **[Lender] [New Lender]** shall be $___________.

**[Include paragraphs 1-4 for a New Lender]** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The New Lender hereby confirms that it has received a copy of the Loan Documents and the exhibits related thereto, together with copies of the documents which were required to be delivered under the Credit Agreement as a condition to the making of the Loans and other extensions of credit thereunder. The New Lender acknowledges and agrees that it has made and will continue to make, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, its own credit analysis and decisions relating to the Credit Agreement. The New Lender further acknowledges and agrees that the Administrative Agent has not made any representations or warranties about the credit worthiness of the Borrower or any of its Subsidiaries or any other party to the Credit Agreement or any other Loan Document or with respect to the legality, validity, sufficiency or enforceability of the Credit Agreement or any other Loan Document or the value of any security therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as otherwise provided in the Credit Agreement, effective as of the date of acceptance hereof by the Administrative Agent, the New Lender (i) shall be deemed automatically to have become a party to the Credit Agreement and have all the rights and obligations of a "Lender" under the Credit Agreement as if it were an original signatory thereto and (ii) agrees to be bound by the terms and conditions set forth in the Credit Agreement as if it were an original signatory thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The New Lender shall deliver to the Administrative Agent a completed Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The New Lender has delivered to the Borrower and the Administrative Agent (or is delivering to the Borrower and the Administrative Agent concurrently herewith), as required, the Tax forms referred to in Section 4.1 of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The New Lender confirms, for the benefit of the Administrative Agent and without liability to the Borrower, that it is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [a UK Qualifying Lender (other than a UK Treaty Lender);]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [a UK Treaty Lender;]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [not a UK Qualifying Lender].<sup>20</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The New Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Loan Document is either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a company resident in the United Kingdom for United Kingdom tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a partnership each member of which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a company so resident in the United Kingdom; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.<sup>21</sup>

<sup>20</sup> Delete as applicable. Each New Lender is required to confirm which of these three categories it falls within.

<sup>21</sup> Include if New Lender comes within paragraph (a)(ii) of the definition of UK Qualifying Lender.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [ ]) and is tax resident in [ ]<sup>22</sup>, so that interest payable to it by borrowers is generally subject to full exemption from United Kingdom taxation on interest and hereby notifies the Borrower and the Administrative Agent that it wishes that scheme to apply to the Credit Agreement.<sup>23</sup>

THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACTUAL OBLIGATION UNDER, AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

The Increase shall be effective when the executed consent of the Administrative Agent is received or otherwise in accordance with Section 2.13 of the Credit Agreement, but not in any case prior to ________________, ____<sup>24</sup>. It shall be a condition to the effectiveness of the Increase that all expenses referred to in Section 2.13 of the Credit Agreement shall have been paid.

The Borrower hereby certifies that (a) no Default has occurred and is continuing and (b) each of the representations and warranties set forth in Section 6 of the Credit Agreement and in the other Loan Documents are and remain true and correct in all material respects on the effective date of this Increase (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date.

[SIGNATURE PAGES TO FOLLOW]

<sup>22</sup> Insert jurisdiction of tax residence.

<sup>23</sup> Include if the New Lender holds a passport under the HMRC DT Treaty Passport scheme and wishes that scheme to apply to the Facilities Agreement.

<sup>24</sup> **Date must be at least five Business Days from date of this notice**. 

------

Please indicate your consent to such Increase by signing the enclosed copy of this letter in the space provided below.

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| CLEAR STREET UK LIMITED | CLEAR STREET UK LIMITED |
| By |  |
|  | Name: |
|  | Title: |
| [NEW OR EXISTING LENDER INCREASING COMMITMENTS] | [NEW OR EXISTING LENDER INCREASING COMMITMENTS] |
| By |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
| The undersigned hereby consents on this | The undersigned hereby consents on this |
| _____ day of ____________, 20___, to the above-requested Increase | _____ day of ____________, 20___, to the above-requested Increase |
| BMO BANK N.A., as | BMO BANK N.A., as |
| Administrative Agent | Administrative Agent |
| By |  |
|  | Name: |
|  | Title: |

---

------

**SCHEDULE 2.1** 

**COMMITMENTS** 

---

| | |
|:---|:---|
|  BMO Bank N.A. | $25000000.0 |
|  CIBC Bank USA | $15000000.0 |
|  Barclays Bank PLC | $15000000.0 |
|  Total | $55000000.0 |

---

------

**SCHEDULE 6.2** 

**SUBSIDIARIES** 

None.

## Exhibit 10.23

**Exhibit 10.23** 

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ![LOGO](g39893g1218091206238.jpg)  | **FINRA Form REV -33R** |

---

**REVOLVING NOTE AND CASH SUBORDINATION AGREEMENT** 

THIS REVOLVING NOTE AND CASH SUBORDINATION AGREEMENT (this "**Agreement**") is entered into this October 24, 2025, among Byline Bank, in its capacity as lead arranger and administrative agent (the "**Administrator**"), Clear Street LLC (the "**Broker/Dealer**"), and the financial institutions from time to time party to this Agreement (each, individually, a "**Lender**," and, collectively, the "**Lenders**"), including, but not limited to, Byline Bank as lead Lender. This Agreement shall not be effective or deemed to constitute a satisfactory subordination agreement under Appendix D to Rule I5c3-l under the Securities Exchange Act of I934, as amended (the "**Act**" or "**SEA**"), unless and until the Financial Industry Regulatory Authority ("**FINRA**") has found the Agreement acceptable as to form and content.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>GENERAL</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions hereinafter set forth, each Lender, severally and not jointly, agrees that from time to time between the date first written above and October 24, 2027 (the "**Credit Period**") it will lend to the Broker/Dealer sums of money on a revolving basis (each an "**Advance**", collectively "**Advances**") which, in the aggregate principal amount outstanding at any one time, shall not exceed Seventy Five Million Dollars ($75,000,000) (the "**Credit Line**" or "**Commitment Amount**"), in the respective amounts set forth in Rider A (defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the Credit Period, the Broker/Dealer may utilize the Credit Line (as then in effect) by borrowing and/or prepaying outstanding Advances, in whole or in part, and reborrowing, all in accordance with the terms and provisions hereof. Each Advance shall be in the aggregate amount of One Million Dollars ($1,000,000) or higher integral multiple of One Million Dollars ($1,000,000), or such lesser amount as would bring the total principal amount advanced by the Lenders to Broker/Dealer to the Commitment Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Broker/Dealer is obligated to repay the aggregate unpaid principal amount of all Advances on or before October 24, 2028 (the "**Scheduled Maturity Date**"). No Advance shall be considered equity (for purposes of Appendix D of Rule l 5c3-l under the Act) despite the length of the initial term of any Advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The obligation of the Broker/Dealer to repay the aggregate unpaid principal amount of the Advances shall be evidenced by a promissory note of the Broker/Dealer to each Lender (each a "**Revolving Note**") in substantially the form attached hereto as <u>Exhibit A</u> (with the blank spaces appropriately completed), payable to the order of such Lender, for an amount not exceeding in the aggregate the Credit Line and bearing interest at rates to be agreed upon by the Broker/Dealer and such Lender at the time of any Advance. Each Revolving Note shall be dated, and shall be delivered to such Lender, on the date of the execution and delivery of this Agreement by the Broker/Dealer. Each Lender shall, and is hereby authorized by the Broker/Dealer to, endorse on the schedule attached to the Revolving Note in favor of such Lender, or on a continuation of such schedule attached thereto and made a part thereof, appropriate notations regarding each Advance evidenced by such Revolving Note as specifically provided therein; *provided, however,* that the failure to make, or error in making, any such notation shall not limit or otherwise affect the obligations of the Broker/Dealer hereunder or under such Revolving Note.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Whenever the Broker/Dealer desires to utilize the Credit Line, it shall so notify the Administrator by telephone or any agreed upon electronic method specifying the amount of the Advance and the date on which each such Advance is to be made. Such notice will also be given and confirmed in writing, to FINRA. Notice shall, at a minimum, identify (i) the date and amount of the proposed Advance, (ii) the aggregate amount of outstanding Advances and (iii) if the Advance is to be used to repay, in whole or in part, outstanding Advances, the amount and maturity of such Advance(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The proceeds hereof shall be dealt with in all respects as capital of the Broker/Dealer, shall be subject to the risks of its business, and the Broker/Dealer shall have the right to deposit the proceeds hereof in an account or accounts in the Broker/Dealer's name in any bank or trust company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) This document contains several provisions which are optional and may be included in this Agreement if the parties mutually agree to incorporate such provisions. Each such provision is flagged by [**OPTIONAL**] appearing at the conclusion of its heading. The space to the left of each such provision enables the parties to indicate, by entering the word "Included", to incorporate the particular provision(s). Any provision noted as [**OPTIONAL**] that has the word "Excluded" in the space to the left of such provision or lacks any appropriate indication for inclusion, by default, will not be included in this Agreement. In addition, paragraph 23 of this Agreement ("**Optional Rider**"), if incorporated by the parties, presents a vehicle for the parties to add their own provisions to this Agreement, subject to the terms and conditions there stated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>SUBORDINATION OF OBLIGATIONS</u> 

Each Lender irrevocably agrees that the obligations of the Broker/Dealer under this Agreement with respect to the payment of principal and interest are and shall be fully and irrevocably subordinate in right of payment and subject to the prior payment or provision for payment in full of all claims of all other present and future creditors of the Broker/Dealer whose claims are not similarly subordinated (claims hereunder shall rank pari passu with claims similarly subordinated) and to claims which are now or hereafter expressly stated in the instruments creating such claims to be senior in right of payment to the claims of the class of this claim arising out of any matter occurring prior to the date on which the Broker/Dealer's obligation to make such payment matures consistent with the provisions hereof. In the event of the appointment of a receiver or trustee of the Broker/Dealer or in the event of its insolvency, liquidation pursuant to the Securities Investor Protection Act of 1970 ("**SIPA**") or otherwise, its bankruptcy, assignment for the benefit of creditors, reorganization whether or not pursuant to bankruptcy laws, or any other marshalling of the assets and liabilities of the Broker/Dealer, the holder hereof shall not be entitled to participate or share, ratably or otherwise, in the distribution of the assets of the Broker/Dealer until all claims of all other present and future creditors of the Broker/Dealer, whose claims are senior hereto, have been fully satisfied, or adequate provision has been made therefor.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>SUSPENDED REPAYMENT</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Broker/Dealer's obligation to pay the principal amount hereof on the Scheduled Maturity Date or any accelerated maturity date shall be suspended and the obligation shall not mature for any period of time during which, after giving effect to such payment obligation (together with the payment of any other obligation of the Broker/Dealer under any other subordination agreement payable at or prior to the payment hereof as well as the return of any Secured Demand Note and the Collateral therefor held by the Broker/Dealer and returnable at or prior to the payment hereof), any of the following circumstances apply at the time payment is to be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the event that the Broker/Dealer is not operating pursuant to the alternative net capital requirement provided for in paragraph (a)(1)(h) of Rule 15c3-l (the "**Rule**") under the Act, the aggregate indebtedness of the Broker/Dealer would exceed 1200 percent of its net capital as those terms are defined in the Rule or any successor rule in effect, or such other percent as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the Securities and Exchange Commission (the "**SEC**"), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event that the Broker/Dealer is operating pursuant to paragraph (a)(1)(h) of the Rule (the "**Alternative Net Capital Requirement**"), the net capital of the Broker/Dealer would be less than 5 percent (or such other percent as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC) of aggregate debit items computed in accordance with Exhibit A to Rule 15c3-3 under the Act or any successor rule in effect, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Broker/Dealer's net capital, as defined in the Rule or any successor rule in effect, would be less than 120 percent (or such other percent as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC) of the minimum dollar amount required by the Rule as in effect at such time (or such other dollar amount as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the event that the Broker/Dealer is subject to the provisions of Paragraph (a)(6)(v) or (c)(2)(x)(C) of the Rule, the net capital of the Broker/Dealer would be less than the amount required to satisfy the 1000 percent test (or such other percent test as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC) stated in such applicable paragraph, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in the event that the Broker/Dealer is registered under the Commodity Exchange Act (the "**CEA**"), the net capital of the Broker/Dealer (as defined in and calculated in accordance with the CEA or the regulations thereunder) would be less than the percent or amount specified in Section 1.17(h)(2)(viii) of the regulations of the Commodity Futures Trading Commission ("**CFTC**") or any successor regulation in effect.

(the above criteria being hereinafter referred to as the "**Applicable Minimum Capital**").

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During any such period of suspension the Broker/Dealer shall, as consistent with the protection of its customers, promptly reduce its business to a condition whereby the principal amount hereof with accrued interest thereon could be paid (together with the payment of any other obligation of the Broker/Dealer under any other subordination agreement payable at or prior to the payment hereof as well as the return of any Secured Demand Note and the Collateral therefor held by the Broker/Dealer and returnable at or prior to the payment hereof) without the Broker/Dealer's net capital being below the Applicable Minimum Capital, at which time the Broker/Dealer shall repay the principal amount hereof plus accrued interest thereon on not less than five days' prior written notice to FINRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The aggregate principal amount outstanding pursuant to this Agreement shall mature on the first day at which under this <u>paragraph 3</u> the Broker/Dealer has an obligation to pay the principal amount hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If payment is made of all or any part of the principal hereof on the Scheduled Maturity Date or any accelerated maturity date and if immediately after any such payment the Broker/Dealer's net capital is less than the Applicable Minimum Capital, each Lender agrees irrevocably (whether or not such Lender had any knowledge or notice of such fact at the time of any such payment) to repay to the Broker/Dealer, its successors or assigns, the sum so paid, to be held by the Broker/Dealer pursuant to the provisions hereof as if such payment had never been made; *provided, however,* that any demand by the Broker/Dealer to recover such payment must be made in writing to the applicable Lender, a copy of which must be provided to FINRA, within 120 calendar days from the date of such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Broker/Dealer shall immediately notify FINRA of any suspension of its obligations to pay the principal amount hereof.

---

| | |
|:---|:---|
| **<u>Yes</u>** 4. | LIQUIDATION OF BROKER/DEALER IF SUSPENDED FOR 6 MONTHS OR MORE [**OPTIONAL**]  |

---

If pursuant to the terms of <u>paragraph 3</u> hereof, the Broker/Dealer's obligation to pay the principal amount hereof is suspended and does not mature, the Broker/Dealer agrees (and each Lender recognizes) that if its obligation to pay the principal amount hereof is ever suspended for a period of six months or more, it will promptly take whatever steps are necessary to effect a rapid and orderly complete liquidation of its business but the right of the Lenders to receive payment hereunder shall remain subordinate as herein above set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>PERMISSIVE PREPAYMENT WITHIN AND AFTER ONE YEAR</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With the prior written approval of FINRA, any time prior to one year following the date of any Advance, the Broker/Dealer may, at its option, but not at the option of the Lenders, pay all or any portion of the principal amount hereof to the Lenders prior to the Scheduled Maturity Date (such payment being hereinafter referred to as "**Prepayment**"). However, no Prepayment prior to one year following the date of any Advance shall be made if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) after giving effect thereto (and to all other payments of principal of outstanding subordination agreements of the Broker/Dealer, including the return of any Secured Demand Note and the Collateral therefor held by the Broker/Dealer, the maturity or accelerated maturity of which are scheduled to occur within six months after the date such Prepayment is to occur pursuant to the provisions of this paragraph, or on or prior to

------

the Scheduled Maturity Date for payment of the principal amount hereof disregarding this Paragraph, whichever date is earlier) without reference to any projected profit or loss of the Broker/Dealer, either aggregate indebtedness of the Broker/Dealer would exceed 900 percent of its net capital or its net capital would be less than 200 percent of the minimum dollar amount required by the Rule or, in the case of a Broker/Dealer operating pursuant to the Alternative Net Capital Requirement, its net capital would be less than 6 percent of aggregate debit items computed in accordance with Exhibit A to Rule 15c3-3 under the Act, or, in the event that the Broker/Dealer is subject to the provisions of Paragraph (a)(6)(v) or (c)(2)(x)(C) of the Rule, the net capital of the Broker/Dealer would be less than the amount required to satisfy the 1000 percent test stated in such applicable paragraph, or, if an applicant for registration or registered under the CEA, the Broker/Dealer's net capital would be less than the percent or amount specified in Section 1.17(h)(2)(vii)(B) of the regulations of the CFTC, or the Broker/Dealer's net capital would be less than any such other percent or amount test as may be made applicable to the Broker/Dealer by FINRA, the SEC or the CFTC at the time Prepayment is to be made; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) pre-tax losses of the Broker/Dealer during the latest three-month period equaled more than 15 percent of current excess net capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With the prior written approval of FINRA, at any time subsequent to one year following the date of any Advance, the Broker/Dealer may, at its option, but not at the option of the Administrator or the Lenders, make Prepayment(s). However, no Prepayment subsequent to one year following the date of any Advance shall be made if, after giving effect thereto (and to all other payments of principal of outstanding subordination agreements of the Broker/Dealer, including the return of any Secured Demand Note and the Collateral therefor held by the Broker/Dealer, the maturity or accelerated maturity of which are scheduled to occur within six months after the date such Prepayment is to occur pursuant to the provisions of this paragraph, or on or prior to the Scheduled Maturity Date for payment of the principal amount hereof disregarding this paragraph, whichever date is earlier) without reference to any projected profit or loss of the Broker/Dealer, any of the following circumstances apply at the time such Prepayment is to be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the event that the Broker/Dealer is not operating pursuant to the Alternative Net Capital Requirement, the aggregate indebtedness of the Broker/Dealer would exceed 1000 percent of its net capital as those terms are defined in the Rule or any successor rule in effect (or such other percent as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event that the Broker/Dealer is operating pursuant to the Alternative Net Capital Requirement, the net capital of the Broker/Dealer would be less than 5 percent (or such other percent as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC) of aggregate debit items computed in accordance with Exhibit A to Rule 15c3-3 under the Act or any successor rule in effect, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Broker/Dealer's net capital, as defined in the Rule or any successor rule in effect, would be less than 120 percent (or such other percent as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC) of the minimum dollar amount required by the Rule as in effect at such time (or such other dollar amount as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC), or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the event that the Broker/Dealer is subject to the provisions of paragraph (a)(6)(v) or (c)(2)(x)(C) of the Rule, the net capital of the Broker/Dealer would be less than the amount required to satisfy the 1000 percent test (or such other percent test as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC) stated in such applicable paragraph, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in the event that the Broker/Dealer is registered under the Commodity Exchange Act (the "**CEA**"), the net capital of the Broker/Dealer (as defined in and calculated in accordance with the CEA or the regulations thereunder) would be less than the percent or amount specified in Section 1.17(h)(2)(vii)(A) of the regulations of the CFTC or any successor regulation in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Prepayment is made of all or any part of the principal hereof prior to the Scheduled Maturity Date and if immediately after such Prepayment the Broker/Dealer's net capital is less than the amount required to permit such Prepayment pursuant to the foregoing provisions of this paragraph, each Lender agrees irrevocably (whether or not such Lender had any knowledge or notice of such fact at the time of such Prepayment) to repay the Broker/Dealer, its successors or assigns, the sum so paid to be held by the Broker/Dealer pursuant to the provisions hereof as if such Prepayment had never been made; *provided, however,* that any demand by the Broker/Dealer to recover such Prepayment must be made in writing to the applicable Lender, a copy of which must be provided to the Administrator and FINRA, within 120 calendar days from the date of such Prepayment.

---

| | |
|:---|:---|
| **<u>No</u>** 6. | <u>LENDER'S RIGHT TO ACCELERATE MATURITY [</u>**<u>OPTIONAL</u>**<u>]</u>  |

---

Subject to the provisions of <u>paragraph 3</u> hereof, by written notice delivered to the Broker/Dealer at its principal office and to FINRA given no sooner than six months from the date hereof, the Administrator may accelerate payment to the last business day of a calendar month not less than six months after the receipt of such notice by both the Broker/Dealer and FINRA, but the right of the Administrator and the Lenders to receive payment of the principal amount hereof and interest shall remain subordinate as hereinafter provided.

---

| | |
|:---|:---|
| **<u>Yes</u>** 7. | ACCELERATED MATURITY UPON THE OCCURRENCE OF AN EVENT OF ACCELERATION [**OPTIONAL**]  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) By prior written notice to the Broker/Dealer at its principal office and to FINRA upon the occurrence of any Event of Acceleration (as herein after defined), given no sooner than six months from the effective date of this Agreement, the Administrator may accelerate the maturity of the payment obligation of the Broker/Dealer under this Agreement, together with accrued interest or compensation thereon, to the last business day of a calendar month which is not less than six months after notice of acceleration is received by the Broker/Dealer and FINRA. The right of the Administrator and the Lenders to receive payment, together with accrued interest or compensation thereon, shall remain subordinate as herein above set forth.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, upon the acceleration of maturity resulting from the occurrence of an Event of Acceleration, the payment obligation of the Broker/Dealer is suspended pursuant to <u>paragraph 3</u> hereof, and liquidation of the Broker/Dealer has not commenced on or prior to such accelerated maturity date, then notwithstanding <u>paragraph 3</u> hereof, the payment obligation of the Broker/Dealer with respect to this Agreement shall mature on the day immediately following such accelerated maturity date and in any such event the payment obligations of the Broker/Dealer with respect to all other subordination agreements then outstanding shall also mature at the same time. The right of the Administrator and the Lenders to receive payment, together with accrued interest or compensation thereon, shall remain subordinate as herein above set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Events of Acceleration which <u>may</u> be included in a subordination agreement are limited by paragraph (b)(10)(i) of Appendix D to the Rule and are limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Failure to pay interest or any installment of principal on a subordination agreement as scheduled;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Failure to pay when due other money obligations of a specified material amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Discovery that any material, specified representation or warranty of the broker or dealer which is included in the subordination agreement and on which the subordination agreement was based or continued was inaccurate in a material respect at the time made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any specified and clearly measurable event which is included in the subordination agreement and which the lender and the broker or dealer agree (1) is a significant indication that the financial position of the broker or dealer has changed materially and adversely from agreed upon specified norms; or (2) could materially and adversely affect the ability of the broker or dealer to conduct its business as conducted on the date the subordination agreement was made; or (3) is a significant change in the senior management of the broker or dealer or in the general business conducted by the broker or dealer from that which obtained on the date the subordination agreement became effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Any continued failure to perform agreed covenants included in the subordination agreement relating to the conduct of the business of the broker or dealer or relating to the maintenance and reporting of its financial position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Events of Acceleration included in this Agreement are as follows: All events described in <u>paragraphs 7(c)(i)</u> through <u>(v)</u> above and specified as Events of Default under <u>Sections 8(a)</u> through <u>8(c), Section</u> <u>8(e), Sections 8(g)</u> through <u>8(j),</u> and <u>Section</u> <u>8(1)</u> of Rider A.

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| | |
|:---|:---|
| **<u>Yes</u>** 8. | <u>ACCELERATED MATURITY UPON THE OCCURRENCE OF AN EVENT OF DEFAULT [</u>**OPTIONAL**<u>]</u>  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding the provisions of <u>paragraph 3</u> hereof, if liquidation of the business of the Broker/Dealer has not already commenced, the payment obligation of the Broker/Dealer under this Agreement shall mature, together with accrued interest or compensation thereon, upon the occurrence of an Event of Default (as herein after defined). The date on which such Event of

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Default occurs shall, if liquidation of the broker or dealer has not already commenced, be the date on which the payment obligations of the Broker/Dealer with respect to all other subordination agreements then outstanding shall mature but the right of the Administrator and the Lenders to receive payment, together with accrued interest or compensation, shall remain subordinate as herein above set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Events of Default which <u>may</u> be included in a subordination agreement are limited by paragraph (b)(10)(ii) of Appendix D to the Rule and are limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The making of an application by the Securities Investor Protection Corporation for a decree adjudicating that customers of the broker or dealer are in need of protection under the SIPA and the failure of the broker or dealer to obtain the dismissal of such application within 30 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The aggregate indebtedness of the broker or dealer exceeding 1500 percent of its net capital or, in the case of a broker or dealer that has elected to operate under paragraph (a)(l)(ii) of the Rule, its net capital computed in accordance therewith is less than 2 percent of its aggregate debit items computed in accordance with Exhibit A to Rule 15c3-3 under the Act or, if registered as a futures commission merchant, 4 percent of the funds required to be segregated pursuant to the CEA and the regulations thereunder (less the market value of commodity options purchased by option customers on or subject to the rules of a contract market, each such deduction not to exceed the amount of funds in the option customer's account), if greater, throughout a period of 15 consecutive business days, commencing on the day the broker or dealer first determines and notifies the Examining Authority for the broker or dealer, or the Examining Authority or the Commission first determines and notifies the broker or dealer of such fact;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Commission shall revoke the registration of the broker or dealer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Examining Authority shall suspend (and not reinstate within 10 days) or revoke the broker's or dealer's status as a member thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Any receivership, insolvency, liquidation pursuant to the SIPA or otherwise, bankruptcy, assignment for the benefit of creditors, reorganization whether or not pursuant to bankruptcy laws, or any other marshalling of the assets and liabilities of the broker or dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Events of Default included in this Agreement are as follows: All events described in <u>paragraphs 8(b)(i)</u> through <u>(v)</u> above.

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| | |
|:---|:---|
| **<u>Yes</u>** 9. | <u>LIQUIDATION OF BROKER/DEALER UPON THE OCCURRENCE OF AN EVENT OF DEFAULT</u> [**OPTIONAL**]  |

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If liquidation of the business of the Broker/Dealer has not already commenced, the rapid and orderly liquidation of the business of the Broker/Dealer shall then commence upon the happening of an Event of Default (defined in <u>paragraph 8</u> of this Agreement.)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>ACCELERATION IN EVENT OF INSOLVENCY</u> 

Notwithstanding the provisions of paragraph 3 hereof, the Broker/Dealer's obligation to pay the unpaid principal amount hereof shall forthwith mature, together with interest accrued thereon, in the event of any receivership, insolvency, liquidation pursuant to SIPA or otherwise, bankruptcy, assignment for the benefit of creditors, reorganization whether or not pursuant to bankruptcy laws, or any other marshalling of the assets and liabilities of the Broker/Dealer; but payment of the same shall remain subordinate as herein above set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>EFFECT OF DEFAULT</u> 

Default in any payment hereunder, including the payment of interest, shall not accelerate the maturity hereof except as herein specifically provided, and the obligation to make payment shall remain subordinate as herein above set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>NOTICE OF MATURITY OR ACCELERATED MATURITY</u> 

The Broker/Dealer shall, in addition to any other notice required pursuant to this Agreement, immediately notify FINRA if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any acceleration of maturity occurs pursuant to the this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) after giving effect to all Payments of Payment Obligations (as such terms are defined in (a)(2)(iv) of Appendix D of the Rule) under subordination agreements then outstanding that are then due or mature within the following six months without reference to any projected profit or loss of the broker or dealer, the net capital of the Broker/Dealer would be less than the Applicable Minimum Capital (as that term and criteria is defined in <u>paragraph 3</u> of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>NON-LIABILITY OF FINRA</u> 

Each Lender irrevocably agrees that the loan evidenced hereby is not being made in reliance upon the standing of the Broker/Dealer as a member of FINRA or upon FINRA's surveillance of the Broker/Dealer's financial position or its compliance with the By-Laws, rules and practices of FINRA. Each Lender has made such investigation of the Broker/Dealer and its partners, officers, directors, stockholders and other principals, from sources other than FINRA, as such Lender deems necessary and appropriate under the circumstances. Each Lender is not relying upon FINRA to provide, or cause to be provided, any information concerning or relating to the Broker/Dealer and agrees that FINRA has no responsibility to disclose, or cause to be disclosed, to such Lender any information concerning or relating to the Broker/Dealer which it may have now, or at any future time have. Each Lender agrees that neither FINRA, nor any director, officer or employee of FINRA, shall be liable to such Lender with respect to this agreement or the repayment of the loan evidenced hereby or of any interest or other compensation thereon.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>CEA APPLICANT OR REGISTRANT NOTIFICATION REQUIREMENTS</u> 

If the Broker/Dealer is an applicant for registration or registered under the CEA, the Broker/Dealer agrees, consistent with the requirements of Section 1.17(h) of the regulations of the CFTC (17 CFR 1.17(h)) or any successor regulation, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) whenever prior written notice by the Broker/Dealer to FINRA is required pursuant to the provisions of this Agreement, the same prior written notice shall be given by the Broker/Dealer to (i) the CFTC and/or (ii) the commodity exchange of which the Broker/Dealer is a member and which is then designated by the CFTC as the Broker/Dealer's designated self-regulatory organization (the "**DSRO**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) whenever prior written consent, permission or approval of FINRA is required pursuant to the provisions of this Agreement, the Broker/Dealer shall also obtain the prior written consent, permission or approval of the CFTC and/or of the DSRO; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) whenever the Broker/Dealer provides or receives written notice of acceleration of maturity pursuant to the provisions of this Agreement, the Broker/Dealer shall promptly give written notice thereof to the CFTC and/or to the DSRO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. BROKER/DEALER AND LENDERS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term "Broker/Dealer" as used in this Agreement shall include the Broker/Dealer, its heirs, executors, administrators, successors and assigns. The provisions of this Agreement shall be binding upon such persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term "Lender" as used in this Agreement shall include each Lender, its heirs, executors, administrators, successors and assigns. The provisions of this Agreement shall be binding upon such persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>EFFECT OF FINRA MEMBERSHIP TERMINATION</u> 

Upon termination of the Broker/Dealer as a member of FINRA, the references herein to FINRA shall be deemed to refer to the then designated Examining Authority. The term "Examining Authority" shall refer to the regulatory body having responsibility for inspecting or examining the Broker/Dealer for compliance with financial responsibility requirements under Section 78iii(c) of SIPA and Section 17(d) of the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>EFFECTIVE DATE</u> 

This Agreement shall be effective from the date on which it is approved by FINRA and executed by the parties and shall not be modified or amended without the prior written approval of FINRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>ENTIRE AGREEMENT</u> 

This instrument, together with any rider incorporated pursuant to <u>paragraph 23</u> of this Agreement, embodies the entire agreement between the Broker/Dealer, the Administrator and the Lenders. No other evidence of such agreement has been or will be executed or effective without the prior written consent of FINRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>CANCELLATION, TRANSFER, SALE AND ENCUMBERANCE</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall not be subject to cancellation by either party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement may not be terminated, rescinded or modified if the effect thereof would be inconsistent with the requirements of the Rule or Appendix D to the Rule. Any and all amendments or modifications to this Agreement require the prior written approval of FINRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The rights and obligations under this Agreement may not be transferred, sold, assigned, pledged, or otherwise encumbered or disposed of, and no lien, charge or other encumbrance may be created or permitted to be created thereon without the prior written consent of FINRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>NO RIGHT OF SET-OFF</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>ARBITRATION</u> 

Any controversy arising out of or relating to this Agreement shall be submitted to and settled by arbitration pursuant to the By-Laws and rules of FINRA. The Broker/Dealer, the Administrator and the Lenders shall be conclusively bound by such arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>GOVERNING LAW</u> 

This Agreement shall be deemed to have been made under, and shall be governed by, the laws of the State of Illinois in all respects.

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| | |
|:---|:---|
| **<u>Yes</u>** 23. | <u>OPTIONAL RIDER</u> [**OPTIONAL**]  |

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| | |
|:---|:---|
| **<u>No</u>** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By incorporating this provision, the Broker/Dealer, the Administrator and each Lender agree to include as part of this Agreement the terms and provisions contained in "Rider A" attached to this Agreement. The parties hereto may, via the annexed rider, add any mutually agreed upon term that is acceptable to FINRA and is not inconsistent with the Rule or Appendix D to the Rule. The parties, by incorporating this provision and the terms included in the incorporated Rider A, represent to FINRA, for its reliance, that no provision of Rider A, singly or in combination with any or all of the provisions of this Agreement, is inconsistent with any provision of Appendix D to the Rule or of any other applicable provision of the SEA, the rules and regulations thereunder, or the rules of FINRA, nor do any such provisions impede the ability of the Broker/Dealer to comply therewith.  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>EXTENSION OF MATURITY</u> [ **OPTIONAL** ]

The Scheduled Maturity Date and Credit Period hereof in each year, without further action by either the Administrator of the Broker/Dealer, shall be extended an additional year unless on or before the day seven months preceding the Scheduled Maturity Date then in effect, the Administrator shall notify the Broker/Dealer in writing, with a written copy to FINRA, that such Scheduled Maturity Date shall not be extended.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. <u>EXECUTION</u> 

IN WITNESS HEREOF the parties hereto have set their hands and seals as of the date first above written.

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| | |
|:---|:---|
| ***BROKER/DEALER:***<br> **CLEAR STREET LLC** | ***BROKER/DEALER:***<br> **CLEAR STREET LLC** |
| By: | /s/ Brian Oliveira |
|  Name: Brian Oliveira | Name: Brian Oliveira |
|  Title: Chief Financial Officer | Title: Chief Financial Officer |
| ***ADMINISTRATOR:***<br> **BYLINE BANK** | ***ADMINISTRATOR:***<br> **BYLINE BANK** |
| By: |  |
|  Name: Scott Mier | Name: Scott Mier |
|  Title: Senior Vice President | Title: Senior Vice President |

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*[Signature Page to Revolving Note and Cash Subordination Agreement]*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. <u>EXECUTION</u> 

IN WITNESS HEREOF the parties hereto have set their hands and seals as of the date first above written.

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| | |
|:---|:---|
| ***BROKER/DEALER:***<br>**CLEAR STREET LLC** | ***BROKER/DEALER:***<br>**CLEAR STREET LLC** |
| By: |  |
|  Name: Brian Oliveira | Name: Brian Oliveira |
|  Title: Chief Financial Officer | Title: Chief Financial Officer |
| ***ADMINISTRATOR:***<br>**BYLINE BANK** | ***ADMINISTRATOR:***<br>**BYLINE BANK** |
| By: | /s/ Scott Mier |
| Name: Scott Mier | Name: Scott Mier |
| Title: Senior Vice President | Title: Senior Vice President |

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*[Signature Page to Revolving Note and Cash Subordination Agreement]*

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| | |
|:---|:---|
| ***LENDER:***<br>**BYLINE BANK** | ***LENDER:***<br>**BYLINE BANK** |
| By: | /s/ Scott Mier |
|  Name: Scott Mier | Name: Scott Mier |
|  Title: Senior Vice President | Title: Senior Vice President |

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*[Signature Page to Revolving Note and Cash Subordination Agreement]*

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| | |
|:---|:---|
| ***LENDER:***<br>**FIRST MERCHANTS BANK** | ***LENDER:***<br>**FIRST MERCHANTS BANK** |
| By: | /s/ Joshua McKenney |
|  Name: Joshua McKenney | Name: Joshua McKenney |
|  Title: Vice President | Title: Vice President |

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*[Signature Page to Revolving Note and Cash Subordination Agreement]*

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| | |
|:---|:---|
|  ***LENDER:***<br>**TRISTATE CAPITAL BANK** | ***LENDER:***<br>**TRISTATE CAPITAL BANK** |
| By: | /s/ Ellen Frank |
|  Name: Ellen Frank | Name: Ellen Frank |
|  Title: Senior Vice President | Title: Senior Vice President |

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*[Signature Page to Revolving Note and Cash Subordination Agreement]*

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| | |
|:---|:---|
|  ***LENDER:***<br>**LAKESIDE BANK** | ***LENDER:***<br>**LAKESIDE BANK** |
| By: | /s/ James McGrogan |
|  Name: James McGrogan | Name: James McGrogan |
|  Title: Senior Vice President | Title: Senior Vice President |

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*[Signature Page to Revolving Note and Cash Subordination Agreement]*

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| | |
|:---|:---|
|  ***LENDER:***<br>**OLD NATIONAL BANK** | ***LENDER:***<br>**OLD NATIONAL BANK** |
| By: | /s/ Mike King |
|  Name: Mike King | Name: Mike King |
|  Title: Senior Vice President | Title: Senior Vice President |

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*[Signature Page to Revolving Note and Cash Subordination Agreement]*

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ![LOGO](g39893g1218091206238.jpg)  | **FINRA Form REV -33R**<br> **EXHIBIT A** |

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**THIS NOTE IS ONE OF A SERIES OF NOTES ISSUED UNDER AND SUBJECT TO** 

**THE PROVISIONS SET FORTH IN THAT CERTAIN REVOLVING LOAN AND CASH** 

**SUBORDINATION AGREEMENT, AND ATTACHED RIDER A, EACH DATED AS OF** 

**OCTOBER 24, 2025, BY AND AMONG CLEAR STREET LLC, BYLINE BANK, IN ITS** 

**CAPACITY AS LEAD ARRANGER AND ADMINISTRATIVE AGENT, AND EACH** 

**LENDER PARTY THERETO** 

**REVOLVING NOTE** 

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $[___],000,000 | October 24, 2025 |
|  | Chicago, Illinois |

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For value received. Clear Street LLC (the "**Broker/Dealer**") hereby promises to pay to the order off [__] (the '**Lender**") on October 24, 2028 ("**Scheduled Maturity Date**"), the principal sum of the aggregate unpaid principal amount of all Advances made by the Lender to the Broker/Dealer under the terms of that certain Revolving Note and Cash Subordination Agreement by and among the Broker/Dealer, Byline Bank, in its capacity as lead arranger and administrative agent, the Lender, and the other financial institutions from time to time a party thereto, dated October 24, 2025 (the "**Agreement**"). Such sum shall not exceed [___] Dollars ($[__]).

The Broker/Dealer also promises to pay interest on the unpaid principal amount of each Advance hereunder from the date of each such Advance until maturity (whether by acceleration or otherwise) and, after maturity, until paid, at the rate per annum agreed upon by the Broker/Dealer and the Lender at the time of any Advance, said interest to be payable upon the maturity of the Advance.

This Revolving Note is subject in all respects to the provisions of the Agreement, which are deemed to be incorporated herein and a copy of which may be examined at the principal office of the Broker/Dealer.

All principal and interest payable hereunder shall be due and payable in accordance with the terms of the Agreement. Principal and interest payments shall be in money of the United States of America, lawful at such times for the satisfaction of public and private debts.

The Broker/Dealer promises to pay costs of collection, including reasonable attorney's fees, if default is made in the payment of this Revolving Note.

The terms and provisions of this Revolving Note shall be governed by the applicable laws of the State of Illinois.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS HEREOF the parties hereto have set their hands and seals as of the date first set forth above.

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| | |
|:---|:---|
| ***BROKER/DEALER:***<br> **CLEAR STREET LLC** | ***BROKER/DEALER:***<br> **CLEAR STREET LLC** |
| By: | / |
|  Name:  | Name:  |
|  Title:  | Title:  |
| ***LENDER:***<br> **[___]** | ***LENDER:***<br> **[___]** |
| By: | / |
|  Name:  | Name:  |
|  Title:  | Title:  |

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*[Signature Page to Revolving Note to [LENDER]]* 

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**RIDER A TO** 

**FINRA FORM REV-33R REVOLVING NOTE** 

**AND CASH SUBORDINATION AGREEMENT** 

This Rider A ("**Rider"**) to that certain Revolving Note and Cash Subordination Agreement dated of even date herewith **("Form 33R",** and including this Rider, as amended, restated, supplemented or otherwise modified from time to time, the **"Loan Agreement"),** dated as of October 24, 2025, is by Clear Street LLC, a Delaware limited liability company (the "**Broker/Dealer**"), Byline Bank, in its capacity as lead arranger and as administrative agent for the Lenders, as provided herein (the **"Administrator"),** and the financial institutions shown on <u>Schedule 1</u> who are from time to time party to this Agreement (each, individually, a **"Lender,"** and, collectively, the **"Lenders"),** including, but not limited to, Byline Bank as lead Lender. Capitalized terms used herein that are defined in Form 33R, but not otherwise defined herein, shall have the meanings therein defined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Defined Terms</u>. For the purposes of this Loan Agreement, the following capitalized words and phrases shall have the meanings set forth below:

**"Accounting Firm"** has the meaning set forth in <u>Section</u> <u>7(D(i)</u>.

**"Administrator"** has the meaning set forth in the preamble of this Rider.

**"Affiliate"** of any Person means (a) any other Person which, directly or indirectly, controls or is controlled by or is under common control with such Person, and (b) with respect to the Administrator or any Lender, any entity administered or managed by the Administrator or such Lender, or an Affiliate or investment advisor thereof and which is engaged in making, purchasing, holding or otherwise investing in commercial loans. A Person shall be deemed to be "controlled by" any other Person if such Person possesses, directly or indirectly, power to direct or cause the direction of the management and policies of such Person whether by contract, ownership of voting securities, membership interests or otherwise.

**"Approved Fund"** means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

**"Bank Product Agreements"** means those certain agreements entered into from time to time by the Broker/Dealer with the Administrator or any Affiliate of the Administrator concerning Bank Products.

**"Bank Product Obligations"** means all obligations, liabilities, contingent reimbursement obligations, fees, and expenses owing by the Broker/Dealer to the Administrator or any Affiliate of the Administrator pursuant to or evidenced by Bank Product Agreements and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising.

**"Bank Products"** means any service or facility extended to the Broker/Dealer by the Administrator or any Affiliate of the Administrator, including: (a) credit cards, (b) credit card processing services, (c) debit cards, (d) purchase cards, (e) letters of credit, (f) ACH transactions, (g) cash management, including controlled disbursement, accounts or services, or (h) Hedging Agreements.

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**"Bankruptcy Code"** means Chapter 11 of Title 11 of the United States Code (or successor statute).

**"BMO Liquidity Line"** means that certain credit line in the principal amount of five hundred fifteen million Dollars ($515,000,000) arranged by BMO Harris, NA, under which the Broker/Dealer is the debtor.

**"Broker/Dealer"** has the meaning set forth in the preamble of this Rider.

**"Business Day"** means any day other than a Saturday, Sunday or any other day on which banks in London, England or Chicago, Illinois are required or permitted to close.

**"Capital Lease"** means, as to any Person, a lease of any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, by such Person, as lessee, that is, or should be, in accordance with Financial Accounting Standards Board Statement No. 13, as amended from time to time, or, if such statement is not then in effect, such statement of GAAP as may be applicable, recorded as a "capital lease" on the financial statements of such Person prepared in accordance with GAAP.

**"Capital Requirements"** means all rules and regulations relating to "net capital" as defined in 17 CFR 240.15c3-l or any successor rule or as otherwise defined in the Loan Agreement.

**"Capital Securities"** means, with respect to any Person, all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) of such Person's capital, whether now outstanding or issued or acquired after the date hereof, including common shares, preferred shares, membership interests in a limited liability company, limited or general partnership interests in a partnership or any other equivalent of such ownership interest.

**"Capitalized Lease Obligations"** means, as to any Person, all rental obligations of such Person, as lessee under a Capital Lease which are or will be required to be capitalized on the books of such Person.

**"Cash Equivalent Investment"** means, at any time, (a) any evidence of Debt, maturing not more than one year after such time, issued or guaranteed by the United States government or any agency thereof, (b) commercial paper, maturing not more than one year from the date of issue, or corporate demand notes, in each case (unless issued by the Administrator or its holding company) rated at least A-l by Standard & Poor's Ratings Services, a division of the McGraw-Hill Companies, Inc. or P-1 by Moody's Investors Service, Inc., (c) any certificate of deposit, time deposit or banker's acceptance, maturing not more than one year after such time, or any overnight Federal Funds transaction that is issued or sold by the Administrator or its holding company (or by a commercial banking institution that is a member of the Federal Reserve System and has a combined capital and surplus and undivided profits of not less than One Hundred Million Dollars ($100,000,000)), (d) any repurchase agreement entered into with the Administrator, or other commercial banking institution of the nature referred to in <u>clause (c)</u> above, which (i) is secured by a fully perfected security interest in any obligation of the type described in any of <u>clauses (a)</u> 

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 <u>through (c)</u> above, and (ii) has a market value at the time such repurchase agreement is entered into of not less than 100% of the repurchase obligation of the Administrator, or other commercial banking institution, thereunder, (e) money market accounts or mutual funds which invest exclusively in assets satisfying the foregoing requirements, and (f) other short term liquid investments approved in writing by the Administrator.

**"Change of Control"** means the occurrence or existence of any one or more of the following: (a) the acquisition by any "person" or "group" (as such terms are used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than the existing Ownership Group, at any time of beneficial ownership of more than 50% of the voting power of the Broker/Dealer; (b) Parent ceases to control, directly or indirectly, the Broker/Dealer (including, but not limited to, the appointment of its manager); (c) Clear Street Group Inc. ceases to control, directly or indirectly, the Parent (including, but not limited to, the appointment of its manager); (d) a Change of Ownership; or (d) any merger, consolidation or other similar transaction involving the Broker/Dealer. As used herein, "control" means the possession of the power to direct, or cause the direction of, the management and policies a Person by contract or voting of securities or ownership interests.

**"Change of Ownership"** means the occurrence or existence of any either or both of the following: (a) Clear Street Global Corp, shall cease to own and control, directly or indirectly, at least 50.1% of the voting power of Clear Street Group Inc.; or (b) the CS Global Corp Ownership Group shall cease to own and control, directly or indirectly, at least 50.1% voting power of Clear Street Global Corp.

**"Closing Date"** has the meaning set forth in <u>Section</u> <u>6</u>.

**"Code"** means the Internal Revenue Code of 1986, as amended, or successor statute.

**"Contingent Liability"** and **"Contingent Liabilities"** means, respectively, each obligation and liability of the Broker/Dealer and all such obligations and liabilities of the Broker/Dealer incurred pursuant to any agreement, undertaking or arrangement by which the Broker/Dealer: (a) guarantees, endorses or otherwise becomes or is contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a creditor against loss) the indebtedness, dividend, obligation or other liability of any other Person in any manner (other than by endorsement of instruments in the course of collection), including without limitation, any indebtedness, dividend or other obligation which may be issued or incurred at some future time; (b) guarantees the payment of dividends or other distributions upon the shares or ownership interest of any other Person; (c) undertakes or agrees (whether contingently or otherwise): (i) to purchase, repurchase, or otherwise acquire any indebtedness, obligation or liability of any other Person or any property or assets constituting security therefor, or (ii) to advance or provide funds for the payment or discharge of any indebtedness, obligation or liability of any other Person (whether in the form of loans, advances, stock purchases, capital contributions or otherwise), or to maintain solvency, assets, level of income, working capital or other financial condition of any other Person; (d) agrees to lease property or to purchase securities, property or services from such other Person with the purpose or intent of assuring the owner of such indebtedness or obligation of the ability of such other person to make payment of the indebtedness or obligation; (e) to induce

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the issuance of, or in connection with the issuance of, any letter of credit for the benefit of such other Person; or (f) undertakes or agrees otherwise to assure a creditor against loss. The amount of any Contingent Liability shall (subject to any limitation set forth herein) be deemed to be the outstanding principal amount (or maximum permitted principal amount, if larger) of the indebtedness, obligation or other liability guaranteed or supported thereby.

**"CS Global Corp Ownership Group"** means, as of the Closing Date, (a) the beneficial owners of equity interests in Clear Street Global Corp., (b) any trust established for the benefit of the Persons described in <u>clause (a)</u> or any beneficiary of a trust that owns equity interests in Clear Street Global Corp., and (c) any entity that is wholly owned by the Persons described in <u>clause (a)</u> or <u>clause (b)</u> above.

**"Debt"** means, as to any Person, without duplication, (a) all borrowed money of such Person (including principal, interest, fees and charges), whether or not evidenced by bonds, debentures, notes or similar instruments; (b) all obligations to pay the deferred purchase price of property or services (other than trade accounts payable arising in the ordinary course of business); (c) all obligations, contingent or otherwise, with respect to the maximum face amount of all letters of credit (whether or not drawn), bankers' acceptances and similar obligations issued for the account of such Person, and all unpaid drawings in respect of such letters of credit, bankers' acceptances and similar obligations; (d) all indebtedness secured by any Lien on any property owned by such Person, whether or not such indebtedness has been assumed by such Person (provided, however, if such Person has not assumed or otherwise become liable in respect of such indebtedness, such indebtedness shall be deemed to be in an amount equal to the fair market value of the property subject to such Lien at the time of determination); (e) the aggregate amount of all Capitalized Lease Obligations of such Person; (f) all Contingent Liabilities of such Person, whether or not reflected on its balance sheet; (g) all Hedging Obligations of such Person; (h) all Debt of any partnership of which such Person is a general partner; and (i) all monetary obligations of such Person under (i) a so-called synthetic, off-balance sheet or tax retention lease, or (ii) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment). Notwithstanding the foregoing, Debt shall not include trade payables and accrued expenses incurred by such Person in the ordinary course of business of such Person.

**"Debtor Relief Laws"** means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect.

**"Default"** means an Event of Default or Unmatured Event of Default.

**"Default Interest Rate"** has the meaning set forth in <u>Section</u> <u>2(c)</u>.

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**"Defaulting Lender"** means, subject to <u>Section</u> <u>2(h),</u> any Lender that: (a) has failed to (i) fund all or any portion of its Revolving Loans within two (2) Business Days of the date such Revolving Loans were required to be funded hereunder unless such Lender notifies the Administrator and Broker/Dealer in writing that such failure is the result of such Lender's determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrator or any Lender any other amount required to be paid by it hereunder or under the Loan Agreement within two (2) Business Days of the date when due; (b) has notified the Administrator and the Broker/Dealer in writing that it does not intend to comply with its funding obligations hereunder and under the Loan Agreement, or has made a public statement to that effect (unless such writing or public statement relates to such Lender's obligation to fund a Revolving Loan hereunder and states that such position is based on such Lender's determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied); (c) has failed, within three (3) Business Days after written request by the Administrator or the Broker/Dealer, to confirm in writing to the Administrator and the Broker/Dealer that it will comply with its prospective funding obligations hereunder and under the Loan Agreement (provided that such Lender shall cease to be a Defaulting Lender pursuant to this <u>clause (c)</u> upon receipt of such written confirmation by the Administrator and the Broker/Dealer); or (d) has, or has a direct or indirect parent company that has, at any time after the date hereof (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; *provided* that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrator that a Lender is a Defaulting Lender under the foregoing <u>clauses (a)</u> through <u>(d)</u> shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to <u>Section</u> <u>2(h))</u> upon delivery of written notice of such determination to the Broker/Dealer and each Lender.

**"Eligible Assignee"** means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, and (d) any other Person (other than a natural person) approved by (i) the Administrator, and (ii) unless an Event of Default has occurred and is continuing, Broker/Dealer (each such approval not to be unreasonably withheld or delayed); provided that notwithstanding the foregoing, Eligible Assignee shall not include Broker/Dealer or any of its Affiliates and an Eligible Assignee must be a Qualified Lender.

**"Employee Plan"** includes any pension, stock bonus, employee stock ownership plan, retirement, profit sharing, deferred compensation, stock option, bonus or other incentive plan, whether qualified or nonqualified, or any disability, medical, dental or other health plan, life insurance or other death benefit plan, vacation benefit plan, severance plan or other employee benefit plan or arrangement, including, without limitation, those pension, profit sharing and retirement plans of the Broker/Dealer described from time to time in the financial statements of the Broker/Dealer and any pension plan, welfare plan, Defined Benefit Pension Plans (as defined in ERISA) or any multi-employer plan, maintained or administered by the Broker/Dealer or to which the Broker/Dealer is a party or may have any liability or by which the Broker/Dealer is bound.

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**"Environmental Laws"** mean all present or future federal, state or local laws, statutes, common law duties, rules, regulations, ordinances and codes, together with all administrative or judicial orders, consent agreements, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case relating to any matter arising out of or relating to public health and safety, or pollution or protection of the environment or workplace, including any of the foregoing relating to the presence, use, production, generation, handling, transport, treatment, storage, disposal, distribution, discharge, emission, release, threatened release, control or cleanup of any Hazardous Substance.

**"ERISA"** means the Employee Retirement Income Security Act of 1974, as amended from time to time.

**"Event of Default"** has the meaning set forth in <u>Section</u> <u>8</u>. As used in this Rider, an Event of Default is not intended to be interpreted as an "Event of Default" as provided under <u>paragraph 8</u> of Form 33R.

**"Examining Authority"** means the self-regulatory body designated to be responsible for inspecting or examining the Broker/Dealer for compliance with financial responsibility requirements under Section 9(c) of the Securities Investor Protection Act of 1970 and Section 17(d) of the Exchange Act. For purposes of this Loan Agreement, "Examining Authority" includes FINRA in accordance with its responsibilities under any applicable regulatory services agreement with any Governmental Authority.

**"Excess Net Capital"** means, as of the relevant date of determination, the amount shown in box number 3910 under the heading "Computation of Alternative Net Capital Requirement" as shown on the Broker/Dealer's FOCUS Reports, or under such other line on the Broker/Dealer's FOCUS Reports pursuant to which the Broker/Dealer reports its excess net capital, whichever is applicable.

**"Exchange Act"** means the Securities and Exchange Act of 1934, as amended.

**"FATCA"** means Sections 1471 through 1474 of the Code, as of the date hereof (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

**"Federal Funds Rate"** means that the rate set forth in H. 15(519) for that day under the caption "EFFECT", as such rate is displayed on the Reuters Screen FEDFUNDS1 Page. If, by 5:00 p.m., Chicago time, on the day that is one Banking Day following the applicable date, such rate for the applicable date does not appear on the Reuters Screen FEDFUNDS1 Page or is not yet published in H. 15(519), the rate for such date will be the rate set forth in H.15 Daily Update, or such other recognized electronic source used for the purpose of displaying such rate, for that day opposite the caption "Federal funds (effective)". If, by 5:00 p.m., Chicago time, on the day that is one Banking Day following the applicable date, such rate for the applicable date does not appear on the Reuters Screen FEDFUNDS1 Page or is not yet published in H. 15(519), H. 15 Daily Update or another recognized electronic source, the rate for that applicable date will be the rate for the first preceding day for which such rate is set forth in H. 15(519) opposite the caption "Federal funds (effective)", as such rate is displayed on the Reuters Screen FEDFUNDS1 Page.

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**FINRA** means the Financial Industry Regulatory Authority.

**"FOCUS Reports"** means Financial and Operation Combined Uniform Single Reports filed by the Broker/Dealer in accordance with Exchange Act rules and regulations.

**"Foreign Lender"** means a Lender that is not a U.S. Person.

**"Form 33R"** has the meaning set forth in the preamble of this Rider.

**"Fund"** means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business.

**"GAAP"** means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting profession), which are applicable to the circumstances as of the date of determination, provided, however, that interim financial statements or reports shall be deemed in compliance with GAAP despite the absence of footnotes and fiscal year-end adjustments as required by GAAP.

**"Governmental Authority"** means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory or self-regulatory agency or organization, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

**"Hazardous Substances"** means (a) any petroleum or petroleum products, radioactive materials, asbestos in any form that is or could become friable, urea formaldehyde foam insulation, dielectric fluid containing levels of polychlorinated biphenyls, radon gas and mold; (b) any chemicals, materials, pollutant or substances defined as or included in the definition of "hazardous substances", "hazardous waste", "hazardous materials", "extremely hazardous substances", "restricted hazardous waste", "toxic substances", "toxic pollutants", "contaminants", "pollutants" or words of similar import, under any applicable Environmental Law; and (c) any other chemical, material or substance, the exposure to, or release of which is prohibited, limited or regulated by, or for which any duty or standard of care is imposed pursuant to, any Environmental Law.

**"Hedging Agreement"** means any interest rate, currency or commodity swap agreement, cap agreement or collar agreement, and any other agreement or arrangement designed to protect a Person against fluctuations in interest rates, currency exchange rates or commodity prices.

**"Hedging Obligation"** means, with respect to any Person, any liability of such Person under any Hedging Agreement.

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**"Indemnified Party"** has the meaning set forth in <u>Section</u> <u>12(b)</u>.

**"Interest Determination Date"** means the date that is two (2) U.S. Government Securities Business Days prior to the first day of the applicable Interest Period for which Term SOFR is being determined.

**"Interest Payment Date"** means the fifth (5th) day of each month, with the first such Interest Payment Date under this Agreement on November 5, 2025, and the final such Interest Payment Date on the Revolving Loan Maturity Date.

**"Interest Period"** means, each one (1) month period from, and including, the previous Interest Payment Date (or, in the case of the first Interest Period under this Agreement, the effective date of this Agreement) to, but excluding, the following Interest Payment Date (or, in the case of the final Interest Period, the Revolving Loan Maturity Date).

**"Interest Rate"** means, for any Interest Period, a per annum variable rate of Term SOFR plus Four and Three Quarters Percent (4.75%), provided that in no event shall the Interest Rate be less than Five and Three Quarters Percent (5.75%).

**"Investment"** means for any Person, (a) the acquisition (whether for cash, property, services or securities or otherwise) of equity interests or other securities of any other Person or any agreement to make any such acquisition (including, without limitation, any "short sale" or any sale of any securities at a time when such securities are not owned by the Person entering into such sale), (b) the making of any deposit with, or advance, loan or other extension of credit to, any other Person (including the purchase of property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such property to such Person), or (c) the entering into of any guaranty of or contingent obligation with respect to, Debt or other liability of any other Person and (without duplication) any amount committed to be advanced, lent or extended to such Person; provided that entering into of any hedging arrangement for bona fide hedging and risk management purposes shall not constitute an investment.

**"Lender"** and **"Lenders"** have the meanings set forth in the preamble of this Rider.

**"Lien"** means, with respect to any Person, any interest granted by such Person in any real or personal property, asset or other right owned or being purchased or acquired by such Person (including, without limitation, an interest in respect of a Capital Lease) which secures payment or performance of any obligation and shall include any mortgage, hen, encumbrance, title retention lien, charge or other security interest of any kind, whether arising by contract, as a matter of law, by judicial process or otherwise.

**"Loans"** means, collectively, all Revolving Loans made by the Lenders to the Broker/Dealer under and pursuant to this Loan Agreement.

**"Loan Agreement"** has the meaning set forth in the preamble of this Rider.

**"Loan Commitment"** means Seventy Five Million Dollars ($75,000,000).

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**"Loan Documents"** means this Loan Agreement and all other agreements, certificates and other documents executed and delivered pursuant to this Loan Agreement by the Broker/Dealer or any officer, director or other authorized signatory thereof or any guarantor for the benefit of the Administrator, together with all amendments, restatements, reaffirmations, supplements or other modifications thereto.

**"Material Adverse Effect"** means (a) a material adverse change in, or a material adverse effect upon, the assets, business, properties, prospects, condition (financial or otherwise) or results of operations of the Broker/Dealer, (b) a material impairment of the ability of the Broker/Dealer to perform any of the Obligations under any of the Loan Documents, or (c) a material adverse effect on the legality, validity, binding effect or enforceability against the Broker/Dealer of any of the Loan Documents.

**"Net Capital"** means "net capital," as defined by the Rule and calculated in the manner set forth on the applicable **FOCUS** Report.

**"Non-Defaulting Lender"** means, at any time, each Lender that is not a Defaulting Lender at such time.

**"Obligations"** mean the Loans, as evidenced by the Loan Agreement, all interest accrued thereon (including interest which would be payable as post-petition in connection with any proceeding under any Debtor Relief Laws or similar proceeding, whether or not permitted as a claim thereunder), any fees due the Administrator hereunder, any expenses incurred by the Administrator hereunder and any and all other liabilities and obligations of the Broker/Dealer to the Administrator under this Loan Agreement and any other Loan Document, including any reimbursement obligations of the Broker/Dealer in respect of letters of credit and surety bonds, all Hedging Obligations of the Broker/Dealer which are owed to the Administrator or the applicable Lender or any Affiliate of the Administrator or such Lender, and all Bank Product Obligations of the Broker/Dealer, all in each case howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing, or due or to become due, together with any and all renewals or extensions thereof.

**"Obligor"** means the Broker/Dealer, accommodation endorser, guarantor, third party pledgor, or any other party liable with respect to the Obligations.

**"Operating Lease"** means any lease of (or other agreement conveying the right to use) any real or personal property by the Broker/Dealer, as lessee, other than any Capital Lease.

**"Other Taxes"** means any present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies which arise from the execution, delivery, enforcement or registration of, or otherwise with respect to, the Loan Agreement or any of the other Loan Documents.

**"Ownership Group"** means (a) any and all Persons who, directly or indirectly, own equity interests in the Company, as of the Closing Date or affiliates of such Persons, (b) the spouses, children, siblings, parents or other lineal descendants of the parents of, (x) in the case of a Person in clause (a) above who is a natural person, any such Person described in clause (a) above or (y) in the case of a Person in clause (a) above that is an entity, the beneficial owners of any such Person described in clause (a) above (in each case, including in the case of adoption), (c) any trust settled by the Persons described in clause (a) or clause (b) above, and/or (d) any entity that is wholly owned by the Persons described in clause (a), clause (b) or clause (c) above.

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**"Parent"** means Clear Street Holdings LLC, a Delaware limited liability company, its successors and assigns.

**"Patriot Act"** means the USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001.

**"Person"** means any natural person, partnership, limited liability company, corporation, trust, joint venture, joint stock company, association, unincorporated organization, government or agency or political subdivision thereof, or other entity, whether acting in an individual, fiduciary or other capacity.

**"Prime Rate"** means the Wall Street Journal Prime Rate (or, in the event the Wall Street Journal ceases to publish the prime rate, a successor publication rate as selected by the Administrator).

**"Qualified Lender"** means a "Qualified Lender" as defined in Rule 15c3-ld(a)(2)(v)(F)/01.

**"Regulatory Change"** means the introduction of, or any change in any applicable law, treaty, rule, regulation or guideline or in the interpretation or administration thereof by any Governmental Authority or any central bank or other fiscal, monetary or other authority having jurisdiction over the Administrator or its lending office, in each case, that first arises after the date hereof.

**"Relevant Governmental Body"** means the Board of Governors of the Federal Reserve System of the United States and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by either of the same, or any successor thereto.

**"Replacement Index"** has the meaning set forth in <u>Section</u> <u>2(f)</u>.

**"Required Lenders"** means, as of the date of determination thereof, Lenders whose outstanding Revolving Loans and Unused Revolving Credit Commitments constitute at least Sixty-Six Percent (66%) or greater of the sum of the total outstanding Revolving Loans and Unused Revolving Credit Commitments of the Lenders, or if there only are two Lenders, then both of the Lenders. To the extent provided in <u>Section</u> <u>18,</u> the outstanding Revolving Loans and Unused Revolving Credit Commitments of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.

**"Requirements of Law"** means, collectively, any and all requirements of any Governmental Authority including, without limitation, any and all statutes, judgments, orders, decrees, ordinances, rules, regulations, regulatory circulars, notices, interpretations or case law.

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**"Restricted Payment"** means (a) any dividend or other distribution by the Broker/Dealer (whether in cash, securities or other property) with respect to any of its Capital Securities, (b) any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Capital Securities, or (c) any payment of principal or interest or any purchase, redemption, retirement, acquisition or defeasance with respect to any Debt of the Broker/Dealer which is expressly subordinated to the payment of the obligations of the Broker/Dealer under the Loan Documents.

**"Revolver Percentage"** means, for each Lender, the percentage of the Loan Commitment represented by such Lender's Revolving Credit Commitment or, if the Revolving Credit Commitments have been terminated, the percentage held by such Lender of the aggregate principal amount of all Revolving Loans then outstanding, as initially shown on <u>Schedule 1</u>.

**"Revolving Credit Commitment"** means, as to any Lender, the obligation of such Lender to make advances in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender's name on <u>Schedule 1,</u> as the same may be reduced or modified at any time or from time to time pursuant to the terms hereof.

**"Revolving Loan Borrowing Termination Date"** means October 24, 2027.

**"Revolving Loan Maturity Date"** means October 24, 2028.

**"Revolving Loan"** and **"Revolving Loans"** means, respectively, each direct advance and the aggregate of all such direct advances made by the Lenders to the Broker/Dealer under and pursuant to the Loan Agreement, as described in Form 33R and in <u>Section</u> <u>2</u>.

**"Revolving Note"** or **"Note"** means a revolving note in the form attached to Form 33R or otherwise acceptable to the Administrator in the amount of the Revolving Credit Commitment and maturing on the Revolving Loan Maturity Date, executed by the Broker/Dealer and payable to the order of the applicable Lender, together with any and all renewal, extension, modification or replacement note executed by the Broker/Dealer, accepted by a Lender and given in substitution therefor.

**"Rider"** has the meaning set forth in the preamble of this Rider.

**"Rule"** has the meaning set forth in <u>paragraph 3</u> of Form 33R.

**"SEC"** means the Securities and Exchange Commission and any successor organization discharging the regulatory functions of the Securities and Exchange Commission.

**"Securities Financing"** means any transaction where securities are used to borrow cash or where cash or securities are used to borrow securities, including but not limited to repurchase transactions, securities lending and sell-back or buy-back transactions.

**"Sharing Agreement"** means a management agreement, service agreement or similar agreement or written arrangement arising from or relating to shared office space, technology, trade services and other sharing of expenses by or among the Broker/Dealer and Parent and any of its or their Affiliates, together with all amendments thereto.

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**"SOFR"** means the Secured Overnight Financing Rate, as administered by the Federal Reserve Bank of New York (or a successor administrator).

**"Subordinated Debt"** means that portion of the Debt of the Broker/Dealer which is subordinated to the Obligations in a manner satisfactory to the Administrator (including, but not limited to, right and time of payment of principal and interest), including, without limitation, any unsecured Debt of the Broker/Dealer and its Subsidiaries which has subordination terms, covenants, pricing and other terms which have been approved in writing by the Administrator.

**"Subsidiary"** or **"Subsidiaries"** means, with respect to any Person, any corporation, limited liability company, partnership or other entity of which at least a majority of the securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or other persons performing similar functions of such corporation, limited liability company, partnership or other entity (irrespective of whether or not at that time securities or other ownership interests of another class or classes of such corporation, limited liability company, partnership or other entity shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person. Unless otherwise specified, "Subsidiary" means a Subsidiary of the Broker/Dealer.

**"Taxes"** means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including, without limitation, backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including interest, additions to tax or penalties applicable thereto.

**"Tentative Net Capital"** means, as of the relevant date of determination, an amount equal to (a) the amount shown in box number 3640 under the heading "Computation of Net Capital" as shown on the Broker/Dealer's FOCUS Reports, or under such other line or box on the Broker/Dealer's FOCUS Reports pursuant to which the Broker/Dealer reports its tentative net capital, whichever is applicable, <u>minus</u> (b) the amount of Loans then outstanding.

**"Term SOFR"** means, for any Interest Period, the Term SOFR Reference Rate on the related Interest Determination Date, as such rate is published by the Term SOFR Administrator at approximately 5:00 a.m., Chicago time; provided, however, that if as of 5:00 p.m. (Chicago time) on any Interest Determination Date the Term SOFR Reference Rate has not been published by the Term SOFR Administrator, then Term SOFR shall be the Term SOFR Reference Rate as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Interest Determination Date. If the Administrator determines, in the Administrator's sole discretion, that Term SOFR remains not published or otherwise unavailable more than three (3) U.S. Government Securities Business Days prior to such Interest Determination Date then, at the Administrator's option, upon notice of such circumstances from the Administrator to the Broker/Dealer, subject to the terms and conditions of this Loan Agreement and the Loan Documents and until a Replacement Index is established in accordance with Section 2(f) hereof, the balance of any advances shall bear interest at the Administrator's "prime rate" which may be adjusted by the Administrator to include a different

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spread or margin (as so adjusted, the **"Alternate Rate")** and the Broker/Dealer may request advances under this Loan Agreement bearing interest at the Alternate Rate. For purposes of the Loan Agreement, the Administrator's "prime rate" shall be the "U.S. prime rate" as published in The Wall Street Journal. Notwithstanding the foregoing and unless there is an interest rate swap or other hedging instrument in place in connection with the Loan Agreement, if Term SOFR is less than zero, then during such time, Term SOFR shall be deemed to be zero.

**"Term SOFR Administrator"** means the CME Group Benchmark Administration Limited (or a successor administrator of the Term SOFR Reference Rate determined by the Lender in its reasonable discretion).

**"Term SOFR Reference Rate"** means the rate per annum of a 1-month forward-looking term rate based on SOFR that is published by the Term SOFR Administrator.

**"Term SOFR Transition Date"** has the meaning set forth in <u>Section</u> <u>2(f)</u>.

**"Transition Notice"** has the meaning set forth in <u>Section</u> <u>2(f)</u>.

**"Unmatured Event of Default"** means any event which, if continued uncured, will, because of the giving of notice, the passage of time or both (without any additional factor or event), constitute an Event of Default.

**"Unused Revolving Credit Commitments"** means, at any time, the difference between the Revolving Credit Commitments then in effect and the aggregate outstanding principal amount of Revolving Loans.

**"U.S. Government Securities Business Day"** means any day except for a Saturday, Sunday or a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in U.S. government securities.

**"Voidable Transfer"** has the meaning set forth in <u>Section</u> <u>15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Revolving Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Commitments.* Notwithstanding anything to the contrary in <u>paragraph 1</u> of Form 33R, each Lender, by its acceptance hereof, severally agrees to make revolving credit loans to the Broker/Dealer from time to time between the effective date hereof and the Revolving Loan Borrowing Termination Date so long as no Default has occurred and is continuing or would result therefrom, and in such amounts as the Broker/Dealer may from time to time request, provided, however, that (i) the aggregate principal balance of all such advances outstanding at any time shall not exceed the Loan Commitment, and (ii) the aggregate principal balance of all such advances by any Lender outstanding at any time shall not exceed such Lender's Revolving Credit Commitment. Revolving Loans made by the Lenders may be repaid and, subject to the terms and conditions of the Loan Agreement, borrowed again up to, but not including the Revolving Loan Borrowing Termination Date, subject to the applicable provisions of this Loan Agreement. Each advance of a Revolving Loan hereunder shall have a maturity date of at least twelve (12) months from the date of each such advance, unless prepaid pursuant to the permissive prepayment provisions of this Loan Agreement, provided that no maturity date of any advance of a Revolving Loan hereunder shall be later than the Revolving Loan Maturity Date. Each advance shall be made ratably by the Lenders in proportion to their respective Revolver Percentages.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Manner of Borrowing.* The Broker/Dealer shall give notice to the Administrator of each Revolving Loan request as provided in <u>Section</u> <u>2(d),</u> and the Administrator shall give prompt notice to each Lender of any request for an advance from the Broker/Dealer, and the Administrator shall give notice to the Broker/Dealer and each Lender of the interest rate applicable thereto promptly after the Administrator has made such determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Interest.* Notwithstanding anything to the contrary in <u>paragraph 1</u> of Form 33R, the principal amount of the Revolving Loans outstanding from time to time shall bear interest at a floating rate equal to the Interest Rate. Subject to the subordination provisions of this Loan Agreement (including, but not limited to, the provisions of <u>paragraph 3</u> of the Form 33R), accrued and unpaid interest on the unpaid principal balance of all Revolving Loans outstanding from time to time, shall be due and payable monthly, in arrears, commencing on November 5, 2025, and continuing on the fifth (5th) day of each calendar month thereafter, and on the maturity date of the applicable advance of a Revolving Loan or Revolving Loan Maturity Date, as applicable. In the event of any repayment or prepayment of the Loan, accrued and unpaid interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment. Subject to the subordination provisions of this Loan Agreement, in the event that the Broker/Dealer fails to pay any amount of principal, interest, fees or other amounts payable under the Loan Documents when due, such overdue amount shall bear interest at the **"Default Interest Rate,"** which shall mean the rate of interest equal to the Interest Rate <u>plus</u> three percent (3.0%), such interest to be payable on demand. All interest hereunder shall be computed on the basis of a year of 360 days for the actual number of days elapsed (including the day a Loan is made but excluding the date of repayment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Notice and Advances.* Notwithstanding anything to the contrary in <u>paragraph 1</u> of Form 33R, each Revolving Loan shall be made available to the Broker/Dealer upon any written, verbal, electronic, telephonic or telecopy loan request which the Administrator receives and in good faith believes to emanate from a properly authorized representative of the Broker/Dealer, whether or not that is in fact the case. Upon receipt of any such request, the Administrator shall immediately notify the Lenders of such request. Each such notice shall be effective upon receipt by the Administrator, shall be irrevocable, and shall specify the date, amount and type of borrowing. The amount of borrowing shall be in an amount equal to One Million Dollars ($1,000,000) or a higher integral multiple of One Million Dollars ($1,000,000), or such lesser amount as would bring the total principal amount of Revolving Loans advanced hereunder to the Loan Commitment. A request for a direct advance must be received by the Administrator from a properly authorized representative of the Broker/Dealer no later than 11:30 a.m. Chicago, Illinois time, on the day it is to be funded. The proceeds of each direct advance shall be made available at the office of the Administrator by credit to the account of the Broker/Dealer or by other means requested by the Broker/Dealer and acceptable to the Administrator. The Broker/Dealer does hereby irrevocably confirm, ratify and approve all such advances by the Lenders and does hereby indemnify the Administrator and each Lender against losses and expenses (including court costs, reasonable outside attorneys' and paralegals' fees) and shall hold the Administrator and each Lender harmless with respect thereto, provided however, that Broker/Dealer shall not have any obligations to indemnify the Administrator and each Lender for losses and expenses arising from Administrator's or a Lender's willful misconduct or gross negligence.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Loan Commitment Reduction.* Broker/Dealer may reduce the amount of the Loan Commitment in a minimum amount of equal to One Million Dollars ($1,000,000) or a higher integral multiple of Five Hundred Thousand Dollars ($500,000), or such lesser amount as would bring the Loan Commitment to the total principal amount of Revolving Loans advanced hereunder, provided that any such reduction must be approved by the Examining Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *No Liability.* No Lender warrants or accepts responsibility for, and shall not have any liability with respect to (a) the continuation of, administration of, submission of, calculation of or any other matter related to Term SOFR or any replacement rate thereto, including whether the replacement rate will produce the same value or economic equivalence of, or have the same volume or liquidity as the Term SOFR prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any conforming changes made to a replacement rate. The applicable Lender may select information sources or services in its reasonable discretion to ascertain Term SOFR or a replacement rate, in each case pursuant to the terms of the Loan Agreement, and shall have no liability to the Broker/Dealer or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Replacement Index.* If at any time the Administrator determines in its sole discretion that Term SOFR has ceased, will cease, or is not, or as of a specified future date, will not be representative of or in compliance with IOSCO Principles for Financial Benchmarks, then, at the Administrator's option, the Administrator may establish a new index, in its sole discretion, which may be adjusted by the Administrator to include an different spread or margin (as so adjusted, the **"Replacement Index").** The Administrator will notify the Broker/Dealer in writing (a **"Transition Notice")** setting forth the Replacement Index, the new applicable rate, the date the same will become effective (the **"Term SOFR Transition Date")** and the manner in which the applicable rate will be periodically reset (which shall be no less than once each month) based upon changes in the Replacement Index. The Term SOFR Transition Date will be no sooner than ten (10) days following the Transition Notice. Notwithstanding the foregoing and unless there is an interest rate swap or other hedging instrument in place in connection with this Loan Agreement, if the Replacement Index is less than zero, then the Replacement Index shall be deemed to be zero.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Administrator Reliance on Lender Funding.* Unless the Administrator shall have been notified by a Lender prior to the date on which such Lender is scheduled to make payment to the Administrator of the proceeds of a Revolving Loan (which notice shall be effective upon receipt) that such Lender does not intend to make such payment, the Administrator may assume that such Lender has made such payment when due and the Administrator may in reliance upon such assumption (but shall not be required to) make available to the Broker/Dealer the proceeds of the Revolving Loan to be made by such Lender and, if any Lender has not in fact made such payment to the Administrator on the date so funded by the Administrator, such Lender shall, within one (1) Business Day following written demand by the Administrator, pay to the Administrator the amount made available by the Administrator to the Broker/Dealer attributable to such Lender

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together with interest thereon in respect of each day during the period commencing on the date such amount was made available to the Broker/Dealer and ending on (but excluding) the date such Lender pays such amount to the Administrator, calculated at a rate per annum equal to: (i) from the date the related Revolving Loan was made by the Administrator to the date two (2) Business Days after payment by such Lender is due hereunder, the Federal Funds Rate for each such day and (ii) from the date two (2) Business Days after the date such payment is due from such Lender to the date such payment is made by such Lender, the Prime Rate in effect for each such day. If such amount is not received from such Lender by the Administrator immediately upon demand, the Broker/Dealer will, on demand, repay to the Administrator the proceeds of the Revolving Loan attributable to such Lender with interest thereon at a rate per annum equal to the interest rate applicable to the relevant Revolving Loan, but without such payment being considered a payment or prepayment of a Revolving Loan under the Loan Agreement. For the avoidance of doubt, the Administrator shall not be required to fund the Advance of any Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Substitution of Lenders.* In the event (i) the Broker/Dealer receives a claim from any Lender for compensation under <u>Section</u> <u>7(v)</u> or <u>Section</u> <u>12,</u> (ii) the Broker/Dealer receives notice from any Lender of any illegality, or (hi) any Lender is then a Defaulting Lender or such Lender is a Subsidiary or Affiliate of a Person who has been deemed insolvent or becomes the subject of a proceeding under any Debtor Relief Laws or a receiver or conservator has been appointed for any such Person (any such Lender referred to in clause (i) though (hi) above being an **"Affected Lender"),** the Broker/Dealer may, in addition to any other rights the Broker/Dealer may have hereunder or under applicable law, require, at its expense, any such Affected Lender to assign, at par, without recourse, all of its interest, rights, and obligations hereunder (including all of its Revolving Credit Commitments and the Revolving Loans and other amounts at any time owing to it hereunder and the other Loan Documents) to an Eligible Assignee specified by the Broker/Dealer, provided that (x) such assignment shall not conflict with or violate any law, rule or regulation or order of any court or other governmental authority, (y) the Broker/Dealer shall have paid to the Affected Lender all monies (together with amounts due such Affected Lender as if the Advances owing to it were prepaid rather than assigned) other than such principal owing to it hereunder, and (z) the assignment is entered into in accordance with, and subject to the consents required by, <u>Section</u> <u>24</u> (provided any assignment fees and reimbursable expenses due thereunder shall be paid by the Broker/Dealer).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *Defaulting Lender Adjustments.* Notwithstanding anything to the contrary under this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Waivers and Amendments.* Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Defaulting Lender Waterfall.* Any payment of principal, interest, fees or other amounts received by the Administrator for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to <u>Section</u> <u>8</u> or otherwise) or received by the Administrator from a Defaulting Lender pursuant to <u>Section</u> <u>12(f)</u> shall be applied at such time or times as may be determined by the Administrator as follows: *first,* to the payment of any amounts owing by such Defaulting Lender to the Administrator hereunder; *second,* as the Broker/Dealer

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may request (so long as no Event of Default exists), to the funding of any Revolving Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement and the Loan Agreement, as determined by the Administrator; *third,* if so determined by the Administrator and the Broker/Dealer, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender's potential future funding obligations with respect to Revolving Loans under the Loan Agreement; *fourth,* to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement or the Loan Agreement; *fifth,* so long as no Event of Default exists, to the payment of any amounts owing to the Broker/Dealer as a result of any judgment of a court of competent jurisdiction obtained by the Broker/Dealer against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Loan Agreement; and *sixth,* to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; *provided* that if (x) such payment is a payment of the principal amount of any Revolving Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Revolving Loans were made at a time when the conditions set forth in <u>Section</u> <u>6</u> were satisfied or waived, such payment shall be applied solely to pay the Revolving Loans owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Advances owed to, such Defaulting Lender until such time as all Revolving Loans are held by the Lenders pro rata in accordance with their Revolver Percentages of the Revolving Credit Commitments. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Certain Fees.* No Defaulting Lender shall be entitled to receive any commitment fee for any period during which that Lender is a Defaulting Lender (and the Broker/Dealer shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Defaulting Lender Cure.* If the Administrator determines that a Lender is no longer a Defaulting Lender, the Administrator will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein, that Lender will, to the extent applicable, purchase at par that portion of outstanding Revolving Loans of the other Lenders or take such other actions as the Administrator may determine to be necessary to cause the Revolving Loan to be held pro rata by the Lenders in accordance with their respective Revolver Percentages of the Revolving Credit Commitments, whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Broker/Dealer while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Taxes and Fees</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Broker/Dealer shall pay all Other Taxes to the relevant Governmental Authority in accordance with applicable law or reimburse the Administrator therefor to the extent paid by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Broker/Dealer agrees to pay to the Administrator for the ratable account of the Lenders a nonrefundable quarterly non-usage fee equal to the daily unborrowed portion of the Loan Commitment

(the **"Non-Use Fee").** For purposes of the foregoing, the unborrowed portion of the Loan Commitment for any given day will be an amount equal to the result of: (i) the amount of the Loan Commitment; minus (ii) the sum of the aggregate principal amount of all Loans outstanding; in each case determined as of the end of such day. The Non-Use Fee shall be computed for the actual number of days elapsed on the basis of a year of 360 days at a rate per annum equal to One-Half Percent (0.50%). The accrued unpaid non-usage fee shall be payable quarterly beginning on December 31, 2025, and on the last day of each March, June, September and December thereafter prior to the Revolving Loan Maturity Date, with any outstanding unpaid amount due upon the Revolving Loan Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Broker/Dealer shall pay to the Administrator, for its own use and benefit, the fees agreed to between the Administrator and the Broker/Dealer in a fee letter of even date, or as otherwise agreed to in writing between them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All payments hereunder shall be made at the office of the Administrator or at such other place as the Administrator may specify from time to time, in lawful money of the United States in immediately available funds without setoff or counterclaim, failing which, unless the payment obligation is suspended as provided in this Loan Agreement, the Administrator shall be entitled to all of the rights and remedies of an unpaid creditor with a matured indebtedness provided by applicable law, subject to the provisions for subordination set forth in this Loan Agreement. All payments to be made by the Broker/Dealer hereunder shall be made no later than 1:00 p.m. Chicago time on the due date. Any payments received after such time shall be deemed to have been received by the Administrator on the next Business Day. Fees and other amounts paid shall not be refundable under any circumstances, other than payments of principal or interest as required by any Requirements of Law due to the Broker/Dealer's failure to maintain its Capital Requirements. The Administrator will promptly thereafter cause like funds to be distributed relating to the payment of principal or interest on the Revolving Loans and like funds relating to the payment of any other amount payable to any Lender to such Lender, in each case to be applied in accordance with the terms of the Loan Agreement. If the Administrator causes amounts to be distributed to the Lenders in reliance upon the assumption that the Broker/Dealer will make a scheduled payment and such scheduled payment is not so made, each Lender shall, on written demand by the Administrator, repay to the Administrator the amount distributed to such Lender together with interest thereon in respect of each day during the period commencing on the date such amount was distributed to such Lender and ending on (but excluding) the date such Lender repays such amount to the Administrator, at a rate per annum equal to: (i) from the date the distribution was made to the date two (2) Business Days after payment by such Lender is due hereunder, the Federal Funds Rate for each such day and (ii) from the date two (2) Business Days after the date such payment is due from such Lender to the date such payment is made by such Lender, the Prime Rate in effect for each such day.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If any payment of interest or principal due hereunder is not made within ten (10) days after such payment is due in accordance with the terms hereof, then, in addition to the payment of the amount so due, the Broker/Dealer shall pay to the Administrator a "late charge" of five cents for each whole dollar so overdue to defray part of the cost of collection and handling such late payment. The Broker/Dealer agrees that the damages to be sustained by the Administrator for the detriment caused by any late payment are extremely difficult and impractical to ascertain, and that the amount of five cents for each one dollar due is a reasonable estimate of such damages, does not constitute interest, is not a penalty, and does not constitute a waiver of the Administrator's rights with respect to the default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Anything herein to the contrary notwithstanding, but subject in all events to the terms and conditions of the Loan Agreement, all payments and collections received in respect of the Obligations by the Administrator or any of the Lenders after acceleration or the final maturity of the Obligations or termination of the Revolving Credit Commitments as a result of an Event of Default shall be remitted to the Administrator and distributed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) first, to the payment of any outstanding costs and expenses incurred by the Administrator in protecting, preserving or enforcing rights under the Loan Documents, and in any event including all costs and expenses of a character which the Broker/Dealer has agreed to pay the Administrator or Lenders hereunder (such funds to be retained by the Administrator for its own account unless it has previously been reimbursed for such costs and expenses by the Lenders, in which event such amounts shall be remitted to the Lenders to reimburse them for payments theretofore made to the Administrator);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) second, to the payment of any outstanding interest and fees due under the Loan Documents to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) third, to the payment of principal on the Revolving Loans to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) fourth, to the payment of all other unpaid Obligations and all other indebtedness, obligations, and liabilities of the Broker/Dealer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) finally, to the Broker/Dealer or whoever else may be lawfully entitled thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Representations and Warranties</u>. In order to induce the Administrator and Lenders to enter this Loan Agreement and make new Loans, the Broker/Dealer represents and warrants to the Administrator and each Lender as of the date hereof and as of each date on which the representations and warranties in this <u>Section</u> <u>5</u> are to be made or deemed to be made in accordance with the provisions of this Loan Agreement:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Organization; Powers.* The Broker/Dealer: (i) is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware; (ii) has all requisite limited liability company power, and has all material governmental licenses, permits, authorizations, consents and approvals, necessary to own its assets and carry on its business as now being and as proposed to be conducted; and (iii) is qualified to do business and is in good standing in all jurisdictions in which the nature of the business conducted by it makes such qualification necessary and where failure so to qualify or to be in good standing would (either individually or in the aggregate) result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Authorization; Enforceability.* The Broker/Dealer has all necessary limited liability company power, authority and legal right to execute, deliver and perform its obligations under this Loan Agreement; the execution, delivery and performance by the Broker/Dealer of this Loan Agreement have been duly authorized by all necessary limited liability company action (including, without limitation, any required approvals); each has been duly and validly executed and delivered by the Broker/Dealer and this Loan Agreement constitutes its legal, valid and binding obligation, enforceable against the Broker/Dealer in accordance with its terms, except as such enforceability may be limited by any Debtor Relief Laws (regardless of whether such enforceability is considered in a proceeding in equity or at law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Approvals.* No authorizations, approvals or consents of, and no filings or registrations with any Governmental Authority or any securities exchange are necessary for the execution, delivery or performance by the Broker/Dealer of this Loan Agreement, or for the legality, validity or enforceability hereof or thereof, except for (a) the approval of the Examining Authority to classify this Loan Agreement as a satisfactory subordinated loan agreement under Appendix D of the Rule (which is the only approval or consent of a Governmental Authority necessary to permit such classification, which approval will have been obtained prior to the effectiveness of this Loan Agreement and the making of the Loan hereunder), (b) authorizations, approvals or consents of any Governmental Authority which have been obtained or made prior to the making of the Loan hereunder and which are in full force and effect on the date of such Loan, and (c) routine filings with the SEC or the Examining Authority that may be required to be made from time to time after the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *No Breach.* None of the execution and delivery of this Loan Agreement, the consummation of the transactions herein and therein contemplated or compliance with the terms and provisions hereof and thereof will conflict with or result in a breach of, or require any consent under, (i) the certificate of incorporation, bylaws or other organizational documents of the Broker/Dealer, or (ii) any applicable law or regulation, or any order, writ, injunction or decree of any court or Governmental Authority, (iii) or any agreement or instrument to which the Broker/Dealer is a party or by which the Broker/Dealer or any of its respective properties is bound or to which the Broker/Dealer is subject, or constitute a default under any such agreement or instrument, or result in the creation or imposition of any mortgage, lien, pledge, charge, security interest or encumbrance of any kind upon any property of the Broker/Dealer pursuant to the terms of any such agreement or instrument, except, in the case of this <u>clause (iii),</u> as would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Equity Ownership.* All issued and outstanding Capital Securities of the Broker/Dealer are duly authorized and validly issued, fully paid, non-assessable and free and clear of all Liens, and such securities were issued in compliance with all applicable state and federal laws concerning the issuance of securities. The ownership and types of the Capital Securities of the Broker/Dealer are set forth on <u>Schedule 5(e)</u>. Other than as set forth on <u>Schedule 5(e),</u> as of the date hereof, there are no pre-emptive or other outstanding rights, options, warrants, conversion rights or other similar agreements or understandings for the purchase or acquisition of any Capital Securities of the Broker/Dealer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Financial Statements/Exchange Act Filings.* All financial statements, including FOCUS Reports, submitted to the Administrator have been prepared in accordance with sound accounting practices and GAAP on a basis, except as otherwise noted therein, consistent with the previous fiscal year and present fairly in all material respects the financial condition of the Broker/Dealer and the results of the operations for the Broker/Dealer as of such date and for the periods indicated. Since the date of the last financial statement submitted by the Broker/Dealer to the Administrator, there has been no adverse change in the financial condition or in the assets or liabilities of the Broker/Dealer having a Material Adverse Effect on the Broker/Dealer. The Broker/Dealer has no contingent liabilities which are material to it other than (i) those that were incurred in the ordinary course of business, and (ii) other than as indicated on such financial statements or, with respect to future periods, on the financial statements furnished pursuant to <u>Section</u> <u>7(f)</u>. The Broker/Dealer has timely filed complete and correct Exchange Act filings, including but not limited to FOCUS Reports, in accordance with applicable Exchange Act rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *No Material Adverse Change.* Since the date of the last financial statement submitted by the Broker/Dealer to the Administrator, there has been no material adverse change in the business, assets, prospects, operations or condition, financial or otherwise, of the Broker/Dealer, *provided,* that, the delivery of any subsequent financial statement shall not, on its own, be deemed to cure any Event of Default or Unmatured Event of Default (if any) that occurred prior to such delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Title to Property.* The Broker/Dealer has good title to, or valid leasehold interests in, all its real and personal property material to its business, except for any failure in the foregoing that would not reasonably be expected to have a Material Adverse Effect and for minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such properties for their intended purposes. The Broker/Dealer owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by the Broker/Dealer does not infringe upon the rights of any other Person, except for any such failures to own or license or infringements that, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Other Subordinated Debt.* As of the Closing Date, there is no Subordinated Debt of the Broker/Dealer other than the Subordinated Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *Net Capital.* The Broker/Dealer operates under paragraph (a)(l)(ii) of the Rule for the computation of its Net Capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Liquidity.* Set forth on <u>Schedule 5(k)</u> is the Broker/Dealer's most recent daily treasury report which specifies by institution the amount of cash, securities or other financial assets held by the Broker/Dealer at such institution.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) *Taxes.* The Broker/Dealer has filed or caused to be filed all federal income Tax returns, or applicable extensions thereof, and all other material Tax returns and information statements that are required to be filed by the Broker/Dealer and has paid all Taxes, or estimated Taxes (in connection with any extensions filed) due pursuant to such returns or pursuant to any assessment received by the Broker/Dealer, except for any such Tax or assessment the payment of which is being contested in good faith and by proper proceedings and against which adequate reserves are being maintained. The charges, accruals and reserves on the books of the Broker/Dealer in respect of Taxes and other governmental charges are, in the opinion of the Broker/Dealer, adequate. The Broker/Dealer has not given or been requested to give a waiver of the statute of limitations relating to the payment of any federal, state, local and foreign Taxes or other impositions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) *Litigation and Contingent Liabilities.* There is no litigation, arbitration proceeding, demand, charge, claim, petition or governmental investigation or proceeding pending, or to the best knowledge of the Broker/Dealer, threatened, against the Broker/Dealer, which, if adversely determined, would reasonably be expected to have a Material Adverse Effect. Other than any liability incident to such litigation or proceedings or performance guaranties with respect to the Broker/Dealer's Subsidiaries in the ordinary course of business, the Broker/Dealer has no material guarantee obligations, Contingent Liabilities, liabilities for Taxes, or any long-term leases or unusual forward or long-term commitments, including any interest rate or foreign currency swap or exchange transaction or other obligation in respect of derivatives, that are not fully reflected or fully reserved for in the most recent audited financial statements delivered pursuant to <u>Section</u> <u>7(f),</u> other than as were entered into in the ordinary course of business and as would not individually or in the aggregate reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) *Event of Default.* No Event of Default or Unmatured Event of Default has occurred and is continuing, and to its knowledge, the Broker/Dealer is not in default, which default could materially and adversely impact the Broker/Dealer, under any other material contract or agreement to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) *ERISA Obligations.* All Employee Plans of the Broker/Dealer meet the minimum funding standards of Section 302 of ERISA and 412 of the Code where applicable, and each such Employee Plan that is intended to be qualified within the meaning of Section 401 of the Code is qualified; no withdrawal liability has been incurred under any such Employee Plans and no "Reportable Event" or "Prohibited Transaction" (as such terms are defined in ERISA), has occurred with respect to any such Employee Plans, unless approved by the appropriate governmental agencies; and the Broker/Dealer has promptly paid and discharged all obligations and liabilities arising under ERISA of a character which if unpaid or unperformed might result in the imposition of a Lien against any of its properties or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) *Labor Relations,* (i) There are no strikes, lockouts or other labor disputes against the Broker/Dealer or, to the Broker/Dealer's knowledge, threatened, (ii) hours worked by and payment made to employees of the Broker/Dealer have not been in violation of the Fair Labor Standards Act or any other applicable law, and (iii) no unfair labor practice complaint is pending against the Broker/Dealer or, to the Broker/Dealer's knowledge, threatened before any Governmental Authority.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Conditions Precedent to Closing</u>. The obligation of the Lenders to make the Loans shall not become effective until the date (the **"Closing Date")** on which each of the following conditions is satisfied or waived by the Administrator:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Loan Documents.* The Administrator (or its counsel) shall have received from the Broker/Dealer (i) Form 33R and this Rider signed on behalf of the Broker/Dealer, (ii) the Revolving Notes duly executed by Broker/Dealer in the form attached to the Loan Agreement as <u>Exhibit A,</u> and (iii) such other Loan Documents as required by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Organizational and Authorization Documents.* Copies of (i) the Certificate of Incorporation and bylaws (or equivalent formation and governing documents) of the Broker/Dealer and the Parent; (ii) resolutions of the Broker/Dealer approving and authorizing its execution, delivery and performance of the Loan Documents and the transactions contemplated thereby; (iii) signature and incumbency certificates of the officers of the Broker/Dealer executing any of the Loan Documents, each of which the Broker/Dealer hereby certifies to be true and complete, and in full force and effect without modification, it being understood that the Administrator may conclusively rely on each such document and certificate until formally advised by the Broker/Dealer of any changes therein; and (iv) good standing certificates in the state of formation of the Broker/Dealer and the Parent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Legal Opinion.* The Administrator (or its counsel) shall have received an opinion of counsel to the Broker/Dealer, addressed to the Administrator and the Lenders, in form and substance satisfactory to the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Solvency Certificate.* A Solvency Certificate executed by Broker/Dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Closing Certificate.* A Closing Certificate executed by the Broker/Dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Examining Authority.* The Administrator (or its counsel) shall have received evidence that the Examining Authority have found the Loan Agreement acceptable as to form and content and deemed it to constitute a satisfactory subordination agreement under Appendix D of the Rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Sharing Agreements.* To the extent not heretofore delivered to Administrator, copies of all Sharing Agreements currently in effect certified by an authorized officer of the Broker/Dealer, Parent or its or their Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Additional Documents.* Such other certificates, financial statements, schedules, resolutions, notes and other documents which are provided for hereunder or which the Administrator shall require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Fees.* The fees payable under <u>Section</u> <u>3</u> (including the fee letter referenced therein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *Accuracy of Representations; No Default,* (i) The representations and warranties of the Broker/Dealer made herein shall be true and complete in all material respects (where not already qualified by materiality, otherwise in all respects) on and as of the date of the making of the Loan with the same force and effect as if made on and as of such date (or, if any such representation or warranty is expressly stated to have been made as of an earlier date, as of such earlier date), and (ii) no Default shall have occurred and be continuing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Compliance with Laws.* Except as would not reasonably be expected to have a Material Adverse Effect, the Broker/Dealer shall be in compliance with all laws and regulations applicable to it, including Capital Requirements, and all regulatory approvals necessary for any advance under the Agreement shall have been obtained and be in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Financial Covenants.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Tentative Net Capital.* At all times the Broker/Dealer shall maintain a Tentative Net Capital of at least Four Hundred Fifty Million Dollars ($450,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Excess Net Capital.* At all times the Broker/Dealer shall maintain Excess Net Capital of at least Three Hundred Million Dollars ($300,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Maximum Leverage Ratio.* At all times the amount of outstanding Loans shall not exceed 0.20 times the Broker/Dealer's Tentative Net Capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Maintenance of Existence.* The Broker/Dealer will do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence under the laws of its jurisdiction of organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Maintenance of Licenses, Permits, Rights and Properties.* The Broker/Dealer will do or cause to be done all things necessary to preserve, renew and keep in full force and effect its licenses, permits, rights and properties necessary to conduct its business, except where the failure to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Maintenance of Property in Working Order.* The Broker/Dealer will do or cause to be done all things necessary to keep its property in good working order and condition, except where the failure to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Compliance with Laws.* The Broker/Dealer will (i) comply with all Requirements of Law applicable to it or its property, except such failures to comply as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect on the Broker/Dealer; and (ii) pay and discharge all Taxes, assessments and charges or levies imposed by any Governmental Authority on it or its activities or on its income or profits or on any of its property prior to the date on which penalties attach thereto, except for any such Tax, assessment, charge or levy for which Broker/Dealer has given the Administrator prompt notice thereof and the payment of which is being contested in good faith and by proper proceedings which are promptly instituted and diligently pursued, against which adequate reserves have been established in accordance with GAAP and are being maintained.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Financial Statements and Other Information.* The Broker/Dealer shall provide the Administrator an opening balance sheet for Broker/Dealer showing sufficient capital as required by the Administrator. The Broker/Dealer shall at all times maintain its accounting on an accrual basis and in all material respects in accordance with GAAP, and shall furnish, or shall cause to be furnished, to the Administrator or its authorized representatives such information regarding the business affairs, operations and financial condition of the Broker/Dealer, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) promptly when available, and in any event within ninety (90) days after the close of each of its fiscal years beginning with the fiscal year ending December 31, 2025, a copy of the annual audited financial statements of the Broker/Dealer, including balance sheet, statement of income and retained earnings, statement of cash flows for the fiscal year then ended and such other information (including nonfinancial information) as the Administrator may reasonably request, in reasonable detail, prepared and certified without adverse reference to going concern value and without qualification by an independent public accounting firm reasonably acceptable to the Administrator (the **"Accounting Firm"),** together with the auditor's management letter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) promptly when available, and in any event within one hundred fifty (150) days after the close of each of its fiscal years beginning with the fiscal year ending December 31, 2025, a copy of the annual audited financial statements of Clear Street Group Inc., including balance sheet, statement of income and retained earnings, statement of cash flows for the fiscal year then ended and such other information (including nonfinancial information) as the Administrator may reasonably request, in reasonable detail, prepared and certified without adverse reference to going concern value and without qualification by the Accounting Firm, together with the auditors management letter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promptly when available, and in any event, within thirty (30) days after the close of each fiscal year beginning with the fiscal year ending December 31, 2025, evidence of the risk management policies and procedures adopted by the Broker/Dealer in form acceptable to the Administrator in its sole discretion, and, promptly upon completion, the Annual Third-Party Risk Management Program review for the Broker/Dealer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) promptly when available, and in any event, within forty-five days (45) days after the end of each fiscal quarter beginning with the fiscal quarter ending September 30, 2025, a duly completed compliance certificate in the form attached hereto as <u>Exhibit A,</u> dated the date of such financial statements and certified as true and correct by the chief financial officer of the Broker/Dealer, containing (A) a computation of the applicable financial covenants set forth in <u>Section</u> <u>7(a)</u> as of the last Business Day of such fiscal quarter and stating whether or not the Broker/Dealer has become aware of any Default that has occurred and is continuing or, if there is any such Default, describing it and the steps, if any, being taken to cure it, (B) a schedule of Broker/Dealer's liquidity (bank and trading accounts), (C) disclosure of any legal and/or regulatory matters, which would reasonably be expected to have a Material Adverse Effect, including (whether or not such are reasonably expected to have a Material Adverse Effect): (1) if the chief executive officer, chief financial officer or chief compliance officer of the Broker/Dealer, in each case in their capacity as such, is subject to, or it is anticipated that the chief executive officer, chief financial officer or chief compliance officer of the Broker/Dealer, in each case in their capacity as such, will be subject to, any of the following: (w) a regulatory fine of $5,000,000; or (x) a

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settlement of $5,000,000 or more related to any litigation, arbitration or regulatory event, or (2) if Broker/Dealer is subject to, or it is anticipated that the Broker/Dealer will be subject to, any of the following: (y) a regulatory fine of $5,000,000; or (z) a settlement of $5,000,000 or more related to any litigation, arbitration or regulatory event; and (D) the amount of distributions as described in <u>Section</u> <u>7(1)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) promptly when available, and in any event within thirty (30) days after the last day of each month, a copy of the Broker/Dealer's most recent FOCUS Report including its income statement as of the last day of such period, in reasonable detail, prepared by the Broker/Dealer in accordance with GAAP and certified to by its chief financial officer or such other officer acceptable to the Administrator; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) promptly upon request, such other business or financial data as the Administrator may reasonably request.

No change with respect to such accounting principles (other than to comply with changes in GAAP) shall be made by the Broker/Dealer without giving prior notification to the Administrator. The Administrator shall have the right during business hours, upon five (5) Business Days prior written notice thereof to the Broker/Dealer, to inspect the books and records of the Broker/Dealer and make extracts therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Audit Reports.* The Broker/Dealer shall (a) make available to the Administrator copies of any audit reports performed or required to be performed by the Examining Authority and (b) furnish to the Administrator copies of any audit reports performed or required to be performed by the Examining Authority which contains material adverse findings or otherwise results in liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Field Audits.* The Broker/Dealer shall, upon reasonable prior notice to the Broker/Dealer and at such reasonable times during normal business hours, permit the Administrator to inspect the tangible assets and/or other business operations of the Broker/Dealer, to perform appraisals of the equipment of the Broker/Dealer, and to inspect, audit, check and make copies of, and extracts from, the books, records, computer data, journals, orders, receipts, correspondence and other data relating to accounts. Such inspections or audits will be limited to no more than once per calendar year provided that no Event of Default has occurred and is continuing. Unless an Event of Default shall have occurred and is continuing, all such inspections or audits that the Administrator conducts during any calendar year shall be at the Lenders' sole expense (payable in accordance with their Revolver Percentage).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Depository Relationship.* The Broker/Dealer will utilize Administrator as its bank of account and depository (i) for depositing the proceeds of all Loans prior to any utilization thereof in accordance with the terms hereof, (ii) to make payments of principal and interest on the Loans as set forth in this Loan Agreement, and (iii) to pay fees as set forth in this Loan Agreement. For the avoidance of doubt, this provision is not intended to, and shall not, require the Broker/Dealer to retain proceeds of the

Loans for any period of time in its depository accounts. Broker/Dealer has no other Deposit Accounts except those listed on <u>Schedule 7(i)</u> attached hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *Notices of Default and other Material Events.* The Broker/Dealer will furnish notice to the Administrator in writing promptly after the Broker/Dealer knows or has reason to believe that (i) any Default has occurred, (ii) any proceeding by or before any Governmental Authority, and of any material development in respect of such legal or other proceedings, affecting the Broker/Dealer, except proceedings that if adversely determined, would not (either individually or in the aggregate) reasonably be expected to result in Material Adverse Effect, (iii) any default by any party under the BMO Liquidity Line, or (iv) any other development that results in, or could reasonably be expected to result in a Material Adverse Effect. Each notice delivered hereunder shall be accompanied by a statement of an executive officer of the Broker/Dealer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Prohibition of Fundamental Changes.* The Broker/Dealer will not: (i) enter into any transaction of merger or consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution); (ii) acquire any business or property from, or equity interests of, or be a party to any acquisition of, any Person, except for Investments permitted under this Loan Agreement; or (iii) convey, sell, lease, transfer or otherwise dispose of, in one transaction or a series of transactions, any material part of its business or property, whether now owned or hereafter acquired, except for (A) sales of any tangible personal property that, in the reasonable business judgment of the Broker/Dealer, has become uneconomical, obsolete or wornout, or which is surplus property or which is no longer necessary for the proper conduct of the Broker/Dealer's business and (B) sales of securities and other property in the ordinary course of business, in each case above without the prior written consent of the Required Lenders. The Broker/Dealer will not create or acquire any Subsidiary without the prior written consent of the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) *Restricted Payments.* The Broker/Dealer will not declare or make directly or indirectly, any Restricted Payment at any time during which the Loan is outstanding. Notwithstanding the foregoing, so long as no Event of Default or Unmatured Event of Default exists or would result therefrom, the Broker/Dealer may make dividends or other distributions or payments to the holders of its Capital Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) *Debt; Leases.* The Broker/Dealer shall not create, assume, incur or have outstanding any Debt (including purchase money indebtedness) or operating lease other than as expressly permitted herein, or become liable, whether as endorser, guarantor, surety or otherwise, for any debt or obligation of any other Person, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Obligations under this Loan Agreement and the other Loan Documents, and other obligations owing to the Administrator and each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the BMO Liquidity Line, as may be amended or increased;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) purchase money indebtedness and Capitalized Lease Obligations of the Broker/Dealer in an amount not to exceed $5,000,000 in the aggregate at any one time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) obligations of the Broker/Dealer arising out of interest rate, foreign currency, and commodity hedging agreements entered into with financial institutions in connection with bona fide hedging activities in the ordinary course of business and not for speculative purposes;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) endorsement of items for deposit or collection of commercial paper received in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) financing of securities and other financial instruments held in the normal day to day conduct of the Broker/Dealer's business, including but not limited to any margin facility or margin- related Debt incurred to finance such securities or instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any letters of credit (and related obligations) obtained by the Broker/Dealer and provided to lessors in connection with leases of real property in an amount not to exceed $5,000,000 in the aggregate at any one time outstanding and provided that the Broker/Dealer provides written notice of any letters of credit (and related obligations) obtained by it to the Administrator within fifteen (15) days after thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) intercompany Debt so long as no Default has occurred and is continuing or would result from the incurrence of such intercompany Debt, *provided* that, in the event a Default has occurred and is continuing, all such intercompany Debt shall be deemed to be Subordinated Debt hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) obligations of the Broker/Dealer for Taxes, assessments, municipal or other governmental charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) obligations of the Broker/Dealer for accounts payable, other than for money borrowed, incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Subordinated Debt in effect on the date of this Loan Agreement, and any other Subordinated Debt after the date of this Loan Agreement consented to in writing by the Administrator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) Debt to clearing firms, clearing houses, financial institutions, broker dealers and/or settlement banks for margin or secured financing incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) liabilities or obligations for or with respect to any liabilities incurred in the ordinary course of business including, without limitation, (A) credit default swaps or other credit derivatives entered into solely for the purpose of hedging, (B) Securities Financing, and (C) guarantees issued to or for trading counterparties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) Debt incurred by the Broker/Dealer to finance acquisitions and Investments permitted under the Loan Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) other Debt of the Broker/Dealer in an aggregate amount not to exceed $5,000,000 at any one time so long as, at the time of issuance, incurrence, assumption or creation of such Debt, no Default exists or would occur as a result of the incurrence of such Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) *Insurance.* The Broker/Dealer shall at all times maintain with insurance companies such insurance coverage as may be required by any law or governmental regulation or court decree or order applicable to it and such other insurance, to such extent and against such hazards and liabilities, including employers', public and professional liability risks, as is customarily maintained by companies similarly situated. All certificates of insurance are to be delivered to the

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Administrator and the policies are to be premium prepaid, with the loss payable endorsement for the Property policy and additional insured endorsement for the General Liability in favor of the Administrator, and shall provide ten (10) days' prior written notice before the effective date of cancellation if insurer cancels for non-payment of premium or for not less than thirty (30) days' prior written notice to the Administrator of the exercise of any right of cancellation for any other reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) *Liens.* The Broker/Dealer will not create, incur, assume or suffer to exist any Lien, except to the extent such Lien is both (i) in the ordinary course of business of the Broker/Dealer, and (ii) would not reasonably be expected to result in a Material Adverse Effect; *provided, further,* that the foregoing shall not apply to nor operate to prevent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens arising by statute in connection with worker's compensation, unemployment insurance, old age benefits, social security obligations, taxes, assessments, statutory obligations or other similar charges (other than Liens arising under ERISA), good faith cash deposits in connection with tenders, contracts or leases to which the Borrower or any Subsidiary is a party or other cash deposits required to be made in the ordinary course of business, *provided* in each case that the obligation is not for borrowed money and that the obligation secured is not overdue or, if overdue, is being contested in good faith by appropriate proceedings which prevent enforcement of the matter under contest and adequate reserves have been established therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) mechanics', workmen's, materialmen's, landlords', carriers' or other similar Liens arising in the ordinary course of business with respect to obligations which are not due or which are being contested in good faith by appropriate proceedings which prevent enforcement of the matter under contest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the pledge of assets for the purpose of securing an appeal, stay or discharge in the course of any legal proceeding, *provided* that the aggregate amount of such judgment liens and attachments and liabilities of the Broker/Dealer secured by a pledge of assets permitted under this subsection, including interest and penalties thereon, if any, shall not be in excess of $10,000,000 at any one time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any interest or title of a lessor under any operating lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) easements, rights-of-way, restrictions, and other similar encumbrances against real property incurred in the ordinary course of business which, in the aggregate, are not substantial in amount and which do not materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the Broker/Dealer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) required deposits maintained with commodity or securities exchanges or their associated clearing corporations in the ordinary course of the business of the Broker/Dealer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Liens (1) of a collection bank arising under Section 4-210 of the Uniform Commercial Code on the items in the course of collection, (2) attaching to commodity trading accounts or other commodities brokerage accounts or relating to pooled deposit or sweep accounts of the Broker/Dealer to permit satisfaction of overdraft or similar obligations incurred in the ordinary course of business, (3) in favor of a banking or other financial institution arising as a matter of law encumbering deposits or other funds maintained with a financial institution

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(including the right of set off) and which are within the general parameters customary in the banking industry and (4) in the nature of contractual rights of set-off relating to purchase orders and other agreements entered into with customers of the Broker/Dealer or otherwise in the ordinary course of business and customary holdbacks under credit cards or similar merchant processing, *provided* that, the Broker/Dealer shall provide written notice within fifteen (15) days of the incurrence of such Lien and shall provide an updated <u>Schedule 7(o)</u> hereto describing such Lien in reasonable detail;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Liens arising from precautionary Uniform Commercial Code financing statement filings, *provided* that, the Broker/Dealer shall provide written notice within fifteen (15) days of the incurrence of such Lien and shall provide an updated <u>Schedule 7(o)</u> hereto describing such Lien in reasonable detail;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Liens in connection with sales, transfers, leases, assignments or other conveyances or dispositions of securities permitted under this Agreement, including (1) Liens on securities granted or deemed to arise in connection with and as a result of the execution, delivery or performance of contracts to sell such securities if such sale is otherwise permitted hereunder, or is required by such contracts to be permitted hereunder, and (2) rights of first refusal, options or other contractual rights or obligations to sell, assign or otherwise dispose of any securities or interest therein, which rights of first refusal, option or contractual rights are granted in connection with a sale, transfer or other disposition of securities permitted hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Liens securing Debt permitted under <u>Section</u> <u>7(m)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) *Investments.* The Broker/Dealer shall not, either directly or indirectly, make or have outstanding any Investment, except: (i) Contingent Liabilities constituting Debt permitted by <u>Section</u> <u>7(m);</u> (ii) Cash Equivalent Investments; (iii) advances to clearing houses, clearing firms, prime brokers, broker dealers and/or settlement firms with respect to margin money in the ordinary course of business; (iv) the buying and selling of securities in the ordinary course of business of the Broker/Dealer's trading or clearing activity, or lending to the Broker/Dealer's Affiliates in connection with the activities described in this <u>clause (iv);</u> and (v) acquiring entities engaged in a business that is complimentary to the existing business of the Broker/Dealer, provided that any such entity so acquired shall provide a guarantee securing the Obligations. Notwithstanding the foregoing, no Investment otherwise permitted by <u>Sections 7(p)(i)</u> or <u>7(p)(ii)</u> shall be permitted to be made if, immediately before or after giving effect thereto, any Event of Default or Unmatured Event of Default exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) *Transactions with Affiliates.* Except as expressly permitted by this Loan Agreement, the Broker/Dealer shall not directly or indirectly: (i) make any Investment in an Affiliate other than as described in <u>Section</u> <u>7(p)(i)</u> and <u>7(p)(iv);</u> (ii) transfer, sell or assign or otherwise dispose of any material property to an Affiliate in a manner not consistent with relevant transfer pricing rules; (iii) merge into or consolidate with or purchase or acquire material property from an Affiliate at greater than market value; or (iv) enter into any other transaction for the benefit of an Affiliate (including, without limitation, guaranties and assumptions of obligations of an Affiliate) without obtaining reasonable compensation from the Affiliate; provided that (x) any Affiliate who is an individual may serve as a member, officer or employee of the Broker/Dealer and receive reasonable compensation (including reasonable bonuses) for his or her services in such capacity

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and (y) the Broker/Dealer may enter into transactions (other than extensions of credit by the Broker/Dealer to an Affiliate that are prohibited by this Loan Agreement) providing for the leasing of property and the rendering or receipt of services and property in the ordinary course of business, if the monetary or business consideration arising therefrom would be substantially as advantageous to the Broker/Dealer as the monetary or business consideration that it would obtain in a comparable transaction with a Person not an Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) *Distributions/Payments on Subordinated Debt.* The Broker/Dealer shall not (i) make any distribution or dividend, whether in cash or otherwise, to the Parent if an Event of Default or Unmatured Event of Default exists or would result therefrom, (ii) purchase or redeem any of its equity interests or any warrants, options or other rights in respect thereof, at any time during which the Loan is in effect which would result in a Default under the Loan Documents; (iii) pay or prepay principal of, premium, if any, redemption, conversion, exchange, purchase, retirement, defeasance, sinking fund or any other payment in respect of any Subordinated Debt, or (iv) set aside funds for any of the foregoing. Notwithstanding the foregoing, however, Broker/Dealer may pay interest in respect of any Subordinated Debt at any time prior to the occurrence of a Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) *Issuance of Capital Securities, Subsidiaries.* Other than issuances of Capital Securities that do not change the relative ownership percentages of the equityholders of the Broker/Dealer or otherwise result in a Change of Control, the Broker/Dealer shall not issue any Capital Securities that would, in the aggregate, exceed more than 20% of the economic interest of the outstanding amount of Capital Securities of Broker/Dealer as outstanding on the date of this Agreement without the prior written consent of Required Lenders, which consent shall not be unreasonably withheld. Promptly upon the formation or acquisition of any subsidiary, the Broker/Dealer. Except as permitted under Section 7(p), the Broker/Dealer shall not form or acquire any Subsidiaries without the prior written consent of the Administrator, which consent may be conditioned upon such Subsidiary securing the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) *Modifications of Certain Documents.* The Broker/Dealer will not amend, modify or waive any of its rights under its organizational documents, other than (i) immaterial amendments, modifications or waivers that would not reasonably be expected to adversely affect the Administrator or Lenders and (ii) amendments or modifications that have been approved by the Administrator prior to being made.

Broker/Dealer shall deliver or cause to be delivered to the Administrator a copy of each amendment, modification or waiver of its organizational documents promptly after the execution and delivery thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) *ERISA Liabilities; Employee Plans.* The Broker/Dealer shall (i) keep in full force and effect any and all Employee Plans which are governed by ERISA, and not withdraw from any such Employee Plans, unless such withdrawal can be effected or such Employee Plans can be terminated without liability that would reasonably be expected to have a Material Adverse Effect upon the Broker/Dealer; (ii) make contributions to all of such Employee Plans in a timely manner and in a sufficient amount to comply with the standards of ERISA; including the minimum funding standards of ERISA; (iii) comply with all material requirements of ERISA which relate to such Employee Plans; (iv) notify the Administrator immediately upon receipt by the Broker/Dealer of

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any notice concerning the imposition of any withdrawal liability or of the institution of any proceeding or other action which may result in the termination of any such Employee Plans or the appointment of a trustee to administer such Employee Plans; (v) promptly advise the Administrator upon its becoming aware of the occurrence of any "Reportable Event" or "Prohibited Transaction" (as such terms are defined in ERISA), with respect to any such Employee Plans; and (vi) amend any Employee Plan that is intended to be qualified within the meaning of Section 401 of the Code to the extent necessary to keep the Employee Plan qualified, and to cause the Employee Plan to be administered and operated in a manner that does not cause the Employee Plan to lose its qualified status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *Compliance with Regulatory Requirements; Increased Costs.* If the Administrator or any Lender shall reasonably determine that any Regulatory Change, or compliance by the Administrator or such Lender, or any Person controlling the Administrator or such Lender, with any request or directive (whether or not having the force of law) of any governmental authority, central bank or comparable agency has or would have the effect of reducing the rate of return on such Lender's or such controlling Person's capital as a consequence of such Lender's obligations hereunder to a level below that which such Lender or such controlling Person could have achieved but for such Regulatory Change or compliance (taking into consideration such Lender's or such controlling Person's policies with respect to capital adequacy) by an amount deemed by such Lender to be material or would otherwise reduce the amount of any sum received or receivable by such Lender hereunder or under such Lender's Revolving Note with respect thereto, then from time to time, upon demand by the Administrator or such Lender (which demand shall be accompanied by a statement setting forth the basis for such demand and a calculation of the amount thereof in reasonable detail), the Broker/Dealer shall pay directly to the Administrator or such Lender such additional amount as will compensate such Lender for such increased cost or such reduction, so long as such amounts have accrued on or after the day which is one hundred eighty days (180) days prior to the date on which the Administrator for such Lender first made demand therefor; provided that such demand is consistent with demands made generally in respect of the applicable facts and circumstances by Administrator or such Lender under other credit agreements containing a provision similar to this <u>Section</u> <u>7(v)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) *Operating Leases.* The Broker/Dealer shall not permit the aggregate amount of all rental payments under Operating Leases made (or scheduled to be made) by the Broker/Dealer to exceed $10,000,000 in any fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) *Sharing Agreements.* The Broker/Dealer shall not directly or indirectly enter into any management, consulting or expense sharing arrangement with any Affiliate of the Broker/Dealer, Parent or any Subsidiary of the Broker/Dealer or Parent or any holder of Debt of the Broker/Dealer and/or Parent, or pay or accrue any management, consulting or similar fees to any Affiliate of the Broker/Dealer or Parent, or any Affiliate or Subsidiary of the Broker/Dealer or Parent without prior written approval from the Lender, except for the Sharing Agreements as set forth on <u>Schedule 7(x)</u> (it being understood that the Broker/Dealer is permitted to unilaterally update <u>Schedule 7(x)</u> from time to time to reflect additional Sharing Agreements entered into by the Broker/Dealer in the ordinary course of business consistent with past practice); *provided* that upon the occurrence or during the continuance of an Event of Default or Unmatured Event of Default, the Broker/Dealer shall not make payments under any of the Sharing Agreements, as may be updated from time to time, except (i) as required under SEC rules or by FINRA or its predecessor, the National

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Association of Securities Dealers or (ii) to the extent required to fund or reimburse payroll in the ordinary course of the Broker/Dealer's business consistent with past practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) *Inconsistent Agreements.* The Broker/Dealer shall not enter into any agreement containing any provision which would be violated or breached by any borrowing by the Broker/Dealer hereunder or by the performance by the Broker/Dealer of any of its Obligations hereunder or under any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Events of Default</u>. The Broker/Dealer, without notice or demand of any kind, shall be in default under this Rider upon the occurrence of any of the following events (each an **"Event of Default").**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Nonpayment of Obligations.* Any amount of principal or interest due and owing under this Loan Agreement is not paid within five (5) Business Days of the date scheduled herein, or any other of the Obligations in excess of $10,000, whether by its terms or as otherwise provided herein, is not paid when *Aus, provided* that such five (5) Business Day period shall not apply to any amounts due as the result of any acceleration thereof permitted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Misrepresentation.* Any written warranty, representation, certificate or statement of any Obligor in this Loan Agreement shall be false in any material respect when made, or if any financial data or any other information now or hereafter furnished to the Administrator by or on behalf of any Obligor shall prove to be false, inaccurate or misleading in any material respect when made; provided that, such warranty or representation must be material in order to be deemed an Event of Acceleration under <u>paragraph</u> 8 of the Form 33R.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Nonperformance.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A violation of any of the financial covenants under <u>Section</u> <u>7(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any failure to perform any covenant in this Loan Agreement or in the other Loan Documents relating to the conduct of the business of the Broker/Dealer or the maintenance and reporting of its financial position, including, but not limited to, the reporting of Broker/Dealer's financial position to Administrator as required under <u>Section</u> <u>7,</u> which is not cured within thirty (30) days after written notice to Broker/Dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Default under Loan Documents.* A default under the Loan Agreement or any of the other Loan Documents, all of which covenants, conditions and agreements contained therein are hereby incorporated in this Loan Agreement by express reference, shall be and constitute an Event of Default under this Loan Agreement and any other of the Obligations. Notwithstanding the foregoing, Broker/Dealer will be entitled to a thirty (30) day cure period for a default under the other Loan Documents, which cure period shall commence on the earliest to occur of (i) delivery of written notice by the Broker/Dealer to the Administrative Agent as required under this Agreement, (ii) the date on which the notice referred to in the foregoing <u>clause (i)</u> should have been provided to the Administrative Agent and (iii) delivery of written notice by the Administrative Agent to the Broker/Dealer, *provided* that the cure period shall not apply to an Event of Default under the remainder of this <u>Section</u> <u>8,</u> a default under <u>paragraph 8(b)</u> of the Form 33R, a violation of any of the financial covenants under <u>Section</u> <u>7(a),</u> or any payment default.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Default under Other Debt.* Any declared default, cancellation or acceleration by any Obligor in the payment of any Debt at or in excess of $20,000,000 including, without limitation, a declared default or cancellation by BMO Harris, NA, under the BMO Liquidity Line or acceleration of the Debt under the BMO Liquidity Line, or any Debt described in <u>Section</u> <u>7,</u> for any other obligation beyond a period of thirty (30) days or such period of grace provided with respect thereto or in the performance of any other term, condition or covenant contained in any agreement (including, but not limited to, any capital or operating lease or any agreement in connection with the deferred purchase price of property) under which

any such obligation is created, the effect of which is to cause such obligation to become due prior to its stated maturity or terminate such other agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Other Material Obligations.* Any default in the payment when due, or in the performance or observance of, any material obligation of, or material condition agreed to by, any Obligor under the BMO Liquidity Line (but only if the Administrative Agent thereunder terminates the remaining commitments thereunder and declares the principal and accrued interest under the BMO Liquidity Line to then be due and payable) or with respect to any material purchase or lease of goods or services (after any applicable cure periods have elapsed) where such default, singly or in the aggregate with all other such defaults, would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Bankruptcy, Insolvency, etc.* Any Obligor becomes insolvent or generally fails to pay, or admits in writing its inability or refusal to pay, debts as they become due; or any Obligor applies for, consents to, or acquiesces in the appointment of a trustee, receiver or other custodian for such Obligor or any property thereof, or makes a general assignment for the benefit of creditors; or, in the absence of such application, consent or acquiescence, a trustee, receiver or other custodian is appointed for any Obligor or for a substantial part of the property of any thereof; or any bankruptcy, reorganization, debt arrangement, or other case or proceeding under any Debtor Relief Laws, or any dissolution or liquidation proceeding, is commenced in respect of any Obligor; or any Obligor takes any action to authorize, or in furtherance of, any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Judgments.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The chief executive officer, chief financial officer or chief compliance officer of the Broker/Dealer shall be subject to any of the following: (A) a fine of $10,000,000 or more in connection with a regulatory event; (B) a settlement agreement that includes a payment by such individual of $10,000,000 or more in connection with any litigation, arbitration or regulatory event; (C) a final judgment, settlement, fine or other monetary penalty that exceeds an aggregate total of $10,000,000, which final judgement, settlement, fine or other monetary penalty is not paid, discharged or vacated, or had execution thereof stayed pending appeal, within thirty (30) days after entry or filing of such judgment, settlement, fine or other monetary penalty; or (D) a suspension of any such individual by any Examining Authority for a period in excess of five (5) days.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Broker/Dealer shall be subject to any of the following: (A) a fine of $20,000,000 or more in connection with a regulatory event; (B) a settlement agreement that includes a payment by the Broker/Dealer of $20,000,000 or more in connection with any litigation, arbitration or regulatory event; (C) a final judgment, settlement, fine or other monetary penalty that exceeds an aggregate total of $20,000,000, which final judgment, settlement, fine or other monetary penalty is not paid, discharged or vacated, or had execution thereof stayed pending appeal, within thirty (30) days after entry or filing of such judgment, settlement, fine or other monetary penalty; or (D) a suspension of the Broker/Dealer by any Examining Authority for a period in excess of one (1) day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Change of Control.* The occurrence of any Change of Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *Membership Status; Compliance.* The membership of the Broker/Dealer on any commodity or securities exchange or the status of the Broker/Dealer as a clearing member thereof, shall be terminated (other than a voluntary termination of such membership or status by the Broker/Dealer for good faith business reasons), revoked or suspended for any reason, or the registration of the Broker/Dealer as a broker dealer with the SEC shall be suspended, revoked or terminated for any reason, or the Broker/Dealer shall fail to comply with any Capital Requirements, or the Broker/Dealer shall fail to remain registered as a broker-dealer and be in good standing with the Examining Authority and the Broker/Dealer's DSRO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Material Adverse Effect.* The occurrence of any development, condition or event which has a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) *Subordinated Debt.* The subordination provisions of any Subordinated Debt shall for any reason be revoked or invalid or otherwise cease to be in full force and effect in an amount equal to or in excess of $5,000,000. The Broker/Dealer shall contest in any manner, or any other holder thereof shall contest in any judicial proceeding, the validity or enforceability of the Subordinated Debt or deny that it has any further liability or obligation thereunder, or the Obligations shall for any reason not have the priority contemplated by the subordination provisions of the Subordinated Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) *Suspension of Payment Obligations.* Any condition or event shall have occurred which would have the effect of suspending the repayment obligation of the Broker/Dealer for any advance of Revolving Loans made under the Loan Agreement, whether or not any such advance has then been made to or is then due from the Broker/Dealer or there has been an actual default in the payment of any principal or interest of any such advance at the scheduled maturity or due date thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Remedies</u>. Upon the occurrence and during the continuation of an Event of Default, the Administrator shall have all rights, powers and remedies set forth in the Loan Documents, in any written agreement or instrument (other than this Loan Agreement or the Loan Documents) relating to any of the Obligations or as otherwise provided at law or in equity, subject to <u>paragraph 3</u> of the Form 33R. The Events of Default under <u>Sections 8(a)</u> through <u>8(c), 8(e), 8(g)</u> through <u>8(i), 8(1)</u> and <u>8(m)</u> shall be and constitute an Event of Acceleration under <u>paragraph 7</u> of the Form 33R. The Administrator may, either at its option or at the direction of Required Lenders, upon the occurrence of an Event of Default, upon written notice to the Broker/Dealer and the Examining

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Authority, (i) terminate the Revolving Credit Commitments, (ii) upon the occurrence of an Event of Acceleration, accelerate any or all of the Obligations in accordance with the terms of <u>paragraph 7</u> of the Form 33R, and (iii) exercise its rights and remedies under the Loan Documents, at law and in equity, subject in all events to the provisions of the Form 33R and Appendix D to the Rule. Upon the occurrence of an Event of Default, Administrator may, either at its option or at the direction of Required Lenders, demand upon written notice to Broker/Dealer that any fees, expenses or other amounts payable under any Sharing Agreement be suspended during such Event of Default, and in such case, Broker/Dealer, the Parent and their Affiliates shall cease such payments immediately upon notice. The parties, by incorporating the terms of this Rider, agree that to the extent any provision of this Rider is inconsistent with any provision of Appendix D to the Rule or of any other applicable provision of the SEA, the rules and regulations thereunder, or the rules of FINRA, then the Form 33R and such provisions, rules and regulations shall control, and no provision of this Rider shall impede the ability of the Broker/Dealer to comply with such provisions, rules and regulations or the terms of the Form 33R.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Administrator Provisions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Appointment and Authorization of the Administrator.* Each Lender hereby appoints Byline Bank as the administrative agent under the Loan Documents and hereby authorizes the Administrator to take such action as Administrator on its behalf and to exercise such powers under the Loan Documents as are delegated to the Administrator by the terms hereof and thereof, together with such powers as are reasonably incidental thereto. The Lenders expressly agree that the Administrator is not acting as a fiduciary of the Lenders in respect of the Loan Documents, Broker/Dealer or otherwise, and nothing herein or in any of the other Loan Documents shall result in any duties or obligations on the Administrator or any of the Lenders except as expressly set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Administrator and its Affiliates.* The Administrator shall have the same rights and powers under this Agreement and the other Loan Documents as any other Lender and may exercise or refrain from exercising such rights and power as though it were not the Administrator, and the Administrator and its Affiliates may accept deposits from, lend money to, and generally engage in any kind of business with Broker/Dealer or its Affiliates as if it were not the Administrator under the Loan Documents. The term "Lender" as used herein and in all other Loan Documents, unless the context otherwise clearly requires, includes the Administrator in its individual capacity as a Lender (if applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Action by Administrator.* If the Administrator receives from the Broker/Dealer a written notice of an Event of Default, the Administrator shall promptly give each of the Lenders written notice thereof. The obligations of the Administrator under the Loan Documents are only those expressly set forth therein. Without limiting the generality of the foregoing, the Administrator shall not be required to take any action hereunder with respect to any Default or Event of Default, except as expressly provided herein. Unless and until the Required Lenders give such direction, the Administrator may (but shall not be obligated to) take or refrain from taking such actions as it deems appropriate and in the best interest of all the Lenders. In no event, however, shall the Administrator be required to take any action in violation of applicable law or of any provision of any Loan Document, and the Administrator shall in all cases be fully justified in failing or refusing to act hereunder or under any other Loan Document unless it first receives any

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further assurances of its indemnification from the Lenders that it may require, including prepayment of any related expenses and any other protection it requires against any and all costs, expense, and liability which may be incurred by it by reason of taking or continuing to take any such action. The Administrator shall be entitled to assume that no Event of Default exists unless notified in writing to the contrary by a Lender or Broker/Dealer. In all cases in which the Loan Documents do not require the Administrator to take specific action, the Administrator shall be fully justified in using its discretion in failing to take or in taking any action thereunder. Any instructions of the Required Lenders, or of any other group of Lenders called for under the specific provisions of the Loan Documents, shall be binding upon all the Lenders and the holders of the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Consultation with Experts.* The Administrator may consult with legal counsel, independent public accountants, and other experts selected by it and shall not be liable for any action taken or omitted to be taken by it in good faith in accordance with the advice of such counsel, accountants or experts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Liability of Administrator; Credit Decision.* Neither the Administrator nor any of its directors, officers, agents or employees shall be liable for any action taken or not taken by it in connection with the Loan Documents: (i) with the consent or at the request of the Required Lenders or (ii) in the absence of its own gross negligence or willful misconduct. Neither the Administrator nor any of its directors, officers, agents or employees shall be responsible for or have any duty to ascertain, inquire into or verify: (i) any statement, warranty or representation made in connection with this Agreement, any other Loan Document or any Revolving Loan; (ii) the performance or observance of any of the covenants or agreements of Broker/Dealer contained herein or in any other Loan Document; (iii) the satisfaction of any condition specified in <u>Section</u> <u>6,</u> except receipt of items required to be delivered to the Administrator; or (iv) the validity, effectiveness, genuineness, enforceability, perfection, value, worth or collectability hereof or of any other Loan Document or of any other documents or writing furnished in connection with any Loan Document; and the Administrator makes no representation of any kind or character with respect to any such matter mentioned in this sentence. The Administrator may execute any of its duties under any of the Loan Documents by or through employees, agents, and attorneys-in-fact and shall not be answerable to the Lenders, Broker/Dealer, or any other Person for the default or misconduct of any such agents or attorneys- in-fact selected with reasonable care. The Administrator shall not incur any liability by acting in reliance upon any notice, consent, certificate, other document or statement (whether written or oral) believed by it to be genuine or to be sent by the proper party or parties. In particular and without limiting any of the foregoing, the Administrator shall have no responsibility for confirming the accuracy of any compliance certificate or other document or instrument received by it under the Loan Documents. The Administrator may treat the payee of any Obligation as the holder thereof until written notice of transfer shall have been filed with the Administrator signed by such payee in form satisfactory to the Administrator. Each Lender acknowledges that it has independently and without reliance on the Administrator or any other Lender, and based upon such information, investigations and inquiries as it deems appropriate, made its own credit analysis and decision to extend credit to Broker/Dealer in the manner set forth in the Loan Documents. It shall be the responsibility of each Lender to keep itself informed as to the creditworthiness of Broker/Dealer and the Administrator shall have no liability to any Lender with respect thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Indemnity.* The Lenders shall ratably, in accordance with their respective Revolver Percentages, indemnify and hold the Administrator, and its directors, officers, employees, agents, and representatives harmless from and against any liabilities, losses, costs or expenses suffered or incurred by it under any Loan Document or in connection with the transactions contemplated thereby, regardless of when asserted or arising, except to the extent they are promptly reimbursed for the same by Broker/Dealer and except to the extent that any event giving rise to a claim was caused by the gross negligence or willful misconduct of the party seeking to be indemnified. The obligations of the Lenders under this Section shall survive termination of this Agreement. The Administrator shall be entitled to offset amounts received for the account of a Lender under this Agreement against unpaid amounts due from such Lender to the Administrator hereunder (whether as fundings of participations, indemnities or otherwise), but shall not be entitled to offset against amounts owed to the Administrator by any Lender arising outside of this Agreement and the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Resignation of Administrator and Successor Administrator.* The Administrator may resign at any time by giving not less than thirty (30) days prior written notice thereof to the Lenders and Broker/Dealer. Upon any such resignation of the Administrator, the Required Lenders shall have the right to appoint a successor Administrator. If no successor Administrator shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the resigning Administrator's giving of notice of resignation then the resigning Administrator may, on behalf of the Lenders, appoint a successor Administrator, which may be any Lender hereunder or any commercial bank, or an Affiliate of a commercial bank, having an office in the United States of America and having a combined capital and surplus of at least $200,000,000. Upon the acceptance of its appointment as the Administrator hereunder, such successor Administrator shall thereupon succeed to and become vested with all the rights and duties of the resigning Administrator under the Loan Documents, and the resigning Administrator be discharged from its duties and obligations thereunder. After any resigning Administrator's resignation hereunder as Administrator, the provisions of this <u>Section</u> <u>10</u> and all protective provisions of the other Loan Documents shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrator, but no successor Administrator shall in any event be liable or responsible for any actions of its predecessor. If the Administrator resigns and no successor is appointed, the rights and obligations of such Administrator shall be automatically assumed by the Required Lenders and Broker/Dealer shall be directed to make all payments due each Lender hereunder directly to such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Designation of Additional Agents.* The Administrator shall have the continuing right, for purposes hereof, at any time and from time to time to designate one or more of the Lenders (and/or its or their Affiliates) as "syndication agents," "documentation agents," "book runners," "lead arrangers," "arrangers," or other designations for purposes hereto, but such designation shall have no substantive effect, and such Lenders and their Affiliates shall have no additional powers, duties or responsibilities as a result thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Notices</u>. Except as otherwise provided herein, Broker/Dealer waives all notices and demands in connection with the enforcement of the Administrator's rights hereunder. All notices and other communications provided for hereunder shall be in writing and shall be mailed, faxed or delivered at the following address:

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| | |
|:---|:---|
| If to the Broker/Dealer: | Clear Street LLC<br> 4 World Trade Center<br> 150 Greenwich Street, 45<sup>th</sup><br> Floor New York, NY 10007<br> Attn: Steve Bisgay and Brian Oliveira<br> Email: treasury@clearstreet.io |
| With a copy to: | 4 World Trade Center<br> 150 Greenwich Street, 45<sup>th</sup> Floor<br> Attn: Kenneth A. Sicklick<br> Email: legal@clearstreet.io |
| If to Administrator: | Byline Bank<br> 180 N. LaSalle Street, 18th Floor<br> Chicago, Illinois 60601<br> Attn: Scott A. Mier<br> Fax: (773) 843-7832<br> Email: [ ] |
| With a copy to: | Saul Ewing LLP<br> 161 N. Clark Street, Suite 4200<br> Chicago, Illinois 60601<br> Attn: Erik L. Kantz<br> Fax: (312) 876-6211<br> Email: [ ] |
| If to a Lender: | To such Lender at the address specified on the applicable Lender's signature page hereto. |

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or, as to each party, at such other address as shall be designated by such party in a written notice to the other parties complying as to delivery with the terms of this <u>Section</u> <u>11</u>. All such notices and other communications shall be effective, (i) if mailed, when received or three (3) days after deposited in the mails, whichever occurs first, (ii) if faxed, when transmitted and confirmation received, or if emailed, upon transmission provided that notice also is provided by another means hereunder (iii) if hand delivered, upon delivery, and if delivered by overnight courier, upon the next Business Day following deposit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Expenses; Indemnification; Sharing of Setoffs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Broker/Dealer agrees to pay or reimburse the Administrator, within 30 days of demand, for all reasonable and documented out-of-pocket expenses (including the reasonable and documented fees and expenses of outside legal counsel for the Administrator) incurred by the Administrator in connection with the enforcement or protection of the Administrator's rights pursuant to this Loan Agreement and the other Loan Documents and the Loan, including those incurred with respect to a Default and any enforcement or collection proceedings resulting therefrom, including without limitation, in (A) proceedings under any Debtor Relief Laws or any

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winding up or liquidation proceedings, (B) judicial or regulatory proceedings and (C) workout, restructuring or other negotiations or proceedings, whether or not the workout, restructuring or transaction contemplated thereby is consummated; provided, however, that any payment or reimbursement shall be subject to the <u>paragraph 3</u> of the Form 33R.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Broker/Dealer hereby agrees to indemnify the Administrator, each Lender and its and their Subsidiaries and Affiliates and its and their respective partners, members, directors, officers, employees, agents and advisors (each an **"Indemnified Party")** from, and hold each of them harmless against, any and all losses, liabilities, claims, damages or expenses incurred by any of them arising out of, in connection with, or as a result of, this Loan Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, the Loan or the use of the proceeds thereof, including, without limitation, the reasonable fees, disbursements and other charges of one firm counsel for all Indemnified Parties (and, if necessary, by a single firm of special or local counsel in each appropriate jurisdiction for all Indemnified Parties, taken as a whole (and, in the case of an actual or perceived conflict of interest where the Indemnified Party affected by such conflict informs you of such conflict and thereafter retains its own counsel, of another firm of counsel (and local counsel, if applicable) for such affected Indemnified Party)) incurred in connection with any such investigation or litigation or other proceedings; *provided* that such indemnity shall not, as to any Indemnified Party, be available to the extent that such losses, liabilities, claims, damages, or expenses (i) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnified Party or a material breach of this Loan Agreement by such Indemnified Party, (ii) for which the Indemnified Party has received payment of indemnification from another Indemnified Party, or (iii) that result from a claim by an Indemnified Party against another Indemnified Party, which claim relates solely to the act or omission of the Indemnified Party against whom such claim is brought or does not relate to any act or omission of the Broker/Dealer. The Administrator agrees to give the Broker/Dealer notice of any such investigations, litigation or other proceedings, within a reasonable time after Administrator's actual discovery of the same; provided that the Administrator's failure to provide such notice shall not affect the Broker/Dealer's obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the fullest extent permitted by applicable law, the Broker/Dealer shall not assert, and the Broker/Dealer hereby waives, any claim against each Indemnified Party, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Loan Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, the Loan or the use of the proceeds thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Administrator and Broker/Dealer, at the time or times reasonably requested by the Administrator and Broker/Dealer, such properly completed and executed documentation reasonably requested by the Administrator and Broker/Dealer as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Administrator and Broker/Dealer, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Administrator and Broker/Dealer as will enable the Administrator and Broker/Dealer to determine whether or not such Lender is subject to backup withholding or

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information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender. Without limiting the generality of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Lender that is a U.S. Person shall deliver to Broker/Dealer and the Administrator on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Administrator or Broker/Dealer), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Administrator or Broker/Dealer (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Administrator or Broker/Dealer), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN or W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. executed originals of IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate in a form reasonably acceptable to Administrator to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of Broker/Dealer within the meaning of Section 881(c)(3)(B) of the Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Code (a "U.S. Tax Compliance Certificate") and (y) executed originals of IRS Form W-8BEN;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. to the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit D-2 or Exhibit D-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate in form acceptable to Administrator on behalf of each such direct and indirect partner;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Administrator and Broker/Dealer (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Administrator and Broker/Dealer), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Administrator and Broker/Dealer to determine the withholding or deduction required to be made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Administrator and Broker/Dealer at the time or times prescribed by law and at such time or times reasonably requested by the Administrator and Broker/Dealer such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Administrator and Broker/Dealer as may be necessary for the Administrator and Broker/Dealer to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this subsection, "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that if any form or certification previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Administrator in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Treatment of Certain Refunds.* If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section (including by the payment of additional amounts pursuant to this Section), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this subsection (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this subsection, in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this subsection the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts giving rise to such refund had never been paid. This subsection shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Sharing of Setoffs.* Each Lender agrees with each other Lender a party hereto that if such Lender shall receive and retain any payment, whether by setoff or application of deposit balances or otherwise, on any of the Revolving Loans in excess of its ratable share of payments on all such Obligations then outstanding to the Lenders, then such Lender shall purchase for cash at face value, but without recourse, ratably from each of the other Lenders such amount of the Revolving Loans held by each such other Lenders as shall be necessary to cause such Lender to share such excess payment ratably with all the other Lenders; provided, however, that if any such purchase is made by any Lender, and if such excess payment or part thereof is thereafter recovered from such purchasing Lender, the related purchases from the other Lenders shall be rescinded ratably and the purchase price restored as to the portion of such excess payment so recovered, but without interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Survival.* Each party's obligations under this Section shall survive the resignation or replacement of the Administrator or any assignment of rights by, or the replacement of, a Lender, the termination of the Revolving Credit Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Amendments to Form 33R,</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Paragraph 3(a)(v)</u> of the Form 33R is modified by adding "or the minimum capital requirement as defined by the DSRO" to the end following "or any successor regulation in effect".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Paragraph 5(a)(i)</u> of the Form 33R is modified by adding "or the minimum capital requirement as defined by the DSRO" following "less than the amount specified in Section 1.17(h)(2)(vii)(B) of the regulations of the CFTC".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Paragraph 5(b)(v)</u> of the Form 33R is modified by adding "or the minimum capital requirement as defined by the DSRO" to the end following "or any successor regulation in effect".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Paragraph 19(c)</u> of the Form 33R is hereby replaced with the following as <u>paragraphs 19(c), 19(d)</u> and <u>19(e)</u> of the Form 33:

"(c) The Broker/Dealer may not transfer, sell, assign, pledge, or otherwise encumber or dispose of any of its rights or obligations under the Loan Documents without the prior written consent of the Required Lenders and the prior written consent of FINRA, and any attempted transfer, sale, assignment, pledge, encumbrance or disposal shall be null and void. The Lenders may transfer, sell, assign, pledge, or otherwise encumber or dispose of the Loans or any portion thereof only with the prior written consent of the Broker/Dealer (not to be unreasonably withheld or delayed and not to be required during the continuance of an Event of Default or an Event of Acceleration) and the Administrator to a Qualified Lender, and only with the prior written consent of FINRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything herein to the contrary, subject to the approval of the board of directors of the Administrator and each Lender (if deemed necessary or appropriate by the Administrator or such Lender) and only with the prior written consent of FINRA and the Administrator in each instance, the Lender may, in its sole discretion and without the Broker/Dealer's consent, assign its rights and

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obligations under the Loan Documents and the Loan (before or after the closing) to Affiliates of the Lender (but subject to customary documentation in form and substance reasonably acceptable to the Broker/Dealer and the Administrator) so long as such Affiliate is a Qualified Lender. Upon the effectiveness of any such assignment, the Broker/Dealer shall look solely to the assignee in respect of this Loan Agreement and Lender shall have no further obligations in respect of this Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In each case under subsections (c) and (d) above, the Qualified Lender shall deliver a signed disclosure statement together with a lender's attestation and certificate of incumbency in such forms as approved by FINRA."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The following language is hereby added at the end of <u>paragraph 2</u> of the Form 33R:

"For the avoidance of doubt, nothing in this paragraph 2 or elsewhere in this Agreement shall be deemed to restrict or otherwise limit the ability of the Broker/Dealer to make payments or prepayments to the Lender hereunder as long as there are no claims of creditors that are senior to the Lender's claims hereunder that are outstanding and payable at the time of any such payment or prepayment, and provided that in all cases such payments or prepayments shall be subject to applicable capital tests specified herein (if any)."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Reliance and Survival</u>. All covenants, agreements, representations and warranties made by the Broker/Dealer herein and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Loan Agreement or any other Loan Document incorporated herein by reference shall be considered to have been relied upon by the Administrator and shall survive the execution and delivery of any Loan Document and the making of the Loan, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrator may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on the Loan or any fee or any other amount payable under the Loan Documents is outstanding and unpaid and so long as this Loan Agreement has not been terminated (whether by maturity or otherwise). The provisions of <u>Section</u> <u>3</u> and <u>Sections 9</u> through <u>24</u> shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loan, the permitted assignment of this Loan Agreement, and the termination of this Loan Agreement or any provision hereof. The benefits of this <u>Section</u> shall extend to any Person who is or has been a Lender under this Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Revival and Reinstatement of Obligations.</u> If the incurrence or payment of the Obligations

by any Obligor or the transfer to the Administrator of any property should for any reason subsequently be declared to be void or voidable under any Debtor Relief Laws, including the Bankruptcy Code relating to fraudulent conveyances, preferences, or other voidable or recoverable payments of money or transfers of property (collectively, a **"Voidable Transfer"),** and if the Administrator is required to repay or restore, in whole or in part, any such Voidable Transfer, or

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elects to do so upon the reasonable advice of its counsel, then, as to any such Voidable Transfer, or the amount thereof that the Administrator is required or elects to repay or restore, and as to all reasonable costs, expenses, and attorneys' fees of the Administrator, the Obligations shall automatically shall be revived, reinstated, and restored and shall exist as though such Voidable Transfer had never been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>No Fiduciary Duty</u>. The Broker/Dealer agrees that in connection with all aspects of the transactions contemplated by this Loan Agreement and the other Loan Documents and any communications in connection therewith, the Broker/Dealer and its Affiliates, on the one hand, and the Administrator and each Lender and its and their Affiliates, on the other hand, will have a business relationship that does not create, by implication or otherwise, any fiduciary duty on the part of the Administrator or Lender or its or their Affiliates and no such duty will be deemed to have arisen in connection with any such transactions or communications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Counterparts; Integration</u>. This Loan Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Loan Agreement by signing any such counterpart. This Loan Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof and thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Amendments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as provided herein, no provision of the Loan Agreement may be amended, supplemented or otherwise modified (each, a **"modification")** except by an instrument in writing signed by the Broker/Dealer and the Administrator and approved by the Examining Authority. The Loan Agreement shall not be subject to cancellation by either the Administrator or the Broker/Dealer, and no payment shall be made, nor the Loan Agreement terminated, rescinded or modified by mutual consent or otherwise if the effect thereof would be inconsistent with the requirements of 17 CFR 240.15c3-l and 240.15c3-ld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No amendment or waiver of any provision of this Loan Agreement or any other Loan Document, and no consent to any departure by the Broker/Dealer therefrom, shall be effective unless in writing signed by the Required Lenders and the Broker/Dealer, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no such amendment, waiver or consent shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) waive any condition set forth in <u>Section</u> <u>6,</u> or, other requirement to fund any Revolving Loan, without the written consent of each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) extend or increase the Revolving Credit Commitment of any Lender (or reinstate any Revolving Credit Commitment terminated pursuant to the Loan Agreement) without the written consent of such Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) postpone any date fixed by this Agreement or any other Loan Document for any payment (excluding mandatory prepayments) of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under such other Loan Document without the written consent of each Lender entitled to such payment;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) reduce the principal of, or the rate of interest specified herein on, any Loan or any fees or other amounts payable hereunder or under any other Loan Document, without the written consent of each Lender entitled to such amount excluding any Defaulting Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) change (i) any term of the Loan Agreement in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender or (ii) the pro rata reduction of the Revolving Credit Commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) change any provision of this <u>Section</u> <u>18</u> or the definition of "Required Lenders" or any other provision of any Loan Document specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or thereunder or make any determination or grant any consent hereunder, without the written consent of each Lender excluding any Defaulting Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) release the Broker/Dealer or permit the Broker/Dealer to assign or transfer any of its rights or obligations under this Agreement or the other Loan Documents without the consent of each Lender excluding any Defaulting Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Headings</u>. The captions in this Loan Agreement are for convenience of reference only and in no way define, limit or describe the scope of this Loan Agreement and shall not be considered in the interpretation of this Loan Agreement or any provision thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>WAIVER OF DEFENSES.</u> SO LONG AS THE ADMINISTRATOR ACTS IN GOOD FAITH AND ONLY TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, THE BROKER/DEALER WAIVES EVERY PRESENT AND FUTURE DEFENSE, CAUSE OF ACTION, COUNTERCLAIM OR SETOFF WHICH THE BROKER/DEALER MAY NOW HAVE OR HEREAFTER MAY HAVE TO ANY ACTION BY THE ADMINISTRATOR IN ENFORCING THIS AGREEMENT. PROVIDED THE ADMINISTRATOR ACTS IN GOOD FAITH, THE BROKER/DEALER RATIFIES AND CONFIRMS WHATEVER THE ADMINISTRATOR MAY DO PURSUANT TO THE TERMS OF THIS AGREEMENT EXCEPT FOR THE ADMINISTRATOR'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE ADMINISTRATOR OR LENDERS GRANTING ANY FINANCIAL ACCOMMODATION TO THE BROKER/DEALER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Release of Claims Against the Administrator and Lenders.</u> In consideration of the Lenders ' commitment to making the Loans, the Broker/Dealer and all other Obligors do each hereby release and discharge the Administrator and Lenders of and from any and all claims, harm, injury, and damage of any and every kind, known or unknown, legal or equitable, which any Obligor may have against the Administrator or Lenders relating to the Loans or the Loan Documents from the date of their respective first contact with the Administrator or Lender until the date of this Agreement including, but not limited to, any claim arising from any reports (environmental reports, surveys, appraisals, etc.) prepared by any parties hired or recommended by the Administrator. The Broker/Dealer and all other Obligors confirm to Administrator that they have reviewed the effect of this release with competent legal counsel of their choice, or have been afforded the opportunity to do so, prior to execution of this Agreement and the Loan Documents and do each acknowledge and agree that the Administrator and each Lender is relying upon this release in extending the Loans to the Broker/Dealer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Customer Identification - USA Patriot Act Notice</u>. The Administrator hereby notifies the Broker/Dealer that pursuant to the requirements of the Patriot Act and the Administrator's and Lenders' policies and practices, the Administrator and Lenders are required to obtain, verify and record certain information and documentation that identifies the Broker/Dealer, which information includes the name and address of the Broker/Dealer and such other information that will allow the Administrator to identify the Broker/Dealer in accordance with the Patriot Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Governing Law, Jury Waiver</u>. This Rider shall be deemed to have been made under, and shall be governed by, the laws of the State of Illinois in all respects. THE BROKER/DEALER, ADMINISTRATOR AND EACH LENDER HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Assignments.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Lender may at any time assign to one or more Eligible Assignees all or a portion of such Lender's rights and obligations under this Agreement (including all or a portion of its Revolving Credit Commitment and the Revolving Loans at the time owing to it); *provided* that any such assignment shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Minimum Amounts.* (A) In the case of an assignment of the entire remaining amount of the assigning Lender's Revolving Credit Commitment and the Revolving Loans at the time owing to it or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and (B) in any case not described in subsection (a)(i)(A) of this Section, the aggregate amount of the Revolving Credit Commitment (which for this purpose includes Revolving Loans outstanding thereunder) or, if the applicable Revolving Credit Commitment is not then in effect, the principal outstanding balance of the Revolving Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Acceptance with respect to such assignment is delivered to the Administrator or, if "Effective Date" is specified in the Assignment and Acceptance, as of the Effective Date) shall not be less than $5,000,000, unless each of the Administrator and, so long as no Event of Default has occurred and is continuing, Broker/Dealer otherwise consents (each such consent not to be unreasonably withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Proportionate Amounts.* Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Revolving Loan or the Revolving Credit Commitment assigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Required Consents.* No consent shall be required for any assignment by a Lender to any Eligible Assignee except to the extent required by Section 24(a)(i)(B) and, in addition: (A) the consent of the Examining Authority shall be required; and (B) the consent of Broker/Dealer (such consent not to be unreasonably withheld or delayed) shall be required unless

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (x) an Event of Default has occurred and is continuing at the time of such assignment or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; *provided* that Broker/Dealer shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrator within ten (10) days after having received notice thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Assignment and Acceptance.* The parties to each assignment shall execute and deliver to the Administrator an Assignment and Acceptance, together with a processing and recordation fee of $3,500, and the assignee, if not a Lender, shall deliver to the Administrator such administrative questionnaire or other documentation as may be required by Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *No Assignment to Certain Persons.* No such assignment shall be made to (A) any Defaulting Lender or any of its subsidiaries, or any Person which, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this <u>clause (A)</u> or (B) a natural Person.

Subject to acceptance and recording thereof by the Administrator pursuant to <u>Section</u> <u>24(b)</u>, from and after the effective date specified in each Assignment and Acceptance, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of <u>Section</u> <u>12</u> with respect to facts and circumstances occurring prior to the effective date of such assignment. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with <u>Section</u> <u>25</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Administrator, acting solely for this purpose as an agent of Broker/Dealer, shall maintain at one of its offices in Chicago, Illinois, a copy of each Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Revolving Credit Commitments of, and principal amounts of the Revolving Loans owing to, each Lender pursuant to the terms hereof from time to time (the **"Register").** The entries in the Register shall be conclusive, and Broker/Dealer, the Administrator, and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by Broker/Dealer and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any Lender may at any time pledge or grant a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any such pledge or grant to a Federal Reserve Bank, and this <u>Section</u> <u>24</u> shall not apply to any such pledge or grant of a security interest; provided that no such pledge or grant of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or secured party for such Lender as a party hereto; provided further, however, the right of any such pledgee or grantee (other than any Federal Reserve Bank) to further transfer all or any portion of the rights pledged or granted to it, whether by means of foreclosure or otherwise, shall be at all times subject to the terms of this Rider, the Form 33R and the approval of FINRA.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Participants</u>. Subject to the approval of the Examining Authority, each Lender shall have the right at its own cost to grant participations (to be evidenced by one or more agreements or certificates of participation) in the Revolving Loans made and/or Revolving Credit Commitments held by such Lender at any time and from time to time to one or more other Persons (each, a **"Participant");** provided that no such participation shall relieve any Lender of any of its obligations under this Agreement, and, provided, further that no such Participant shall have any rights under this Agreement except as provided in this Section, and the Administrator shall have no obligation or responsibility to such Participant, and such Participant further shall deliver a signed disclosure statement in such form as approved by FINRA. Any agreement pursuant to which such participation is granted shall provide that the granting Lender shall retain the sole right and responsibility to enforce the obligations of Broker/Dealer under this Agreement and the other Loan Documents including, without limitation, the right to approve any amendment, modification or waiver of any provision of the Loan Documents, except that such agreement may provide that such Lender will not agree to any modification, amendment or waiver of the Loan Documents that would reduce the amount of or postpone any fixed date for payment of any Obligation in which such Participant has an interest. Each Lender that sells a participation shall maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Revolving Loans or other obligations under the Loan Documents (the **"Participant Register");** *provided* that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except (i) the Broker/Dealer or (ii) to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5fl.3-l(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrator (in its capacity as Administrator) shall have no responsibility for maintaining a Participant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. <u>Confidentiality</u>. Each of the Administrator and the Lenders agree to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to such Person's Affiliates and representatives that have a need to know such Information (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential); (b) to the extent required or requested by any Examining Authority or any other regulatory authority having or purporting to have jurisdiction over such Person; (c) to the extent required by applicable laws or regulations or by any subpoena or other legal process; (d) to any other party hereto or such party's Affiliates; (e) in connection with the exercise of any remedies hereunder or under any Loan Document or any action or proceeding relating to or arising from this Agreement or any other Loan Document or the enforcement of any rights hereunder or thereunder; (f) subject to an agreement containing provisions substantially the same as those of this <u>Section</u> <u>26,</u> to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations

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under this Agreement, or (ii) any actual or prospective party to any swap, derivative or other transaction under which payments are to be made by reference to the Broker/Dealer and its obligations, this Agreement or the other Loan Documents or payments hereunder or under the other Loan Documents; (h) with the consent of the Broker/Dealer, not to be unreasonably withheld or delayed; or (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this <u>Section</u> <u>26,</u> (y) becomes available to the Administrator, any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Broker/Dealer. For purposes of this <u>Section</u> <u>26,</u> **"Information"** means all information that is received from Parent, the Broker/Dealer or their Subsidiaries, or from any other Person on behalf of Parent, the Broker/Dealer, or their Subsidiaries. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised a reasonable degree of care to maintain the confidentiality of such Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. <u>Lenders' Obligations Several</u>. The obligations of the Lenders are several and not joint. Nothing contained in this Agreement and no action taken by the Lenders pursuant hereto shall be deemed to constitute the Lenders a partnership, association joint venture or other entity.

[Signature Pages Follow]

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The Broker/Dealer, Administrator and each Lender agree that this Rider shall be deemed to be a part of this Loan Agreement.

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| | |
|:---|:---|
| ***BROKER/DEALER:***<br>**CLEAR STREET LLC** | ***BROKER/DEALER:***<br>**CLEAR STREET LLC** |
| By: | /s/ Brian Oliveira |
|  | Name: Brian Oliveira |
|  | Title: Chief Financial Officer |

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| | |
|:---|:---|
| ***ADMINISTRATOR:***<br>**BYLINE BANK** | ***ADMINISTRATOR:***<br>**BYLINE BANK** |
| By: |  |
|  | Name: Scott Mier |
|  | Title: Senior Vice President |

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*[Signature Page to Rider A to Revolving Note and Cash Subordination Agreement]*

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The Broker/Dealer, Administrator and each Lender agree that this Rider shall be deemed to be a part of this Loan Agreement.

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| | |
|:---|:---|
| ***BROKER/DEALER:***<br>**CLEAR STREET LLC** | ***BROKER/DEALER:***<br>**CLEAR STREET LLC** |
| By: |  |
|  | Name: Brian Oliveira |
|  | Title: Chief Financial Officer |

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| | |
|:---|:---|
| ***ADMINISTRATOR:***<br>**BYLINE BANK** | ***ADMINISTRATOR:***<br>**BYLINE BANK** |
| By: | /s/ Scott Mier |
|  | Name: Scott Mier |
|  | Title: Senior Vice President |

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*[Signature Page to Rider A to Revolving Note and Cash Subordination Agreement]*

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| | |
|:---|:---|
| ***LENDER:***<br>**BYLINE BANK** | ***LENDER:***<br>**BYLINE BANK** |
| By: | /s/ Scott Mier |
|  | Name: Scott Mier |
|  | Title: Senior Vice President |
| Address for Notices:<br> 180 N. LaSalle Street, 18th Floor<br> Chicago, Illinois 60601<br> Attn: Scott A. Mier<br> Fax: (773) 843-7832<br> Email: smier@bylinebank com | Address for Notices:<br> 180 N. LaSalle Street, 18th Floor<br> Chicago, Illinois 60601<br> Attn: Scott A. Mier<br> Fax: (773) 843-7832<br> Email: smier@bylinebank com |

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*[Signature Page to Rider A to Revolving Note and Cash Subordination Agreement]*

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| | |
|:---|:---|
| ***LENDER:***<br>**FIRST MERCHANTS BANK** | ***LENDER:***<br>**FIRST MERCHANTS BANK** |
| By: | /s/ Joshua McKenney |
|  | Name: Joshua McKenney |
|  | Title: Vice President |
| Address for Notices: 8711 River Crossing<br> Blvd., Indianapolis, IN 46240<br>Attn: Joshua McKenney<br> Fax: 317-566-6138<br> Email: jmckenney@firstmerchants.com | Address for Notices: 8711 River Crossing<br> Blvd., Indianapolis, IN 46240<br>Attn: Joshua McKenney<br> Fax: 317-566-6138<br> Email: jmckenney@firstmerchants.com |

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*[Signature Page to Rider A to Revolving Note and Cash Subordination Agreement]*

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| | |
|:---|:---|
| ***LENDER:***<br>**TRISTATE CAPITAL BANK** | ***LENDER:***<br>**TRISTATE CAPITAL BANK** |
| By: | /s/ Ellen Frank |
|  | Name: Ellen Frank |
|  | Title: Senior Vice President |
| Address for Notices:<br>Attn: Ellen Frank<br> Fax: –<br> Email: eframl@tscbank.com | Address for Notices:<br>Attn: Ellen Frank<br> Fax: –<br> Email: eframl@tscbank.com |

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*[Signature Page to Rider A to Revolving Note and Cash Subordination Agreement]*

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| | |
|:---|:---|
| ***LENDER:***<br>**LAKESIDE BANK** | ***LENDER:***<br>**LAKESIDE BANK** |
| By: | /s/ James McGrogan |
|  | Name: James McGrogan |
|  | Title: Senior Vice President |

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Address for Notices: 141 W Jackson Blvd., STE: 130A Chicago, IL 60604

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| |
|:---|
| Attn: Loan Operations |
| Fax: (630) 974-6341 |
| Email: loanoperations@lakesidebank.com |

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*[Signature Page to Rider A to Revolving Note and Cash Subordination Agreement]*

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| | |
|:---|:---|
| ***LENDER:***<br>**OLD NATIONAL BANK** | ***LENDER:***<br>**OLD NATIONAL BANK** |
| By: | /s/ Mike King |
|  | Name: Mike King |
|  | Title: Senior Vice President |

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 <br> Address for Notices: 141 W Jackson Blvd., STE: 130A Chicago, IL 60604

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| |
|:---|
| Attn: Mike King |
| Fax: |
| Email: mike.king@oldnational.com |

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*[Signature Page to Rider A to Revolving Note and Cash Subordination Agreement]*

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**<u>SCHEDULE 1</u>**

**REVOLVING CREDIT COMMITMENTS AND REVOLVER PERCENTAGES** 

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| | | |
|:---|:---|:---|
| Lender | Revolving Credit Commitment | Revolver Percentage |
|  Byline Bank | $30, 000000 | 40.00% |
|  First Merchants Bank | $15000000 | 20.00% |
|  TriState Capital Bank | $10000000 | 13.33% |
|  Lakeside Bank | $10000000 | 13.33% |
|  Old National Bank | $10000000 | 13.33% |

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**Exhibit A** 

**Form of Compliance Certificate** 

*See attached.* 

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**COMPLIANCE CERTIFICATE** 

October <u>[___]</u>, 2025

Byline Bank

180 N. LaSalle Street, 18th Floor

Chicago, Illinois 60601

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| | |
|:---|:---|
| Attention: | Scott A. Mier |
| Electronic Mail: | smier@bylinebank.com |
| Fax: | (773) 843-7832 |
| Confirmation: | (312) 396-4445 |

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Ladies and Gentlemen:

This compliance certificate is furnished by the undersigned to the Administrator pursuant to <u>Section</u> <u>7(f)(iv)</u> of that certain Revolving Note and Cash Subordination Agreement and attached Rider A, each dated as of October [__], 2025 (as each may be amended, modified or supplemented from time to time, collectively, the "**Loan Agreement**"), by the Broker/Dealer, BYLINE BANK, in its capacity as lead arranger and as administrative agent for the Lenders, as provided therein (the "**Administrator**"), and the financial institutions identified therein who are from time to time party to the Loan Agreement (each a "Lender" and collectively with Byline Bank, the "**Lenders**"). All capitalized terms used but not defined herein shall have the respective meanings set forth in the Loan Agreement.

The undersigned, as the Chief Financial Officer of Clear Street LLC, a Delaware limited liability company (the "**Broker/Dealer**"), hereby certifies to the Administrator that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The following sets forth the financial data and/or computation of the financial covenants contained <u>in Section</u> <u>7(a)</u> of the Loan Agreement, all of which data and computations are true and complete and have been made in accordance with the relevant sections of the Loan Agreement:

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| | | |
|:---|:---|:---|
| **Covenant** | **Compliance Level** | **Actual (Calculation as of [DATE])** |
|  **Section 7(a)(i)**<br> **Tentative Net Capital** | $450000000 | $_____________________ |
|  **Section 7(a)(ii)**<br> **Excess Net Capital** | Minimum $300,000,000 | $_____________________ |
|  **Section 7(a)(iii)**<br> **Maximum Leverage Ratio** | Not to exceed 0.20<br>times the Broker/Dealer's<br>Tentative Net Capital | _____________________ |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In accordance with <u>Section</u> <u>7(f)(iv)(B)</u> of the Loan Agreement, attached hereto is a schedule of the Broker/Dealer's liquidity (bank and trading accounts).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In accordance with <u>Section</u> <u>7(f)(iv)(C)</u> of the Loan Agreement, attached hereto as <u>Schedule A</u> is a schedule disclosing and describing in reasonable detail all of the matters required to be disclosed pursuant to <u>Section</u> <u>7(f)(iv)(C)</u> of the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In accordance with <u>Section</u> <u>7(f)(iv)(D)</u> of the Loan Agreement, the amount of dividends or other distributions or payments to the holders of the Broker/Dealer's Capital Securities paid during the current fiscal quarter is $[<u> </u>].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No Default or Event of Default has occurred or is continuing.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the undersigned has caused this Compliance Certificate to be duly executed and delivered on behalf of the Broker/Dealer as of the date first written above.

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| |
|:---|
| **CLEAR STREET LLC** |
| By: |
| Name: |
| Title: |

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*[Signature Page to Compliance Certificate]* 

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**Schedule 5(e)** 

**Equity Ownership** 

**Class A Units:** 

100,000,000 Class A Units issued and outstanding: held 100% by Clear Street Holdings LLC

**Class B Preferred Member Units:** 

Class B Preferred Member Units were issued to certain participants in JBO arrangements

Pursuant to the Investor Rights Agreement of Clear Street Group, Inc. dated as of April 13, 2022, as amended on October 7, 2022, and February 4, 2023, the Major Investors and Key Holders (as defined therein) have a right of first offer over new securities.

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**Schedule 5(k)** 

**Liquidity**![LOGO](g39893g1218112614181.jpg)

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**Schedule 7(i)** 

**Depository Relationship**![LOGO](g39893g1218112614433.jpg)

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![LOGO](g39893g1218112614569.jpg)

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**Schedule 7(o)** 

**Liens** 

The following liens evidenced by UCC-1 financing statements are filed with the Secretary of State of the State of Delaware. The Broker/Dealer incurs liens, including in connection with the buying and selling of securities, in the ordinary course of business of the Broker/Dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• UCC-1 Financing Statement No. 20193815631, together with UCC
Amendment No. 20203825074, UCC Amendment No. 20208514665, UCC Amendment No. 20208517379, UCC Amendment No. 20222768117, UCC Amendment No. 20222769123, UCC Continuation No. 20242903 803, UCC Amendment
No. 20247854068, UCC Amendment No. 20247882739 and UCC Amendment No. 20247882796.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• UCC-1 Financing Statement No. 20208515142, together with UCC
Amendment No. 20247853995, UCC Amendment No. 20247882788 and UCC Amendment No. 20247882887.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• UCC-1 Financing Statement No. 20242566279.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• UCC-1 Financing Statement No. 20242566287.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• UCC-1 Financing Statement No. 20247883018.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• UCC-1 Financing Statement No. 20245000250.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• UCC-1 Financing Statement No. 20254915440.

------

**Schedule 7(x)** 

**Sharing Agreements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Expense Sharing Agreement dated as of November 1, 2023 by and between Clear Street Management LLC and
Clear Street LLC, as may be amended and restated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Expense Sharing Agreement dated as of November 1, 2023 by and between Clear Street Holdings LLC and Clear
Street LLC, as may be amended and restated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Software License Agreement dated as of May 1, 2019, as amended by the Third Amendment to the Software
Licensing Agreement dated July 14, 2022, by and between Clear Street Technologies USVI LLC and Clear Street LLC, as may be further amended and restated.

## Exhibit 10.24

**Exhibit 10.24** 

CLEAR STREET HOLDINGS LLC

$60,000,000

5.875% Senior Unsecured Notes due May 15, 2026

NOTE PURCHASE AGREEMENT

Dated May 6, 2021

------

**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
| SECTION | HEADING | PAGE |
| SECTION 1. AUTHORIZATION OF NOTES | SECTION 1. AUTHORIZATION OF NOTES | 1 |
| SECTION 2. SALE AND PURCHASE OF NOTES | SECTION 2. SALE AND PURCHASE OF NOTES | 1 |
| SECTION 3. CLOSING | SECTION 3. CLOSING | 2 |
| SECTION 4. CONDITIONS TO CLOSING | SECTION 4. CONDITIONS TO CLOSING | 2 |
| Section 4.1 | Representations and Warranties | 2 |
| Section 4.2 | Performance; No Default | 2 |
| Section 4.3 | Compliance Certificates | 2 |
| Section 4.4 | Opinion of Counsel | 3 |
| Section 4.5 | Purchase Permitted By Applicable Law, Etc. | 3 |
| Section 4.6 | Sale of Other Notes | 3 |
| Section 4.7 | Private Placement Number | 3 |
| Section 4.8 | Changes in Corporate Structure | 3 |
| Section 4.9 | Funding Instructions | 3 |
| Section 4.10 | Proceedings and Documents | 3 |
| SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY | SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY | 3 |
| Section 5.1 | Organization; Power and Authority | 3 |
| Section 5.2 | Authorization, Etc. | 4 |
| Section 5.3 | Disclosure | 4 |
| Section 5.4 | Organization and Ownership of Shares of Subsidiaries; Affiliates | 4 |
| Section 5.5 | Financial Statements; Material Liabilities | 5 |
| Section 5.6 | Compliance with Laws, Other Instruments, Etc. | 5 |
| Section 5.7 | Governmental Authorizations, Etc. | 6 |
| Section 5.8 | Litigation; Observance of Agreements, Statutes and Orders | 6 |
| Section 5.9 | Taxes | 6 |
| Section 5.10 | Title to Property; Leases | 6 |
| Section 5.11 | Licenses, Permits, Etc. | 7 |
| Section 5.12 | Compliance with Broker-Dealer Regulations | 7 |
| Section 5.13 | Compliance with Employee Benefit Plans | 8 |
| Section 5.14 | Private Offering by the Company | 8 |
| Section 5.15 | Use of Proceeds; Margin Regulations | 8 |
| Section 5.16 | Existing Indebtedness; Future Liens | 8 |
| Section 5.17 | Foreign Assets Control Regulations, Etc. | 9 |
| Section 5.18 | Status under Investment Company Act | 10 |
| Section 5.19 | Environmental Matters | 10 |
| SECTION 6. REPRESENTATIONS OF THE PURCHASERS | SECTION 6. REPRESENTATIONS OF THE PURCHASERS | 10 |
| Section 6.1 | Purchase for Investment | 10 |
| Section 6.2 | Qualified Institutional Buyer; Accredited Investor | 10 |
| Section 6.3 | Purchasers and ERISA | 11 |
| Section 6.4 | Access to Information | 11 |
| Section 6.5 | Independent Investment Decision | 11 |

---

i

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---

| | | |
|:---|:---|:---|
| SECTION 7. INFORMATION AS TO COMPANY | SECTION 7. INFORMATION AS TO COMPANY | 12 |
| Section 7.1 | Financial and Business Information | 12 |
| Section 7.2 | Officer's Certificate | 13 |
| Section 7.3 | Electronic Delivery | 14 |
| SECTION 8. PAYMENT AND REDEMPTION OF THE NOTES | SECTION 8. PAYMENT AND REDEMPTION OF THE NOTES | 14 |
| Section 8.1 | Maturity | 14 |
| Section 8.2 | Optional Redemption by the Company | 14 |
| Section 8.3 | Allocation of Partial Redemptions | 15 |
| Section 8.4 | Maturity; Surrender, Etc. | 15 |
| Section 8.5 | Purchase of Notes | 15 |
| Section 8.6 | Reserved | 16 |
| Section 8.7 | Payments on Exercise of Call Option | 16 |
| Section 8.8 | Cancellation Upon Redemption | 16 |
| Section 8.9 | Payments Due on Non-Business Days | 16 |
| SECTION 9. AFFIRMATIVE COVENANTS | SECTION 9. AFFIRMATIVE COVENANTS | 16 |
| Section 9.1 | Compliance with Laws | 16 |
| Section 9.2 | Insurance | 16 |
| Section 9.3 | Covenant Certification | 16 |
| Section 9.4 | Payment of Taxes and Claims | 17 |
| Section 9.5 | Corporate Existence, Etc. | 17 |
| Section 9.6 | Books and Records | 17 |
| Section 9.7 | Tax Treatment | 17 |
| SECTION 10. MINIMUM LIQUIDITY COVENANT | SECTION 10. MINIMUM LIQUIDITY COVENANT | 17 |
| Section 10.1 | Minimum Liquidity Covenant | 17 |
| SECTION 11. NEGATIVE COVENANTS | SECTION 11. NEGATIVE COVENANTS | 18 |
| Section 11.1 | Transactions with Affiliates | 18 |
| Section 11.2 | Merger, Consolidation, Etc. | 18 |
| Section 11.3 | Dispositions | 19 |
| Section 11.4 | Line of Business | 20 |
| Section 11.5 | Liens | 20 |
| Section 11.6 | Dividends; Salaries; Related Party Transactions | 20 |
| Section 11.7 | Terrorism Sanctions Regulations | 20 |
| SECTION 12. EVENTS OF DEFAULT | SECTION 12. EVENTS OF DEFAULT | 21 |
| SECTION 13. REMEDIES ON DEFAULT, ETC. | SECTION 13. REMEDIES ON DEFAULT, ETC. | 22 |
| Section 13.1 | Acceleration | 22 |
| Section 13.2 | Other Remedies | 23 |
| Section 13.3 | Rescission | 23 |
| Section 13.4 | No Waivers or Election of Remedies, Expenses, Etc. | 23 |

---

ii

------

---

| | | |
|:---|:---|:---|
| SECTION 14. GLOBAL NOTE; REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES | SECTION 14. GLOBAL NOTE; REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES | 24 |
| Section 14.1 | Global Note | 24 |
| Section 14.2 | Registration of Notes | 25 |
| Section 14.3 | Transfer and Exchange of Notes | 25 |
| Section 14.4 | Replacement of Notes | 26 |
| SECTION 15. PAYMENTS ON NOTES | SECTION 15. PAYMENTS ON NOTES | 26 |
| Section 15.1 | Place of Payment | 26 |
| Section 15.2 | Payment by Wire Transfer | 27 |
| Section 15.3 | FATCA Information | 27 |
| SECTION 16. EXPENSES, ETC. | SECTION 16. EXPENSES, ETC. | 27 |
| Section 16.1 | Transaction Expenses | 27 |
| Section 16.2 | Certain Taxes | 28 |
| Section 16.3 | Survival | 28 |
| SECTION 17. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT | SECTION 17. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT | 28 |
| SECTION 18. AMENDMENT AND WAIVER | SECTION 18. AMENDMENT AND WAIVER | 28 |
| Section 18.1 | Requirements | 28 |
| Section 18.2 | Solicitation of Holders of Notes | 29 |
| Section 18.3 | Binding Effect, Etc. | 30 |
| Section 18.4 | Notes Held by Company, Etc. | 30 |
| SECTION 19. NOTICES | SECTION 19. NOTICES | 30 |
| SECTION 20. REPRODUCTION OF DOCUMENTS | SECTION 20. REPRODUCTION OF DOCUMENTS | 31 |
| SECTION 21. CONFIDENTIAL INFORMATION | SECTION 21. CONFIDENTIAL INFORMATION | 31 |
| SECTION 22. SUBSTITUTION OF PURCHASER | SECTION 22. SUBSTITUTION OF PURCHASER | 32 |
| SECTION 23. MISCELLANEOUS | SECTION 23. MISCELLANEOUS | 33 |
| Section 23.1 | Successors and Assigns | 33 |
| Section 23.2 | Accounting Terms | 33 |
| Section 23.3 | Severability | 33 |
| Section 23.4 | Construction, Etc. | 33 |
| Section 23.5 | Counterparts | 34 |
| Section 23.6 | Governing Law | 34 |
| Section 23.7 | Jurisdiction and Process; Waiver of Jury Trial | 34 |

---

iii

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---

| | |
|:---|:---|
| SCHEDULE A | Defined Terms |
| ADDENDUM A | Additional Covenants |
| SCHEDULE 1 | Form of 5.875% Senior Unsecured Note due 2026 |
| SCHEDULE 4.4 | Form of Opinion of Counsel for the Company |
| SCHEDULE 5.3 | Disclosure Materials |
| SCHEDULE 5.4 | Subsidiaries of the Company and Ownership of Subsidiary Stock |
| SCHEDULE 5.5 | Financial Statements |
| SCHEDULE 5.16 | Existing Indebtedness |
| SCHEDULE 11.1 | Certain Transactions with Affiliates |

---

iv

------

**CLEAR STREET HOLDINGS LLC** 

**55 Broadway, Suite 2102** 

**New York, NY 10006** 

5.875% Senior Unsecured Notes due May 15, 2026

May 6, 2021

TO EACH OF THE PURCHASERS EXECUTING A COUNTERPART SIGNATURE PAGE HERETO:

Ladies and Gentlemen:

CLEAR STREET HOLDINGS LLC, a Delaware limited liability company (the "**Company**"), agrees with each of the Purchasers as follows:

**SECTION 1. AUTHORIZATION OF NOTES.** 

The Company will authorize the issue and sale of $60,000,000 aggregate principal amount of its 5.875% Senior Unsecured Notes due May 15, 2026 (the "**Notes**"), to be issued and sold hereunder. The Notes shall be substantially in the form set out in Schedule 1.

The Notes are being offered and sold in denominations of at least $100,000 and integral multiples of $1,000 in excess thereof, within the United States to "qualified institutional buyers" as defined in Rule 144A under the Securities Act and institutional "accredited investors" as defined in Rule 501 of Regulation D under the Securities Act with total assets of not less than $5,000,000, in a private transaction in reliance upon the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof. The Depository Trust Company (including any successor thereto, "**DTC**") will act as securities depository for the Notes purchased pursuant to this Agreement. The Notes will be represented by one or more Notes issued in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be required by an authorized representative of DTC in the aggregate principal amount of the Notes purchased by Purchasers pursuant to this Agreement (the "**Global Notes**").

Certain capitalized and other terms used in this Agreement are defined in Schedule A hereto and, for purposes of this Agreement, the rules of construction set forth in Section 23.4 shall govern.

**SECTION 2. SALE AND PURCHASE OF NOTES.** 

Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser, and each Purchaser will purchase from the Company, at the Closing provided for in Section 3, Notes in the principal amount specified opposite such Purchaser's name on such Purchaser's signature page hereto, at the purchase price of 100% of the principal amount thereof. The Purchasers' obligations hereunder are several and not joint obligations, and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser hereunder.

------

**SECTION 3. CLOSING.** 

The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the offices of Seward & Kissel LLP at 10:00 A.M., eastern daylight time, at a closing (the "**Closing**") on May 6, 2021 or on such other Business Day thereafter on or prior to May 21, 2021 as may be agreed upon by the Company and the Purchasers. At the Closing the Company will deliver to DTC, through the Paying Agent, the Global Notes, against delivery by the Purchasers to the Company or its order of immediately available funds, in U.S. Dollars, in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company to Account Number 2005528, at BMO Harris Bank NA, 111 West Monroe St, Chicago IL 60603, ABA No. 071000288, for the account of Clear Street Holdings LLC. If at the Closing the Company shall fail to tender the Global Notes to DTC as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to a Purchaser's satisfaction, such Purchaser shall, at its election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure by the Company to tender such Notes or any of the conditions specified in Section 4 not having been fulfilled to such Purchaser's satisfaction.

**SECTION 4. CONDITIONS TO CLOSING.** 

Each Purchaser's obligation to purchase and pay for the Notes to be sold to such Purchaser at the Closing is subject to the fulfillment to such Purchaser's satisfaction, prior to or at the Closing, of the following conditions:

**Section 4.1 Representations and Warranties**. The representations and warranties of the Company in this Agreement shall be correct in all Material respects (or, if such representation or warranty is by its terms qualified by concepts of materiality, then such representation or warranty shall be correct in all respects) when made and at the Closing.

**Section 4.2 Performance; No Default**. The Company shall have performed and complied with all agreements and conditions contained in this Agreement required to be performed or complied with by it prior to or at the Closing. Immediately before and after giving effect to the issue and sale of the Notes (and the application of the proceeds thereof as contemplated by Section 5.15), no Default or Event of Default shall have occurred and be continuing.

**Section 4.3 Compliance Certificates**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Officer's Certificate*. The Company shall have delivered to such Purchaser an Officer's Certificate, dated the Closing Date, certifying that the conditions specified in Sections 4.1, 4.2 and 4.8 have been fulfilled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *CEO's Certificate*. The Company shall have delivered to such Purchaser a certificate of its Chief Executive Officer, dated the Closing Date, certifying as to (i) the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Notes and this Agreement, (ii) the Company's organizational documents as then in effect and (iii) the incumbency of the officers authorized to execute and deliver the Notes and this Agreement.

------

**Section 4.4 Opinion of Counsel**. Such Purchaser shall have received an opinion in form and substance satisfactory to such Purchaser, dated the Closing Date from Goulston & Storrs PC, counsel for the Company, covering the matters set forth in Schedule 4.4, and the Company hereby instructs its counsel to deliver such opinion to the Purchasers.

**Section 4.5 Purchase Permitted By Applicable Law, Etc**. On the Closing Date such Purchaser's purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, and (b) not violate any applicable law or regulation (including Regulation T, U or X of the Board of Governors of the Federal Reserve System).

**Section 4.6 Sale of Other Notes**. Contemporaneously with the Closing, the Company shall sell to each other Purchaser and each other Purchaser shall purchase the Notes to be purchased by it at the Closing as specified on each Purchaser's signature page.

**Section 4.7 Private Placement Number**. A Private Placement Number issued by Standard & Poor's CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for the Notes.

**Section 4.8 Changes in Corporate Structure**. The Company shall not have changed its jurisdiction of incorporation or organization, as applicable, or been a party to any merger or consolidation or succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5.

**Section 4.9 Funding Instructions**. Prior to the Closing Date, each Purchaser shall have received written instructions signed by a Responsible Officer on letterhead of the Company confirming the information specified in Section 3, including (a) the name and address of the transferee bank, (b) such transferee bank's ABA number, and (c) the account name and number into which the purchase price for the Notes is to be deposited.

**Section 4.10 Proceedings and Documents**. All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to such Purchaser, and such Purchaser shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser may reasonably request.

**SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.** 

The Company represents and warrants to each Purchaser as of the Closing Date that:

**Section 5.1 Organization; Power and Authority**. The Company is a limited liability company duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign business entity and is in good standing in each jurisdiction in which such qualification is required by law, except to the extent that the failure to be so qualified or in good standing would not reasonably be expected to have a Material Adverse Effect. The Company has the limited liability company or other power and authority to own or hold under lease the material properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement and the Notes and to perform the provisions hereof and thereof.

------

**Section 5.2 Authorization, Etc**. This Agreement and the Notes have been duly authorized by all necessary limited liability company or other action on the part of the Company, and this Agreement constitutes, and upon execution and delivery thereof each Note will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

**Section 5.3 Disclosure**. The Company, through its agent, Piper Sandler & Co. (formerly known as Sandler O'Neill + Partners, L.P.) ("**Piper Sandler**"), and relating to the transactions contemplated hereby, has provided access to that certain virtual data room named Project CRYSTAL III by Piper Sandler (and hosted by Intralinks), containing certain information and documents regarding the Company (collectively, the "**Offering Materials**"). The Offering Materials fairly describe, in all Material respects, the general nature of the business of the Company and its Subsidiaries. This Agreement, the Offering Materials, the financial statements listed in <u>Schedule 5.5</u> and the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company and identified in <u>Schedule 5.3</u> (this Agreement, the Offering Materials and such documents, certificates or other writings and such financial statements delivered to each Purchaser being referred to, collectively, as the "**Disclosure Documents**"), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made. Except as disclosed in the Disclosure Documents, since December 31, 2020, there has been no change in the financial condition, operations, business or properties of the Company and its Subsidiaries taken as a whole, except changes that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. There is no fact known to the Company that could reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Disclosure Documents. Notwithstanding the foregoing or any other provision in this Agreement, to the extent that any of the Disclosure Documents contains any projections or forward-looking statements, no representation is made as to any such projections or forward looking statements other than that the Company believes the assumptions underlying such projections or forward looking statements are reasonable based on the information available to the Company at the time they were made. There is no assurance that any projections or forward-looking statements included in the Disclosure Documents will prove to be accurate.

**Section 5.4 Organization and Ownership of Shares of Subsidiaries; Affiliates**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Schedule 5.4</u> contains (except as noted therein) complete and correct lists of (i) the Company's Subsidiaries, showing, as to each Subsidiary, the name thereof, the jurisdiction of its organization, and the percentage of shares of each class of its capital stock or similar equity interests outstanding owned by the Company and each other Subsidiary, (ii) the Company's Affiliates, other than Subsidiaries, and (iii) the Company's board of managers and senior officers.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in <u>Schedule 5.4</u> as being owned by the Company and its Subsidiaries have been validly issued, are fully paid and non-assessable and are owned by the Company or another Subsidiary free and clear of any Lien that is prohibited by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Subsidiary is a corporation or other legal entity duly organized, validly existing and, where applicable, in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and, where applicable, is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each such Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Subsidiary is subject to any legal, regulatory, contractual or other restriction (other than the agreements and restrictions listed on Schedule 5.4 and Schedule 5.16 and customary limitations imposed by corporate law or similar statutes or applicable regulatory regulators or regulations) restricting the ability of such Subsidiary to pay dividends out of profits or make any other similar distributions of profits to the Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar equity interests of such Subsidiary.

**Section 5.5 Financial Statements; Material Liabilities**. The Company has delivered to each Purchaser copies of the financial statements of the Company and its Subsidiaries listed on <u>Schedule 5.5</u>. All of such financial statements (including in each case the related schedules and notes) fairly present in all Material respects the consolidated financial position of the Company and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments). The Company and its Subsidiaries do not have any Material liabilities that are not disclosed in the Disclosure Documents, except (i) for ordinary course liabilities incurred since December 31, 2020 and (ii) other liabilities that do not, in the aggregate, exceed $100,000.

**Section 5.6 Compliance with Laws, Other Instruments, Etc**. The execution, delivery and performance by the Company of this Agreement and the Notes will not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, shareholders agreement or any other agreement or instrument to which the Company or any Subsidiary is bound or by which the Company or any Subsidiary or any of their respective properties may be bound or affected, (ii) contravene, result in any breach of, or constitute a default under, any operating agreement, charter or by-law of the Company or any Subsidiary, (iii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary or (iv) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary, except, in each case of clauses (i), (iii) and (iv), that, individually or in the aggregate, would not have a Material Adverse Effect.

------

**Section 5.7 Governmental Authorizations, Etc**. Except as required by the SEC, FINRA, the Financial Conduct Authority or other applicable Governmental Authorities, to the extent applicable, no consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company of this Agreement or the Notes.

**Section 5.8 Litigation; Observance of Agreements, Statutes and Orders**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There are no actions, suits, investigations or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary or any property of the Company or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Company nor any Subsidiary is (i) in default under any agreement or instrument to which it is a party or by which it is bound, (ii) in violation of any order, judgment, decree or ruling of any court, any arbitrator of any kind or any Governmental Authority or (iii) in violation of any applicable law, ordinance, rule or regulation of any Governmental Authority (including Environmental Laws, the USA PATRIOT Act or any of the other laws and regulations that are referred to in Section 5.17), which default or violation would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 5.9 Taxes**. The Company and its Subsidiaries have filed all tax returns that are required to have been filed in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the amount of which, individually or in the aggregate, is not Material or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Company or a Subsidiary, as the case may be, has established adequate reserves in accordance with GAAP. The Company knows of no basis for any other tax or assessment that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The charges, accruals and reserves on the books of the Company and its Subsidiaries in respect of U.S. federal, state or other taxes for all fiscal periods are adequate in all Material respects.

**Section 5.10 Title to Property; Leases**. The Company and its Subsidiaries have good and sufficient title to their respective properties that individually or in the aggregate are Material, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company or any Subsidiary after such date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens prohibited by this Agreement. All leases that individually or in the aggregate are Material are valid and subsisting and are in full force and effect in all Material respects.

------

**Section 5.11 Licenses, Permits, Etc**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company and its Subsidiaries own or possess all licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are Material, without known violation of the rights of others, except for any such violations that, individually or in the aggregate, would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the knowledge of the Company, no product or service of the Company or any of its Subsidiaries infringes in any Material respect any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned by any other Person, except for any such infringements that, individually or in the aggregate, would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the knowledge of the Company, there is no Material violation by any Person of any right of the Company or any of its Subsidiaries with respect to any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned or used by the Company or any of its Subsidiaries.

**Section 5.12 Compliance with Broker-Dealer Regulations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the Closing Date, Precision Securities, LLC, Clear Street LLC and Clear Street Markets LLC (each as applicable, a "**Broker-Dealer Subsidiary**") are the only Subsidiaries of the Company registered with the SEC as broker-dealers. Precision Securities, LLC and Clear Street LLC are members in good standing with the Financial Industry Regulatory Authority, Inc. ("**FINRA**") and the Securities Industry Protection Corporation ("**SIPC**"). Clear Street Markets LLC is a member of the Chicago Board Options Exchange and SIPC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Broker-Dealer Subsidiary is and will at all times remain, and will conduct all activities related to the transactions contemplated by this Agreement, in compliance in all material respects with all securities laws and rules (state, federal or otherwise) which may be applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Broker-Dealer Subsidiary and/or the Company will be responsible for performing the activities in connection with the transactions contemplated by this Agreement that require registration by each such Broker-Dealer Subsidiary with the SEC as a broker-dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Broker-Dealer Subsidiary (A) is subject to any order of the SEC, (B) has been convicted within the past ten years of any felony or misdemeanor and, (C) is subject to an order, judgment or decree or subject to any other statutory or regulatory bar, disability or prohibition which would prevent it from engaging in the solicitation or introduction of investors as described in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No Broker-Dealer Subsidiary, nor any of its officers, managers, directors, employees, affiliates, agents or any person connected with it as specified in paragraph (d)(1) of Rule 506 under the Securities Act, has been the subject of any event described in paragraph (d)(1)(i)-(viii) of Rule 506.

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**Section 5.13 Compliance with Employee Benefit Plans**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as would not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect, (i) the Company and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws, and (ii) neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has occurred or exists that would, individually or in the aggregate, reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to section 430(k) of the Code or to any such penalty or excise tax provisions under the Code relating to employee benefit plans or section 4068 of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company and its Subsidiaries do not have any Non-U.S. Plans.

**Section 5.14 Private Offering by the Company**. Assuming the accuracy of the representations and warranties of the Purchasers set forth in Section 6, no registration under the Securities Act is required for the offer and sale of the Notes by the Company to the Purchasers.

**Section 5.15 Use of Proceeds; Margin Regulations**. The Company will apply the proceeds of the sale of the Notes hereunder for working capital and general business purposes of the Company and its Subsidiaries, including but not limited to (a) making acquisitions, either directly or indirectly through its Subsidiaries, and (b) making equity or debt investments in, and any loans or other extensions of credit to, its Subsidiaries. No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any Securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). As used in this Section, the terms "**margin stock**" and "**purpose of buying or carrying**" shall have the meanings assigned to them in said Regulation U.

**Section 5.16 Existing Indebtedness; Future Liens**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as described therein, Schedule 5.16 sets forth a complete and correct list of all outstanding Indebtedness of the Company and its Subsidiaries as of the Closing Date (including descriptions of the obligors and obligees, principal amounts outstanding, any collateral therefor and any Guaranty thereof), and since the date of this Agreement there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Company or its Subsidiaries. Neither the Company nor any Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of the Company or such Subsidiary and no event or condition exists with respect to any Indebtedness of the Company or any Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as disclosed in Schedule 5.16, neither the Company nor any Subsidiary has agreed or consented to cause or permit any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Indebtedness or to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither the Company nor any Subsidiary is a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company or such Subsidiary, any agreement relating thereto or any other agreement (including its charter or any other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company, except as disclosed in Schedule 5.16.

**Section 5.17 Foreign Assets Control Regulations, Etc**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither the Company nor any Controlled Entity (i) is a Blocked Person, (ii) has been notified that its name appears or may in the future appear on a State Sanctions List or (iii) is a target of sanctions that have been imposed by the United Nations or the European Union.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Company nor any Controlled Entity (i) has violated, been found in violation of, or been charged or convicted under, any applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws or (ii) to the Company's knowledge, is under investigation by any Governmental Authority for possible violation of any U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti- Corruption Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No part of the proceeds from the sale of the Notes hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by the Company or any Controlled Entity, directly or indirectly, (A) in connection with any investment in, or any transactions or dealings with, any Blocked Person, (B) for any purpose that would cause any Purchaser to be in violation of any U.S. Economic Sanctions Laws or (C) otherwise in violation of any U.S. Economic Sanctions Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) will be used, directly or indirectly, in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Money Laundering Laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) will be used, directly or indirectly, for the purpose of making any improper payments, including bribes, to any Governmental Official or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage, in each case which would be in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Corruption Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws and Anti-Corruption Laws.

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**Section 5.18 Status under Investment Company Act**. Neither the Company nor any Subsidiary is subject to regulation under the Investment Company Act of 1940.

**Section 5.19 Environmental Matters**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither the Company nor any Subsidiary has knowledge of any claim or has received any notice of any claim and no proceeding has been instituted asserting any claim against the Company or any of its Subsidiaries or any of their respective real properties or other assets now or formerly owned, leased or operated by any of them, alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Company nor any Subsidiary has knowledge of any facts which would give rise to any claim, public or private, of violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by any of them or to other assets or their use, except, in each case, such as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

**SECTION 6. REPRESENTATIONS OF THE PURCHASERS.** 

**Section 6.1 Purchase for Investment**. Each Purchaser severally represents that it is purchasing the Notes for its own account or for one or more separate accounts maintained by such Purchaser or for the account of one or more pension or trust funds (which separate or other accounts, if any, are identified on such Purchaser's signature page and are referred to collectively as the "investor account"), and not with a view to the distribution thereof, *provided* that the disposition of such Purchaser's or their property shall at all times be within such Purchaser's or their control. Each Purchaser understands that the Notes have not been registered under the Securities Act, that the Notes are "restricted securities," and that the Notes, and any interest in the Notes, may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available and that the Company is not required to register the Notes.

**Section 6.2 Qualified Institutional Buyer; Accredited Investor**. Each Purchaser severally represents that such Purchaser, and any investor account for which such Purchaser is purchasing Notes, (a) is a "qualified institutional buyer" as defined in Rule 144A(a)(1) promulgated under the Securities Act and is an institutional "accredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D promulgated under the Securities Act with total assets of not less than $5,000,000, and (b) such Purchaser's office in which its investment decision with respect to the Notes was made is located at the address identified on such Purchaser's signature page.

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**Section 6.3 Purchasers and ERISA**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Purchaser severally represents that either: (i) it is not: (A) an "employee benefit plan" as defined in and subject to Title I of ERISA; (B) a "plan" as defined in and subject to Section 4975 of the Code; (C) a governmental, church or other plan that is subject to any federal, state, local or non-U.S. law that is substantially similar to the provisions of Title I of ERISA or Section 4975 of the Code ("**Similar Law**", and all such plans described in the foregoing clauses (A)-(C), "**Purchasing Plans**"); or (D) any other entity whose underlying assets are deemed to include "plan assets" of any such Purchasing Plan for purposes of Title I of ERISA, Section 4975 of the Code or Similar Law (any such Purchasing Plan or other entity described in the foregoing clauses (A)-(D), a "**Purchasing Plan Entity**"); or (ii) its acquisition, holding and disposition of Notes (or any interest therein) will not constitute or result in a non- exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a violation of any Similar Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Purchaser that is a Purchasing Plan Entity severally represents that the sale of Notes to such Purchaser is in no respect a representation by the Company, Piper Sandler or any of their respective affiliates (the "**Transaction Parties**") that such an investment is appropriate for, or meets the relevant legal requirements with respect to investments by, Purchasing Plan Entities generally or any particular Purchasing Plan Entity. None of the Transaction Parties is undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with the acquisition, holding or disposition of any Notes by any Purchasing Plan Entity.

**Section 6.4 Access to Information**. Each Purchaser severally represents and acknowledges that it has received and reviewed the Disclosure Documents and has been afforded (a) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Notes and the merits and risks of investing in the Notes; (b) access to information about the Company and the Subsidiaries and their respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (c) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Neither such inquiries nor any other investigation conducted by or on behalf of any such Purchaser or its representatives or counsel shall modify, amend or affect such Purchaser's right to rely on the Company's express representations and warranties contained in this Agreement.

**Section 6.5 Independent Investment Decision**. Each Purchaser severally represents that it (a) has independently evaluated the merits of its decision to purchase Notes pursuant to this Agreement and (b) understands that nothing in this Agreement or any other materials presented by or on behalf of the Company to such Purchaser in connection with the purchase of the Notes constitutes legal, tax or investment advice. Each Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Notes.

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**SECTION 7. INFORMATION AS TO COMPANY.** 

**Section 7.1 Financial and Business Information**. The Company shall deliver to each holder of a Note that is an Institutional Investor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Quarterly Statements* — within 60 days after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), duplicate copies of,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an unaudited consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) unaudited consolidated statements of income, changes in shareholders' equity and cash flows of the Company and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter,

setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Officer as fairly presenting, in all Material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Annual Statements* — within 120 days after the end of each fiscal year of the Company, duplicate copies of,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an audited consolidated balance sheet of the Company and its Subsidiaries as at the end of such year, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) audited consolidated statements of income, changes in shareholders' equity and cash flows of the Company and its Subsidiaries for such year,

setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon (without a "going concern" or similar qualification or exception and without any qualification or exception as to the scope of the audit on which such opinion is based) of independent public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all Material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Notice of Default or Event of Default* — promptly, and in any event within five (5) Business Days after a Responsible Officer becoming aware of the existence of any Default or Event of Default or that any Person has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given any notice or taken any action with respect to a claimed default of the type referred to in Section 12(f), a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Notices from Governmental Authority* — promptly, and in any event within 30 days of receipt thereof, copies of any notice to the Company or any Subsidiary from any Governmental Authority relating to any order, ruling, statute or other law or regulation that could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Resignation or Replacement of Auditors* — within ten (10) days following the date on which the Company's auditors resign or the Company elects to change auditors, as the case may be, notification thereof, together with such further information as the Required Holders may reasonably request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Requested Information* — with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries or relating to the ability of the Company to perform its obligations hereunder and under the Notes as from time to time may be reasonably requested by any such holder of a Note.

**Section 7.2 Officer's Certificate**. Each set of financial statements delivered to a holder of a Note pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Officer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Covenant Compliance* — setting forth the information from such financial statements that is required in order to establish whether the Company was in compliance with the requirements of Sections 10 and 11, and the financial covenants set forth in Addendum A, during the quarterly, annual or other period covered by the financial statements then being furnished (including with respect to each such provision that involves mathematical calculations, the information from such financial statements that is required to perform such calculations) and detailed calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Section or other covenant, and the calculation of the amount, ratio or percentage then in existence; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Event of Default* — certifying that such Senior Officer has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists (including any such event or condition resulting from the failure of the Company or any Subsidiary to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto.

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**Section 7.3 Electronic Delivery**. Financial statements, opinions of independent certified public accountants, other information and Officer's Certificates that are required to be delivered by the Company pursuant to Sections 7.1(a), (b) or (c) and Section 7.2 shall be deemed to have been delivered if the Company satisfies any of the following requirements with respect thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such financial statements satisfying the requirements of Sections 7.1(a) or (b) and related Officer's Certificate satisfying the requirements of Section 7.2 and any other information required under Section 7.1(c) are delivered to each holder of a Note by e-mail at the e-mail address set forth in such holder's signature page or as communicated from time to time in a separate writing delivered to the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such financial statements satisfying the requirements of Section 7.1(a) or Section 7.1(b) and related Officer's Certificate(s) satisfying the requirements of Section 7.2 and any other information required under Section 7.1(c) are timely posted by or on behalf of the Company on IntraLinks or on any other similar website to which each holder of Notes has free access;

*provided, however*, that in no case shall access to such financial statements, other information and Officer's Certificates be conditioned upon any waiver or other agreement or consent (other than confidentiality provisions consistent with Section 21 of this Agreement); *provided, further*, that (X) in the case of any of clauses (b), (c) or (d) of Section 7.1, the Company shall have given each holder of a Note prior written notice, which may be by e-mail or in accordance with Section 19, of such posting or filing in connection with each delivery; and (Y) that upon request of any holder to receive paper copies of such forms, financial statements, other information and Officer's Certificates or to receive them by e-mail, the Company will promptly e-mail them or deliver such paper copies, as the case may be, to such holder.

**SECTION 8. PAYMENT AND REDEMPTION OF THE NOTES.** 

**Section 8.1 Maturity**. As provided therein, the entire unpaid principal balance of each Note shall be due and payable on the Maturity Date thereof.

**Section 8.2 Optional Redemption by the Company**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may at its option and upon notice as provided below, redeem at any time, and from time to time, on or after May 15, 2023, all or any part of the Notes for the redemption amount determined for the prepayment date with respect to such principal amount to be prepaid as reflected in Section 8.2(b) below. The Company will give each holder of Notes to be redeemed written notice of each redemption under this Section 8.2 not less than thirty (30) days and not more than sixty (60) days prior to the date fixed for such redemption unless the Company and the Required Holders of the Notes to be redeemed agree to another time period. Each such notice shall specify such date (which shall be a Business Day) of redemption, the aggregate principal amount of the Notes to be redeemed on such date, the principal amount of each Note held by such holder to be redeemed (determined in accordance with Section 8.3), and the interest to be paid on the redemption date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Officer of the Company as to the estimated redemption amount due in connection with such redemption (calculated as if the date of such notice were the date of the redemption), setting forth the details of such computation; provided that the Company may rescind any notice of an optional redemption pursuant to this Section 8.2 by providing written notice to each holder of such Notes at least five (5) Business Days prior to the scheduled date of such optional redemption contained in the written notice described in the second sentence of this Section 8.2. Two (2) Business Days prior to such redemption, the Company shall deliver to each holder of Notes to be redeemed a certificate of a Senior Officer of the Company specifying the calculation of such redemption amount as of the specified prepayment date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Optional Redemption Amounts*.

If the redemption occurs during the period beginning on May 15, 2023 and ending May 14, 2024, the redemption amount to be paid by the Company shall equal 102.9375% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date.

If the redemption occurs during the period beginning on May 15, 2024 and ending May 14, 2025, the redemption amount to be paid by the Company shall equal 101.46875% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date.

If the redemption occurs during the period beginning on May 15, 2025 and ending on the Maturity Date, the redemption amount to be paid by the Company shall equal 100% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date.

**Section 8.3 Allocation of Partial Redemptions**. In the case of each partial redemption of the Notes pursuant to Section 8.2, the principal amount of the Notes to be redeemed shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for redemption. Any partial redemptions will be processed through the Depository Trust Company Corporation, in accordance with its rules and procedures, as a "Pro Rata Pass-Through Distribution of Principal".

**Section 8.4 Maturity; Surrender, Etc**. In the case of each redemption of Notes pursuant to this Section 8, the principal amount of each Note to be redeemed shall mature and become due and payable on the date fixed for such redemption, together with interest on such principal amount accrued to such date and the applicable optional redemption amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and optional redemption amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any Note that is paid or redeemed in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any redeemed principal amount of any Note.

**Section 8.5 Purchase of Notes**. The Company will not and will not permit any Affiliate to redeem or otherwise prepay any of the outstanding Notes except upon the payment or redemption of the Notes in accordance with this Agreement and the Notes, *provided* that the Company shall not be prohibited from purchasing or otherwise acquiring any Note from the holder thereof. The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment or redemption of Notes pursuant to this Agreement and no Notes may be issued in substitution or exchange for any such Notes.

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**Section 8.6 Reserved**.

**Section 8.7 Payments on Exercise of Call Option**. Payments to be made pursuant to the Company's call option in Section 13.1 shall be governed by Section 13.1.

**Section 8.8 Cancellation Upon Redemption**. Any notes redeemed or repurchased pursuant to this Section 8 or Section 13 shall be promptly cancelled by the Company. Any Notes repurchased and not yet cancelled by the Company shall be deemed retired and the Company shall not be deemed a Holder pursuant to this Agreement by reason of holding uncancelled Notes.

**Section 8.9 Payments Due on Non-Business Days**. Anything in this Agreement or the Notes to the contrary notwithstanding, (x) except as set forth in clause (y), any payment of interest on any Note that is due on a date that is not a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; and (y) any payment of principal of or optional redemption amount, if applicable, on any Note (including principal due on the Maturity Date of such Note) that is due on a date that is not a Business Day shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

**SECTION 9. AFFIRMATIVE COVENANTS.** 

The Company covenants that so long as any of the Notes are outstanding:

**Section 9.1 Compliance with Laws**. The Company will, and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 9.2 Insurance**. The Company will, and will cause each of its Subsidiaries to, maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated.

**Section 9.3 Covenant Certification**. A Senior Officer shall certify on at least a quarterly basis that, based on all information available to the Company and upon the Senior Officer's due inquiry, the Senior Officer reasonably believes that the Company has complied with all of the covenants set forth herein, including the covenants set forth in Addendum A hereto.

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**Section 9.4 Payment of Taxes and Claims**. The Company will, and will cause each of its Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies imposed on them or any of their properties, assets, income or franchises, to the extent the same have become due and payable and before they have become delinquent and all claims for which sums have become due and payable that have or might become a Lien on properties or assets of the Company or any Subsidiary, provided that neither the Company nor any Subsidiary need pay any such tax, assessment, charge, levy or claim if (i) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary or (ii) the nonpayment of all such taxes, assessments, charges, levies and claims would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 9.5 Corporate Existence, Etc**. Subject to Section 11.2, the Company will at all times preserve and keep its limited liability company existence in full force and effect. Subject to Section 11.2, the Company will at all times preserve and keep in full force and effect the corporate, limited liability company or other legal existence of each of its Subsidiaries (unless merged into the Company or a Wholly-Owned Subsidiary) and all rights and franchises of the Company and its Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such corporate, limited liability company or other legal existence, right or franchise would not, individually or in the aggregate, have a Material Adverse Effect.

**Section 9.6 Books and Records**. The Company will, and will cause each of its Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over the Company or such Subsidiary, as the case may be. The Company will, and will cause each of its Subsidiaries to, keep books, records and accounts which, in reasonable detail, accurately reflect all transactions and dispositions of assets. The Company and its Subsidiaries have devised a system of internal accounting controls sufficient to provide reasonable assurances that their respective books, records, and accounts accurately reflect all transactions and dispositions of assets and the Company will, and will cause each of its Subsidiaries to, continue to maintain such system.

**Section 9.7 Tax Treatment**. At all times any Notes are outstanding, the Company shall elect to be classified as a partnership for U.S. federal income tax purposes and for all U.S. state and local income (and, if applicable, franchise) tax purposes.

**SECTION 10. MINIMUM LIQUIDITY COVENANT.** 

**Section 10.1 Minimum Liquidity Covenant**. The Company covenants that, so long as any of the Notes are outstanding, the Company will not declare or pay any cash dividends or cash distributions to any members of the Company unless, at such time, the Company and its Subsidiaries, in the aggregate, shall have at least $25,000,000 in unrestricted cash and cash equivalents in one or more deposit accounts or securities accounts owned or beneficially owned by the Company and/or any of its Subsidiaries. In addition, the Company agrees not to declare or pay any such cash dividends or cash distributions to any of its members unless permitted under this Section 10.1.

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**SECTION 11. NEGATIVE COVENANTS.** 

The Company covenants that so long as any of the Notes are outstanding:

**Section 11.1 Transactions with Affiliates**. Other than and subject to certain existing agreements set forth on Schedule 11.1, which are permitted hereunder, the Company will not, and will not permit any Subsidiary to, enter into directly or indirectly any transaction or group of related transactions (including the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary), except (a) in the ordinary course and pursuant to the reasonable requirements of the Company's or such Subsidiary's business and upon fair and reasonable terms no less favorable to the Company or such Subsidiary than would be obtainable in a comparable arm's-length transaction with a Person that is not an Affiliate, and (b) any expense sharing agreements similar to those in effect on the Closing Date and listed on Schedule 11.1, and (c) any agreements pursuant to which the Company or any of its Subsidiaries may lease or rent office space from one or more Affiliates on market terms.

**Section 11.2 Merger, Consolidation, Etc**. The Company will not, and will not permit any Subsidiary to, consolidate with or merge with any other Person or convey, transfer or lease all or substantially all of its assets in a single transaction or series of transactions to any Person unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of any such transaction involving the Company, the successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, transfer or lease all or substantially all of the assets of the Company as an entirety, as the case may be, shall be a solvent corporation or limited liability company organized and existing under the laws of the United States or any state thereof (including the District of Columbia), and, if the Company is not such corporation or limited liability company, then (i) such corporation or limited liability company shall have executed and delivered to each holder of any Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement and the Notes and (ii) such corporation or limited liability company shall have caused to be delivered to each holder of any Notes a customary opinion of nationally recognized independent counsel, or other independent counsel reasonably satisfactory to the Required Holders, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) immediately before and immediately after giving effect to such transaction or each transaction in any such series of transactions, no Default or Event of Default shall have occurred and be continuing.

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No such conveyance, transfer or lease of substantially all of the assets of the Company shall have the effect of releasing the Company or any successor corporation or limited liability company that shall theretofore have become such in the manner prescribed in this Section 11.2, from its liability under this Agreement or the Notes (in the case of the Company). Notwithstanding other provisions of this Agreement, and for the avoidance of doubt, the Company will be permitted to: (i) merge or consolidate the Company with any Subsidiary, or cause the merger or consolidation of any Subsidiary into or with any other Subsidiary, and/or the conveyance, transfer or lease of some, all or substantially all of the assets of any Subsidiary to any other Subsidiary or to the Company; and (ii) cause the liquidation or dissolution of any Subsidiary if the Company determines in good faith that such liquidation or dissolution is in the best interests of the Company and not materially disadvantageous to the Purchasers.

**Section 11.3 Dispositions**. The Company will not, and will not permit any of its Subsidiaries to, make any Disposition, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Dispositions of inventory, and of obsolete or worn out property, in each case in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Dispositions of equipment or real property to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement property or (ii) the proceeds of such Disposition are within 120 days thereafter applied to the purchase price of such replacement property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Dispositions of any property by any Subsidiary to the Company or to any other Subsidiary, or by the Company to any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Dispositions permitted by Section 11.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) leases, licenses, subleases or sublicenses (including the provision of open source software under an open source license) granted in the ordinary course of business and on ordinary commercial terms that do not interfere in any material respect with the business of the Company and its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Dispositions of intellectual property rights that are no longer used or useful in the business of the Company and its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Dispositions of any product or asset (including any intellectual property or technology) that may be acquired or developed by the Company or any Subsidiary after the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the discount, write-off or Disposition of accounts receivable overdue by more than 30 days, in each case in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Dispositions of any cash, cash equivalents, securities, notes or other instruments, any futures, options, derivatives, other financial assets, and/or any other investments and financial products that may be purchased, sold, traded or exchanged by the Company or any Subsidiary in the ordinary course of business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Dispositions by the Company and any Subsidiary not otherwise permitted under this Section; *provided* that the aggregate book value of all property Disposed of pursuant to this clause (j) in any fiscal year shall not exceed $250,000.

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**Section 11.4 Line of Business**. Except to the extent permitted by Sections 11.2 and 11.3, the Company (i) will not sell, transfer or convey any of the equity securities or other equity interests of any Subsidiary, (ii) will not permit any Subsidiary to issue equity securities or other equity interests to any Person other than the Company or another Subsidiary and (iii) will not permit any Subsidiary to engage in any business if, as a result in each case, the general nature of the business in which the Company and its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business in which the Company and its Subsidiaries, taken as a whole, are engaged on the date of this Agreement as described in the Offering Materials.

**Section 11.5 Liens**. The Company will not, and will not permit any of its Subsidiaries to, directly or indirectly create, incur, assume or permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to any property or asset (including any document or instrument in respect of goods or accounts receivable) of the Company or any such Subsidiary, whether now owned or held or hereafter acquired, or any income or profits therefrom, or assign or otherwise convey any right to receive such income or profits, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Liens securing any existing Indebtedness or other obligations of the Company or any Subsidiary as described on Schedule 5.16, or any amendments, modifications, or refinancing of any such Indebtedness, *provided* that (i) such Lien shall not apply to any other property or asset of the Company or any Subsidiary and (ii) such Lien shall secure only the Indebtedness or other obligations which it secures on the date hereof and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Permitted Liens; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other Liens securing Indebtedness of the Company or any Subsidiary not otherwise permitted by clauses (a) and (b) above, *provided* that all Indebtedness secured by any of the Liens permitted by this clause (c) and clause (a) above in aggregate shall not at any time exceed 60% of the total Indebtedness of the Company (determined on a consolidated basis as of the end of the then most recently ended annual fiscal period).

**Section 11.6 Dividends; Salaries; Related Party Transactions**. Upon the occurrence of an Event of Default and for as long as such Event of Default remains outstanding, the Company shall not (i) declare or pay any cash dividends or distributions of cash or assets to any of the members of the Company, (ii) increase the salary of or provide any discretionary cash bonus payments to employees or members of the Company, or (iii) make any payments pursuant to a related party transaction, other than payments to third parties in the ordinary course of business and/or payments permitted under Section 11.1 (and including, for the avoidance of doubt, any expense sharing agreements similar to those in effect on the Closing Date and listed on Schedule 11.1, and any agreements pursuant to which the Company or any of its Subsidiaries may lease or rent office space from one or more Affiliates on market terms).

**Section 11.7 Terrorism Sanctions Regulations**. No obligor will, or permit any Controlled Entity to, (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person, or (b) directly or indirectly have any investment in or engage in any dealing or transaction (including, without limitation, any investment, dealing or transaction involving the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any holder or any affiliate of such holder to be in violation of, or subject to sanctions under, any law or regulation applicable to such holder, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions Laws.

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**SECTION 12. EVENTS OF DEFAULT.** 

An "**Event of Default**" shall exist if any of the following conditions or events shall occur and be continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company does not pay the principal of any Note on its due date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company does not pay any interest or premium (including any optional redemption amount) on any Note when due, and such default is not cured within five Business Days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any Indebtedness that is outstanding in an aggregate principal amount of at least $5,000,000 (or its equivalent in the relevant currency of payment) beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of or compliance with any term of any evidence of any Indebtedness in an aggregate outstanding principal amount of at least $5,000,000 (or its equivalent in the relevant currency of payment) or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such Indebtedness has become, or has been declared (or one or more Persons are entitled to declare such Indebtedness to be), due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of Indebtedness to convert such Indebtedness into equity interests), (x) the Company or any Subsidiary has become obligated to purchase or repay Indebtedness before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least $5,000,000 (or its equivalent in the relevant currency of payment), or (y) one or more Persons have the right to require the Company or any Subsidiary so to purchase or repay such Indebtedness; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Company or any Subsidiary (i) is generally not paying (other than as a result of a good faith dispute), or admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a court or other Governmental Authority of competent jurisdiction enters an order appointing, without consent by the Company or any of its Subsidiaries, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company or any of its Subsidiaries, or any such petition shall be filed against the Company or any of its Subsidiaries and such petition shall not be dismissed within 60 days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any event occurs with respect to the Company or any Subsidiary which under the laws of any jurisdiction is analogous to any of the events described in Section 12(d) or Section 12(e), provided that the applicable grace period, if any, which shall apply shall be the one applicable to the relevant proceeding which most closely corresponds to the proceeding described in Section 12(d) or Section 12(e); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) one or more final judgments or orders for the payment of money aggregating in excess of $5,000,000 (or its equivalent in the relevant currency of payment), including any such final order enforcing a binding arbitration decision, are rendered against one or more of the Company and its Subsidiaries and which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 60 days after the expiration of such stay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Company defaults in the performance of or compliance with any term contained in Sections 7.1(a) through (e); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company defaults in the performance of or compliance with any term contained herein (other than those referred to in Sections 12(a) and (b) and Section 12(h)) and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a "notice of default" and to refer specifically to this Section 12(i)); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in this Agreement or any writing furnished in connection with the transactions contemplated hereby proves to have been false or incorrect in any Material respect on the date as of which made; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Company breaches any covenant set forth in Addendum A to this Agreement and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a "notice of default" and to refer specifically to this Section 12(k)).

**SECTION 13. REMEDIES ON DEFAULT, ETC.** 

**Section 13.1 Acceleration**. (a) If an Event of Default described in Section 12(d), 12(e) or 12(f) has occurred, all the Notes then outstanding shall automatically become immediately due and payable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any other Event of Default has occurred and is continuing, the Required Holders may at any time at its or their option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Event of Default described in Section 12(a) or (b) has occurred and is continuing, any holder or holders of the Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due and payable.

Upon any Notes becoming due and payable under this Section 13.1, whether automatically or by declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the optional redemption amount, if any, determined in respect of such principal amount (to the full extent permitted by applicable law), shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.

**Section 13.2 Other Remedies**. If any Default or Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 13.1, the holder of any Note at the time outstanding may proceed to protect and enforce the rights of such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise.

**Section 13.3 Rescission**. At any time after any Notes have been declared due and payable pursuant to Section 13.1(b) or (c), the Required Holders or the applicable affected holder or holders of Notes, as applicable, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all principal of and the optional redemption amount, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all other amounts that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and optional redemption amount, if any, and (to the extent permitted by applicable law) any overdue interest in respect of the Notes, at the Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 18, and (d) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment under this Section 13.3 will extend to or affect any subsequent Event of Default or Default for or impair any right consequent thereon.

**Section 13.4 No Waivers or Election of Remedies, Expenses, Etc**. No course of dealing and no delay on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder's rights, powers or remedies. No right, power or remedy conferred by this Agreement or any Note upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or

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now or hereafter available at law, in equity, by statute or otherwise. Without limiting the obligations of the Company under Section 16, the Company will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all reasonable costs and expenses of such holder incurred in any enforcement or collection under this Section 13, including reasonable attorneys' fees, expenses and disbursements.

**SECTION 14. GLOBAL NOTE; REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.** 

**Section 14.1 Global Note**. (a) The Notes being purchased by Purchasers pursuant to this Agreement will be issued in the form of one or more Global Notes registered in the name of DTC or a nominee thereof and delivered to DTC on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any other provision herein, no Global Note may be exchanged in whole or in part for Notes registered, and no transfer of a Global Note in whole or in part may be registered, in the name of any person other than DTC or a nominee thereof unless (i) DTC advises the Company in writing that DTC is no longer willing or able to properly discharge its responsibilities as the depository with respect to such Global Note, and no qualified successor is appointed by the Company within 90 days of receipt by the Company of such notice, (ii) DTC ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended and no successor is appointed by the Company within 90 days after obtaining knowledge of such event, (iii) the Company elects to terminate the book-entry system through DTC or (iv) an Event of Default shall have occurred and be continuing. Upon the occurrence of any event specified in clause (i), (ii), (iii) or (iv) of this Section 14.1(b) above, the Company or its agent shall notify DTC and instruct DTC to notify all owners of beneficial interests in the Global Note of the occurrence of such event and of the availability of Notes to such owners of beneficial interests requesting the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Global Note is to be exchanged for other Notes or canceled in part, or if another Note is to be exchanged in whole or in part for a beneficial interest in a Global Note, then either (i) such Global Note shall be so surrendered for exchange or cancellation as provided in this Section 14.1(c) or (ii) the principal amount thereof shall be reduced or increased by an amount equal to the portion thereof to be so exchanged or canceled, or equal to the principal amount of such other Note to be so exchanged for a beneficial interest therein, as the case may be, by means of an appropriate adjustment made on the records of the Company, whereupon the Company, in accordance with the applicable rules and procedures of DTC ("**DTC Procedures**"), shall instruct DTC or its authorized representative to make a corresponding adjustment to its records. Upon any such surrender or adjustment of a Global Note by DTC, accompanied by registration instructions, the Company shall execute and deliver any Notes issuable in exchange for such Global Note (or any portion thereof) in accordance with the instructions of DTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Every Note executed and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Note or any portion thereof shall be executed and delivered in the form of, and shall be, a Global Note, unless such Global Note is registered in the name of a person other than DTC or a nominee thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) DTC or its nominee, as the registered owner of any Global Note, shall be the holder of such Global Note for all purposes under the Note, and owners of beneficial interests in such Global Note shall hold such interests pursuant to DTC Procedures. Accordingly, any such owner's beneficial interest in such Global Note shall be shown only on, and the transfer of such interest shall be effected only through, records maintained by DTC or its nominee or its participants. If applicable, the Company shall be entitled to deal with DTC for all purposes relating to such Global Note (including the payment of principal and interest thereon and the giving of instructions or directions by owners of beneficial interests therein and the giving of notices) as the sole holder of the Notes and shall have no obligations to the owners of beneficial interests therein. The Company shall have no liability in respect of any transfers affected by DTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The rights of owners of beneficial interests in the Global Notes shall be exercised only through DTC and shall be limited to those established by law and agreements between such owners and DTC and/or its participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No holder of any beneficial interest in the Global Notes held on its behalf by DTC shall have any rights with respect to such Global Notes, and DTC may be treated by the Company and any agent of the Company as the owner of the Global Notes for all purposes whatsoever. Neither the Company nor any agent of the Company will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Note or maintaining, supervising or reviewing any records relating to such beneficial ownership interests. Notwithstanding the foregoing, nothing herein shall prevent the Company or any agent of the Company from giving effect to any written certification, proxy or other authorization furnished by DTC or impair, as between DTC and such holders of beneficial interests, the operation of customary practices governing the exercise of the rights of DTC (or its nominee) as holder of any Note.

**Section 14.2 Registration of Notes**. The Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes. The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register. If any holder of one or more Notes is a nominee, then (a) the name and address of the beneficial owner of such Note or Notes shall also be registered in such register as an owner and holder thereof and (b) at any such beneficial owner's option, either such beneficial owner or its nominee may execute any amendment, waiver or consent pursuant to this Agreement. Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary. The Company shall give to any holder of a Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes.

**Section 14.3 Transfer and Exchange of Notes**. Subject to Section 14.1, including the transfer restrictions contained therein, upon (a) surrender of any Note to the Company at the address and to the attention of the designated officer (all as specified in Section 19(iii)), for registration of transfer or exchange (and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by the registered holder of such

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Note or such holder's attorney duly authorized in writing and accompanied by the relevant name, address and other information for notices of each transferee of such Note or part thereof) and (b) delivery to the Company of evidence reasonably satisfactory to it that such transfer or exchange of such Note is exempt from any registration requirements under applicable federal and state securities laws, within 10 Business Days thereafter, the Company shall execute and deliver, at the Company's expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of Schedule 1. Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of less than $100,000, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $100,000. Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representations set forth in Sections 6.2 and 6.3 and to have agreed to the transfer restriction set forth in Section 14.1.

**Section 14.4 Replacement of Notes**. Upon receipt by the Company at the address and to the attention of the designated officer (all as specified in Section 19(iii)) of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is a Qualified Institutional Buyer, such Person's own unsecured agreement of indemnity shall be deemed to be satisfactory), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of mutilation, upon surrender and cancellation thereof, within 10 Business Days thereafter, the Company at its own expense shall execute and deliver, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

**SECTION 15. PAYMENTS ON NOTES.** 

**Section 15.1 Place of Payment**. Subject to Section 15.2, payments of principal, optional redemption amount, if any, and interest becoming due and payable on the Notes shall be made in the State of Texas at the principal office of the Paying Agent in such jurisdiction. The Company may at any time, by notice to each holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either a principal office of the Company in the United States or a principal office of a bank or trust company in the United States.

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**Section 15.2 Payment by Wire Transfer**. So long as any Purchaser or its nominee shall be the holder of any Note, and notwithstanding anything contained in Section 15.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for the principal, optional redemption amount, if any, interest and all other amounts becoming due hereunder by the method and at the address specified for such purpose below such Purchaser's name on such Purchaser's signature page, or by such other method or at such other address as such Purchaser shall have from time to time specified to the Company in writing for such purpose at least fifteen (15) days prior to such applicable due date, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or redemption in full of any Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 15.1. Prior to any sale or other disposition of any Note held by a Purchaser or its nominee, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 14.3. The Company will afford the benefits of this Section 15.2 to any Institutional Investor that is the direct or indirect transferee of any Note purchased by a Purchaser under this Agreement and that has made the same agreement relating to such Note as the Purchasers have made in this Section 15.2.

**Section 15.3 FATCA Information**. By acceptance of any Note, the holder of such Note agrees that such holder will with reasonable promptness duly complete and deliver to the Company, or to such other Person as may be reasonably requested by the Company, from time to time (a) in the case of any such holder that is a United States Person, such holder's United States tax identification number or other Forms reasonably requested by the Company necessary to establish such holder's status as a United States Person under FATCA and as may otherwise be necessary for the Company to comply with its obligations under FATCA and (b) in the case of any such holder that is not a United States Person, such documentation prescribed by applicable law (including as prescribed by section 1471(b)(3)(C)(i) of the Code) and such additional documentation as may be necessary for the Company to comply with its obligations under FATCA and to determine that such holder has complied with such holder's obligations under FATCA or to determine the amount (if any) to deduct and withhold from any such payment made to such holder. Nothing in this Section 15.3 shall require any holder to provide information that is confidential or proprietary to such holder unless the Company is required to obtain such information under FATCA and, in such event, the Company shall treat any such information it receives as confidential.

**SECTION 16. EXPENSES, ETC.** 

**Section 16.1 Transaction Expenses**. Each party to this Agreement shall be responsible for its own costs and expenses (including attorneys' fees and expenses) incurred in connection with the negotiation and preparation of this Agreement and the Notes, the transactions contemplated hereby and by the Notes, the Closing, and in connection with any amendments, waivers or consents under or in respect of this Agreement or the Notes (whether or not such amendment, waiver or consent becomes effective); provided that the Company shall reimburse the Purchasers for their reasonable costs and expenses not to exceed $50,000 in the aggregate incurred (a) in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement or the Notes, or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement or the Notes and (b)

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in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes, including financial advisors' fees. Subject to the limitations in the preceding sentence, the Company will pay, and will save each Purchaser and each other holder of a Note harmless from, (i) all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than those, if any, retained by a Purchaser or other holder in connection with its purchase of the Notes), (ii) any and all wire transfer fees that any bank or other financial institution deducts from any payment under such Note to such holder or otherwise charges to a holder of a Note with respect to a payment under such Note and (iii) any judgment, liability, claim, order, decree, fine, penalty, cost, expense or obligation resulting from the consummation of the transactions contemplated hereby, including the use of the proceeds of the Notes by the Company (including any out-of-pocket reasonable attorneys' fees and expenses incurred by the Purchasers in connection with any such judgment, liability, claim, order, decree, fine, penalty, cost, expense or obligation).

**Section 16.2 Certain Taxes**. The Company agrees to pay all stamp, documentary or similar taxes or fees which may be payable in respect of the execution and delivery or the enforcement of this Agreement or the execution, delivery or enforcement of (but not the transfer of) any of the Notes in the United States or any other jurisdiction where the Company has assets or of any amendment of, or waiver or consent under or with respect to, this Agreement or of any of the Notes, and to pay any value added tax due and payable in respect of reimbursement of costs and expenses by the Company pursuant to this Section 16, and to the extent permitted by applicable law will save each holder of a Note harmless against any loss or liability resulting from nonpayment or delay in payment of any such tax or fee required to be paid by the Company hereunder.

**Section 16.3 Survival**. The obligations of the Company under this Section 16 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and the termination of this Agreement.

**SECTION 17. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.** 

All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Notes, the purchase or transfer by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of such Purchaser or any other holder of a Note. This Agreement and the Notes embody the entire agreement and understanding between each Purchaser and the Company and supersede all prior agreements and understandings relating to the subject matter hereof.

**SECTION 18. AMENDMENT AND WAIVER.** 

**Section 18.1 Requirements**. This Agreement and the Notes may be amended, and the observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), only with the written consent of the Company and the Required Holders, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No amendment or waiver of any of Sections 1, 2, 3, 4, 5, 6 or 22 hereof, or any defined term (as it is used therein), will be effective as to any Purchaser unless consented to by such Purchaser in writing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No amendment or waiver may, without the written consent of each Purchaser and the holder of each Note at the time outstanding, (i) subject to Section 13 relating to acceleration or rescission, change the amount or time of any redemption or payment of principal of, or reduce the rate or change the time of payment or method of computation of (x) interest on the Notes or (y) the optional redemption amount, if any, (ii) change the percentage of the principal amount of the Notes the holders of which are required to consent to any amendment or waiver, or (iii) amend any of Sections 8 (except as set forth in the second sentence of Section 8.2(a) and Section 18.1(c)), 12(a), 12(b), 13, 18 or 21; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section 8.5 may be amended or waived to permit offers to purchase made by the Company or an Affiliate pro rata to the holders of all Notes at the time outstanding upon the same terms and conditions only with the written consent of the Company and the Required Holders.

**Section 18.2 Solicitation of Holders of Notes**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Solicitation*. The Company will provide each holder of a Note with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the Notes. The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to this Section 18 to each holder of a Note promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Payment*. The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder of a Note as consideration for or as an inducement to the entering into by such holder of any waiver or amendment of any of the terms and provisions hereof or of any Note unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each holder of a Note even if such holder did not consent to such waiver or amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Consent in Contemplation of Transfer*. Any consent given pursuant to this Section 18 by a holder of a Note that has transferred or has agreed to transfer its Note to (i) the Company, (ii) any Subsidiary or any other Affiliate or (iii) any other Person in connection with, or in anticipation of, such other Person acquiring, making a tender offer for or merging with the Company and/or any of its Affiliates (either pursuant to a waiver under Section 18.1(c) or subsequent to Section 8.5 having been amended pursuant to Section 18.1(c)), in each case in connection with such consent, shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such holder.

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**Section 18.3 Binding Effect, Etc**. Any amendment or waiver consented to as provided in this Section 18 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon. No course of dealing between the Company and any holder of a Note and no delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note.

**Section 18.4 Notes Held by Company, Etc**. Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Notes, or have directed the taking of any action provided herein or the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding.

**SECTION 19. NOTICES.** 

Except to the extent otherwise provided in Section 7.3, all notices and communications provided for hereunder shall be in writing and sent (a) by telecopy or email if the sender on the same day sends a confirming copy of such notice by an internationally recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by an internationally recognized overnight delivery service (charges prepaid). Any such notice must be sent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to any Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications on such Purchaser's signature page, or at such other address as such Purchaser or nominee shall have specified to the Company in writing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Company in writing, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if to the Company, to the Company at its address set forth at the beginning hereof to the attention of the Chief Operating Officer or at such other address as the Company shall have specified to the holder of each Note in writing.

Notices under this Section 19 will be deemed given only when actually received.

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**SECTION 20. REPRODUCTION OF DOCUMENTS.** 

This Agreement and all documents relating thereto, including (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser at the Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced. The Company agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. This Section 20 shall not prohibit the Company or any other holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

**SECTION 21. CONFIDENTIAL INFORMATION.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For the purposes of this Section 21, "**Confidential Information**" means information delivered to any Purchaser by or on behalf of the Company or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser as being confidential information of the Company or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser or any Person acting on such Purchaser's behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by the Company or any Subsidiary or (d) constitutes financial statements delivered to such Purchaser under Section 7.1 that are otherwise publicly available. Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser and will not otherwise use any of such Confidential Information other than in the administration and oversight of its investment in the Notes, provided that such Purchaser may deliver or disclose Confidential Information to (i) its directors, managers, officers, employees, agents, attorneys, trustees and affiliates (the "**Representatives**") (to the extent such disclosure reasonably relates to the administration of the investment represented by its Notes, and provided, further, that each Purchaser agrees that its Representatives will be made aware of the confidential nature of such Confidential Information and shall treat such Confidential Information confidentially, and that each Purchaser will be responsible for any disclosures by its Representatives), (ii) its auditors, financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with this Section 21, (iii) any other holder of any Note, (iv) any Institutional Investor to which it sells or offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by this Section 21), (v) any Person from which it offers to purchase any Security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by this Section 21), (vi) any federal or state regulatory authority having jurisdiction over such Purchaser, or (vii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the

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extent such Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser's Notes or this Agreement. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 21 as though it were a party to this Agreement. On reasonable request by the Company in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Company embodying this Section 21.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding other provisions of this Section 21, in the event that any Purchaser is compelled by any Governmental Authority (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process) to disclose any Confidential Information, such Purchaser will provide the Company with notice of such request or requirement as promptly as practicable (unless not permitted by applicable law) so that the Company may seek a protective order or other appropriate remedy. Each Purchaser shall cooperate reasonably with the Company in connection with the Company's reasonable efforts to seek such an order or remedy. If the Company does not obtain such protective order or other remedy, or the Company waives compliance with this Section 21(b), such Purchaser will furnish only that portion of the applicable Confidential Information that is reasonably required, and will exercise reasonable efforts to obtain assurance that the confidential treatment will be accorded such disclosed Confidential Information. Notwithstanding anything to the contrary in this Section 21(b), the Purchasers may disclose Confidential Information to any regulatory authority having jurisdiction over such Purchasers or their Affiliates during the course of any routine examination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that as a condition to receiving access to information relating to the Company or its Subsidiaries in connection with the transactions contemplated by or otherwise pursuant to this Agreement, any Purchaser or holder of a Note is required to agree to a confidentiality undertaking (whether through IntraLinks, another secure website, a secure virtual workspace or otherwise) which is different from this Section 21, this Section 21 shall not be amended thereby and, as between such Purchaser or such holder and the Company, this Section 21 shall supersede any such other confidentiality undertaking.

**SECTION 22. SUBSTITUTION OF PURCHASER.** 

Each Purchaser shall have the right to substitute any one of its Affiliates or another Purchaser or any one of such other Purchaser's Affiliates (a "**Substitute Purchaser**") as the purchaser of the Notes that it has agreed to purchase hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser and such Substitute Purchaser, shall contain such Substitute Purchaser's agreement to be bound by this Agreement and shall contain a confirmation by such Substitute Purchaser of the accuracy with respect to it of the representations set forth in Section 6. Upon receipt of such notice, any reference to such Purchaser in this Agreement (other than in this Section 22), shall be deemed to refer to such Substitute Purchaser in lieu of such original Purchaser. In the event that such Substitute Purchaser is so substituted as a Purchaser hereunder and such Substitute Purchaser thereafter transfers to such original Purchaser all of the Notes then held by such Substitute Purchaser, upon

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receipt by the Company of notice of such transfer, any reference to such Substitute Purchaser as a "Purchaser" in this Agreement (other than in this Section 22), shall no longer be deemed to refer to such Substitute Purchaser, but shall refer to such original Purchaser, and such original Purchaser shall again have all the rights of an original holder of the Notes under this Agreement.

**SECTION 23. MISCELLANEOUS.** 

**Section 23.1 Successors and Assigns**. All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including any subsequent holder of a Note) whether so expressed or not, except that, subject to the provisions of Section 11.2, the Company may not assign or otherwise transfer any of its rights or obligations hereunder or under the Notes without the prior written consent of each holder. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto and their respective successors and assigns permitted hereby) any legal or equitable right, remedy or claim under or by reason of this Agreement.

**Section 23.2 Accounting Terms**. All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with GAAP. Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP.

**Section 23.3 Severability**. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.

**Section 23.4 Construction, Etc**. Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.

Defined terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation." The word "will" shall be construed to have the same meaning and effect as the word "shall." Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein) and, for purposes of the Notes, shall also include any such notes issued in substitution therefor pursuant to Section 14, (b) subject to Section 23.1,

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any reference herein to any Person shall be construed to include such Person's successors and assigns, (c) the words "herein," "hereof" and "hereunder," and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Sections and Schedules shall be construed to refer to Sections of, and Schedules to, this Agreement, and (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time.

**Section 23.5 Counterparts**. This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto.

**Section 23.6 Governing Law**. This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice of law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

**Section 23.7 Jurisdiction and Process; Waiver of Jury Trial**. (a) The Company irrevocably submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, the City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the Notes. To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company agrees, to the fullest extent permitted by applicable law, that a final judgment in any suit, action or proceeding of the nature referred to in Section 23.7(a) brought in any such court shall be conclusive and binding upon it subject to rights of appeal, as the case may be, and may be enforced in the courts of the United States of America or the State of New York (or any other courts to the jurisdiction of which it or any of its assets is or may be subject) by a suit upon such judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company consents to process being served by or on behalf of any holder of Notes in any suit, action or proceeding of the nature referred to in Section 23.7(a) by mailing a copy thereof by registered, certified, priority or express mail (or any substantially similar form of mail), postage prepaid, return receipt or delivery confirmation requested, to it at its address specified in Section 19 or at such other address of which such holder shall then have been notified pursuant to said Section. The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it. Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Nothing in this Section 23.7 shall affect the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\* \* \* \* \*

------

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| | |
|:---|:---|
| Very truly yours,<br>CLEAR STREET HOLDINGS LLC | Very truly yours,<br>CLEAR STREET HOLDINGS LLC |
| By: | /s/ Chris Pento |
| Name: Chris Pento | Name: Chris Pento |
| Title: Chief Executive Officer | Title: Chief Executive Officer |

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[INDIVIDUAL PURCHASER COUNTERPART SIGNATURE PAGES ON NEXT PAGES]

*Clear Street Holdings LLC - Private Placement of Fixed Rate Senior Unsecured Notes due 2026* 

*Signature Page to Note Purchase Agreement* 

------

**IN WITNESS WHEREOF,** the Purchaser has caused this Note Purchase Agreement to be executed by its duly authorized representative as of the date first above written.

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| | |
|:---|:---|
| **<u>PURCHASER</u>:** | **<u>PURCHASER</u>:** |
| By: |  |
|  | Name: |
|  | Title: |
| <u>Address of Purchaser</u>: | <u>Address of Purchaser</u>: |
| Principal Amount of Purchased Note: <br> CUSIP: | Principal Amount of Purchased Note: <br> CUSIP: |

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*Clear Street Holdings LLC - Private Placement of Fixed Rate Senior Unsecured Notes due 2026* 

*Signature Page to Note Purchase Agreement* 

------

**SCHEDULE A** 

**Defined Terms** 

As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term:

"**Affiliate**" means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person, and, with respect to the Company, shall include (a) any Person beneficially owning or holding, directly or indirectly, 25% or more of (i) the fully diluted economic interests of the Company or any Subsidiary or (ii) any class of voting equity interests of the Company or any Subsidiary or (b) any Person of which the Company and its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 25% or more of any class of voting or equity interests. Unless the context otherwise clearly requires, any reference to an "Affiliate" is a reference to an Affiliate of the Company.

"**Agreement**" means this Note Purchase Agreement, including all Schedules attached to this Agreement (as amended, restated, modified, and/or supplemented from time to time pursuant to the terms of this Agreement).

"**Anti-Corruption Laws**" means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding bribery or any other corrupt activity, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010.

"**Anti-Money Laundering Laws**" means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes, including the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy Act) and the USA PATRIOT Act.

"**Blocked Person**" means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization, country or regime that is blocked or a target of sanctions that have been imposed under U.S. Economic Sanctions Laws or (c) a Person that is an agent, department or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any Person, entity, organization, country or regime described in clause (a) or (b).

"**Broker-Dealer Subsidiary**" is defined in Section 5.12.

"**Business Day**" means any day other than a Saturday, a Sunday or a day on which commercial banks in New York City are required or authorized to be closed.

"**Capital Lease**" means, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP.

Schedule A-1

(to Note Purchase Agreement)

------

"**Closing**" is defined in Section 3.

"**Closing Date**" is the date on which the Closing occurs.

"**Code**" means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from time to time.

"**Company**" is defined in the first paragraph of this Agreement.

"**Confidential Information**" is defined in Section 21.

"**Control**" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; and the terms "**Controlled**" and "**Controlling**" shall have meanings correlative to the foregoing.

"**Controlled Entity**" means (a) any of the Subsidiaries of the Company and any of their or the Company's respective Controlled Affiliates and (b) if the Company has a parent company, such parent company and its Controlled Affiliates.

"**Default**" means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default.

"**Default Rate**" means that rate of interest per annum of 7.875%.

"**Disclosure Documents**" is defined in Section 5.3.

"**Disposition**" or "**Dispose**" means the sale, transfer, license, lease or other disposition (in one transaction or in a series of transactions and whether effected pursuant to a division or otherwise) of any property by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.

"**DTC**" is defined in Section 1.

"**DTC Procedures**" is defined in Section 14.1(c).

"**Environmental Laws**" means any and all federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including those related to Hazardous Materials.

"**ERISA**" means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

Schedule A-2

(to Note Purchase Agreement)

------

"**ERISA Affiliate**" means any trade or business (whether or not incorporated) that is treated as a single employer together with the Company under section 414 of the Code.

"**Event of Default**" is defined in Section 12.

"**FATCA**" means (a) sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), together with any current or future regulations or official interpretations thereof, (b) any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the United States of America and any other jurisdiction, which (in either case) facilitates the implementation of the foregoing clause (a), and (c) any agreements entered into pursuant to section 1471(b)(1) of the Code. "**FINRA**" is defined in Section 5.12.

"**GAAP**" means (a) generally accepted accounting principles as in effect from time to time in the United States of America and (b) for purposes of Section 9.6, with respect to any Subsidiary, generally accepted accounting principles (including International Financial Reporting Standards, as applicable) as in effect from time to time in the jurisdiction of organization of such Subsidiary.

"**Global Notes**" is defined in Section 1.

"Governmental Authority" means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the government of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the United States of America or any state or other political subdivision thereof, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any other jurisdiction in which the Company or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or any Subsidiary, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.

"**Governmental Official**" means any governmental official or employee, employee of any government-owned or government-controlled entity, political party, any official of a political party, candidate for political office, official of any public international organization or anyone else acting in an official capacity.

"**Guaranty**" means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including obligations incurred through an agreement, contingent or otherwise, by such Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to purchase such indebtedness or obligation or any property constituting security therefor;

Schedule A-3

(to Note Purchase Agreement)

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to advance or supply funds (i) for the purchase or payment of such indebtedness or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such indebtedness or obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such indebtedness or obligation of the ability of any other Person to make payment of the indebtedness or obligation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) otherwise to assure the owner of such indebtedness or obligation against loss in respect thereof.

In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor.

"**Hazardous Materials**" means any and all pollutants, toxic or hazardous wastes or other substances that might pose a hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized by any applicable law, including asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.

"**holder**" or "**Holder**" means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the Company pursuant to Section 14; *provided*, *however*, that if such Person is a nominee, then for the purposes of Sections 7, 13, 18.2 and 19 and any related definitions in this Schedule A, "holder" shall mean the beneficial owner of such Note whose name and address appears in such register.

"**Indebtedness**" with respect to any Person means, at any time, without duplication,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all liabilities for borrowed money evidenced by notes, bonds, debentures, loan agreements or similar evidences of indebtedness; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Guaranty of such Person with respect to liabilities of a type described in clause (a).

Indebtedness of any Person shall include all obligations of such Person of the character described in clauses (a) and (b) above, to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP. For the avoidance of doubt, the definition of "Indebtedness" shall not include liabilities or obligations for or with respect to Capital Leases, real property and facility leases, equipment leases, other financing leases, and/or any other liabilities incurred in the ordinary course of business, including but not limited to (i) credit default swaps or other credit derivatives entered into solely for the purpose of hedging, (ii) Securities Financing and (iii) guarantees issued to or for trading counterparties.

Schedule A-4

(to Note Purchase Agreement)

------

"**Institutional Investor**" means (a) any Purchaser of a Note, (b) any holder of a Note holding (together with one or more of its affiliates) more than 10% of the aggregate principal amount of the Notes then outstanding, (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any holder of any Note.

"**Lien**" means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital Lease, upon or with respect to any property or asset of such Person (including in the case of stock, stockholder agreements, voting trust agreements and all similar arrangements).

"**Material**" means material in relation to the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole.

"**Material Adverse Effect**" means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole, (b) the ability of the Company to perform its obligations under this Agreement and the Notes, or (c) the validity or enforceability of this Agreement or the Notes.

"**Maturity Date**" is defined in the first paragraph of each Note.

"**NAIC**" means the National Association of Insurance Commissioners.

"**Non-U.S. Plan**" means any plan, fund or other similar program that (a) is established or maintained outside the United States of America by the Company or any Subsidiary primarily for the benefit of employees of the Company or one or more Subsidiaries residing outside the United States of America, which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and (b) is not subject to ERISA or the Code.

"**Notes**" is defined in Section 1.

**"OFAC**" means the Office of Foreign Assets Control of the United States Department of the Treasury.

"**OFAC Sanctions Program**" means any economic or trade sanction that OFAC is responsible for administering and enforcing. A list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx.

"**Offering Materials**" is defined in Section 5.3.

Schedule A-5

(to Note Purchase Agreement)

------

"**Officer's Certificate**" means a certificate of a Senior Officer or of any other officer of the Company whose responsibilities extend to the subject matter of such certificate.

"**Paying Agent**" means UMB Bank, N.A., as the paying agent and registrar for the Notes.

"**Permitted Liens**" means any of following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Lien on any property or asset of the Company or any Subsidiary existing on the date hereof and set forth in Schedule 5.16; provided that (i) such Lien shall not apply to any other property or asset of the Company or any Subsidiary and (ii) such Lien shall secure only those obligations which it secures on the date hereof and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liens to secure taxes, assessments and other governmental charges, to the extent that payment thereof shall not at the time be required hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Deposits or pledges made (i) in connection with, or to secure payment of, workers' compensation, unemployment insurance, old age pensions or other social security, (ii) in connection with casualty insurance maintained in accordance with this Agreement, (iii) to secure the performance of bids, tenders, contracts (other than contracts relating to Indebtedness) or leases, (iv) to secure statutory obligations or surety or appeal bonds, or (v) to secure indemnity, performance or other similar bonds in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens of carriers, warehouses, mechanics and similar Liens, in each case (i) in existence less than 120 days from the date of creation thereof or (ii) being contested in good faith by the Company or any Subsidiary in appropriate proceedings (so long as the Company or such Subsidiary shall, in accordance with GAAP, have set aside on its books adequate reserves with respect thereto); and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Encumbrances in the nature of (i) zoning restrictions, easements or restrictions of record on the use of real property, (ii) landlords' and lessors' Liens on any leased or rented premises and (iii) restrictions on transfers or assignment of leases, which in each case do not materially detract from the value of the encumbered property or impair the use thereof in the business of the Company or any Subsidiary.

For the avoidance of doubt, the definition of "Permitted Liens" shall include Liens securing any liabilities or obligations for or with respect to Capital Leases, real property and facility leases, equipment leases, other financing leases, and/or liabilities or obligations incurred in the ordinary course of business, including but not limited to (i) credit default swaps or other credit derivatives entered into solely for the purpose of hedging, (ii) Securities Financing and (iii) guarantees issued to or for trading counterparties.

Schedule A-6

(to Note Purchase Agreement)

------

"**Person**" means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, business entity or Governmental Authority.

"**Piper Sandler**" is defined in Section 5.3.

"**Plan**" means an "employee benefit plan" (as defined in section 3(3) of ERISA) subject to Title I of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any liability.

"**property**" or "**properties**" means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate.

"**Purchaser**" or "**Purchasers**" means each of the purchasers that has executed and delivered this Agreement to the Company and such Purchaser's successors and assigns (so long as any such assignment complies with Section 14.2), provided, however, that any Purchaser of a Note that ceases to be the registered holder or a beneficial owner (through a nominee) of such Note as the result of a transfer thereof pursuant to Section 14.2 shall cease to be included within the meaning of "Purchaser" of such Note for the purposes of this Agreement upon such transfer.

"**Purchasing Plan Entity**" is defined in Section 6.3.

"**Purchasing Plans**" is defined in Section 6.3.

"**Qualified Institutional Buyer**" means any Person who is a "qualified institutional buyer" within the meaning of such term as set forth in Rule 144A(a)(1) under the Securities Act.

"**Related Fund**" means, with respect to any holder of any Note, any fund or entity that (a) invests in Securities or bank loans, and (b) is advised or managed by such holder, the same investment advisor as such holder or by an affiliate of such holder or such investment advisor.

"**Representatives**" is defined in Section 21(a).

"**Required Holders**" means at any time on or after the Closing, the holders of at least 50.1% in principal amount of the Notes at the time outstanding (exclusive of Notes then owned by the Company or any of its Affiliates).

"**Responsible Officer**" means any Senior Officer and any other officer of the Company with responsibility for the administration of the relevant portion of this Agreement.

"**SEC**" means the Securities and Exchange Commission of the United States of America.

"**Securities**" or "**Security**" shall have the meaning specified in section 2(1) of the Securities Act.

Schedule A-7

(to Note Purchase Agreement)

------

"**Securities Act**" means the Securities Act of 1933 and the rules and regulations promulgated thereunder from time to time in effect.

"**Securities Financing**" means any transaction where securities are used to borrow cash or where cash is used to borrow securities, including but not limited to repurchase transactions, securities lending and sell-back or buy-back transactions.

"**Senior Officer**" means any of the chief executive officer, chief operating officer, chief financial officer, president, vice president, or treasurer of the Company, or any person responsible for supervising risk or trading.

"**Similar Law**" is defined in Section 6.3.

"**State Sanctions List**" means a list that is adopted by any state Governmental Authority within the United States of America pertaining to Persons that engage in investment or other commercial activities in Iran or any other country that is a target of economic sanctions imposed under U.S. Economic Sanctions Laws.

"**Subsidiary**" means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries (unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a "Subsidiary" is a reference to a Subsidiary of the Company.

**"Substitute Purchaser"** is defined in Section 22.

"**SVO**" means the Securities Valuation Office of the NAIC.

"**Transaction Parties**" is defined in Section 6.3.

"**United States Person**" has the meaning set forth in Section 7701(a)(30) of the Code.

"**USA PATRIOT Act**" means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 and the rules and regulations promulgated thereunder from time to time in effect.

"**U.S. Economic Sanctions Laws**" means those laws, executive orders, enabling legislation or regulations administered and enforced by the United States pursuant to which economic sanctions have been imposed on any Person, entity, organization, country or regime, including the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran Sanctions Act, the Sudan Accountability and Divestment Act and any other OFAC Sanctions Program.

Schedule A-8

(to Note Purchase Agreement)

------

"**Wholly-Owned Subsidiary**" means, at any time, any Subsidiary all of the equity interests (except directors' or managers' qualifying shares) and voting interests of which are owned by any one or more of the Company and the Company's other Wholly-Owned Subsidiaries at such time.

Schedule A-9

(to Note Purchase Agreement)

------

**ADDENDUM A** 

**Additional Covenants** 

**Definitions**. Unless otherwise defined herein, words and expressions defined in the Note Purchase Agreement, dated May 6, 2021 (the "**Agreement**") among CLEAR STREET HOLDINGS LLC (the "**Company**") and each of the Purchasers (as therein defined) have the same meanings when used herein, including in the recitals hereto.

**1. Financial Covenants** 

Each of the undertakings in this Section 1 of Addendum A shall remain in force until the Maturity Date, except as the Required Holders (or, where specified, all of the holders) may otherwise agree or permit.

**1.1 Debt to Total Capitalization (Leverage).** 

The Company shall not permit its Funded Debt to be in excess of 50% of its Consolidated Total Capitalization, as measured on the date of the most recent consolidated financial statements of the Company and its Subsidiaries delivered pursuant to Section 7.1 of the Agreement.

"**Consolidated Total Capitalization**" means, with respect to the Company at any time, the sum of Consolidated Net Worth and Consolidated Total Indebtedness of the Company at such time.

"**Consolidated Net Worth**" of the Company means, as of any date of determination, the members' capital or stockholders' equity of the Company as reflected on its most recent consolidated balance sheet and prepared in accordance with GAAP.

"**Consolidated Total Indebtedness**" shall mean, at any date, the aggregate principal amount of all Indebtedness of the Company and its Subsidiaries that would be reflected on a consolidated balance sheet of the Company and its Subsidiaries as of such date in accordance with GAAP. The definition of "Consolidated Total Indebtedness" shall not include Capital Leases, real property and facility leases, equipment leases, other financing leases and/or those liabilities incurred in the ordinary course of business, including Securities Financing.

"**Funded Debt**" means unsecured bonds and loans, and any other unsecured debt for borrowed money, with a maturity of longer than one year.

**1.2 Minimum Net Worth.** 

The Company shall maintain a minimum Consolidated Net Worth equal to not less than (a) 50% of its member's capital existing as of the Closing Date, <u>plus</u> (b) the greater of (i) zero and (ii) 25% of all Net Income, in aggregate, earned on and after the Closing Date, as measured on the date of the most recent consolidated financial statements of the Company and its Subsidiaries delivered pursuant to Section 7.1 of the Agreement, to be certified by a Senior Officer in the Compliance Certificate (as set forth in Section 9.3 of the Agreement) delivered in accordance with Section 7.2 of the Agreement. For the avoidance of doubt, if Net Income is less than zero ($0), the minimum Consolidated Net Worth required under this Section 1.2 shall not be reduced.

"**Net Income**" means the total earnings (or profit) of the Company and its Subsidiaries, on a consolidated basis, for any period, determined by taking revenues and subtracting the costs of doing business including depreciation, interest, taxes and other expenses. For the avoidance of doubt, Net Income shall be calculated in accordance with GAAP.

Schedule A-10

(to Note Purchase Agreement)

------

**1.3 Interest Coverage Ratio**. The Company shall not issue or incur any Funded Debt unless, immediately before and immediately after the issuance or incurrence of such Funded Debt, the Company's Interest Coverage Ratio is equal to or greater than 2.50 to 1.00, as measured on the date of the most recent consolidated financial statements delivered pursuant to Section 7.1 of the Agreement.

"**Interest Coverage Ratio**" means the ratio of pro forma EBITDA for the most recently completed period of twelve calendar months, to Interest Expense, as measured on the date of the most recent consolidated financial statements delivered pursuant to Section 7.1 of the Agreement.

"**EBITDA**" means, for the Company and its Subsidiaries for any period, the (a) Net Income of the Company and its Subsidiaries for such period, <u>plus</u>, (b) without duplication and to the extent deducted in determining such Net Income, and in each case calculated on a consolidated basis, each of the following adjustments: (i) Interest Expense, (ii) income tax expense and any other provision for income taxes, (iii) depreciation expense, (iv) amortization expense, (v) unusual, one-time or non-recurring charges, expenses or losses, (vi) other non-cash charges, expenses or losses (excluding any such non-cash charge to the extent it represents an accrual or reserve for potential cash charge in any future period or amortization of a prepaid cash charge that was paid in a prior period), (vii) reasonable and customary out-of-pocket transaction expenses and fees incurred in connection with the Note Purchase Agreement, the Notes and the issuance thereof within 90 days after the Closing Date and paid in cash to third parties during such period, (viii) reasonable and customary out-of-pocket transaction expenses and fees incurred in connection with any acquisition or proposed acquisition by the Company or any of its Subsidiaries (whether or not consummated), paid in cash to third parties during such period and in an aggregate amount not to exceed $100,000 during any fiscal quarter, <u>minus</u> (c) to the extent included in determining such Net Income, and in each case calculated on a consolidated basis, each of the following adjustments, without duplication: (i) income tax credits and refunds (to the extent not netted from income tax expense), and (ii) cash expenditures made in respect of any non-cash expense or charge that was added back in such period or a prior period pursuant to <u>clause (b)(v)</u> or <u>(vi)</u> above.

"**Interest Expense**" means, for any period, the consolidated interest expense of the Company and its Subsidiaries for such period, determined in accordance with GAAP; *provided*, *however*, that Interest Expense shall not include any imputed interest on or with respect to any Capital Leases, real property and facility leases, equipment leases or other financing leases.

Schedule A-11

(to Note Purchase Agreement)

------

"**pro forma**" means, when used with respect to EBITDA, financial statements or compliance with any financial covenant or test, that EBITDA shall be calculated giving effect to pro forma adjustments or add-backs, without duplication for any add backs otherwise added back in EBITDA, in each case as if any acquisition, related Indebtedness, permitted asset sales, fees, costs or expenses had occurred at the beginning of the applicable period in question.

**1.4 Interest Reserve**. Until the fourth (4<sup>th</sup>) anniversary of the Closing Date, the Company will maintain, in one or more reserve accounts of the Company and/or one or more of its Subsidiaries, an amount invested in cash and/or cash equivalents equal to not less than the aggregate amount of interest payments to be due and payable on the Notes over the next succeeding 12-month period.

**2. GAAP provisions**. Unless otherwise specifically provided in this Addendum or in the Agreement, any accounting term used in this Addendum or in this Agreement (including in the finance covenants in Section 1 above or any related definition) shall have the meaning customarily given such term in accordance with GAAP, and all financial computations (including pursuant to Section 1 above and the related definitions, and with respect to the character or amount of any asset or liability or item of income or expense, or any consolidation or other accounting computation) hereunder shall be computed in accordance with GAAP consistently applied.

**3. Additional Undertakings**.

**3.1. General.** 

The undertakings set forth in this Section 3 of Addendum A shall remain in force from the date of the Agreement through and including the Maturity Date except as the Required Holders (or, where specified, all the Holders) may otherwise permit.

**3.2. Rating.** 

The Company will use commercially reasonable efforts to maintain a rating (the "**Rating**") from (i) Egan-Jones Rating Company or its successors ("**Egan-Jones**"), or (ii) any other nationally recognized statistical rating organization (an "**NRSRO**") that issues credit ratings that the U.S. Securities and Exchange Commission permits other financial firms to use for regulatory purposes (provided that such NRSRO, if other than Egan-Jones, is subject to the consent of the Required Holders, not to be unreasonably withheld or delayed), from the date hereof through and including the Maturity Date. Any expenses incurred in connection with obtaining the rating specified above shall be borne by the Company.

Schedule A-12

(to Note Purchase Agreement)

------

As further provided in the Notes, if the Company's Rating changes after the Closing Date, the interest rate applicable under the Notes (the "**Interest Rate**") will be adjusted as follows:

---

| | |
|:---|:---|
| **Rating** | **Interest Rate** |
| If the Rating is BBB+, BBB or BBB- or the equivalent (the "**BBB Range**") | The original Interest Rate in effect on the Closing Date increases by 0.25% or 25 bps. |
| If the Rating is BB+, BB, or BB- or the equivalent (the "**BB Range**") | The original Interest Rate in effect on the Closing Date increases by 0.75% or 75 bps. |
| If the Rating is A- level (or equivalent) or better | The Interest Rate stays at the original Interest Rate in effect on the Closing Date. |
| If there is no Rating (the Company is not rated by Egan-Jones or any other NRSRO) | The original Interest Rate in effect on the Closing Date increases by 2.00% or 200 bps. |

---

**3.3. Change of Control**. If a Change of Control shall occur, each holder of a Note or Notes shall have the right to require the Company to repurchase all, but not less than all, of the Notes held by such holder for an amount equal to 101% of the principal amount, plus accrued and unpaid interest to, but excluding, the repurchase date.

"**Change of Control**" means any event or series of events by which any Person or group of Persons other than (i) the Ownership Group and/or (ii) Affiliates of the Company, shall acquire ownership, directly or indirectly, of fifty-one percent (51%) or more of the voting membership interests or other voting equity interests of the Company.

"**Ownership Group**" means (i) any and all Persons who, directly or indirectly, own membership interests or other equity interests in the Company, as of the Closing Date, (ii) the spouses, children, siblings, parents or other lineal descendants of the parents of, (x) in the case of a Person in clause (i) above who is a natural person, any such Person described in clause (i) above or (y) in the case of a Person in clause (i) above that is an entity, the beneficial owners of any such Person described in clause (i) above (in each case, including in the case of adoption), (iii) any trust whose beneficial owners consist solely of the Persons described in clause (i) or clause (ii) above, and/or (iv) any entity that is wholly owned by the Persons described in clause (i), clause (ii) or clause (iii) above.

**3.4. Investor Call.** 

The Company shall make itself available for a quarterly investor call at the request of any one or more investors, at which time investors shall have an opportunity to ask questions relating to the business and receive answers from a Senior Officer.

**3.5. Monthly Focus Reports.** 

The Company undertakes and agrees to cause each Broker-Dealer Subsidiary (other than Clear Street Markets LLC) to file monthly Financial and Operational Combined Uniform Single (FOCUS) reports with FINRA.

Schedule A-13

(to Note Purchase Agreement)

------

**SCHEDULE 1** 

**FORM OF NOTE** 

**FOR GLOBAL NOTE**: THIS 5.875% SENIOR UNSECURED NOTE DUE 2026 (THE "**NOTE**") IS A GLOBAL NOTE WITHIN THE MEANING OF THE NOTE PURCHASE AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY ("DTC") OR A NOMINEE OF DTC. THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE AGREEMENT, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE BY DTC TO **CLEAR STREET HOLDINGS LLC** FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

**THIS 5.875% SENIOR UNSECURED NOTE DUE 2026 (THE "NOTE") HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAW. NEITHER THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO COMPLY WITH THE FOREGOING RESTRICTIONS AND TO OFFER, SELL OR OTHERWISE TRANSFER THIS NOTE ONLY TO THE EXTENT PERMITTED UNDER AND PURSUANT TO THE TERMS OF THE NOTE PURCHASE AGREEMENT REFERENCED IN THIS NOTE.** 

**THIS NOTE IS SUBJECT TO CERTAIN RESALE RESTRICTIONS SET FORTH IN A NOTE PURCHASE AGREEMENT DATED May 6, 2021.** 

Schedule 11.1

(to Note Purchase Agreement)

------

**CLEAR STREET HOLDINGS LLC** 

**5.875% Senior Unsecured Note Due May 15, 2026** 

---

| | |
|:---|:---|
| $[ ] | May 6, 2021 |

---

FOR VALUE RECEIVED, the undersigned, **CLEAR STREET HOLDINGS LLC** (herein called the "**Company**"), a limited liability company organized and existing under the laws of the State of Delaware, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of [$<u> </u>] (or so much thereof as shall not have been prepaid) on May 15, 2026 (the "**Maturity Date**"), with interest (computed on the basis of a 360-day year of twelve 30 day months) (a) on the unpaid balance hereof at the rate of 5.875% per annum (the "**Interest Rate**") from the date hereof, payable semiannually, on the 15th day of May and November each year, commencing with November 15, 2021, and on the Maturity Date, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, (x) on any overdue payment of interest and (y) during the continuance of an Event of Default, on such unpaid balance and on any overdue payment of any optional redemption amount, at the Default Rate per annum equal to 7.875%. Notwithstanding the foregoing, if the Company's Rating changes after the Closing Date, the Interest Rate will be adjusted as follows:

---

| | |
|:---|:---|
| **Rating** | **Interest Rate** |
|  If the Rating is BBB+, BBB or BBB- or the equivalent (the "**BBB Range**"): | 6.125% |
|  If the Rating is BB+, BB, or BB- or the equivalent (the "**BB Range**"): | 6.625% |
|  If the Rating is A- level (or equivalent) or better: | 5.875% |
|  If there is no Rating (the Company is not rated by Egan-Jones or any other NRSRO): | 7.875% |

---

Payments of principal of, interest on and any optional redemption amount with respect to this Note are to be made in lawful money of the United States of America to the Paying Agent at its principal office, as designated from time to time, or at such other place as the Company shall have designated by written notice to the holder of this Note, as provided in the Note Purchase Agreement referred to below.

This Note is issued pursuant to the Note Purchase Agreement, dated May 6, 2021 (as from time to time amended, the "**Note Purchase Agreement**"), between the Company and the respective Purchasers named therein and is entitled to the benefits thereof. Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth therein and (ii) made the representations set forth in Sections 6.2 and 6.3 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.

Schedule 11.1

(to Note Purchase Agreement)

------

This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the Person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

**This Note is subject to optional redemption, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise.** 

If an Event of Default occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any optional redemption amount) and with the effect provided in the Note Purchase Agreement.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the holder of this Note shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

---

| |
|:---|
| CLEAR STREET HOLDINGS LLC |
| By: |
| Name: Chris Pento |
| Title: Chief Executive Officer |

---

Schedule 11.1

(to Note Purchase Agreement)

## Exhibit 10.25

**Exhibit 10.25** 

CLEAR STREET HOLDINGS LLC

$80,000,000

8.25% Senior Unsecured Notes due October 30, 2029

NOTE PURCHASE AGREEMENT

Dated October 23, 2024

------

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
| SECTION | HEADING | PAGE |
| Section 1. AUTHORIZATION OF NOTES | Section 1. AUTHORIZATION OF NOTES | 1 |
| Section 2. SALE AND PURCHASE OF NOTES | Section 2. SALE AND PURCHASE OF NOTES | 1 |
| Section 3. CLOSING | Section 3. CLOSING | 2 |
| Section 4. CONDITIONS TO CLOSING | Section 4. CONDITIONS TO CLOSING | 2 |
| Section 4.1 | Representations and Warranties | 2 |
| Section 4.2 | Performance; No Default | 2 |
| Section 4.3 | Compliance Certificates | 2 |
| Section 4.4 | Opinion of Counsel | 3 |
| Section 4.5 | Purchase Permitted By Applicable Law, Etc. | 3 |
| Section 4.6 | Sale of Other Notes | 3 |
| Section 4.7 | Private Placement Number | 3 |
| Section 4.8 | Changes in Corporate Structure | 3 |
| Section 4.9 | Funding Instructions | 3 |
| Section 4.10 | Proceedings and Documents | 3 |
| Section 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY | Section 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY | 3 |
| Section 5.1 | Organization; Power and Authority | 3 |
| Section 5.2 | Authorization, Etc. | 4 |
| Section 5.3 | Disclosure | 4 |
| Section 5.4 | Organization and Ownership of Shares of Subsidiaries; Affiliates | 4 |
| Section 5.5 | Financial Statements; Material Liabilities | 5 |
| Section 5.6 | Compliance with Laws, Other Instruments, Etc. | 5 |
| Section 5.7 | Governmental Authorizations, Etc. | 6 |
| Section 5.8 | Litigation; Observance of Agreements, Statutes and Orders | 6 |
| Section 5.9 | Taxes | 6 |
| Section 5.10 | Title to Property; Leases | 6 |
| Section 5.11 | Licenses, Permits, Etc. | 7 |
| Section 5.12 | Compliance with Broker-Dealer Regulations | 7 |
| Section 5.13 | Compliance with Employee Benefit Plans | 8 |
| Section 5.14 | Private Offering by the Company | 8 |
| Section 5.15 | Use of Proceeds; Margin Regulations | 8 |
| Section 5.16 | Existing Indebtedness; Future Liens | 8 |
| Section 5.17 | Foreign Assets Control Regulations, Etc. | 9 |
| Section 5.18 | Status under Investment Company Act | 10 |
| Section 5.19 | Environmental Matters | 10 |

---

i

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---

| | | |
|:---|:---|:---|
| Section 6. REPRESENTATIONS OF THE PURCHASERS | Section 6. REPRESENTATIONS OF THE PURCHASERS | 10 |
| Section 6.1 | Purchase for Investment | 10 |
| Section 6.2 | Qualified Institutional Buyer; Accredited Investor | 10 |
| Section 6.3 | Purchasers and ERISA | 11 |
| Section 6.4 | Access to Information | 11 |
| Section 6.5 | Independent Investment Decision | 11 |
| Section 7. INFORMATION AS TO COMPANY | Section 7. INFORMATION AS TO COMPANY | 12 |
| Section 7.1 | Financial and Business Information | 12 |
| Section 7.2 | Officer's Certificate | 13 |
| Section 7.3 | Electronic Delivery | 14 |
| Section 8. PAYMENT AND REDEMPTION OF THE NOTES | Section 8. PAYMENT AND REDEMPTION OF THE NOTES | 14 |
| Section 8.1 | Maturity | 14 |
| Section 8.2 | Optional Redemption by the Company | 15 |
| Section 8.3 | Allocation of Partial Redemptions | 16 |
| Section 8.4 | Maturity; Surrender, Etc. | 16 |
| Section 8.5 | Purchase of Notes | 16 |
| Section 8.6 | Reserved | 16 |
| Section 8.7 | Payments on Exercise of Call Option | 16 |
| Section 8.8 | Cancellation Upon Redemption | 16 |
| Section 8.9 | Payments Due on Non-Business Days | 16 |
| Section 9. AFFIRMATIVE COVENANTS | Section 9. AFFIRMATIVE COVENANTS | 17 |
| Section 9.1 | Compliance with Laws | 17 |
| Section 9.2 | Insurance | 17 |
| Section 9.3 | Covenant Certification | 17 |
| Section 9.4 | Payment of Taxes and Claims | 17 |
| Section 9.5 | Corporate Existence, Etc. | 17 |
| Section 9.6 | Books and Records | 18 |
| Section 9.7 | Tax Treatment | 18 |
| Section 10. MINIMUM LIQUIDITY COVENANT | Section 10. MINIMUM LIQUIDITY COVENANT | 18 |
| Section 10.1 | Minimum Liquidity Covenant | 18 |
| Section 11. NEGATIVE COVENANTS | Section 11. NEGATIVE COVENANTS | 18 |
| Section 11.1 | Transactions with Affiliates | 18 |
| Section 11.2 | Merger, Consolidation, Etc. | 19 |
| Section 11.3 | Dispositions | 19 |
| Section 11.4 | Line of Business | 20 |
| Section 11.5 | Liens | 21 |
| Section 11.6 | Dividends; Salaries; Related Party Transactions | 21 |
| Section 11.7 | Terrorism Sanctions Regulations | 21 |
| Section 12. EVENTS OF DEFAULT | Section 12. EVENTS OF DEFAULT | 21 |

---

ii

------

---

| | | |
|:---|:---|:---|
| Section 13. REMEDIES ON DEFAULT, ETC. | Section 13. REMEDIES ON DEFAULT, ETC. | 23 |
| Section 13.1 | Acceleration | 23 |
| Section 13.2 | Other Remedies | 24 |
| Section 13.3 | Rescission | 24 |
| Section 13.4 | No Waivers or Election of Remedies, Expenses, Etc. | 24 |
| Section 14. GLOBAL NOTE; REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES | Section 14. GLOBAL NOTE; REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES | 24 |
| Section 14.1 | Global Note | 24 |
| Section 14.2 | Registration of Notes | 26 |
| Section 14.3 | Transfer and Exchange of Notes | 26 |
| Section 14.4 | Replacement of Notes | 27 |
| Section 15. PAYMENTS ON NOTES | Section 15. PAYMENTS ON NOTES | 27 |
| Section 15.1 | Place of Payment | 27 |
| Section 15.2 | Payment by Wire Transfer | 27 |
| Section 15.3 | FATCA Information | 28 |
| Section 16. EXPENSES, ETC. | Section 16. EXPENSES, ETC. | 28 |
| Section 16.1 | Transaction Expenses | 28 |
| Section 16.2 | Certain Taxes | 29 |
| Section 16.3 | Survival | 29 |
| Section 17. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT | Section 17. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT | 29 |
| Section 18. AMENDMENT AND WAIVER | Section 18. AMENDMENT AND WAIVER | 29 |
| Section 18.1 | Requirements | 29 |
| Section 18.2 | Solicitation of Holders of Notes | 30 |
| Section 18.3 | Binding Effect, Etc. | 30 |
| Section 18.4 | Notes Held by Company, Etc. | 31 |
| Section 19. NOTICES | Section 19. NOTICES | 31 |
| Section 20. REPRODUCTION OF DOCUMENTS | Section 20. REPRODUCTION OF DOCUMENTS | 31 |
| Section 21. CONFIDENTIAL INFORMATION | Section 21. CONFIDENTIAL INFORMATION | 32 |
| Section 22. SUBSTITUTION OF PURCHASER | Section 22. SUBSTITUTION OF PURCHASER | 33 |
| Section 23. MISCELLANEOUS | Section 23. MISCELLANEOUS | 33 |
| Section 23.1 | Successors and Assigns | 33 |
| Section 23.2 | Accounting Terms | 34 |
| Section 23.3 | Severability | 34 |
| Section 23.4 | Construction, Etc. | 34 |
| Section 23.5 | Counterparts | 34 |
| Section 23.6 | Governing Law | 35 |
| Section 23.7 | Jurisdiction and Process; Waiver of Jury Trial | 35 |

---

iii

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---

| | |
|:---|:---|
| SCHEDULE A | Defined Terms |
| ADDENDUM A | Additional Covenants |
| SCHEDULE 1 | Form of 8.25% Senior Unsecured Note due 2029 |
| SCHEDULE 4.4 | Form of Opinion of Counsel for the Company |
| SCHEDULE 5.3 | Disclosure Materials |
| SCHEDULE 5.4 | Subsidiaries of the Company and Ownership of Subsidiary Stock |
| SCHEDULE 5.5 | Financial Statements |
| SCHEDULE 5.16 | Existing Indebtedness |
| SCHEDULE 11.1 | Certain Transactions with Affiliates |

---

iv

------

**CLEAR STREET HOLDINGS LLC** 

**150 Greenwich Street, Floor 45** 

**New York, NY 10007** 

8.25% Senior Unsecured Notes due October 30, 2029

October 23, 2024

TO EACH OF THE PURCHASERS EXECUTING A COUNTERPART SIGNATURE PAGE HERETO:

Ladies and Gentlemen:

CLEAR STREET HOLDINGS LLC, a Delaware limited liability company (the "**Company**"), agrees with each of the Purchasers as follows:

**SECTION 1. AUTHORIZATION OF NOTES.** 

The Company will authorize the issue and sale of $80,000,000 aggregate principal amount of its 8.25% Senior Unsecured Notes due October 30, 2029 (the "**Notes**"), to be issued and sold hereunder. The Notes shall be substantially in the form set out in Schedule 1.

The Notes are being offered and sold in denominations of at least $100,000 and integral multiples of $1,000 in excess thereof, within the United States to "qualified institutional buyers" as defined in Rule 144A under the Securities Act and institutional "accredited investors" as defined in Rule 501 of Regulation D under the Securities Act with total assets of not less than $5,000,000, in a private transaction in reliance upon the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof. The Depository Trust Company (including any successor thereto, "**DTC**") will act as securities depository for the Notes purchased pursuant to this Agreement. The Notes will be represented by one or more Notes issued in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be required by an authorized representative of DTC in the aggregate principal amount of the Notes purchased by Purchasers pursuant to this Agreement (the "**Global Notes**").

Certain capitalized and other terms used in this Agreement are defined in Schedule A hereto and, for purposes of this Agreement, the rules of construction set forth in Section 23.4 shall govern.

**SECTION 2. SALE AND PURCHASE OF NOTES.** 

Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser, and each Purchaser will purchase from the Company, at the Closing provided for in Section 3, Notes in the principal amount specified opposite such Purchaser's name on such Purchaser's signature page hereto, at the purchase price of 100% of the principal amount thereof. The Purchasers' obligations hereunder are several and not joint obligations, and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser hereunder.

------

**SECTION 3. CLOSING.** 

The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the offices of Seward & Kissel LLP at 10:00 A.M., eastern daylight time, at a closing (the "**Closing**") on October 23, 2024 or on such other Business Day thereafter on or prior to November 7, 2024 as may be agreed upon by the Company and the Purchasers. At the Closing the Company will deliver to DTC, through the Paying Agent, the Global Notes, against delivery by the Purchasers to the Company or its order of immediately available funds, in U.S. Dollars, in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company to Account Number 2005528, at BMO Harris Bank NA, 111 West Monroe St, Chicago IL 60603, ABA No. 071000288, for the account of Clear Street Holdings LLC. If at the Closing the Company shall fail to tender the Global Notes to DTC as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to a Purchaser's satisfaction, such Purchaser shall, at its election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure by the Company to tender such Notes or any of the conditions specified in Section 4 not having been fulfilled to such Purchaser's satisfaction.

**SECTION 4. CONDITIONS TO CLOSING.** 

Each Purchaser's obligation to purchase and pay for the Notes to be sold to such Purchaser at the Closing is subject to the fulfillment to such Purchaser's satisfaction, prior to or at the Closing, of the following conditions:

**Section 4.1 Representations and Warranties**. The representations and warranties of the Company in this Agreement shall be correct in all Material respects (or, if such representation or warranty is by its terms qualified by concepts of materiality, then such representation or warranty shall be correct in all respects) when made and at the Closing.

**Section 4.2 Performance; No Default**. The Company shall have performed and complied with all agreements and conditions contained in this Agreement required to be performed or complied with by it prior to or at the Closing. Immediately before and after giving effect to the issue and sale of the Notes (and the application of the proceeds thereof as contemplated by Section 5.15), no Default or Event of Default shall have occurred and be continuing.

**Section 4.3 Compliance Certificates**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Officer's Certificate*. The Company shall have delivered to such Purchaser an Officer's Certificate, dated the Closing Date, certifying that the conditions specified in Sections 4.1, 4.2 and 4.8 have been fulfilled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *CEO's Certificate*. The Company shall have delivered to such Purchaser a certificate of its Chief Executive Officer, dated the Closing Date, certifying as to (i) the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Notes and this Agreement, (ii) the Company's organizational documents as then in effect and (iii) the incumbency of the officers authorized to execute and deliver the Notes and this Agreement.

------

**Section 4.4 Opinion of Counsel**. Such Purchaser shall have received an opinion in form and substance satisfactory to such Purchaser, dated the Closing Date from Goulston & Storrs PC, counsel for the Company, covering the matters set forth in Schedule 4.4, and the Company hereby instructs its counsel to deliver such opinion to the Purchasers.

**Section 4.5 Purchase Permitted By Applicable Law, Etc**. On the Closing Date such Purchaser's purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, and (b) not violate any applicable law or regulation (including Regulation T, U or X of the Board of Governors of the Federal Reserve System).

**Section 4.6 Sale of Other Notes**. Contemporaneously with the Closing, the Company shall sell to each other Purchaser and each other Purchaser shall purchase the Notes to be purchased by it at the Closing as specified on each Purchaser's signature page.

**Section 4.7 Private Placement Number**. A Private Placement Number issued by Standard & Poor's CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for the Notes.

**Section 4.8 Changes in Corporate Structure**. The Company shall not have changed its jurisdiction of incorporation or organization, as applicable, or been a party to any merger or consolidation or succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5.

**Section 4.9 Funding Instructions**. Prior to the Closing Date, each Purchaser shall have received written instructions signed by a Responsible Officer on letterhead of the Company confirming the information specified in Section 3, including (a) the name and address of the transferee bank, (b) such transferee bank's ABA number, and (c) the account name and number into which the purchase price for the Notes is to be deposited.

**Section 4.10 Proceedings and Documents**. All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to such Purchaser, and such Purchaser shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser may reasonably request.

**SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.** 

The Company represents and warrants to each Purchaser as of the Closing Date that:

**Section 5.1 Organization; Power and Authority**. The Company is a limited liability company duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign business entity and is in good standing in each jurisdiction in which such qualification is required by law, except to the extent that the failure to be so qualified or in good standing would not reasonably be expected to have a Material Adverse Effect. The Company has the limited liability company or other power and authority to own or hold under lease the material properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement and the Notes and to perform the provisions hereof and thereof.

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**Section 5.2 Authorization, Etc**. This Agreement and the Notes have been duly authorized by all necessary limited liability company or other action on the part of the Company, and this Agreement constitutes, and upon execution and delivery thereof each Note will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

**Section 5.3 Disclosure**. The Company, through its agent, Piper Sandler & Co. ("**Piper Sandler**"), and relating to the transactions contemplated hereby, has provided access to that certain virtual data room named Clear Street & PSC (Project Crystal VI) by Piper Sandler (and hosted by IntraLinks), containing certain information and documents regarding the Company (collectively, the "**Offering Materials**"). This Agreement, the Offering Materials, the financial statements listed in <u>Schedule 5.5</u> and the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company and identified in <u>Schedule 5.3</u> (this Agreement, the Offering Materials and such documents, certificates or other writings and such financial statements delivered to each Purchaser being referred to, collectively, as the "**Disclosure Documents**"), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made. Except as disclosed in the Disclosure Documents and except as disclosed in Schedule 5.3(i), since December 31, 2023, there has been no change in the financial condition, operations, business or properties of the Company and its Subsidiaries taken as a whole, except changes that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. There is no fact known to the Company that could reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Disclosure Documents. Notwithstanding the foregoing or any other provision in this Agreement, to the extent that any of the Disclosure Documents contains any projections or forward-looking statements, no representation is made as to any such projections or forward looking statements other than that the Company believes the assumptions underlying such projections or forward looking statements are reasonable based on the information available to the Company at the time they were made. There is no assurance that any projections or forwardlooking statements included in the Disclosure Documents will prove to be accurate.

**Section 5.4 Organization and Ownership of Shares of Subsidiaries; Affiliates**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Schedule 5.4</u> contains (except as noted therein) complete and correct lists of (i) the Company's Subsidiaries, showing, as to each Subsidiary, the name thereof, the jurisdiction of its organization, and the percentage of shares of each class of its capital stock or similar equity interests outstanding owned by the Company and each other Subsidiary, (ii) the Company's Affiliates, other than Subsidiaries, and (iii) the Company's managing member and senior officers.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in <u>Schedule 5.4</u> as being owned by the Company and its Subsidiaries have been validly issued, are fully paid and non-assessable and are owned by the Company or another Subsidiary free and clear of any Lien that is prohibited by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Subsidiary is a corporation or other legal entity duly organized, validly existing and, where applicable, in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and, where applicable, is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each such Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Subsidiary is subject to any legal, regulatory, contractual or other restriction (other than the agreements and restrictions listed on Schedule 5.4 and Schedule 5.16 and customary limitations imposed by corporate law or similar statutes or applicable regulatory regulators or regulations) restricting the ability of such Subsidiary to pay dividends out of profits or make any other similar distributions of profits to the Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar equity interests of such Subsidiary.

**Section 5.5 Financial Statements; Material Liabilities**. The Company has delivered to each Purchaser copies of the financial statements of the Company and its Subsidiaries listed on <u>Schedule 5.5</u>. All of such financial statements (including in each case the related schedules and notes) fairly present in all Material respects the consolidated financial position of the Company and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments). The Company and its Subsidiaries do not have any Material liabilities that are not disclosed in the Disclosure Documents, except (i) for ordinary course liabilities incurred since December 31, 2023 and (ii) other liabilities that do not, in the aggregate, exceed $2,500,000.

**Section 5.6 Compliance with Laws, Other Instruments, Etc**. The execution, delivery and performance by the Company of this Agreement and the Notes will not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, shareholders agreement or any other agreement or instrument to which the Company or any Subsidiary is bound or by which the Company or any Subsidiary or any of their respective properties may be bound or affected, (ii) contravene, result in any breach of, or constitute a default under, any operating agreement, charter or by-law of the Company or any Subsidiary, (iii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary or (iv) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary, except, in each case of clauses (i), (iii) and (iv), that, individually or in the aggregate, would not have a Material Adverse Effect.

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**Section 5.7 Governmental Authorizations, Etc**. Except as required by the SEC, FINRA, the Financial Conduct Authority or other applicable Governmental Authorities, to the extent applicable, no consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company of this Agreement or the Notes.

**Section 5.8 Litigation; Observance of Agreements, Statutes and Orders**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There are no actions, suits, investigations or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary or any property of the Company or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Company nor any Subsidiary is (i) in default under any agreement or instrument to which it is a party or by which it is bound, (ii) in violation of any order, judgment, decree or ruling of any court, any arbitrator of any kind or any Governmental Authority or (iii) in violation of any applicable law, ordinance, rule or regulation of any Governmental Authority (including Environmental Laws, the USA PATRIOT Act or any of the other laws and regulations that are referred to in Section 5.17), which default or violation would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 5.9 Taxes**. The Company and its Subsidiaries have filed all tax returns that are required to have been filed in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the amount of which, individually or in the aggregate, is not Material or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Company or a Subsidiary, as the case may be, has established adequate reserves in accordance with GAAP. The Company knows of no basis for any other tax or assessment that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The charges, accruals and reserves on the books of the Company and its Subsidiaries in respect of U.S. federal, state or other taxes for all fiscal periods are adequate in all Material respects.

**Section 5.10 Title to Property; Leases**. The Company and its Subsidiaries have good and sufficient title to their respective properties that individually or in the aggregate are Material, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company or any Subsidiary after such date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens prohibited by this Agreement. All leases that individually or in the aggregate are Material are valid and subsisting and are in full force and effect in all Material respects.

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**Section 5.11 Licenses, Permits, Etc**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company and its Subsidiaries own or possess all licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are Material, without known violation of the rights of others, except for any such violations that, individually or in the aggregate, would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the knowledge of the Company, no product or service of the Company or any of its Subsidiaries infringes in any Material respect any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned by any other Person, except for any such infringements that, individually or in the aggregate, would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the knowledge of the Company, there is no Material violation by any Person of any right of the Company or any of its Subsidiaries with respect to any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned or used by the Company or any of its Subsidiaries.

**Section 5.12 Compliance with Broker-Dealer Regulations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the Closing Date, Clear Street LLC (the **"Broker-Dealer Subsidiary")** is the only Subsidiary of the Company registered with the SEC as a broker-dealer. Clear Street LLC is a member in good standing with the Financial Industry Regulatory Authority, Inc. ("**FINRA**") and the Securities Industry Protection Corporation ("**SIPC**"). Clear Street LLC is also a futures commission merchant registered with the Commodity Futures Trading Commission and is a member of the National Futures Association. Clear Street Derivatives LLC is a Subsidiary of the Company registered with the SEC as a security-based swap dealer. Clear Street Canada Inc. is a Canada-based Subsidiary of the Company that is a member of the Canadian Investment Regulatory Organization and a member of the Canadian Investor Protection Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Broker-Dealer Subsidiary is and will at all times remain, and will conduct all activities related to the transactions contemplated by this Agreement, in compliance in all material respects with all securities laws and rules (state, federal or otherwise) which may be applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Broker-Dealer Subsidiary and/or the Company will be responsible for performing the activities in connection with the transactions contemplated by this Agreement that require registration by each such Broker-Dealer Subsidiary with the SEC as a broker-dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Broker-Dealer Subsidiary (A) is subject to any order of the SEC, (B) has been convicted within the past ten years of any felony or misdemeanor and, (C) is subject to an order, judgment or decree or subject to any other statutory or regulatory bar, disability or prohibition which would prevent it from engaging in the solicitation or introduction of investors as described in this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No Broker-Dealer Subsidiary, nor any of its officers, managers, directors, employees, affiliates, agents or any person connected with it as specified in paragraph (d)(1) of Rule 506 under the Securities Act, has been the subject of any event described in paragraph (d)(1)(i)-(viii) of Rule 506.

**Section 5.13 Compliance with Employee Benefit Plans**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as would not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect, (i) the Company and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws, and (ii) neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has occurred or exists that would, individually or in the aggregate, reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to section 430(k) of the Code or to any such penalty or excise tax provisions under the Code relating to employee benefit plans or section 4068 of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Schedule 5.13 sets forth a list of the Company's and its Subsidiaries' NonU.S. Plans.

**Section 5.14 Private Offering by the Company**. Assuming the accuracy of the representations and warranties of the Purchasers set forth in Section 6, no registration under the Securities Act is required for the offer and sale of the Notes by the Company to the Purchasers.

**Section 5.15 Use of Proceeds; Margin Regulations**. The Company will apply the proceeds of the sale of the Notes hereunder for working capital and general business purposes of the Company and its Subsidiaries, including but not limited to (a) making acquisitions, either directly or indirectly through its Subsidiaries, and (b) making equity or debt investments in, and any loans or other extensions of credit to, its Subsidiaries. No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any Securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). As used in this Section, the terms "**margin stock**" and "**purpose of buying or carrying**" shall have the meanings assigned to them in said Regulation U.

**Section 5.16 Existing Indebtedness; Future Liens**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as described therein, Schedule 5.16 sets forth a complete and correct list of all outstanding Indebtedness of the Company and its Subsidiaries as of the Closing Date (including descriptions of the obligors and obligees, principal amounts outstanding, any collateral therefor and any Guaranty thereof), and since the date of this Agreement there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Company or its Subsidiaries. Neither the Company nor any

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Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of the Company or such Subsidiary and no event or condition exists with respect to any Indebtedness of the Company or any Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as disclosed in Schedule 5.16, neither the Company nor any Subsidiary has agreed or consented to cause or permit any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Indebtedness or to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither the Company nor any Subsidiary is a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company or such Subsidiary, any agreement relating thereto or any other agreement (including its charter or any other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company, except as disclosed in Schedule 5.16.

**Section 5.17 Foreign Assets Control Regulations, Etc**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither the Company nor any Controlled Entity (i) is a Blocked Person, (ii) has been notified that its name appears or may in the future appear on a State Sanctions List or (iii) is a target of sanctions that have been imposed by the United Nations or the European Union.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Company nor any Controlled Entity (i) has violated, been found in violation of, or been charged or convicted under, any applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws or (ii) to the Company's knowledge, is under investigation by any Governmental Authority for possible violation of any U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or AntiCorruption Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No part of the proceeds from the sale of the Notes hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by the Company or any Controlled Entity, directly or indirectly, (A) in connection with any investment in, or any transactions or dealings with, any Blocked Person, (B) for any purpose that would cause any Purchaser to be in violation of any U.S. Economic Sanctions Laws or (C) otherwise in violation of any U.S. Economic Sanctions Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) will be used, directly or indirectly, in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Money Laundering Laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) will be used, directly or indirectly, for the purpose of making any improper payments, including bribes, to any Governmental Official or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage, in each case which would be in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Corruption Laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws and Anti-Corruption Laws.

**Section 5.18 Status under Investment Company Act**. Neither the Company nor any Subsidiary is subject to regulation under the Investment Company Act of 1940.

**Section 5.19 Environmental Matters**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither the Company nor any Subsidiary has knowledge of any claim or has received any notice of any claim and no proceeding has been instituted asserting any claim against the Company or any of its Subsidiaries or any of their respective real properties or other assets now or formerly owned, leased or operated by any of them, alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Company nor any Subsidiary has knowledge of any facts which would give rise to any claim, public or private, of violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by any of them or to other assets or their use, except, in each case, such as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

**SECTION 6. REPRESENTATIONS OF THE PURCHASERS.** 

**Section 6.1 Purchase for Investment**. Each Purchaser severally represents that it is purchasing the Notes for its own account or for one or more separate accounts maintained by such Purchaser or for the account of one or more pension or trust funds (which separate or other accounts, if any, are identified on such Purchaser's signature page and are referred to collectively as the "investor account"), and not with a view to the distribution thereof, *provided* that the disposition of such Purchaser's or their property shall at all times be within such Purchaser's or their control. Each Purchaser understands that the Notes have not been registered under the Securities Act, that the Notes are "restricted securities," and that the Notes, and any interest in the Notes, may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available and that the Company is not required to register the Notes.

**Section 6.2 Qualified Institutional Buyer; Accredited Investor**. Each Purchaser severally represents that such Purchaser, and any investor account for which such Purchaser is purchasing Notes, (a) is a "qualified institutional buyer" as defined in Rule 144A(a)(1) promulgated under the Securities Act and is an institutional "accredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D promulgated under the Securities Act with total assets of not less than $5,000,000, and (b) such Purchaser's office in which its investment decision with respect to the Notes was made is located at the address identified on such Purchaser's signature page.

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**Section 6.3 Purchasers and ERISA**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Purchaser severally represents that either: (i) it is not: (A) an "employee benefit plan" as defined in and subject to Title I of ERISA; (B) a "plan" as defined in and subject to Section 4975 of the Code; (C) a governmental, church or other plan that is subject to any federal, state, local or non-U.S. law that is substantially similar to the provisions of Title I of ERISA or Section 4975 of the Code ("**Similar Law**", and all such plans described in the foregoing clauses (A)-(C), "**Purchasing Plans**"); or (D) any other entity whose underlying assets are deemed to include "plan assets" of any such Purchasing Plan for purposes of Title I of ERISA, Section 4975 of the Code or Similar Law (any such Purchasing Plan or other entity described in the foregoing clauses (A)-(D), a "**Purchasing Plan Entity**"); or (ii) its acquisition, holding and disposition of Notes (or any interest therein) will not constitute or result in a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a violation of any Similar Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Purchaser that is a Purchasing Plan Entity severally represents that the sale of Notes to such Purchaser is in no respect a representation by the Company, Piper Sandler or any of their respective affiliates (the "**Transaction Parties**") that such an investment is appropriate for, or meets the relevant legal requirements with respect to investments by, Purchasing Plan Entities generally or any particular Purchasing Plan Entity. None of the Transaction Parties is undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with the acquisition, holding or disposition of any Notes by any Purchasing Plan Entity.

**Section 6.4 Access to Information**. Each Purchaser severally represents and acknowledges that it has received and reviewed the Disclosure Documents and has been afforded (a) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Notes and the merits and risks of investing in the Notes; (b) access to information about the Company and the Subsidiaries and their respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (c) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Neither such inquiries nor any other investigation conducted by or on behalf of any such Purchaser or its representatives or counsel shall modify, amend or affect such Purchaser's right to rely on the Company's express representations and warranties contained in this Agreement.

**Section 6.5 Independent Investment Decision**. Each Purchaser severally represents that it (a) has independently evaluated the merits of its decision to purchase Notes pursuant to this Agreement and (b) understands that nothing in this Agreement or any other materials presented by or on behalf of the Company to such Purchaser in connection with the purchase of the Notes constitutes legal, tax or investment advice. Each Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Notes.

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**SECTION 7. INFORMATION AS TO COMPANY.** 

**Section 7.1 Financial and Business Information**. The Company shall deliver to each holder of a Note that is an Institutional Investor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Quarterly Statements* — within 60 days after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), duplicate copies of,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an unaudited consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) unaudited consolidated statements of income of the Company and its Subsidiaries, for such quarter and (in the case of the second and quarters) for the portion of the fiscal year ending with such quarter, setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Officer as fairly presenting, in all Material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Annual Statements* — within 120 days after the end of each fiscal year of the Company, duplicate copies of,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an audited consolidated balance sheet of Clear Street Group Inc. and its Subsidiaries as at the end of such year, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) audited consolidated statements of income, changes in shareholders' equity and cash flows of Clear Street Group Inc. and its Subsidiaries for such year,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) an unaudited consolidated balance sheet of the Company and its Subsidiaries as at the end of such year, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) unaudited consolidated statements of income of the Company and its Subsidiaries for such year, and management prepared reconciliation between the audited consolidated financial statements of Clear Street Group Inc. and its Subsidiaries and unaudited consolidated financial statements of the Company and its Subsidiaries delivered pursuant to this Section 7.1(b), setting forth (A) with respect to the items in clauses (i) and (ii) above in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon (without a "going concern" or similar qualification or exception and without any qualification or exception as to the scope of the audit on which such opinion is based) of independent public

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accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all Material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances and (B) with respect to the items in clauses (iii), (iv) and (v) above in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to annual financial statements generally, and certified by a Senior Officer as fairly presenting, in all Material respects, the financial position of the companies being reported upon and their results of operations and cash flows, subject to changes resulting from year-end adjustments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Notice of Default or Event of Default* — promptly, and in any event within five (5) Business Days after a Responsible Officer becoming aware of the existence of any Default or Event of Default or that any Person has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given any notice or taken any action with respect to a claimed default of the type referred to in Section 12(f), a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Notices from Governmental Authority* — promptly, and in any event within 30 days of receipt thereof, copies of any notice to the Company or any Subsidiary from any Governmental Authority relating to any order, ruling, statute or other law or regulation that could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Resignation or Replacement of Auditors* — within ten (10) days following the date on which the Company's auditors resign or the Company elects to change auditors, as the case may be, notification thereof, together with such further information as the Required Holders may reasonably request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Requested Information* — with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries or relating to the ability of the Company to perform its obligations hereunder and under the Notes as from time to time may be reasonably requested by any such holder of a Note.

**Section 7.2 Officer's Certificate**. Each set of financial statements delivered to a holder of a Note pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Officer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Covenant Compliance* — setting forth the information from such financial statements that is required in order to establish whether the Company was in compliance with the requirements of Sections 10 and 11, and the financial covenants set forth in Addendum A, during the quarterly, annual or other period covered by the financial statements then being furnished

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(including with respect to each such provision that involves mathematical calculations, the information from such financial statements that is required to perform such calculations) and detailed calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Section or other covenant, and the calculation of the amount, ratio or percentage then in existence; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Event of Default* — certifying that such Senior Officer has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists (including any such event or condition resulting from the failure of the Company or any Subsidiary to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto.

**Section 7.3 Electronic Delivery**. Financial statements, opinions of independent certified public accountants, other information and Officer's Certificates that are required to be delivered by the Company pursuant to Sections 7.1(a), (b) or (c) and Section 7.2 shall be deemed to have been delivered if the Company satisfies any of the following requirements with respect thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such financial statements satisfying the requirements of Sections 7.1(a) or (b) and related Officer's Certificate satisfying the requirements of Section 7.2 and any other information required under Section 7.1(c) are delivered to each holder of a Note by e-mail at the e-mail address set forth in such holder's signature page or as communicated from time to time in a separate writing delivered to the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such financial statements satisfying the requirements of Section 7.1(a) or Section 7.1(b) and related Officer's Certificate(s) satisfying the requirements of Section 7.2 and any other information required under Section 7.1(c) are timely posted by or on behalf of the Company on IntraLinks or on any other similar website to which each holder of Notes has free access; *provided, however*, that in no case shall access to such financial statements, other information and Officer's Certificates be conditioned upon any waiver or other agreement or consent (other than confidentiality provisions consistent with Section 21 of this Agreement); *provided, further*, that (X) in the case of any of clauses (b), (c) or (d) of Section 7.1, the Company shall have given each holder of a Note prior written notice, which may be by e-mail or in accordance with Section 19, of such posting or filing in connection with each delivery; and (Y) that upon request of any holder to receive paper copies of such forms, financial statements, other information and Officer's Certificates or to receive them by e-mail, the Company will promptly e-mail them or deliver such paper copies, as the case may be, to such holder.

**SECTION 8. PAYMENT AND REDEMPTION OF THE NOTES.** 

**Section 8.1 Maturity**. As provided therein, the entire unpaid principal balance of each Note shall be due and payable on the Maturity Date thereof.

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**Section 8.2 Optional Redemption by the Company**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may at its option and upon notice as provided below, redeem at any time, and from time to time all or any part of the Notes for the redemption amount determined for the prepayment date with respect to such principal amount to be prepaid as reflected in Section 8.2(b) below. The Company will give each holder of Notes to be redeemed written notice of each redemption under this Section 8.2 not less than thirty (30) days and not more than sixty (60) days prior to the date fixed for such redemption unless the Company and the Required Holders of the Notes to be redeemed agree to another time period. Each such notice shall specify such date (which shall be a Business Day) of redemption, the aggregate principal amount of the Notes to be redeemed on such date, the principal amount of each Note held by such holder to be redeemed (determined in accordance with Section 8.3), and the interest to be paid on the redemption date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Officer of the Company as to the estimated redemption amount due in connection with such redemption (calculated as if the date of such notice were the date of the redemption), setting forth the details of such computation; provided that the Company may rescind any notice of an optional redemption pursuant to this Section 8.2 by providing written notice to each holder of such Notes at least five (5) Business Days prior to the scheduled date of such optional redemption contained in the written notice described in the second sentence of this Section 8.2. Two (2) Business Days prior to such redemption, the Company shall deliver to each holder of Notes to be redeemed a certificate of a Senior Officer of the Company specifying the calculation of such redemption amount as of the specified prepayment date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Optional Redemption Amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the redemption occurs during the period from October 23, 2024 to but excluding October 30, 2026, the redemption amount shall equal the sum of the Make-Whole Amount determined for the redemption date with respect to such principal amount plus accrued but unpaid interest, to but excluding the redemption date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the redemption occurs during the period from October 30, 2026 to but excluding October 30, 2027, the redemption amount to be paid by the Company shall equal 104.125% of the outstanding principal amount being redeemed (the "<u>First Call Price</u>") plus accrued but unpaid interest, to but excluding the redemption date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the redemption occurs during the period from October 30, 2027 to but excluding October 30, 2028, the redemption amount to be paid by the Company shall equal 102.0625% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If the redemption occurs during the period beginning on October 30, 2028 and ending on the Maturity Date, the redemption amount to be paid by the Company shall equal 100% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date.

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**Section 8.3 Allocation of Partial Redemptions**. In the case of each partial redemption of the Notes pursuant to Section 8.2, the principal amount of the Notes to be redeemed shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for redemption. Any partial redemptions will be processed through the Depository Trust Company Corporation, in accordance with its rules and procedures, as a "Pro Rata Pass-Through Distribution of Principal".

**Section 8.4 Maturity; Surrender, Etc**. In the case of each redemption of Notes pursuant to this Section 8, the principal amount of each Note to be redeemed shall mature and become due and payable on the date fixed for such redemption, together with interest on such principal amount accrued to such date and the applicable optional redemption amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and optional redemption amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any Note that is paid or redeemed in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any redeemed principal amount of any Note.

**Section 8.5 Purchase of Notes**. The Company will not and will not permit any Affiliate to redeem or otherwise prepay any of the outstanding Notes except upon the payment or redemption of the Notes in accordance with this Agreement and the Notes, *provided* that the Company shall not be prohibited from purchasing or otherwise acquiring any Note from the holder thereof. The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment or redemption of Notes pursuant to this Agreement and no Notes may be issued in substitution or exchange for any such Notes.

**Section 8.6 Reserved**.

**Section 8.7 Payments on Exercise of Call Option**. Payments to be made pursuant to the Company's call option in Section 13.1 shall be governed by Section 13.1.

**Section 8.8 Cancellation Upon Redemption**. Any notes redeemed or repurchased pursuant to this Section 8 or Section 13 shall be promptly cancelled by the Company. Any Notes repurchased and not yet cancelled by the Company shall be deemed retired and the Company shall not be deemed a Holder pursuant to this Agreement by reason of holding uncancelled Notes.

**Section 8.9 Payments Due on Non-Business Days**. Anything in this Agreement or the Notes to the contrary notwithstanding, (x) except as set forth in clause (y), any payment of interest on any Note that is due on a date that is not a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; and (y) any payment of principal of or optional redemption amount, if applicable, on any Note (including principal due on the Maturity Date of such Note) that is due on a date that is not a Business Day shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

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**SECTION 9. AFFIRMATIVE COVENANTS.** 

The Company covenants that so long as any of the Notes are outstanding:

**Section 9.1 Compliance with Laws**. The Company will, and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 9.2 Insurance**. The Company will, and will cause each of its Subsidiaries to, maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated.

**Section 9.3 Covenant Certification**. A Senior Officer shall certify on at least a quarterly basis that, based on all information available to the Company and upon the Senior Officer's due inquiry, the Senior Officer reasonably believes that the Company has complied with all of the covenants set forth herein, including the covenants set forth in Addendum A hereto.

**Section 9.4 Payment of Taxes and Claims**. The Company will, and will cause each of its Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies imposed on them or any of their properties, assets, income or franchises, to the extent the same have become due and payable and before they have become delinquent and all claims for which sums have become due and payable that have or might become a Lien on properties or assets of the Company or any Subsidiary, provided that neither the Company nor any Subsidiary need pay any such tax, assessment, charge, levy or claim if (i) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary or (ii) the nonpayment of all such taxes, assessments, charges, levies and claims would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 9.5 Corporate Existence, Etc**. Subject to Section 11.2, the Company will at all times preserve and keep its limited liability company existence in full force and effect. Subject to Section 11.2, the Company will at all times preserve and keep in full force and effect the corporate, limited liability company or other legal existence of each of its Subsidiaries (unless merged into the Company or a Wholly-Owned Subsidiary) and all rights and franchises of the Company and its Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such corporate, limited liability company or other legal existence, right or franchise would not, individually or in the aggregate, have a Material Adverse Effect.

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**Section 9.6 Books and Records**. The Company will, and will cause each of its Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over the Company or such Subsidiary, as the case may be. The Company will, and will cause each of its Subsidiaries to, keep books, records and accounts which, in reasonable detail, accurately reflect all transactions and dispositions of assets. The Company and its Subsidiaries have devised a system of internal accounting controls sufficient to provide reasonable assurances that their respective books, records, and accounts accurately reflect all transactions and dispositions of assets and the Company will, and will cause each of its Subsidiaries to, continue to maintain such system.

**Section 9.7 Tax Treatment**. At all times any Notes are outstanding, the Company shall elect to be classified as a partnership or a disregarded entity for U.S. federal income tax purposes and for all U.S. state and local income (and, if applicable, franchise) tax purposes.

**SECTION 10. MINIMUM LIQUIDITY COVENANT.** 

**Section 10.1 Minimum Liquidity Covenant**. The Company covenants that, so long as any of the Notes are outstanding, the Company will not declare or pay any cash dividends or cash distributions to any members of the Company unless, at such time, the Company and its Subsidiaries, in the aggregate, shall have at least $25,000,000 in unrestricted cash and cash equivalents in one or more deposit accounts or securities accounts owned or beneficially owned by the Company and/or any of its Subsidiaries. In addition, the Company agrees not to declare or pay any such cash dividends or cash distributions to any of its members unless permitted under this Section 10.1.

**SECTION 11. NEGATIVE COVENANTS.** 

The Company covenants that so long as any of the Notes are outstanding:

**Section 11.1 Transactions with Affiliates**. Other than and subject to certain existing agreements or arrangements set forth on Schedule 11.1, which are permitted hereunder, the Company will not, and will not permit any Subsidiary to, enter into directly or indirectly any transaction or group of related transactions (including the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary), except (a) in the ordinary course and pursuant to the reasonable requirements of the Company's or such Subsidiary's business and upon fair and reasonable terms no less favorable to the Company or such Subsidiary than would be obtainable in a comparable arm's-length transaction with a Person that is not an Affiliate, and (b) any expense sharing agreements similar to those in effect on the Closing Date and listed on Schedule 11.1, and (c) any agreements pursuant to which the Company or any of its Subsidiaries may lease or rent office space from one or more Affiliates on market terms.

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**Section 11.2 Merger, Consolidation, Etc**. The Company will not, and will not permit any Subsidiary to, consolidate with or merge with any other Person or convey, transfer or lease all or substantially all of its assets in a single transaction or series of transactions to any Person unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of any such transaction involving the Company, the successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, transfer or lease all or substantially all of the assets of the Company as an entirety, as the case may be, shall be a solvent corporation or limited liability company organized and existing under the laws of the United States or any state thereof (including the District of Columbia), and, if the Company is not such corporation or limited liability company, then (i) such corporation or limited liability company shall have executed and delivered to each holder of any Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement and the Notes and (ii) such corporation or limited liability company shall have caused to be delivered to each holder of any Notes a customary opinion of nationally recognized independent counsel, or other independent counsel reasonably satisfactory to the Required Holders, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) immediately before and immediately after giving effect to such transaction or each transaction in any such series of transactions, no Default or Event of Default shall have occurred and be continuing.

No such conveyance, transfer or lease of substantially all of the assets of the Company shall have the effect of releasing the Company or any successor corporation or limited liability company that shall theretofore have become such in the manner prescribed in this Section 11.2, from its liability under this Agreement or the Notes (in the case of the Company). Notwithstanding other provisions of this Agreement, and for the avoidance of doubt, the Company will be permitted to: (i) merge or consolidate the Company with any Subsidiary, or cause the merger or consolidation of any Subsidiary into or with any other Subsidiary, and/or the conveyance, transfer or lease of some, all or substantially all of the assets of any Subsidiary to any other Subsidiary or to the Company; and (ii) cause the liquidation or dissolution of any Subsidiary if the Company determines in good faith that such liquidation or dissolution is in the best interests of the Company and not materially disadvantageous to the Purchasers.

**Section 11.3 Dispositions**. The Company will not, and will not permit any of its Subsidiaries to, make any Disposition, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Dispositions of inventory, and of obsolete or worn out property, in each case in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Dispositions of equipment or real property to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement property or (ii) the proceeds of such Disposition are within 120 days thereafter applied to the purchase price of such replacement property;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Dispositions of any property by any Subsidiary to the Company or to any other Subsidiary, or by the Company to any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Dispositions permitted by Section 11.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) leases, licenses, subleases or sublicenses (including the provision of open source software under an open source license) granted in the ordinary course of business and on ordinary commercial terms that do not interfere in any material respect with the business of the Company and its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Dispositions of intellectual property rights that are no longer used or useful in the business of the Company and its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Dispositions of any product or asset (including any intellectual property or technology) that may be acquired or developed by the Company or any Subsidiary after the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the discount, write-off or Disposition of accounts receivable overdue by more than 30 days, in each case in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Dispositions of any cash, cash equivalents, securities, notes or other instruments, any futures, options, derivatives, other financial assets, and/or any other investments and financial products that may be purchased, sold, traded or exchanged by the Company or any Subsidiary in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Dispositions of ownership interests in any Subsidiary pursuant to a joint back office arrangement where the purchaser of such Subsidiary ownership interests does not obtain an allocation of profits of the Subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Dispositions by the Company and any Subsidiary not otherwise permitted under this Section; *provided* that the aggregate book value of all property Disposed of pursuant to this clause (j) in any fiscal year shall not exceed $1,000,000.

**Section 11.4 Line of Business**. Except to the extent permitted by Sections 11.2 and 11.3, the Company (i) will not sell, transfer or convey any of the equity securities or other equity interests of any Subsidiary, (ii) will not permit any Subsidiary to issue equity securities or other equity interests to any Person other than the Company or another Subsidiary and (iii) will not permit any Subsidiary to engage in any business if, as a result in each case, the general nature of the business in which the Company and its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business in which the Company and its Subsidiaries, taken as a whole, are engaged on the date of this Agreement as described in the Offering Materials.

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**Section 11.5 Liens**. The Company will not, and will not permit any of its Subsidiaries to, directly or indirectly create, incur, assume or permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to any property or asset (including any document or instrument in respect of goods or accounts receivable) of the Company or any such Subsidiary, whether now owned or held or hereafter acquired, or any income or profits therefrom, or assign or otherwise convey any right to receive such income or profits, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Liens securing any existing Indebtedness or other obligations of the Company or any Subsidiary as described on Schedule 5.16, or any amendments, modifications, or refinancing of any such Indebtedness, *provided* that (i) such Lien shall not apply to any other property or asset of the Company or any Subsidiary and (ii) such Lien shall secure only the Indebtedness or other obligations which it secures on the date hereof and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Permitted Liens; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other Liens securing Indebtedness of the Company or any Subsidiary not otherwise permitted by clauses (a) and (b) above, *provided* that all Indebtedness secured by any of the Liens permitted by this clause (c) and clause (a) above in aggregate shall not at any time exceed 60% of the total Indebtedness of the Company (determined on a consolidated basis as of the end of the then most recently ended annual fiscal period).

**Section 11.6 Dividends; Salaries; Related Party Transactions**. Upon the occurrence of an Event of Default and for as long as such Event of Default remains outstanding, the Company shall not (i) declare or pay any cash dividends or distributions of cash or assets to any of the members of the Company, (ii) increase the salary of or provide any discretionary cash bonus payments to employees or members of the Company, or (iii) make any payments pursuant to a related party transaction, other than payments to third parties in the ordinary course of business and/or payments permitted under Section 11.1 (and including, for the avoidance of doubt, any expense sharing agreements similar to those in effect on the Closing Date and listed on Schedule 11.1, and any agreements pursuant to which the Company or any of its Subsidiaries may lease or rent office space from one or more Affiliates on market terms).

**Section 11.7 Terrorism Sanctions Regulations**. No obligor will, or permit any Controlled Entity to, (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person, or (b) directly or indirectly have any investment in or engage in any dealing or transaction (including, without limitation, any investment, dealing or transaction involving the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any holder or any affiliate of such holder to be in violation of, or subject to sanctions under, any law or regulation applicable to such holder, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions Laws.

**SECTION 12. EVENTS OF DEFAULT.** 

An "**Event of Default**" shall exist if any of the following conditions or events shall occur and be continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company does not pay the principal of any Note on its due date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company does not pay any interest or premium (including any optional redemption amount) on any Note when due, and such default is not cured within five Business Days; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any Indebtedness that is outstanding in an aggregate principal amount of at least $5,000,000 (or its equivalent in the relevant currency of payment) beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of or compliance with any term of any evidence of any Indebtedness in an aggregate outstanding principal amount of at least $5,000,000 (or its equivalent in the relevant currency of payment) or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such Indebtedness has become, or has been declared (or one or more Persons are entitled to declare such Indebtedness to be), due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of Indebtedness to convert such Indebtedness into equity interests), (x) the Company or any Subsidiary has become obligated to purchase or repay Indebtedness before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least $5,000,000 (or its equivalent in the relevant currency of payment), or (y) one or more Persons have the right to require the Company or any Subsidiary so to purchase or repay such Indebtedness; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Company or any Subsidiary (i) is generally not paying (other than as a result of a good faith dispute), or admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a court or other Governmental Authority of competent jurisdiction enters an order appointing, without consent by the Company or any of its Subsidiaries, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company or any of its Subsidiaries, or any such petition shall be filed against the Company or any of its Subsidiaries and such petition shall not be dismissed within 60 days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any event occurs with respect to the Company or any Subsidiary which under the laws of any jurisdiction is analogous to any of the events described in Section 12(d) or Section 12(e), provided that the applicable grace period, if any, which shall apply shall be the one applicable to the relevant proceeding which most closely corresponds to the proceeding described in Section 12(d) or Section 12(e); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) one or more final judgments or orders for the payment of money aggregating in excess of $5,000,000 (or its equivalent in the relevant currency of payment), including any such final order enforcing a binding arbitration decision, are rendered against one or more of the Company and its Subsidiaries and which judgments are not, within 60 days after entry thereof, paid, bonded, discharged or stayed pending appeal, or are not discharged within 60 days after the expiration of such stay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Company defaults in the performance of or compliance with any term contained in Sections 7.1(a) through (e); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company defaults in the performance of or compliance with any term contained herein (other than those referred to in Sections 12(a) and (b) and Section 12(h)) and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a "notice of default" and to refer specifically to this Section 12(i)); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in this Agreement or any writing furnished in connection with the transactions contemplated hereby proves to have been false or incorrect in any Material respect on the date as of which made; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Company breaches any covenant set forth in Addendum A to this Agreement and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a "notice of default" and to refer specifically to this Section 12(k)).

**SECTION 13. REMEDIES ON DEFAULT, ETC.** 

**Section 13.1 Acceleration**. (a) If an Event of Default described in Section 12(d), 12(e) or 12(f) has occurred, all the Notes then outstanding shall automatically become immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any other Event of Default has occurred and is continuing, the Required Holders may at any time at its or their option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any Event of Default described in Section 12(a) or (b) has occurred and is continuing, any holder or holders of the Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due and payable.

Upon any Notes becoming due and payable under this Section 13.1, whether automatically or by declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the optional redemption amount, if any, determined in respect of such principal amount (to the full extent permitted by applicable law), shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.

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**Section 13.2 Other Remedies** . If any Default or Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 13.1, the holder of any Note at the time outstanding may proceed to protect and enforce the rights of such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise.

**Section 13.3 Rescission**. At any time after any Notes have been declared due and payable pursuant to Section 13.1(b) or (c), the Required Holders or the applicable affected holder or holders of Notes, as applicable, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all principal of and the optional redemption amount, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all other amounts that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and optional redemption amount, if any, and (to the extent permitted by applicable law) any overdue interest in respect of the Notes, at the Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 18, and (d) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment under this Section 13.3 will extend to or affect any subsequent Event of Default or Default for or impair any right consequent thereon.

**Section 13.4 No Waivers or Election of Remedies, Expenses, Etc**. No course of dealing and no delay on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder's rights, powers or remedies. No right, power or remedy conferred by this Agreement or any Note upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise. Without limiting the obligations of the Company under Section 16, the Company will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all reasonable costs and expenses of such holder incurred in any enforcement or collection under this Section 13, including reasonable attorneys' fees, expenses and disbursements.

**SECTION 14. GLOBAL NOTE; REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.** 

**Section 14.1 Global Note**. (a) The Notes being purchased by Purchasers pursuant to this Agreement will be issued in the form of one or more Global Notes registered in the name of DTC or a nominee thereof and delivered to DTC on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any other provision herein, no Global Note may be exchanged in whole or in part for Notes registered, and no transfer of a Global Note in whole or in part may be registered, in the name of any person other than DTC or a nominee thereof unless

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) DTC advises the Company in writing that DTC is no longer willing or able to properly discharge its responsibilities as the depository with respect to such Global Note, and no qualified successor is appointed by the Company within 90 days of receipt by the Company of such notice,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) DTC ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended and no successor is appointed by the Company within 90 days after obtaining knowledge of such event, (iii) the Company elects to terminate the book-entry system through DTC or (iv) an Event of Default shall have occurred and be continuing. Upon the occurrence of any event specified in clause (i), (ii), (iii) or (iv) of this Section 14.1(b) above, the Company or its agent shall notify DTC and instruct DTC to notify all owners of beneficial interests in the Global Note of the occurrence of such event and of the availability of Notes to such owners of beneficial interests requesting the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any Global Note is to be exchanged for other Notes or canceled in part, or if another Note is to be exchanged in whole or in part for a beneficial interest in a Global Note, then either (i) such Global Note shall be so surrendered for exchange or cancellation as provided in this Section 14.1(c) or (ii) the principal amount thereof shall be reduced or increased by an amount equal to the portion thereof to be so exchanged or canceled, or equal to the principal amount of such other Note to be so exchanged for a beneficial interest therein, as the case may be, by means of an appropriate adjustment made on the records of the Company, whereupon the Company, in accordance with the applicable rules and procedures of DTC ("**DTC Procedures**"), shall instruct DTC or its authorized representative to make a corresponding adjustment to its records. Upon any such surrender or adjustment of a Global Note by DTC, accompanied by registration instructions, the Company shall execute and deliver any Notes issuable in exchange for such Global Note (or any portion thereof) in accordance with the instructions of DTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Every Note executed and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Note or any portion thereof shall be executed and delivered in the form of, and shall be, a Global Note, unless such Global Note is registered in the name of a person other than DTC or a nominee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) DTC or its nominee, as the registered owner of any Global Note, shall be the holder of such Global Note for all purposes under the Note, and owners of beneficial interests in such Global Note shall hold such interests pursuant to DTC Procedures. Accordingly, any such owner's beneficial interest in such Global Note shall be shown only on, and the transfer of such interest shall be effected only through, records maintained by DTC or its nominee or its participants. If applicable, the Company shall be entitled to deal with DTC for all purposes relating to such Global Note (including the payment of principal and interest thereon and the giving of instructions or directions by owners of beneficial interests therein and the giving of notices) as the sole holder of the Notes and shall have no obligations to the owners of beneficial interests therein. The Company shall have no liability in respect of any transfers affected by DTC.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The rights of owners of beneficial interests in the Global Notes shall be exercised only through DTC and shall be limited to those established by law and agreements between such owners and DTC and/or its participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No holder of any beneficial interest in the Global Notes held on its behalf by DTC shall have any rights with respect to such Global Notes, and DTC may be treated by the Company and any agent of the Company as the owner of the Global Notes for all purposes whatsoever. Neither the Company nor any agent of the Company will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Note or maintaining, supervising or reviewing any records relating to such beneficial ownership interests. Notwithstanding the foregoing, nothing herein shall prevent the Company or any agent of the Company from giving effect to any written certification, proxy or other authorization furnished by DTC or impair, as between DTC and such holders of beneficial interests, the operation of customary practices governing the exercise of the rights of DTC (or its nominee) as holder of any Note.

**Section 14.2 Registration of Notes**. The Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes. The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register. If any holder of one or more Notes is a nominee, then (a) the name and address of the beneficial owner of such Note or Notes shall also be registered in such register as an owner and holder thereof and (b) at any such beneficial owner's option, either such beneficial owner or its nominee may execute any amendment, waiver or consent pursuant to this Agreement. Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary. The Company shall give to any holder of a Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes.

**Section 14.3 Transfer and Exchange of Notes**. Subject to Section 14.1, including the transfer restrictions contained therein, upon (a) surrender of any Note to the Company at the address and to the attention of the designated officer (all as specified in Section 19(iii)), for registration of transfer or exchange (and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by the registered holder of such Note or such holder's attorney duly authorized in writing and accompanied by the relevant name, address and other information for notices of each transferee of such Note or part thereof) and (b) delivery to the Company of evidence reasonably satisfactory to it that such transfer or exchange of such Note is exempt from any registration requirements under applicable federal and state securities laws, within 10 Business Days thereafter, the Company shall execute and deliver, at the Company's expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of Schedule 1. Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Company may require payment of a sum sufficient to cover any stamp tax or

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governmental charge imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of less than $100,000, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $100,000. Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representations set forth in Sections 6.2 and 6.3 and to have agreed to the transfer restriction set forth in Section 14.1.

**Section 14.4 Replacement of Notes**. Upon receipt by the Company at the address and to the attention of the designated officer (all as specified in Section 19(iii)) of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is a Qualified Institutional Buyer, such Person's own unsecured agreement of indemnity shall be deemed to be satisfactory), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of mutilation, upon surrender and cancellation thereof, within 10 Business Days thereafter, the Company at its own expense shall execute and deliver, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

**SECTION 15. PAYMENTS ON NOTES.** 

**Section 15.1 Place of Payment**. Subject to Section 15.2, payments of principal, optional redemption amount, if any, and interest becoming due and payable on the Notes shall be made in the State of Texas at the principal office of the Paying Agent in such jurisdiction. The Company may at any time, by notice to each holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either a principal office of the Company in the United States or a principal office of a bank or trust company in the United States.

**Section 15.2 Payment by Wire Transfer**. So long as any Purchaser or its nominee shall be the holder of any Note, and notwithstanding anything contained in Section 15.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for the principal, optional redemption amount, if any, interest and all other amounts becoming due hereunder by the method and at the address specified for such purpose below such Purchaser's name on such Purchaser's signature page, or by such other method or at such other address as such Purchaser shall have from time to time specified to the Company in writing for such purpose at least fifteen (15) days prior to such applicable due date, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or redemption in full of any Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 15.1. Prior to any sale or other disposition of any Note held by a Purchaser or its nominee, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has

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been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 14.3. The Company will afford the benefits of this Section 15.2 to any Institutional Investor that is the direct or indirect transferee of any Note purchased by a Purchaser under this Agreement and that has made the same agreement relating to such Note as the Purchasers have made in this Section 15.2.

**Section 15.3 FATCA Information**. By acceptance of any Note, the holder of such Note agrees that such holder will with reasonable promptness duly complete and deliver to the Company, or to such other Person as may be reasonably requested by the Company, from time to time (a) in the case of any such holder that is a United States Person, such holder's United States tax identification number or other Forms reasonably requested by the Company necessary to establish such holder's status as a United States Person under FATCA and as may otherwise be necessary for the Company to comply with its obligations under FATCA and (b) in the case of any such holder that is not a United States Person, such documentation prescribed by applicable law (including as prescribed by section 1471(b)(3)(C)(i) of the Code) and such additional documentation as may be necessary for the Company to comply with its obligations under FATCA and to determine that such holder has complied with such holder's obligations under FATCA or to determine the amount (if any) to deduct and withhold from any such payment made to such holder. Nothing in this Section 15.3 shall require any holder to provide information that is confidential or proprietary to such holder unless the Company is required to obtain such information under FATCA and, in such event, the Company shall treat any such information it receives as confidential.

**SECTION 16. EXPENSES, ETC.** 

**Section 16.1 Transaction Expenses**. Each party to this Agreement shall be responsible for its own costs and expenses (including attorneys' fees and expenses) incurred in connection with the negotiation and preparation of this Agreement and the Notes, the transactions contemplated hereby and by the Notes, the Closing, and in connection with any amendments, waivers or consents under or in respect of this Agreement or the Notes (whether or not such amendment, waiver or consent becomes effective); provided that the Company shall reimburse the Purchasers for their reasonable costs and expenses not to exceed $50,000 in the aggregate incurred (a) in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement or the Notes, or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement or the Notes and (b) in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes, including financial advisors' fees. Subject to the limitations in the preceding sentence, the Company will pay, and will save each Purchaser and each other holder of a Note harmless from, (i) all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than those, if any, retained by a Purchaser or other holder in connection with its purchase of the Notes), (ii) any and all wire transfer fees that any bank or other financial institution deducts from any payment under such Note to such holder or otherwise charges to a holder of a Note with respect to a payment under such Note and (iii) any judgment, liability, claim, order, decree, fine, penalty, cost, expense or obligation resulting from the consummation of the transactions contemplated hereby, including the use of the proceeds of the Notes by the Company (including any out-of-pocket reasonable attorneys' fees and expenses incurred by the Purchasers in connection with any such judgment, liability, claim, order, decree, fine, penalty, cost, expense or obligation).

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**Section 16.2 Certain Taxes**. The Company agrees to pay all stamp, documentary or similar taxes or fees which may be payable in respect of the execution and delivery or the enforcement of this Agreement or the execution, delivery or enforcement of (but not the transfer of) any of the Notes in the United States or any other jurisdiction where the Company has assets or of any amendment of, or waiver or consent under or with respect to, this Agreement or of any of the Notes, and to pay any value added tax due and payable in respect of reimbursement of costs and expenses by the Company pursuant to this Section 16, and to the extent permitted by applicable law will save each holder of a Note harmless against any loss or liability resulting from nonpayment or delay in payment of any such tax or fee required to be paid by the Company hereunder.

**Section 16.3 Survival**. The obligations of the Company under this Section 16 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and the termination of this Agreement.

**SECTION 17. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.** 

All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Notes, the purchase or transfer by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of such Purchaser or any other holder of a Note. This Agreement and the Notes embody the entire agreement and understanding between each Purchaser and the Company and supersede all prior agreements and understandings relating to the subject matter hereof.

**SECTION 18. AMENDMENT AND WAIVER.** 

**Section 18.1 Requirements**. This Agreement and the Notes may be amended, and the observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), only with the written consent of the Company and the Required Holders, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No amendment or waiver of any of Sections 1, 2, 3, 4, 5, 6 or 22 hereof, or any defined term (as it is used therein), will be effective as to any Purchaser unless consented to by such Purchaser in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No amendment or waiver may, without the written consent of each Purchaser and the holder of each Note at the time outstanding, (i) subject to Section 13 relating to acceleration or rescission, change the amount or time of any redemption or payment of principal of, or reduce the rate or change the time of payment or method of computation of (x) interest on the Notes or (y) the optional redemption amount, if any, (ii) change the percentage of the principal amount of the Notes the holders of which are required to consent to any amendment or waiver, or (iii) amend any of Sections 8 (except as set forth in the second sentence of Section 8.2(a) and Section 18.1(c)), 12(a), 12(b), 13, 18 or 21; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section 8.5 may be amended or waived to permit offers to purchase made by the Company or an Affiliate pro rata to the holders of all Notes at the time outstanding upon the same terms and conditions only with the written consent of the Company and the Required Holders.

**Section 18.2 Solicitation of Holders of Notes**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Solicitation*. The Company will provide each holder of a Note with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the Notes. The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to this Section 18 to each holder of a Note promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Payment*. The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder of a Note as consideration for or as an inducement to the entering into by such holder of any waiver or amendment of any of the terms and provisions hereof or of any Note unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each holder of a Note even if such holder did not consent to such waiver or amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Consent in Contemplation of Transfer*. Any consent given pursuant to this Section 18 by a holder of a Note that has transferred or has agreed to transfer its Note to (i) the Company, (ii) any Subsidiary or any other Affiliate or (iii) any other Person in connection with, or in anticipation of, such other Person acquiring, making a tender offer for or merging with the Company and/or any of its Affiliates (either pursuant to a waiver under Section 18.1(c) or subsequent to Section 8.5 having been amended pursuant to Section 18.1(c)), in each case in connection with such consent, shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such holder.

**Section 18.3 Binding Effect, Etc**. Any amendment or waiver consented to as provided in this Section 18 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon. No course of dealing between the Company and any holder of a Note and no delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note.

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**Section 18.4 Notes Held by Company, Etc**. Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Notes, or have directed the taking of any action provided herein or the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding.

**SECTION 19. NOTICES.** 

Except to the extent otherwise provided in Section 7.3, all notices and communications provided for hereunder shall be in writing and sent (a) by telecopy or email if the sender on the same day sends a confirming copy of such notice by an internationally recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by an internationally recognized overnight delivery service (charges prepaid). Any such notice must be sent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to any Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications on such Purchaser's signature page, or at such other address as such Purchaser or nominee shall have specified to the Company in writing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Company in writing, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if to the Company, to the Company at its address set forth at the beginning hereof to the attention of the Chief Financial Officer or at such other address as the Company shall have specified to the holder of each Note in writing.

Notices under this Section 19 will be deemed given only when actually received.

**SECTION 20. REPRODUCTION OF DOCUMENTS.** 

This Agreement and all documents relating thereto, including (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser at the Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced. The Company agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. This Section 20 shall not prohibit the Company or any other holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

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**SECTION 21. CONFIDENTIAL INFORMATION.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For the purposes of this Section 21, "**Confidential Information**" means information delivered to any Purchaser by or on behalf of the Company or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser as being confidential information of the Company or such Subsidiary or any equityholder thereof, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser or any Person acting on such Purchaser's behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by the Company or any Subsidiary or (d) constitutes financial statements delivered to such Purchaser under Section 7.1 that are otherwise publicly available. Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser and will not otherwise use any of such Confidential Information other than in the administration and oversight of its investment in the Notes, provided that such Purchaser may deliver or disclose Confidential Information to (i) its directors, managers, officers, employees, agents, attorneys, trustees and affiliates (the "**Representatives**") (to the extent such disclosure reasonably relates to the administration of the investment represented by its Notes, and provided, further, that each Purchaser agrees that its Representatives will be made aware of the confidential nature of such Confidential Information and shall treat such Confidential Information confidentially, and that each Purchaser will be responsible for any disclosures by its Representatives), (ii) its auditors, financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with this Section 21, (iii) any other holder of any Note, (iv) any Institutional Investor to which it sells or offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by this Section 21), (v) any Person from which it offers to purchase any Security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by this Section 21), (vi) any federal or state regulatory authority having jurisdiction over such Purchaser, or (vii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser's Notes or this Agreement. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 21 as though it were a party to this Agreement. On reasonable request by the Company in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Company embodying this Section 21.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding other provisions of this Section 21, in the event that any Purchaser is compelled by any Governmental Authority (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process) to disclose any Confidential Information, such Purchaser will provide the Company with notice of such request or requirement as promptly as practicable (unless not permitted by applicable law) so that the Company may seek a protective order or other appropriate remedy. Each Purchaser shall cooperate reasonably with the Company in connection with the Company's reasonable efforts to seek such an order or remedy. If the Company does not obtain such protective order or other remedy, or the Company waives compliance with this Section 21(b), such Purchaser will furnish only that portion of the applicable Confidential Information that is reasonably required, and will exercise reasonable efforts to obtain assurance that the confidential treatment will be accorded such disclosed Confidential Information. Notwithstanding anything to the contrary in this Section 21(b), the Purchasers may disclose Confidential Information to any regulatory authority having jurisdiction over such Purchasers or their Affiliates during the course of any routine examination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that as a condition to receiving access to information relating to the Company or its Subsidiaries in connection with the transactions contemplated by or otherwise pursuant to this Agreement, any Purchaser or holder of a Note is required to agree to a confidentiality undertaking (whether through IntraLinks, another secure website, a secure virtual workspace or otherwise) which is different from this Section 21, this Section 21 shall not be amended thereby and, as between such Purchaser or such holder and the Company, this Section 21 shall supersede any such other confidentiality undertaking.

**SECTION 22. SUBSTITUTION OF PURCHASER.** 

Each Purchaser shall have the right to substitute any one of its Affiliates or another Purchaser or any one of such other Purchaser's Affiliates (a "**Substitute Purchaser**") as the purchaser of the Notes that it has agreed to purchase hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser and such Substitute Purchaser, shall contain such Substitute Purchaser's agreement to be bound by this Agreement and shall contain a confirmation by such Substitute Purchaser of the accuracy with respect to it of the representations set forth in Section 6. Upon receipt of such notice, any reference to such Purchaser in this Agreement (other than in this Section 22), shall be deemed to refer to such Substitute Purchaser in lieu of such original Purchaser. In the event that such Substitute Purchaser is so substituted as a Purchaser hereunder and such Substitute Purchaser thereafter transfers to such original Purchaser all of the Notes then held by such Substitute Purchaser, upon receipt by the Company of notice of such transfer, any reference to such Substitute Purchaser as a "Purchaser" in this Agreement (other than in this Section 22), shall no longer be deemed to refer to such Substitute Purchaser, but shall refer to such original Purchaser, and such original Purchaser shall again have all the rights of an original holder of the Notes under this Agreement.

**SECTION 23. MISCELLANEOUS.** 

**Section 23.1 Successors and Assigns**. All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including any subsequent holder of a Note) whether so expressed or not, except that, subject to the provisions of Section 11.2, the Company may not assign or otherwise transfer any of its rights or obligations hereunder or under the Notes without the prior written consent of each holder. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto and their respective successors and assigns permitted hereby) any legal or equitable right, remedy or claim under or by reason of this Agreement.

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**Section 23.2 Accounting Terms**. All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with GAAP. Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP.

**Section 23.3 Severability**. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.

**Section 23.4 Construction, Etc**. Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.

Defined terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation." The word "will" shall be construed to have the same meaning and effect as the word "shall." Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein) and, for purposes of the Notes, shall also include any such notes issued in substitution therefor pursuant to Section 14, (b) subject to Section 23.1, any reference herein to any Person shall be construed to include such Person's successors and assigns, (c) the words "herein," "hereof" and "hereunder," and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Sections and Schedules shall be construed to refer to Sections of, and Schedules to, this Agreement, and (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time.

**Section 23.5 Counterparts**. This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto.

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**Section 23.6 Governing Law**. This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice of law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

**Section 23.7 Jurisdiction and Process; Waiver of Jury Trial**. (a) The Company irrevocably submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, the City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the Notes. To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company agrees, to the fullest extent permitted by applicable law, that a final judgment in any suit, action or proceeding of the nature referred to in Section 23.7(a) brought in any such court shall be conclusive and binding upon it subject to rights of appeal, as the case may be, and may be enforced in the courts of the United States of America or the State of New York (or any other courts to the jurisdiction of which it or any of its assets is or may be subject) by a suit upon such judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company consents to process being served by or on behalf of any holder of Notes in any suit, action or proceeding of the nature referred to in Section 23.7(a) by mailing a copy thereof by registered, certified, priority or express mail (or any substantially similar form of mail), postage prepaid, return receipt or delivery confirmation requested, to it at its address specified in Section 19 or at such other address of which such holder shall then have been notified pursuant to said Section. The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it. Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Nothing in this Section 23.7 shall affect the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH.

\*\*\*\*\*

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| | |
|:---|:---|
| Very truly yours,<br>CLEAR STREET HOLDINGS LLC | Very truly yours,<br>CLEAR STREET HOLDINGS LLC |
| By: | /s/ Chris Pento |
|  | Name: Chris Pento |
|  | Title: Chief Executive Officer |

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*Clear Street Holdings LLC - Private Placement of Fixed Rate Senior Unsecured Notes due 2029* 

*Signature Page to Note Purchase Agreement* 

------

**IN WITNESS WHEREOF,** the Purchaser has caused this Note Purchase Agreement to be executed by its duly authorized representative as of the date first above written.

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| | |
|:---|:---|
| **<u>PURCHASER</u>:**<br>By: | **<u>PURCHASER</u>:**<br>By: |
| By: |  |
|  | Name: |
|  | Title: |
|  <br> <u>Address of Purchaser</u>:<br><u>Email Address(es) of Purchaser for Notices</u>:<br><u>Principal Amount of Purchased Note</u>:<br><u>CUSIP of Purchased Note</u>: | <br> <u>Address of Purchaser</u>:<br><u>Email Address(es) of Purchaser for Notices</u>:<br><u>Principal Amount of Purchased Note</u>:<br><u>CUSIP of Purchased Note</u>: |

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*Clear Street Holdings LLC - Private Placement of Fixed Rate Senior Unsecured Notes due 2029* 

*Signature Page to Note Purchase Agreement* 

------

**SCHEDULE A** 

**Defined Terms** 

As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term:

"**Affiliate**" means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person, and, with respect to the Company, shall include only (a) any Person beneficially owning or holding, directly or indirectly, 25% or more of (i) the fully diluted economic interests of the Company or any Subsidiary or (ii) any class of voting equity interests of the Company or any Subsidiary or (b) any Person of which the Company and its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 25% or more of any class of voting or equity interests. Unless the context otherwise clearly requires, any reference to an "Affiliate" is a reference to an Affiliate of the Company.

"**Agreement**" means this Note Purchase Agreement, including all Schedules attached to this Agreement (as amended, restated, modified, and/or supplemented from time to time pursuant to the terms of this Agreement).

"**Anti-Corruption Laws**" means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding bribery or any other corrupt activity, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010.

"**Anti-Money Laundering Laws**" means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes, including the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy Act) and the USA PATRIOT Act.

"**Blocked Person**" means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization, country or regime that is blocked or a target of sanctions that have been imposed under U.S. Economic Sanctions Laws or (c) a Person that is an agent, department or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any Person, entity, organization, country or regime described in clause (a) or (b).

"**Broker-Dealer Subsidiary**" is defined in Section 5.12.

"**Business Day**" means any day other than a Saturday, a Sunday or a day on which commercial banks in New York City are required or authorized to be closed.

"**Capital Lease**" means, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP.

"**Closing**" is defined in Section 3.

*Schedule A-1*

*(to Note Purchase Agreement)*

------

"**Closing Date**" is the date on which the Closing occurs.

"**Code**" means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from time to time.

"**Company**" is defined in the first paragraph of this Agreement.

"**Confidential Information**" is defined in Section 21.

"**Control**" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; and the terms "**Controlled**" and "**Controlling**" shall have meanings correlative to the foregoing.

"**Controlled Entity**" means (a) any of the Subsidiaries of the Company and any of their or the Company's respective Controlled Affiliates and (b) if the Company has a parent company, such parent company and its Controlled Affiliates.

"**Default**" means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default.

"**Default Rate**" means that rate of interest per annum of 10.25%.

"**Disclosure Documents**" is defined in Section 5.3.

"**Disposition**" or "**Dispose**" means the sale, transfer, license, lease or other disposition (in one transaction or in a series of transactions and whether effected pursuant to a division or otherwise) of any property by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.

"**DTC**" is defined in Section 1.

"**DTC Procedures**" is defined in Section 14.1(c).

"**Environmental Laws**" means any and all federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including those related to Hazardous Materials.

"**ERISA**" means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

"**ERISA Affiliate**" means any trade or business (whether or not incorporated) that is treated as a single employer together with the Company under section 414 of the Code.

*Schedule A-2*

*(to Note Purchase Agreement)*

------

"**Event of Default**" is defined in Section 12.

"**FATCA**" means (a) sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), together with any current or future regulations or official interpretations thereof, (b) any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the United States of America and any other jurisdiction, which (in either case) facilitates the implementation of the foregoing clause (a), and (c) any agreements entered into pursuant to section 1471(b)(1) of the Code.

"**FINRA**" is defined in Section 5.12.

"**First Call Premium Amount**" is defined in Section 8.2(b)(ii).

"**First Call Price**" is defined in Section 8.2(b)(ii).

"**GAAP**" means (a) generally accepted accounting principles as in effect from time to time in the United States of America and (b) for purposes of Section 9.6, with respect to any Subsidiary, generally accepted accounting principles (including International Financial Reporting Standards, as applicable) as in effect from time to time in the jurisdiction of organization of such Subsidiary.

"**Global Notes**" is defined in Section 1.

"**Governmental Authority**" means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the government of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the United States of America or any state or other political subdivision thereof, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any other jurisdiction in which the Company or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or any Subsidiary, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.

"**Governmental Official**" means any governmental official or employee, employee of any government-owned or government-controlled entity, political party, any official of a political party, candidate for political office, official of any public international organization or anyone else acting in an official capacity.

"**Guaranty**" means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including obligations incurred through an agreement, contingent or otherwise, by such Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to purchase such indebtedness or obligation or any property constituting security therefor;

*Schedule A-3*

*(to Note Purchase Agreement)*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to advance or supply funds (i) for the purchase or payment of such indebtedness or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such indebtedness or obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such indebtedness or obligation of the ability of any other Person to make payment of the indebtedness or obligation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) otherwise to assure the owner of such indebtedness or obligation against loss in respect thereof.

In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor.

"**Hazardous Materials**" means any and all pollutants, toxic or hazardous wastes or other substances that might pose a hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized by any applicable law, including asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.

"**holder**" or "**Holder**" means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the Company pursuant to Section 14; *provided*, *however*, that if such Person is a nominee, then for the purposes of Sections 7, 13, 18.2 and 19 and any related definitions in this Schedule A, "holder" shall mean the beneficial owner of such Note whose name and address appears in such register.

"**Indebtedness**" with respect to any Person means, at any time, without duplication,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all liabilities for borrowed money evidenced by notes, bonds, debentures, loan agreements or similar evidences of indebtedness; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Guaranty of such Person with respect to liabilities of a type described in clause (a).

Indebtedness of any Person shall include all obligations of such Person of the character described in clauses (a) and (b) above, to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP. For the avoidance of doubt, the definition of "Indebtedness" shall not include liabilities or obligations for or with respect to Capital Leases, real property and facility leases, equipment leases, other financing leases, and/or any other liabilities incurred in the ordinary course of business, including but not limited to (i) credit default swaps or other credit derivatives entered into solely for the purpose of hedging, (ii) Securities Financing and (iii) guarantees issued to or for trading counterparties.

*Schedule A-4*

*(to Note Purchase Agreement)*

------

"**Institutional Investor**" means (a) any Purchaser of a Note, (b) any holder of a Note holding (together with one or more of its affiliates) more than 10% of the aggregate principal amount of the Notes then outstanding, (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any holder of any Note.

"**Lien**" means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital Lease, upon or with respect to any property or asset of such Person (including in the case of stock, stockholder agreements, voting trust agreements and all similar arrangements).

"**Make-Whole Amount**" means, for purposes of <u>Section</u> <u>8.2(b)(i)</u> (Optional Redemption Amounts) and with respect to any Note, an amount equal to the sum of (a) the First Call Price and (b) the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note over the amount of such Called Principal, provided that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount, the following terms have the following ascribed meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Adjusted Treasury Yield**" means, with respect to the Called Principal of any Note, in respect of any redemption or acceleration of any Note means the sum of the yield on a hypothetical United States Treasury security with a constant maturity equal to the Remaining Average Life of such Note (the "**Treasury Constant Yield**") plus 0.50% (50 basis points). The hypothetical Treasury shall be determined by reference to the "Ask Yield(s)" for the most recently issued actively traded on-the-run United States Treasury securities ("**Reported**") as indicated on the applicable "PX1" page of the PX pages of the Bloomberg Financial Markets service provided by Bloomberg L.P. (or such other display as may replace such PX1 page on the Bloomberg Financial Markets service or, if the Bloomberg Financial Markets service is not available, such other service widely recognized in the financial community) at approximately 11:00 A.M., New York time, on the date two Business Days prior to the Settlement Date. If there is a Treasury Reported on said Bloomberg screen with a constant maturity which is equal to the Remaining Average Life of the applicable Note, then the yield on such Treasury shall be the Treasury Constant Yield.

If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by way of interpolation), then "Adjusted Treasury Yield" means, with respect to the Called Principal of any Note, the sum of (x) 0.50% (50 basis points) plus (y) the yield to maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for the U.S. Treasury constant maturity having a term equal to the Remaining Average Life

*Schedule A-5*

*(to Note Purchase Agreement)*

------

of such Called Principal as of such Settlement Date. If there is no such U.S. Treasury constant maturity having a term equal to such Remaining Average Life, such implied yield to maturity will be determined by interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury constant maturity so reported with the term closest to and less than such Remaining Average Life. The Adjusted Treasury Yield shall be rounded to the number of decimal places as appears in the interest rate of the Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Called Principal**" means, with respect to any Note, the principal of such Note that is to be redeemed pursuant to <u>Section</u> <u>8.2(b)(i)</u> (Optional Redemption Amounts) or has become or is declared to be immediately due and payable pursuant to <u>Section</u> <u>12</u> (Events of Default), as the context requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "**Discounted Value**" means, with respect to the Called Principal of any Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Adjusted Treasury Yield with respect to such Called Principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "**Remaining Average Life**" means, with respect to any Called Principal, the number of years obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years, computed on the basis of a 360-day year comprised of twelve 30-day months and calculated to two decimal places, that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Remaining Scheduled Payments**" means, with respect to the Called Principal of any Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date to but not including October 30, 2026; provided that if such Settlement Date is not a date on which interest payments are due to be made under the Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) "**Settlement Date**" means, with respect to the Called Principal of any Note, the date on which such Called Principal is to be redeemed pursuant to <u>Section</u> <u>8.2(b)(i)</u> (Optional Redemption Amounts) or has become or is declared to be immediately due and payable pursuant to <u>Section</u> <u>12</u> (Events of Default), as the context requires.

"**Material**" means material in relation to the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole.

*Schedule A-6*

*(to Note Purchase Agreement)*

------

"**Material Adverse Effect**" means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole, (b) the ability of the Company to perform its obligations under this Agreement and the Notes, or (c) the validity or enforceability of this Agreement or the Notes.

"**Maturity Date**" is defined in the first paragraph of each Note.

"**NAIC**" means the National Association of Insurance Commissioners.

"**Non-U.S. Plan**" means any plan, fund or other similar program that (a) is established or maintained outside the United States of America by the Company or any Subsidiary primarily for the benefit of employees of the Company or one or more Subsidiaries residing outside the United States of America, which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and (b) is not subject to ERISA or the Code.

"**Notes**" is defined in Section 1.

**"OFAC**" means the Office of Foreign Assets Control of the United States Department of the Treasury.

"**OFAC Sanctions Program**" means any economic or trade sanction that OFAC is responsible for administering and enforcing. A list of OFAC Sanctions Programs may be found at <u>http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx</u>.

"**Offering Materials**" is defined in Section 5.3.

"**Officer's Certificate**" means a certificate of a Senior Officer or of any other officer of the Company whose responsibilities extend to the subject matter of such certificate.

"**Paying Agent**" means UMB Bank, N.A., as the paying agent and registrar for the Notes.

"**Permitted Liens**" means any of following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Lien on any property or asset of the Company or any Subsidiary existing on the date hereof and set forth in Schedule 5.16; provided that (i) such Lien shall not apply to any other property or asset of the Company or any Subsidiary and (ii) such Lien shall secure only those obligations which it secures on the date hereof and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liens to secure taxes, assessments and other governmental charges, to the extent that payment thereof shall not at the time be required hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Deposits or pledges made (i) in connection with, or to secure payment of, workers' compensation, unemployment insurance, old age pensions or other social security, (ii) in connection with casualty insurance maintained in accordance with this Agreement, (iii) to secure the performance of bids, tenders, contracts (other than contracts relating to Indebtedness) or leases, (iv) to secure statutory obligations or surety or appeal bonds, or (v) to secure indemnity, performance or other similar bonds in the ordinary course of business;

*Schedule A-7*

*(to Note Purchase Agreement)*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens of carriers, warehouses, mechanics and similar Liens, in each case (i) in existence less than 120 days from the date of creation thereof or (ii) being contested in good faith by the Company or any Subsidiary in appropriate proceedings (so long as the Company or such Subsidiary shall, in accordance with GAAP, have set aside on its books adequate reserves with respect thereto); and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Encumbrances in the nature of (i) zoning restrictions, easements or restrictions of record on the use of real property, (ii) landlords' and lessors' Liens on any leased or rented premises and (iii) restrictions on transfers or assignment of leases, which in each case do not materially detract from the value of the encumbered property or impair the use thereof in the business of the Company or any Subsidiary.

For the avoidance of doubt, the definition of "Permitted Liens" shall include Liens securing any liabilities or obligations for or with respect to Capital Leases, real property and facility leases, equipment leases, other financing leases, and/or liabilities or obligations incurred in the ordinary course of business, including but not limited to (i) credit default swaps or other credit derivatives entered into solely for the purpose of hedging, (ii) Securities Financing and (iii) guarantees issued to or for trading counterparties.

"**Person**" means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, business entity or Governmental Authority.

"**Piper Sandler**" is defined in Section 5.3.

"**Plan**" means an "employee benefit plan" (as defined in section 3(3) of ERISA) subject to Title I of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any liability.

"**property**" or "**properties**" means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate.

"**Purchaser**" or "**Purchasers**" means each of the purchasers that has executed and delivered this Agreement to the Company and such Purchaser's successors and assigns (so long as any such assignment complies with Section 14.2), provided, however, that any Purchaser of a Note that ceases to be the registered holder or a beneficial owner (through a nominee) of such Note as the result of a transfer thereof pursuant to Section 14.2 shall cease to be included within the meaning of "Purchaser" of such Note for the purposes of this Agreement upon such transfer.

"**Purchasing Plan Entity**" is defined in Section 6.3.

"**Purchasing Plans**" is defined in Section 6.3.

*Schedule A-8*

*(to Note Purchase Agreement)*

------

"**Qualified Institutional Buyer**" means any Person who is a "qualified institutional buyer" within the meaning of such term as set forth in Rule 144A(a)(1) under the Securities Act.

"**Related Fund**" means, with respect to any holder of any Note, any fund or entity that (a) invests in Securities or bank loans, and (b) is advised or managed by such holder, the same investment advisor as such holder or by an affiliate of such holder or such investment advisor.

"**Representatives**" is defined in Section 21(a).

"**Required Holders**" means at any time on or after the Closing, the holders of at least 50.1% in principal amount of the Notes at the time outstanding (exclusive of Notes then owned by the Company or any of its Affiliates).

"**Responsible Officer**" means any Senior Officer and any other officer of the Company with responsibility for the administration of the relevant portion of this Agreement.

"**SEC**" means the Securities and Exchange Commission of the United States of America.

"**Securities**" or "**Security**" shall have the meaning specified in section 2(1) of the Securities Act.

"**Securities Act**" means the Securities Act of 1933 and the rules and regulations promulgated thereunder from time to time in effect.

"**Securities Financing**" means any transaction where securities are used to borrow cash or where cash is used to borrow securities, including but not limited to repurchase transactions, securities lending and sell-back or buy-back transactions.

"**Senior Officer**" means any of the chief executive officer, chief operating officer, chief financial officer, president, vice president, or treasurer of the Company, or any person responsible for supervising risk or trading.

"**Similar Law**" is defined in Section 6.3.

"**State Sanctions List**" means a list that is adopted by any state Governmental Authority within the United States of America pertaining to Persons that engage in investment or other commercial activities in Iran or any other country that is a target of economic sanctions imposed under U.S. Economic Sanctions Laws.

"**Subsidiary**" means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries (unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a "Subsidiary" is a reference to a Subsidiary of the Company.

*Schedule A-9*

*(to Note Purchase Agreement)*

------

**"Substitute Purchaser"** is defined in Section 22.

"**SVO**" means the Securities Valuation Office of the NAIC.

"**Transaction Parties**" is defined in Section 6.3.

"**United States Person**" has the meaning set forth in Section 7701(a)(30) of the Code.

"**USA PATRIOT Act**" means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 and the rules and regulations promulgated thereunder from time to time in effect.

"**U.S. Economic Sanctions Laws**" means those laws, executive orders, enabling legislation or regulations administered and enforced by the United States pursuant to which economic sanctions have been imposed on any Person, entity, organization, country or regime, including the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran Sanctions Act, the Sudan Accountability and Divestment Act and any other OFAC Sanctions Program.

"**Wholly-Owned Subsidiary**" means, at any time, any Subsidiary all of the equity interests (except directors' or managers' qualifying shares) and voting interests of which are owned by any one or more of the Company and the Company's other Wholly-Owned Subsidiaries at such time.

*Schedule A-10*

*(to Note Purchase Agreement)*

------

**ADDENDUM A** 

**Additional Covenants** 

**Definitions**. Unless otherwise defined herein, words and expressions defined in the Note Purchase Agreement, dated October 23, 2024 (the "**Agreement**") among CLEAR STREET HOLDINGS LLC (the "**Company**") and each of the Purchasers (as therein defined) have the same meanings when used herein, including in the recitals hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Financial Covenants** 

Each of the undertakings in this Section 1 of Addendum A shall remain in force until the Maturity Date, except as the Required Holders (or, where specified, all of the holders) may otherwise agree or permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1 Debt to Total Capitalization (Leverage).** 

The Company shall not permit its Funded Debt to be in excess of 50% of its Consolidated Total Capitalization, as measured on the date of the most recent consolidated financial statements of the Company and its Subsidiaries delivered pursuant to Section 7.1 of the Agreement.

"**Consolidated Total Capitalization**" means, with respect to the Company at any time, the sum of Consolidated Net Worth and Consolidated Total Indebtedness of the Company at such time.

"**Consolidated Net Worth**" of the Company means, as of any date of determination, the members' capital or stockholders' equity of the Company as reflected on its most recent consolidated balance sheet and prepared in accordance with GAAP.

"**Consolidated Total Indebtedness**" shall mean, at any date, the aggregate principal amount of all Indebtedness of the Company and its Subsidiaries that would be reflected on a consolidated balance sheet of the Company and its Subsidiaries as of such date in accordance with GAAP. The definition of "Consolidated Total Indebtedness" shall not include Capital Leases, real property and facility leases, equipment leases, other financing leases and/or those liabilities incurred in the ordinary course of business, including Securities Financing.

"**Funded Debt**" means unsecured bonds and loans, and any other unsecured debt for borrowed money, with a maturity of longer than one year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2 Minimum Net Worth.** 

The Company shall maintain a minimum Consolidated Net Worth equal to not less than (a) 50% of its member's capital existing as of the Closing Date, <u>plus</u> (b) the greater of (i) zero and (ii) 25% of all Net Income, in aggregate, earned on and after the Closing Date, as measured on the date of the most recent consolidated financial statements of the Company and its Subsidiaries delivered pursuant to Section 7.1 of the Agreement, to be certified by a Senior Officer in the Compliance Certificate (as set forth in Section 9.3 of the Agreement) delivered in accordance with Section 7.2 of the Agreement. For the avoidance of doubt, if Net Income is less than zero ($0), the minimum Consolidated Net Worth required under this Section 1.2 shall not be reduced.

*Schedule A-11*

*(to Note Purchase Agreement)*

------

"**Net Income**" means the total earnings (or profit) of the Company and its Subsidiaries, on a consolidated basis, for any period, determined by taking revenues and subtracting the costs of doing business including depreciation, interest, taxes and other expenses. For the avoidance of doubt, Net Income shall be calculated in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3 Interest Coverage Ratio**. The Company shall not issue or incur any Funded Debt unless, immediately before and immediately after the issuance or incurrence of such Funded Debt, the Company's Interest Coverage Ratio is equal to or greater than 2.50 to 1.00, as measured on the date of the most recent consolidated financial statements delivered pursuant to Section 7.1 of the Agreement.

"**Interest Coverage Ratio**" means the ratio of pro forma EBITDA for the most recently completed period of twelve calendar months, to Interest Expense, as measured on the date of the most recent consolidated financial statements delivered pursuant to Section 7.1 of the Agreement.

"**EBITDA**" means, for the Company and its Subsidiaries for any period, the (a) Net Income of the Company and its Subsidiaries for such period, <u>plus</u>, (b) without duplication and to the extent deducted in determining such Net Income, and in each case calculated on a consolidated basis, each of the following adjustments: (i) Interest Expense, (ii) income tax expense and any other provision for income taxes, (iii) depreciation expense, (iv) amortization expense, (v) unusual, one-time or non-recurring charges, expenses or losses, (vi) other non-cash charges, expenses or losses (excluding any such non-cash charge to the extent it represents an accrual or reserve for potential cash charge in any future period or amortization of a prepaid cash charge that was paid in a prior period), (vii) reasonable and customary out-of-pocket transaction expenses and fees incurred in connection with the Note Purchase Agreement, the Notes and the issuance thereof within 90 days after the Closing Date and paid in cash to third parties during such period, (viii) reasonable and customary out-of-pocket transaction expenses and fees incurred in connection with any acquisition or proposed acquisition by the Company or any of its Subsidiaries (whether or not consummated), paid in cash to third parties during such period and in an aggregate amount not to exceed $100,000 during any fiscal quarter, <u>minus</u> (c) to the extent included in determining such Net Income, and in each case calculated on a consolidated basis, each of the following adjustments, without duplication: (i) income tax credits and refunds (to the extent not netted from income tax expense), and (ii) cash expenditures made in respect of any non-cash expense or charge that was added back in such period or a prior period pursuant to <u>clause (b)(v)</u> or <u>(vi)</u> above.

"**Interest Expense**" means, for any period, the consolidated interest expense of the Company and its Subsidiaries for such period, determined in accordance with GAAP; *provided*, *however*, that Interest Expense shall not include any imputed interest on or with respect to any Capital Leases, real property and facility leases, equipment leases or other financing leases.

*Schedule A-12*

*(to Note Purchase Agreement)*

------

"**pro forma**" means, when used with respect to EBITDA, financial statements or compliance with any financial covenant or test, that EBITDA shall be calculated giving effect to pro forma adjustments or add-backs, without duplication for any add backs otherwise added back in EBITDA, in each case as if any acquisition, related Indebtedness, permitted asset sales, fees, costs or expenses had occurred at the beginning of the applicable period in question.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4 Interest Reserve**. Until the fourth (4<sup>th</sup>) anniversary of the Closing Date, the Company will maintain, in one or more reserve accounts of the Company and/or one or more of its Subsidiaries, an amount invested in cash and/or cash equivalents equal to not less than the aggregate amount of interest payments to be due and payable on the Notes over the next succeeding 12-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. GAAP provisions**. Unless otherwise specifically provided in this Addendum or in the Agreement, any accounting term used in this Addendum or in this Agreement (including in the finance covenants in Section 1 above or any related definition) shall have the meaning customarily given such term in accordance with GAAP, and all financial computations (including pursuant to Section 1 above and the related definitions, and with respect to the character or amount of any asset or liability or item of income or expense, or any consolidation or other accounting computation) hereunder shall be computed in accordance with GAAP consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Additional Undertakings.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1 General.** 

The undertakings set forth in this Section 3 of Addendum A shall remain in force from the date of the Agreement through and including the Maturity Date except as the Required Holders (or, where specified, all the Holders) may otherwise permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2 Rating.** 

The Company will use commercially reasonable efforts to maintain a rating (the "**Rating**") from (i) Egan-Jones Rating Company or its successors ("**Egan-Jones**"), or (ii) any other nationally recognized statistical rating organizations within the meaning of Section 3(a)(62) of the Exchange Act that is designated as a "Credit Rating Provider" (or other similar designation) by the National Association of Insurance Commissioners (a "**Designated NRSRO**") (provided that such Designated NRSRO, if other than Egan-Jones, is subject to the consent of the Required Holders, not to be unreasonably withheld or delayed), from the date hereof through and including the Maturity Date. Any expenses incurred in connection with obtaining the rating specified above shall be borne by the Company.

*Schedule A-13*

*(to Note Purchase Agreement)*

------

As further provided in the Notes, if the Company's Rating changes after the Closing Date, the interest rate applicable under the Notes (the "**Interest Rate**") will be adjusted as follows:

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| | |
|:---|:---|
| **Rating** | **Interest Rate** |
| If the Rating is BB+ (or the equivalent) or lower (the "NonInvestment Grade Range") | The original Interest Rate in effect on the Closing Date increases by 0.75% or 75 bps. |
| If the Rating is BBB- (or equivalent) or better (the "Investment Grade Range") | The Interest Rate stays at the original Interest Rate in effect on the Closing Date (or, if the Interest Rate was previously increased, then the Interest will be reduced to the original Interest Rate in effect on the Closing Date). |
| If there is no Rating (the Company is not rated by Egan-Jones or any other Designated NRSRO) | The original Interest Rate in effect on the Closing Date increases by 2.00% or 200 bps. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3 Change of Control**. If a Change of Control shall occur, each holder of a Note or Notes shall have the right to require the Company to repurchase all, but not less than all, of the Notes held by such holder for an amount equal to 101% of the principal amount, plus accrued and unpaid interest to, but excluding, the repurchase date.

"**Change of Control**" means any event or series of events by which any Person or group of Persons other than (i) the Ownership Group and/or (ii) Affiliates of the Company, shall acquire ownership, directly or indirectly, of fifty-one percent (51%) or more of the voting membership interests or other voting equity interests of the Company.

"**Ownership Group**" means (i) any and all Persons who, directly or indirectly, own membership interests or other equity interests in the Company, as of the Closing Date, (ii) the spouses, children, siblings, parents or other lineal descendants of the parents of, (x) in the case of a Person in clause (i) above who is a natural person, any such Person described in clause (i) above or (y) in the case of a Person in clause (i) above that is an entity, the beneficial owners of any such Person described in clause (i) above (in each case, including in the case of adoption), (iii) any trust whose beneficial owners consist solely of the Persons described in clause (i) or clause (ii) above, and/or (iv) any entity that is wholly owned by the Persons described in clause (i), clause (ii) or clause (iii) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4 Investor Call.** 

The Company shall make itself available for a quarterly investor call at the request of any one or more investors, at which time investors shall have an opportunity to ask questions relating to the business and receive answers from a Senior Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5 Monthly Focus Reports.** 

The Company undertakes and agrees to cause each Broker-Dealer Subsidiary (other than Clear Street Markets LLC) to file monthly Financial and Operational Combined Uniform Single (FOCUS) reports with FINRA.

*Schedule A-14*

*(to Note Purchase Agreement)*

------

**SCHEDULE 1** 

**FORM OF NOTE** 

**FOR GLOBAL NOTE**: THIS 8.25% SENIOR UNSECURED NOTE DUE OCTOBER 30, 2029 (THE "**NOTE**") IS A GLOBAL NOTE WITHIN THE MEANING OF THE NOTE PURCHASE AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY ("DTC") OR A NOMINEE OF DTC. THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE AGREEMENT, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY DTC TOA NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE BY DTC TO **CLEAR STREET HOLDINGS LLC** FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

**THIS 8.25% SENIOR UNSECURED NOTE DUE OCTOBER 30, 2029 (THE "NOTE") HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAW. NEITHER THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO COMPLY WITH THE FOREGOING RESTRICTIONS AND TO OFFER, SELL OR OTHERWISE TRANSFER THIS NOTE ONLY TO THE EXTENT PERMITTED UNDER AND PURSUANT TO THE TERMS OF THE NOTE PURCHASE AGREEMENT REFERENCED IN THIS NOTE.** 

**THIS NOTE IS SUBJECT TO CERTAIN RESALE RESTRICTIONS SET FORTH IN A NOTE PURCHASE AGREEMENT DATED OCTOBER 23, 2024.** 

Schedule 11.1

to Note Purchase Agreement

------

**CLEAR STREET HOLDINGS LLC** 

**8.25% Senior Unsecured Note Due October 30, 2029** 

---

| | |
|:---|:---|
| $[ ] | October 23, 2024 |

---

FOR VALUE RECEIVED, the undersigned, **CLEAR STREET HOLDINGS LLC** (herein called the "**Company**"), a limited liability company organized and existing under the laws of the State of Delaware, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of [$<u> </u>] (or so much thereof as shall not have been prepaid) on October 30, 2029 (the "**Maturity Date**"), with interest (computed on the basis of a 360-day year of twelve 30 day months) (a) on the unpaid balance hereof at the rate of 8.25% per annum (the "**Interest Rate**") from the date hereof, payable semiannually, on the 30<sup>th</sup> day of April and October each year, commencing with April 30, 2025, and on the Maturity Date, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, (x) on any overdue payment of interest and (y) during the continuance of an Event of Default, on such unpaid balance and on any overdue payment of any optional redemption amount, at the Default Rate per annum equal to 10.25%. Notwithstanding the foregoing, if the Company's Rating changes after the Closing Date, the Interest Rate will be adjusted as follows:

---

| | |
|:---|:---|
| **Rating** | **Interest Rate** |
|  If the Rating is BB+ (or the equivalent) or lower (the "**Non-Investment Grade Range**"): | 9.00% |
|  If the Rating is BBB- level (or equivalent) or better: | 8.25% |
|  If there is no Rating (the Company is not rated by Egan-Jones or any other Designated NRSRO): | 10.25% |

---

Payments of principal of, interest on and any optional redemption amount with respect to this Note are to be made in lawful money of the United States of America to the Paying Agent at its principal office, as designated from time to time, or at such other place as the Company shall have designated by written notice to the holder of this Note, as provided in the Note Purchase Agreement referred to below.

This Note is issued pursuant to the Note Purchase Agreement, dated October 23, 2024 (as from time to time amended, the "**Note Purchase Agreement**"), between the Company and the respective Purchasers named therein and is entitled to the benefits thereof. Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth therein and (ii) made the representations set forth in Sections 6.2 and 6.3 of the Note

Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.

*Schedule A-2*

*(to Note Purchase Agreement)*

------

This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the Person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

**This Note is subject to optional redemption, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise.** 

If an Event of Default occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any optional redemption amount) and with the effect provided in the Note Purchase Agreement.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the holder of this Note shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

---

| | |
|:---|:---|
|  CLEAR STREET HOLDINGS LLC | CLEAR STREET HOLDINGS LLC |
| By: |  |
|  | Name: Chris Pento |
|  | Title: Chief Executive Officer |

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*Schedule A-3*

*(to Note Purchase Agreement)*

## Exhibit 10.26

**Exhibit 10.26** 

CLEAR STREET HOLDINGS LLC

$221,500,000

8.00% Senior Notes due September 30, 2030

NOTE PURCHASE AGREEMENT

Dated September 17, 2025

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**Table of Contents** 

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| | | |
|:---|:---|:---|
| | | **Page** |
| SECTION 1. Authorization of Notes | SECTION 1. Authorization of Notes | 1 |
| SECTION 2. Sale and Purchase of Notes | SECTION 2. Sale and Purchase of Notes | 1 |
| SECTION 3. Closing | SECTION 3. Closing | 1 |
| SECTION 4. Conditions to Closing | SECTION 4. Conditions to Closing | 2 |
| Section 4.1. | Representations and Warranties | 2 |
| Section 4.2. | Performance; No Default | 2 |
| Section 4.3. | Compliance Certificates | 2 |
| Section 4.4. | Opinions of Counsel | 3 |
| Section 4.5. | Purchase Permitted By Applicable Law, Etc. | 3 |
| Section 4.6. | Sale of Other Notes | 3 |
| Section 4.7. | Payment of Special Counsel Fees | 3 |
| Section 4.8. | Private Placement Number | 3 |
| Section 4.9. | Changes in Corporate Structure | 3 |
| Section 4.10. | Funding Instructions | 3 |
| Section 4.11. | Proceedings and Documents | 4 |
| Section 4.12. | Debt Rating | 4 |
| Section 4.13. | Offeree Letter | 4 |
| Section 4.14. | Other Credit Facilities | 4 |
| Section 4.15. | Interest Reserve Account | 4 |
| SECTION 5. Representations and Warranties of the Company | SECTION 5. Representations and Warranties of the Company | 4 |
| Section 5.1. | Organization; Power and Authority | 4 |
| Section 5.2. | Authorization, Etc. | 5 |
| Section 5.3. | Disclosure | 5 |
| Section 5.4. | Organization and Ownership of Shares of Subsidiaries; Affiliates | 5 |
| Section 5.5. | Financial Statements; Material Liabilities | 6 |
| Section 5.6. | Compliance with Laws, Other Instruments, Etc. | 6 |
| Section 5.7. | Governmental Authorizations, Etc. | 6 |
| Section 5.8. | Litigation; Observance of Agreements, Statutes and Orders | 7 |
| Section 5.9. | Taxes | 7 |

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i

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| | | |
|:---|:---|:---|
| Section 5.10. | Title to Property; Leases | 7 |
| Section 5.11. | Licenses, Permits, Etc. | 7 |
| Section 5.12. | Compliance with Employee Benefit Plans | 8 |
| Section 5.13. | Private Offering by the Company | 9 |
| Section 5.14. | Use of Proceeds; Margin Regulations | 9 |
| Section 5.15. | Existing Indebtedness; Future Liens | 10 |
| Section 5.16. | Foreign Assets Control Regulations, Etc. | 11 |
| Section 5.17. | Status under Certain Statutes | 11 |
| Section 5.18. | Environmental Matters | 11 |
| Section 5.19. | Compliance with Broker-Dealer Regulations | 12 |
| SECTION 6. Representations of the Purchasers | SECTION 6. Representations of the Purchasers | 13 |
| Section 6.1. | Purchase for Investment | 13 |
| Section 6.2. | Source of Funds | 13 |
| Section 6.3. | Qualified Institutional Buyer; Accredited Investor | 15 |
| Section 6.4. | Access to Information | 15 |
| Section 6.5. | Independent Investment Decision | 15 |
| SECTION 7. Information as to Company | SECTION 7. Information as to Company | 15 |
| Section 7.1. | Financial and Business Information | 15 |
| Section 7.2. | Officer's Certificate | 18 |
| Section 7.3. | Visitation | 18 |
| Section 7.4. | Electronic Delivery | 19 |
| Section 7.5. | Investor Call | 19 |
| SECTION 8. Payment and Prepayment of the Notes | SECTION 8. Payment and Prepayment of the Notes | 19 |
| Section 8.1. | Maturity | 19 |
| Section 8.2. | Optional Prepayments | 19 |
| Section 8.3. | Allocation of Partial Prepayments | 20 |
| Section 8.4. | Maturity; Surrender, Etc. | 21 |
| Section 8.5. | Purchase of Notes | 21 |
| Section 8.6. | Make-Whole Amount | 21 |
| Section 8.7. | Payments Due on Non-Business Days | 23 |
| Section 8.8. | Change of Control Prepayment Offer | 23 |

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ii

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| | | |
|:---|:---|:---|
| SECTION 9. Affirmative Covenants | SECTION 9. Affirmative Covenants | 23 |
| Section 9.1. | Compliance with Laws | 23 |
| Section 9.2. | Insurance | 24 |
| Section 9.3. | [Reserved] | 24 |
| Section 9.4. | Payment of Taxes and Claims | 24 |
| Section 9.5. | Existence, Etc. | 24 |
| Section 9.6. | Books and Records | 24 |
| Section 9.7. | Subsidiary Guarantors | 25 |
| Section 9.8. | Rating on the Notes | 25 |
| Section 9.9. | Monthly Focus Reports | 25 |
| Section 9.10. | Broker-Dealer Subsidiaries | 25 |
| Section 9.11. | Registration Status | 26 |
| Section 9.12. | Tax Treatment | 26 |
| Section 9.13. | Priority of Obligations | 26 |
| Section 9.14. | Interest Reserve Account | 26 |
| SECTION 10. Negative Covenants | SECTION 10. Negative Covenants | 26 |
| Section 10.1. | Transactions with Affiliates | 26 |
| Section 10.2. | Merger, Consolidation, Etc. | 26 |
| Section 10.3. | Line of Business; Sale of Equity Interests | 27 |
| Section 10.4. | Economic Sanctions, Etc. | 27 |
| Section 10.5. | Liens | 27 |
| Section 10.6. | Financial Covenants | 28 |
| Section 10.7. | Subsidiary Indebtedness | 29 |
| Section 10.8. | Sale of Assets | 30 |
| Section 10.9. | Restricted Payments; Salaries; Related Party Transactions | 31 |
| Section 10.10. | Company Indebtedness | 31 |
| SECTION 11. Events of Default | SECTION 11. Events of Default | 32 |
| SECTION 12. Remedies on Default, Etc. | SECTION 12. Remedies on Default, Etc. | 34 |
| Section 12.1. | Acceleration | 34 |
| Section 12.2. | Other Remedies | 35 |
| Section 12.3. | Rescission | 35 |
| Section 12.4. | No Waivers or Election of Remedies, Expenses, Etc. | 35 |

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iii

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| | | |
|:---|:---|:---|
| SECTION 13. Registration; Exchange; Substitution of Notes; Global Note | SECTION 13. Registration; Exchange; Substitution of Notes; Global Note | 36 |
| Section 13.1. | Registration of Notes | 36 |
| Section 13.2. | Transfer and Exchange of Notes | 36 |
| Section 13.3. | Replacement of Notes | 36 |
| Section 13.4. | Global Note | 37 |
| SECTION 14. Payments on Notes | SECTION 14. Payments on Notes | 38 |
| Section 14.1. | Place of Payment | 38 |
| Section 14.2. | Payment by Wire Transfer | 38 |
| Section 14.3. | FATCA Information | 39 |
| SECTION 15. Expenses, Etc. | SECTION 15. Expenses, Etc. | 39 |
| Section 15.1. | Transaction Expenses | 39 |
| Section 15.2. | Certain Taxes | 40 |
| Section 15.3. | Survival | 40 |
| SECTION 16. Survival of Representations and Warranties; Entire Agreement | SECTION 16. Survival of Representations and Warranties; Entire Agreement | 40 |
| SECTION 17. Amendment and Waiver | SECTION 17. Amendment and Waiver | 41 |
| Section 17.1. | Requirements | 41 |
| Section 17.2. | Solicitation of Holders of Notes | 41 |
| Section 17.3. | Binding Effect, Etc. | 42 |
| Section 17.4. | Notes Held by Company, Etc. | 42 |
| SECTION 18. Notices | SECTION 18. Notices | 42 |
| SECTION 19. Reproduction of Documents | SECTION 19. Reproduction of Documents | 43 |
| SECTION 20. Confidential Information | SECTION 20. Confidential Information | 43 |
| SECTION 21. Substitution of Purchaser | SECTION 21. Substitution of Purchaser | 45 |
| SECTION 22. Miscellaneous | SECTION 22. Miscellaneous | 45 |
| Section 22.1. | Successors and Assigns | 45 |
| Section 22.2. | Accounting Terms | 45 |
| Section 22.3. | Severability | 45 |
| Section 22.4. | Construction, Etc. | 45 |
| Section 22.5. | Counterparts | 46 |
| Section 22.6. | Governing Law | 46 |
| Section 22.7. | Jurisdiction and Process; Waiver of Jury Trial | 47 |

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| | |
|:---|:---|
| Schedule A | Defined Terms |
| Schedule 1 | Form of 8.00% Senior Note due September 30, 2030 |
| Schedule 4.4(a) | Form of Opinion of Special Counsel for the Company |
| Schedule 5.3 | Disclosure Materials |
| Schedule 5.4 | Subsidiaries of the Company and Ownership of Subsidiary Stock |
| Schedule 5.5 | Financial Statements |
| Schedule 5.15 | Existing Indebtedness |
| Purchaser Schedule | Information Relating to Purchasers |

---

v

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**CLEAR STREET HOLDINGS LLC** 

**150 Greenwich Street, Floor 45** 

**New York, NY 10007** 

**8.00% Senior Notes due September 30, 2030** 

**September 17, 2025** 

To Each of the Purchasers Listed in the Purchaser Schedule Hereto:

Ladies and Gentlemen:

CLEAR STREET HOLDINGS LLC, a Delaware limited liability company (the "**Company**"), agrees with each of the Purchasers as follows:

**SECTION 1. AUTHORIZATION OF NOTES.** 

The Company will authorize the issue and sale of $221,500,000 aggregate principal amount of its 8.00% Senior Notes due September 30, 2030 (the "**Notes**"). The Notes shall be substantially in the form set out in Schedule 1. Certain capitalized and other terms used in this Agreement are defined in Schedule A and, for purposes of this Agreement, the rules of construction set forth in Section 22.4 shall govern.

The Depository Trust Company (including any successor thereto, "**DTC**") will act as securities depository for the Notes purchased pursuant to this Agreement. The Notes will be represented by one or more Notes issued in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be required by an authorized representative of DTC in the aggregate principal amount of the Notes purchased by Purchasers pursuant to this Agreement (the "**Global Notes**"). The Company will enter into a letter of representation with DTC to provide for the issuance of the Global Notes, which will be governed by the DTC Procedures.

**SECTION 2. SALE AND PURCHASE OF NOTES.** 

Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser and each Purchaser will purchase from the Company, at the Closing provided for in Section 3, Notes in the principal amount specified opposite such Purchaser's name in the Purchaser Schedule at the purchase price of 100% of the principal amount thereof. The Purchasers' obligations hereunder are several and not joint obligations and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser hereunder.

**SECTION 3. CLOSING.** 

The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the offices of Morgan, Lewis & Bockius LLP, 101 Park Avenue, New York, NY 10178, at 10:00 a.m., New York time, at a closing (the "**Closing**") on September 17, 2025 or on such other Business Day thereafter as may be agreed upon by the Company and the Purchasers. At the Closing the

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Company will deliver to DTC, through the Paying Agent, the Global Notes against delivery by the Purchasers to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company in accordance with the instructions set forth in the funding instruction letter provided by the Company under Section 4.10. If at the Closing the Company shall fail to tender the Global Notes to DTC as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to such Purchaser's satisfaction, such Purchaser shall, at its election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure by the Company to tender such Notes or any of the conditions specified in Section 4 not having been fulfilled to such Purchaser's satisfaction.

**SECTION 4. CONDITIONS TO CLOSING.** 

Each Purchaser's obligation to purchase and pay for the Notes to be sold to such Purchaser at the Closing is subject to the fulfillment to such Purchaser's satisfaction, prior to or at the Closing, of the following conditions:

**Section 4.1. Representations and Warranties**. The representations and warranties of the Company in this Agreement shall be correct when made and at the Closing.

**Section 4.2. Performance; No Default**. The Company shall have performed and complied with all agreements and conditions contained in this Agreement required to be performed or complied with by it prior to or at the Closing. Before and after giving effect to the issue and sale of the Notes (and the application of the proceeds thereof as contemplated by Section 5.14), no Default or Event of Default shall have occurred and be continuing. Neither the Company nor any Subsidiary shall have entered into any transaction since the date of the Presentation that would have been prohibited by Section 10 had such Section applied since such date.

**Section 4.3. Compliance Certificates**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Officer's Certificate*. The Company shall have delivered to such Purchaser an Officer's Certificate, dated the date of the Closing, certifying that the conditions specified in Sections 4.1, 4.2 and 4.9 have been fulfilled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *CEO's Certificate*. The Company shall have delivered to such Purchaser a certificate of its chief executive officer, dated the date of the Closing, certifying as to (i) the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Notes and this Agreement, (ii) the Company's organizational documents as then in effect, (iii) the incumbency of the officers authorized to execute and deliver the Notes and this Agreement and (iv) a good standing or entity status certificate, issued by the Secretary of State or other appropriate officer of the Company's state of organization dated as of a date no earlier than ten days prior to the date of such Closing.

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**Section 4.4. Opinions of Counsel**. Such Purchaser shall have received opinions in form and substance satisfactory to such Purchaser, dated the date of the Closing (a) from Goulston & Storrs PC, counsel for the Company, substantially in the form set forth in <u>Schedule 4.4(a)</u> and covering such other matters incident to the transactions contemplated hereby as such Purchaser or its counsel may reasonably request (and the Company hereby instructs its counsel to deliver such opinion to the Purchasers) and (b) from Morgan, Lewis & Bockius LLP, special counsel in connection with such transactions, in form and substance satisfactory to such Purchaser and and covering such other matters incident to such transactions as such Purchaser may reasonably request.

**Section 4.5. Purchase Permitted By Applicable Law, Etc**. On the date of the Closing such Purchaser's purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) not violate any applicable law or regulation (including Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof.

**Section 4.6. Sale of Other Notes**. Contemporaneously with the Closing the Company shall sell to each other Purchaser and each other Purchaser shall purchase the Notes to be purchased by it at the Closing as specified in the Purchaser Schedule.

**Section 4.7. Payment of Special Counsel Fees**. Without limiting Section 15.1, the Company shall have paid on or before the Closing the fees, charges and disbursements of the Morgan, Lewis & Bockius LLP to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the Closing.

**Section 4.8. Private Placement Number**. A Private Placement Number issued by the PPN CUSIP Unit of CUSIP Global Services (in cooperation with the SVO) shall have been obtained for the Notes.

**Section 4.9. Changes in Corporate Structure**. The Company shall not have changed its jurisdiction of incorporation or organization, as applicable, or been a party to any merger or consolidation or succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in <u>Schedule 5.5</u>.

**Section 4.10. Funding Instructions**. At least five Business Days prior to the date of the Closing, each Purchaser shall have received written instructions signed by a Responsible Officer on letterhead of the Company confirming the information specified in Section 3 including (a) the name and address of the transferee bank, (b) such transferee bank's ABA number, (c) the account name and number into which the purchase price for the Notes is to be deposited and (d) contact details (email and telephone number) for a Responsible Officer of the Company and the transferee bank who can verify the account details, which account shall be fully opened and able to receive micro deposits in accordance with this Section at least five Business Days prior to the date of the Closing. Each Purchaser has the right, but not the obligation, upon written notice (which may be by email) to the Company, to elect to deliver a micro deposit (equal to or less than $51.00) to the account identified in the written instructions no later than two Business Days prior to the date of the Closing. If a Purchaser delivers a micro deposit, a Responsible Officer must verbally verify the receipt and amount of the micro deposit to such Purchaser on a telephone call initiated by such

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Purchaser prior to the date of the Closing. The Company shall not be obligated to return the amount of the micro deposit, nor will the amount of the micro deposit be netted against the Purchaser's purchase price of the Notes. If requested by such Purchaser, an identifiable Responsible Officer of the Company shall confirm such written instructions by a live videoconference made available to the Purchasers no later than two Business Days prior to the date of the Closing.

**Section 4.11. Proceedings and Documents**. All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to such Purchaser and the special counsel referred to in Section 4.4(b), and such Purchaser and such special counsel shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or such special counsel may reasonably request.

**Section 4.12. Debt Rating**. The Company shall have delivered, or caused to be delivered, to such Purchaser, (a) a Private Rating Letter issued by Kroll Bond Rating Agency setting forth the initial Debt Rating for the Notes, which shall not be lower than BBB-, and (b) the related Private Rating Rationale Report with respect to such Debt Rating.

**Section 4.13. Offeree Letter**. Piper Sandler & Co. and BofA Securities, Inc. shall have delivered to the Company, its counsel and the special counsel referred to in Section 4.4(b) an offeree letter, in form and substance satisfactory to the Company and its counsel and the special counsel referred to in Section 4.4(b), confirming the manner of the offering of the Notes by such entity and the number of offerees.

**Section 4.14. Other Credit Facilities**. The Company shall have delivered, or caused to be delivered to such Purchaser, a true, correct and complete copy of (a) each Material Credit Facility and (b) the BMO Credit Documents, in each case as in effect on the date of Closing.

**Section 4.15. Interest Reserve Account**. The Company shall have delivered to such Purchaser evidence satisfactory to it that the Interest Reserve Account has been established and will be funded up to the amount of the Minimum Interest Reserve Amount with the proceeds of the Notes pursuant to Section 5.14.

**SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.** 

The Company represents and warrants to each Purchaser that:

**Section 5.1. Organization; Power and Authority**. The Company is a limited liability company duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign limited liability company and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company has the limited liability company power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement and the Notes and to perform the provisions hereof and thereof.

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**Section 5.2. Authorization, Etc**. This Agreement and the Notes have been duly authorized by all necessary limited liability company action on the part of the Company, and this Agreement constitutes, and upon execution and delivery thereof each Note will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally and (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

**Section 5.3. Disclosure**. The Company, through its agents, Piper Sandler & Co. and BofA Securities, Inc., has delivered to each Purchaser a copy of an Investor Presentation, dated July 22, 2025 (the "**Presentation**"), relating to the transactions contemplated hereby. The Presentation fairly describes, in all material respects, the general nature of the business of the Company and its Subsidiaries. This Agreement, the Presentation, the financial statements listed in <u>Schedule 5.5</u> and the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company prior to September 15, 2025 in connection with the transactions contemplated hereby and identified in <u>Schedule 5.3</u> (this Agreement, the Presentation and such documents, certificates or other writings and such financial statements delivered to each Purchaser being referred to, collectively, as the "**Disclosure Documents**"), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made. Except as disclosed in the Disclosure Documents, since December 31, 2024 there has been no change in the financial condition, operations, business, properties or prospects of the Company and its Subsidiaries (taken as a whole with the Company) except changes that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Notwithstanding the foregoing or any other provision in this Agreement, to the extent that any of the Disclosure Documents contains any projections or forward-looking statements, no representation is made as to any such projections or forward looking statements other than that the Company believes the assumptions underlying such projections or forward looking statements are reasonable based on the information available to the Company at the time they were made. There is no assurance that any projections or forward-looking statements included in the Disclosure Documents will prove to be accurate.

**Section 5.4. Organization and Ownership of Shares of Subsidiaries; Affiliates.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Schedule 5.4</u> contains (except as noted therein) complete and correct lists of (i) the Company's Subsidiaries, showing, as to each Subsidiary, the name thereof, the jurisdiction of its organization, the percentage of shares of each class of its capital stock or similar Equity Interests outstanding owned by the Company and each other Subsidiary and indicating whether such Subsidiary is a Regulated Subsidiary, (ii) the Company's Affiliates, other than Subsidiaries, and (iii) the Company's managing member and senior officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All of the outstanding shares of capital stock or similar Equity Interests of each Subsidiary shown in <u>Schedule 5.4</u> as being owned by the Company and its Subsidiaries have been validly issued, are fully paid and non-assessable and are owned by the Company or another Subsidiary free and clear of any Lien that is prohibited by this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Subsidiary is a corporation or other legal entity duly organized, validly existing and, where applicable, in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and, where applicable, is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Subsidiary is subject to any legal, regulatory, contractual or other restriction (other than the agreements and restrictions listed on <u>Schedule 5.4</u> and <u>Schedule 5.15</u> and customary limitations imposed by corporate law or similar statutes or applicable regulations) restricting the ability of such Subsidiary to pay dividends out of profits or make any other similar distributions of profits to the Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar Equity Interests of such Subsidiary.

**Section 5.5. Financial Statements; Material Liabilities**. The Company has delivered to each Purchaser copies of the financial statements of the Company and its Subsidiaries listed on <u>Schedule 5.5</u>. All of such financial statements (including in each case the related schedules and notes) fairly present in all material respects the consolidated financial position of the Company and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments). The Company and its Subsidiaries do not have any Material liabilities that are not disclosed in the Disclosure Documents except ordinary course liabilities incurred by any Broker-Dealer Subsidiary since June 30, 2025.

**Section 5.6. Compliance with Laws, Other Instruments, Etc**. The execution, delivery and performance by the Company of this Agreement and the Notes will not (a) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate or limited liability company charter, operating agreement or by-laws, shareholders agreement or any other agreement or instrument to which the Company or any Subsidiary is bound or by which the Company or any Subsidiary or any of their respective properties may be bound or affected, (b) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary or (c) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary.

**Section 5.7. Governmental Authorizations, Etc**. Except as required by the SEC, FINRA, the Financial Conduct Authority or other applicable Governmental Authorities, to the extent applicable, no consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company of this Agreement or the Notes.

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**Section 5.8. Litigation; Observance of Agreements, Statutes and Orders**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There are no actions, suits, investigations or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary or any property of the Company or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Company nor any Subsidiary is (i) in default under any agreement or instrument to which it is a party or by which it is bound, (ii) in violation of any order, judgment, decree or ruling of any court, any arbitrator of any kind or any Governmental Authority or (iii) in violation of any applicable law, ordinance, rule or regulation of any Governmental Authority (including Environmental Laws, the USA PATRIOT Act or any of the other laws and regulations that are referred to in Section 5.16), which default or violation would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 5.9. Taxes**. The Company and its Subsidiaries have filed all tax returns that are required to have been filed in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (a) the amount of which, individually or in the aggregate, is not Material or (b) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Company or a Subsidiary, as the case may be, has established adequate reserves in accordance with GAAP. The Company knows of no basis for any other tax or assessment that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The charges, accruals and reserves on the books of the Company and its Subsidiaries in respect of U.S. federal, state or other taxes for all fiscal periods are adequate in all Material respects. The U.S. federal income tax liabilities of the Company and its Subsidiaries have been finally determined (whether by reason of completed audits or the statute of limitations having run) for all fiscal years up to and including the fiscal year ended December 31, 2020.

**Section 5.10. Title to Property; Leases**. The Company and its Subsidiaries have good and sufficient title to their respective properties that individually or in the aggregate are Material, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company or any Subsidiary after such date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens prohibited by this Agreement. All leases that individually or in the aggregate are Material are valid and subsisting and are in full force and effect in all material respects.

**Section 5.11. Licenses, Permits, Etc**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company and its Subsidiaries own or possess all licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are Material, without known conflict with the rights of others, except for any such violations that, individually or in the aggregate, would not have a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the knowledge of the Company, no product or service of the Company or any of its Subsidiaries infringes in any Material respect any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned by any other Person, except for any such infringements that, individually or in the aggregate, would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the knowledge of the Company, there is no Material violation by any Person of any right of the Company or any of its Subsidiaries with respect to any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned or used by the Company or any of its Subsidiaries.

**Section 5.12. Compliance with Employee Benefit Plans**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has occurred or exists that would, individually or in the aggregate, reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to section 430(k) of the Code or to any such penalty or excise tax provisions under the Code or federal law or section 4068 of ERISA, other than such liabilities or Liens as would not be individually or in the aggregate Material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The present value of the aggregate benefit liabilities under each of the Plans (other than Multiemployer Plans), determined as of the end of such Plan's most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan's most recent actuarial valuation report, did not exceed the aggregate current value of the assets of such Plan allocable to such benefit liabilities by an amount that individually or in the aggregate is Material. The present value of the accrued benefit liabilities (whether or not vested) under each Non-U.S. Plan that is funded, determined as of the end of the Company's most recently ended fiscal year on the basis of reasonable actuarial assumptions, did not exceed the current value of the assets of such Non-U.S. Plan allocable to such benefit liabilities by an amount that individually or in the aggregate is Material. The term "**benefit liabilities**" has the meaning specified in section 4001 of ERISA and the terms "**current value**" and "**present value**" have the meaning specified in section 3 of ERISA.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company and its ERISA Affiliates have not incurred (i) withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are Material or (ii) any obligation in connection with the termination of or withdrawal from any Non-U.S. Plan that individually or in the aggregate are Material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The expected postretirement benefit obligation (determined as of the last day of the Company's most recently ended fiscal year in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 715-60, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the Company and its Subsidiaries is not Material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The execution and delivery of this Agreement and the issuance and sale of the Notes hereunder will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of the Code. The representation by the Company to each Purchaser in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of such Purchaser's representation in Section 6.2 as to the sources of the funds to be used to pay the purchase price of the Notes to be purchased by such Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All Non-U.S. Plans have been established, operated, administered and maintained in compliance with all laws, regulations and orders applicable thereto, except where failure so to comply could not be reasonably expected to have a Material Adverse Effect. All premiums, contributions and any other amounts required by applicable Non-U.S. Plan documents or applicable laws to be paid or accrued by the Company and its Subsidiaries have been paid or accrued as required, except where failure so to pay or accrue could not be reasonably expected to have a Material Adverse Effect.

**Section 5.13. Private Offering by the Company**. Neither the Company nor anyone acting on its behalf has offered the Notes or any similar Securities for sale to, or solicited any offer to buy the Notes or any similar Securities from, or otherwise approached or negotiated in respect thereof with, any Person other than the Purchasers and not more than 45 other Institutional Investors, each of which has been offered the Notes at a private sale for investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of section 5 of the Securities Act or to the registration requirements of any Securities or blue sky laws of any applicable jurisdiction.

**Section 5.14. Use of Proceeds; Margin Regulations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company will apply the proceeds of the sale of the Notes (a) to refinance $50 million of existing notes due October 15, 2025, (b) fund the Interest Reserve Account with the Minimum Interest Reserve Amount and (c) for general corporate purposes, including making strategic acquisitions directly or indirectly through its Subsidiaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying or trading in any Securities under such circumstances as to involve the Company in a violation of Regulation X of the Board of Governors of the Federal Reserve System (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company does not directly own any margin stock and does not have any present intention to directly own any margin stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No part of the proceeds from the sale of the Notes hereunder will be used directly by the Company for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company is not directly engaged and will not directly engage, principally or as one of its important activities, in the business of purchasing or carrying margin stock, or extending credit for the purpose of purchasing or carrying margin stock.

**Section 5.15. Existing Indebtedness; Future Liens**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as described therein, <u>Schedule 5.15</u> sets forth a complete and correct list of all outstanding Indebtedness of the Company and its Subsidiaries as of the date hereof (including descriptions of the obligors and obligees, principal amounts outstanding, any collateral therefor and any Guaranty thereof), since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Company or its Subsidiaries. Neither the Company nor any Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of the Company or such Subsidiary and no event or condition exists with respect to any Indebtedness of the Company or any Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as disclosed in <u>Schedule 5.15</u>, neither the Company nor any Subsidiary has agreed or consented to cause or permit any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Indebtedness or to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither the Company nor any Subsidiary is a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company or such Subsidiary, any agreement relating thereto or any other agreement (including its charter or any other organizational document), in each case which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company, except as disclosed in <u>Schedule 5.15</u>.

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**Section 5.16. Foreign Assets Control Regulations, Etc**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither the Company nor any Controlled Entity (i) is a Blocked Person, (ii) has been notified that its name appears or may in the future appear on a State Sanctions List or (iii) is a target of sanctions that have been imposed by the United Nations, the European Union or the United Kingdom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Company nor any Controlled Entity (i) has violated, been found in violation of, or been charged or convicted under, any applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws or (ii) to the Company's knowledge, is under investigation by any Governmental Authority for possible violation of any U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti- Corruption Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No part of the proceeds from the sale of the Notes hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by the Company or any Controlled Entity, directly or indirectly, (A) in connection with any investment in, or any transactions or dealings with, any Blocked Person, (B) for any purpose that would cause any Purchaser to be in violation of any U.S. Economic Sanctions Laws or (C) otherwise in violation of any U.S. Economic Sanctions Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) will be used, directly or indirectly, in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Money Laundering Laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) will be used, directly or indirectly, for the purpose of making any improper payments, including bribes, to any Governmental Official or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage, in each case which would be in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Corruption Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws and Anti- Corruption Laws.

**Section 5.17. Status under Certain Statutes**. Neither the Company nor any Subsidiary is subject to regulation under the Investment Company Act of 1940, the Public Utility Holding Company Act of 2005, the ICC Termination Act of 1995, or the Federal Power Act.

**Section 5.18. Environmental Matters**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither the Company nor any Subsidiary has knowledge of any claim or has received any notice of any claim and no proceeding has been instituted asserting any claim against the Company or any of its Subsidiaries or any of their respective real properties or other assets now or formerly owned, leased or operated by any of them, alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as would not reasonably be expected to result in a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Company nor any Subsidiary has knowledge of any facts which would give rise to any claim, public or private, of violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by any of them or to other assets or their use, except, in each case, such as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither the Company nor any Subsidiary has stored any Hazardous Materials on real properties now or formerly owned, leased or operated by any of them in a manner which is contrary to any Environmental Law that would, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Neither the Company nor any Subsidiary has disposed of any Hazardous Materials in a manner which is contrary to any Environmental Law that would, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

**Section 5.19. Compliance with Broker-Dealer Regulations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the date of the Closing, Clear Street LLC, CS Enhanced Lending LLC, Clear Street Canada Inc. and Clear Street UK Limited are Wholly-Owned Subsidiaries (other than equity interests issued in joint back-office arrangements) and the only Broker- Dealer Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Clear Street LLC is a futures commission merchant registered with the Commodity Futures Trading Commission, is a member of the National Futures Association and is registered with the SEC as a security-based swap dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Clear Street Derivatives LLC is a Wholly-Owned Subsidiary registered with the SEC as a security-based swap dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Clear Street Canada Inc. is a Canada-based Wholly-Owned Subsidiary that is a member of the Canadian Investment Regulatory Organization and a member of the Canadian Investor Protection Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Broker-Dealer Subsidiary which is required to be registered as a broker or dealer with the SEC under the Exchange Act is duly so registered, is a member of FINRA or another self-regulatory organization of which it is required to be a member, and is duly registered and licensed under any applicable state laws, is in compliance in all material respects with the applicable provisions of the Exchange Act, and is in compliance in all material respects with all applicable rules of FINRA, except in each case, failure would not reasonably be expected to result in Material Adverse Effect. Each Broker-Dealer Subsidiary is duly registered as a broker or dealer under the laws of all jurisdictions in which it is required to be so registered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Clear Street LLC and CS Enhanced Lending LLC are members in good standing with the Financial Industry Regulatory Authority, Inc. ("**FINRA**") and the Securities Industry Protection Corporation ("**SIPC**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No Broker-Dealer Subsidiary (i) is subject to any order of the SEC, (ii) has been convicted within the past ten years of any felony or misdemeanor and, (iii) is subject to an order, judgment or decree or subject to any other statutory or regulatory bar, disability or prohibition which would prevent it from engaging in the solicitation or introduction of investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No Broker-Dealer Subsidiary, nor any of its officers, managers, directors, employees, affiliates, agents or any person connected with it as specified in paragraph (d)(1) of Rule 506 under the Securities Act, has been the subject of any event described in paragraph (d)(1)(i)-(viii) of Rule 506.

**SECTION 6. REPRESENTATIONS OF THE PURCHASERS.** 

**Section 6.1. Purchase for Investment.** Each Purchaser severally represents that it is purchasing the Notes for its own account or for one or more separate accounts maintained by such Purchaser or for the account of one or more pension or trust funds and not with a view to the distribution thereof, *provided* that the disposition of such Purchaser's or their property shall at all times be within such Purchaser's or their control. Each Purchaser understands that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Notes.

**Section 6.2. Source of Funds**. Each Purchaser severally represents that at least one of the following statements is an accurate representation as to each source of funds (a "**Source**") to be used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Source is an "insurance company general account" (as the term is defined in the United States Department of Labor's Prohibited Transaction Exemption ("**PTE**") 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the NAIC (the "**NAIC Annual Statement**")) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser's state of domicile; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Source is a separate account that is maintained solely in connection with such Purchaser's fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Source is either (i) an insurance company pooled separate account, within the meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of the PTE 91-38 and, except as disclosed by such Purchaser to the Company in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Source constitutes assets of an "**investment fund**" (within the meaning of Section VI of PTE 84-14, as amended (the "**QPAM Exemption**")) managed by a "qualified professional asset manager" or "QPAM" (within the meaning of Section VI of the QPAM Exemption) that is not ineligible pursuant to Section I(g) of the QPAM Exemption, no employee benefit plan's assets that are managed by the QPAM in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Section VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, represent more than 20% of the total client assets managed by such QPAM, the conditions of Section I(c), (g) (regarding eligibility) and (k) of the QPAM Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM maintains an ownership interest in the Company that would cause the QPAM and the Company to be "related" within the meaning of Section VI(h) of the QPAM Exemption and (i) the identity of such QPAM and (ii) the names of any employee benefit plans whose assets in the investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Section VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization, represent 10% or more of the assets of such investment fund, have been wdisclosed to the Company in writing pursuant to this clause (d); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Source constitutes assets of a "plan(s)" (within the meaning of Part IV(h) of PTE 96-23 (the "**INHAM Exemption**")) managed by an "in-house asset manager" or "INHAM" (within the meaning of Part IV(a) of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of "control" in Part IV(d)(3) of the INHAM Exemption) owns a 10% or more interest in the Company and (i) the identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing pursuant to this clause (e); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Source is a governmental plan and the use of such Source to pay the purchase price of the Notes is permitted under any applicable state laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA.

As used in this Section 6.2, the terms "**employee benefit plan,**" "**governmental plan,**" and "**separate account**" shall have the respective meanings assigned to such terms in section 3 of ERISA.

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**Section 6.3. Qualified Institutional Buyer; Accredited Investor**. Each Purchaser severally represents that such Purchaser, and any investor account for which such Purchaser is purchasing Notes, (a) is a "qualified institutional buyer" as defined in Rule 144A(a)(1) promulgated under the Securities Act and is an institutional "accredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D promulgated under the Securities Act with total assets of not less than $5,000,000, and (b) such Purchaser's office in which its investment decision with respect to the Notes was made is located at the address specified in the Purchaser Schedule.

**Section 6.4. Access to Information**. Each Purchaser severally represents and acknowledges that it has received and reviewed the Disclosure Documents and has been afforded

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Notes and the merits and risks of investing in the Notes; (b) access to information about the Company and the Subsidiaries and their respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (c) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Neither such inquiries nor any other investigation conducted by or on behalf of any such Purchaser or its representatives or counsel shall modify, amend or affect such Purchaser's right to rely on the Company's express representations and warranties contained in this Agreement.

**Section 6.5. Independent Investment Decision**. Each Purchaser severally represents that it (a) has independently evaluated the merits of its decision to purchase Notes pursuant to this Agreement and (b) understands that nothing in this Agreement or any other materials presented by or on behalf of the Company to such Purchaser in connection with the purchase of the Notes constitutes legal, tax or investment advice. Each Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Notes.

**SECTION 7. INFORMATION AS TO COMPANY** 

**Section 7.1. Financial and Business Information**. The Company shall deliver to each holder of a Note that is an Institutional Investor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Quarterly Statements* — within 60 days (or such shorter period as is the earlier of (x) 15 days greater than the period applicable to the filing of the Company's Quarterly Report on Form 10 Q (the "**Form 10-Q**") with the SEC if the Company is subject to the filing requirements thereof, and (y) the date by which such financial statements are required to be delivered under any Material Credit Facility or the date on which such corresponding financial statements are delivered under any Material Credit Facility if such delivery occurs earlier than such required delivery date) after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), duplicate copies of,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an unaudited consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) unaudited consolidated statements of income, changes in shareholders' equity and cash flows of the Company and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter,

setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Annual Statements* — within 120 days (or such shorter period as is the earlier of (x) 15 days greater than the period applicable to the filing of the Company's Annual Report on Form 10 K (the "**Form 10-K**") with the SEC if the Company is subject to the filing requirements thereof, and (y) the date by which such financial statements are required to be delivered under any Material Credit Facility or the date on which such corresponding financial statements are delivered under any Material Credit Facility if such delivery occurs earlier than such required delivery date) after the end of each fiscal year of the Company, duplicate copies of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an audited consolidated balance sheet of Clear Street Group Inc. and its Subsidiaries as at the end of such year,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) audited consolidated statements of income, changes in shareholders' equity and cash flows of Clear Street Group Inc. and its Subsidiaries for such year,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) an unaudited consolidated balance sheet of the Company and its Subsidiaries as at the end of such year,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) unaudited consolidated statements of income of the Company and its Subsidiaries for such year, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) management prepared reconciliations between the audited consolidated financial statements of Clear Street Group Inc. and its Subsidiaries and unaudited consolidated financial statements of the Company and its Subsidiaries delivered pursuant to this Section 7.1(b),

setting forth (A) with respect to the items in clauses (i) and (ii) above in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon (without a "going concern" or similar qualification or exception and without any qualification or exception as to the scope of the audit on which such opinion is based) of independent public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their

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results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances and (B) with respect to the items in clauses (iii), (iv) and (v) above in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to annual financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all Material respects, the financial position of the companies being reported upon and their results of operations and cash flows, subject to changes resulting from year-end adjustments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Notice of Default or Event of Default* — promptly, and in any event within 5 Business Days after a Responsible Officer becoming aware of the existence of any Default or Event of Default or that any Person has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given any notice or taken any action with respect to a claimed default of the type referred to in Section 11(f), a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Notices from Governmental Authority* — promptly, and in any event within 30 days of receipt thereof, copies of any notice to the Company or any Subsidiary from any Governmental Authority relating to any order, ruling, statute or other law or regulation that would reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Resignation or Replacement of Auditors* — within 10 days following the date on which the Company's auditors resign or the Company elects to change auditors, as the case may be, notification thereof, together with such further information as the Required Holders may reasonably request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Requested Information* — with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries or relating to the ability of the Company to perform its obligations hereunder and under the Notes as from time to time may be reasonably requested by any such holder of a Note; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Debt Rating* — promptly following the occurrence thereof, notice of any withdrawal of the Debt Rating for the Notes, change in the outlook of the Debt Rating for the Notes or change in the Debt Rating for the Notes (to the extent such Debt Rating is not a public rating).

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**Section 7.2. Officer's Certificate**. Each set of financial statements delivered to a holder of a Note pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Financial Officer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Covenant Compliance* — setting forth (a) the information from such financial statements that is required in order to establish whether the Company was in compliance with the requirements of Section 10 during the quarterly or annual period covered by the financial statements then being furnished (including with respect to each such provision that involves mathematical calculations, the information from such financial statements that is required to perform such calculations and a schedule setting forth the Indebtedness of the Company and the Company Interest Expense) and detailed calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Section, and the calculation of the amount, ratio or percentage then in existence (b) evidence that the Interest Reserve Account is funded with the Minimum Interest Reserve Amount. In the event that the Company or any Subsidiary has made an election to measure any financial liability using fair value (which election is being disregarded for purposes of determining compliance with this Agreement pursuant to Section 22.2) as to the period covered by any such financial statement, such Senior Financial Officer's certificate as to such period shall include a reconciliation from GAAP with respect to such election; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Event of Default* — certifying that such Senior Financial Officer has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists (including any such event or condition resulting from the failure of the Company or any Subsidiary to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto.

**Section 7.3. Visitation**. The Company shall permit the representatives of each holder of a Note that is an Institutional Investor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *No Default* — if no Default or Event of Default then exists, at the expense of such holder and upon reasonable prior notice to the Company, to visit the principal executive office of the Company and to discuss the affairs, finances and accounts of the Company and its Subsidiaries with the Company's officers, and (with the consent of the Company, which consent will not be unreasonably withheld) to visit the other offices and properties of the Company and each Subsidiary, all at such reasonable times during normal business hours and as may be reasonably requested in writing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Default* — if a Default or Event of Default then exists, at the expense of the Company and upon reasonable prior notice to the Company, to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers, all at such times and as often as may be reasonably requested in writing.

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**Section 7.4. Electronic Delivery**. Financial statements, opinions of independent certified public accountants, other information and Officer's Certificates that are required to be delivered by the Company pursuant to Sections 7.1 and Section 7.2 shall be deemed to have been delivered if the Company satisfies any of the following requirements with respect thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such financial statements satisfying the requirements of Section 7.1(a) or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) and related Officer's Certificate satisfying the requirements of Section 7.2 are delivered to each holder of a Note by e-mail at the e-mail address set forth in such holder's Purchaser Schedule or as communicated from time to time in a separate writing delivered to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company shall have timely filed such Form 10–Q or Form 10–K or other information, satisfying the requirements of Section 7.1(a) or Section 7.1(b), as the case may be, with the SEC on EDGAR and shall have made such form and the related Officer's Certificate satisfying the requirements of Section 7.2 available on its home page on the internet, which is located at http://www.clearstreet.io/ as of the date of this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such financial statements satisfying the requirements of Section 7.1(a) or Section 7.1(b) and related Officer's Certificate(s) satisfying the requirements of Section 7.2 are timely posted by or on behalf of the Company on Intralinks or on any other similar website to which each holder of Notes has free access;

*provided however*, that in no case shall access to such financial statements, other information and Officer's Certificates be conditioned upon any waiver or other agreement or consent (other than confidentiality provisions consistent with Section 20 of this Agreement); *provided further*, that in the case of clause (c), the Company shall have given each holder of a Note prior written notice, which may be by e-mail or in accordance with Section 18, of such posting or filing in connection with each delivery, *provided further*, that upon request of any holder to receive paper copies of such forms, financial statements, other information and Officer's Certificates or to receive them by e-mail, the Company will promptly e-mail them or deliver such paper copies, as the case may be, to such holder.

**Section 7.5. Investor Call**. At the reasonable prior written request of any holder, the Company shall make itself available for one quarterly investor call for all holders, at which time the holders shall have an opportunity to ask questions relating to the business of the Company, including with respect to any of the information delivered to the holders pursuant to this Section 7.1, and receive answers from a Senior Financial Officer.

**SECTION 8. PAYMENT AND PREPAYMENT OF THE NOTES.** 

**Section 8.1. Maturity**. As provided therein, the entire unpaid principal balance of each Note shall be due and payable on the Maturity Date thereof.

**Section 8.2. Optional Prepayments**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On and from the date of Closing to but excluding the First Relevant Date, the Company may, at its option, upon notice as provided in clause (e) below, prepay at any time all, or from time to time any part of, the Notes at 100% of the principal amount so prepaid, together with interest on such principal amount accrued (but unpaid) to such date and the Make-Whole Amount determined for the prepayment date with respect to such principal amount.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On and from the First Relevant Date to but excluding the Second Relevant Date, the Company may, at its option, upon notice as provided in clause (e) below, prepay at any time all, or from time to time any part of, the Notes at 104% of the principal amount so prepaid, together with interest on such principal amount accrued (but unpaid) to such date but without Make-Whole Amount or other premium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On and from the Second Relevant Date to but excluding the Third Relevant Date, the Company may, at its option, upon notice as provided in clause (e) below, prepay at any time all, or from time to time any part of, the Notes at 102% of the principal amount so prepaid, together with interest on such principal amount accrued (but unpaid) to such date but without Make-Whole Amount or other premium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On and from the Third Relevant Date until the Maturity Date, the Company may, so long as no Default or Event of Default shall have occurred and be continuing, upon notice as provided in clause (e) below, prepay at any time all, or from time to time any part of, the Notes at 100% of the principal amount so prepaid, together with interest on such principal amount accrued to such date but without Make-Whole Amount or other premium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company will give each holder of Notes written notice of each optional prepayment under this Section 8.2 not less than 10 days and not more than 60 days prior to the date fixed for such prepayment unless the Company and the Required Holders agree to another time period pursuant to Section 17. Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of the Notes to be prepaid on such date, the principal amount of each Note held by such holder to be prepaid (determined in accordance with Section 8.3), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation; provided that the Company may rescind any notice of an optional prepayment pursuant to this Section 8.2 by providing written notice to each holder of such Notes at least five Business Days prior to the date fixed for such prepayment. Two Business Days prior to such prepayment, the Company shall deliver to each holder of Notes a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date.

**Section 8.3. Allocation of Partial Prepayments**. In the case of each partial prepayment of the Notes pursuant to Section 8.2, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment. Any partial prepayment will be processed through DTC, in accordance with the DTC Procedures as a "Pro- Rata Pass-Through Distribution of Principal".

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**Section 8.4. Maturity; Surrender, Etc.**. In the case of each prepayment of Notes pursuant to this Section 8, the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment, together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, Premium or other premium, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, Premium or other premium, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note.

**Section 8.5. Purchase of Notes**. The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes (a) except upon the payment or prepayment of the Notes in accordance with this Agreement and the Notes or (b) pursuant to an offer to purchase made by the Company or an Affiliate pro rata to the holders of all Notes at the time outstanding upon the same terms and conditions. In the case of clause (b), any such offer shall provide each holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 15 Business Days. If the holders of more than 50% of the principal amount of the Notes then outstanding accept such offer, the Company shall promptly notify the remaining holders of such fact and the expiration date for the acceptance by holders of Notes of such offer shall be extended by the number of days necessary to give each such remaining holder at least 5 Business Days from its receipt of such notice to accept such offer. The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant to this Agreement and no Notes may be issued in substitution or exchange for any such Notes.

**Section 8.6. Make-Whole Amount**. The term "**Make-Whole Amount**" means, with respect to any Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note over the amount of such Called Principal, *provided* that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount, the following terms have the following meanings: "**Called Principal**" means, with respect to any Note, the principal of such Note that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.

"**Discounted Value**" means, with respect to the Called Principal of any Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

"**Reinvestment Yield**" means, with respect to the Called Principal of any Note, the sum of (a) 0.50% plus (b) the yield to maturity implied by the "Ask Yield(s)" reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as "Page PX1" (or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on-the-run U.S. Treasury securities ("**Reported**") having a maturity equal to the Remaining

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Average Life of such Called Principal as of such Settlement Date. If there are no such U.S. Treasury securities Reported having a maturity equal to such Remaining Average Life, then such implied yield to maturity will be determined by (i) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (ii) interpolating linearly between the "Ask Yields" Reported for the applicable most recently issued actively traded on-the-run U.S. Treasury securities with the maturities (1) closest to and greater than such Remaining Average Life and (2) closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note.

If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by way of interpolation), then "**Reinvestment Yield**" means, with respect to the Called Principal of any Note, the sum of (x) 0.50% plus (y) the yield to maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for the U.S. Treasury constant maturity having a term equal to the Remaining Average Life of such Called Principal as of such Settlement Date. If there is no such U.S. Treasury constant maturity having a term equal to such Remaining Average Life, such implied yield to maturity will be determined by interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury constant maturity so reported with the term closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note.

"**Remaining Average Life**" means, with respect to any Called Principal, the number of years obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years, computed on the basis of a 360-day year comprised of twelve 30-day months and calculated to two decimal places, that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

"**Remaining Scheduled Payments**" means, with respect to the Called Principal of any Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date and prior to the First Relevant Date with respect to such Called Principal if no payment of such Called Principal were made prior to the First Relevant Date, provided that if such Settlement Date is not a date on which interest payments are due to be made under the Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 8.2 or Section 12.1.

"**Settlement Date**" means, with respect to the Called Principal of any Note, the date on which such Called Principal is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.

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**Section 8.7. Payments Due on Non-Business Days**. Anything in this Agreement or the Notes to the contrary notwithstanding, (a) except as set forth in clause (b), any payment of interest on any Note that is due on a date that is not a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; and (b) any payment of principal of or Make- Whole Amount, Premium or other premium on any Note (including principal due on the Maturity Date of such Note) that is due on a date that is not a Business Day shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

**Section 8.8. Change of Control Prepayment Offer**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Promptly upon becoming aware that a Change of Control has occurred, and in any event not later than 10 days after becoming aware of the Change of Control, the Company shall give written notice (the "**Company Notice**") of such fact to all holders of the Notes. The Company Notice shall (i) describe the facts and circumstances of such Change of Control in reasonable detail, (ii) refer to this Section 8.8 and the rights of the holders hereunder and (iii) contain and constitute an offer by the Company to prepay the entire unpaid principal amount of Notes held by each holder at 101% of the principal amount of such Notes (and without any Make-Whole Amount), together with interest accrued thereon to the prepayment date selected by the Company in the Company Notice, which date shall be a Business Day not less than 30 days nor more than 60 days after such Company Notice is given. In addition, the Company shall be permitted to provide a Company Notice in advance of a Change of Control if a Company believes a Change of Control is likely to occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A holder of Notes may accept the offer to prepay made pursuant to this Section 8.8 by causing a written notice of such acceptance to be delivered to the Company not more than 15 days after the date of the applicable Company Notice delivered pursuant to paragraph (a) above. A failure by a holder of Notes to respond to an offer to prepay made pursuant to this Section 8.8 shall be deemed to constitute rejection of such offer by such holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the prepayment date specified in the Company Notice, 101% of the entire unpaid principal amount of the Notes held by each holder of Notes which has accepted such prepayment offer, together with interest accrued thereon to the prepayment date (but without any Make-Whole Amount), shall become due and payable.

**SECTION 9. AFFIRMATIVE COVENANTS.** 

The Company covenants that so long as any of the Notes are outstanding:

**Section 9.1. Compliance with Laws**. Without limiting Section 10.4, the Company will, and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject (including ERISA, Environmental Laws, the USA PATRIOT Act and the other laws and regulations that are referred to in Section 5.16) and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

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**Section 9.2. Insurance**. The Company will, and will cause each of its Subsidiaries to, maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated.

**Section 9.3. [Reserved]**.

**Section 9.4. Payment of Taxes and Claims**. The Company will, and will cause each of its Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies imposed on them or any of their properties, assets, income or franchises, to the extent the same have become due and payable and before they have become delinquent and all claims for which sums have become due and payable that have or might become a Lien on properties or assets of the Company or any Subsidiary, *provided* that neither the Company nor any Subsidiary need pay any such tax, assessment, charge, levy or claim if (i) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary or (ii) the nonpayment of all such taxes, assessments, charges, levies and claims would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 9.5. Existence, Etc.**. Subject to Section 10.2, the Company will at all times preserve and keep its limited liability company existence in full force and effect. Subject to Sections 10.2, the Company will at all times preserve and keep in full force and effect the corporate, limited liability or other legal existence of each of its Subsidiaries (unless merged into the Company or a Wholly-Owned Subsidiary) and all rights and franchises of the Company and its Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such corporate, limited liability or other legal existence, right or franchise would not, individually or in the aggregate, have a Material Adverse Effect.

**Section 9.6. Books and Records**. The Company will, and will cause each of its Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over the Company or such Subsidiary, as the case may be. The Company will, and will cause each of its Subsidiaries to, keep books, records and accounts which, in reasonable detail, accurately reflect all transactions and dispositions of assets. The Company and its Subsidiaries have devised a system of internal accounting controls sufficient to provide reasonable assurances that their respective books, records, and accounts accurately reflect all transactions and dispositions of assets and the Company will, and will cause each of its Subsidiaries to, continue to maintain such system.

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**Section 9.7. Subsidiary Guarantors**. The Company will cause each of its (x) Regulated Subsidiaries that guarantees any Indebtedness outstanding under or pursuant to any Material Credit Facility and (y) Non-regulated Subsidiaries that guarantees or otherwise becomes liable at any time, whether as a borrower or an additional or co-borrower or otherwise, for or in respect of any Indebtedness under or pursuant to any Material Credit Facility to, in each case concurrently therewith, pursuant to documentation reasonably acceptable to the Required Holders in substance and in form, concurrently guaranty on an equal and ratable basis (a) the prompt payment in full when due of all amounts payable by the Company pursuant to the Notes (whether for principal, interest, Make-Whole Amount, Premium or otherwise) and this Agreement, including all indemnities, fees and expenses payable by the Company thereunder and (b) the prompt, full and faithful performance, observance and discharge by the Company of each and every covenant, agreement, undertaking and provision required pursuant to the Notes or this Agreement to be performed, observed or discharged by it.

**Section 9.8. Rating on the Notes**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company will at all times maintain a Debt Rating for the Notes from an Acceptable Rating Agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At any time that the Debt Rating maintained pursuant to clause (a) above is not a public rating, the Company will provide to each holder of a Note (i) at least annually (on or before each anniversary of the date of the Closing) and (ii) promptly upon any change in such Debt Rating, an updated Private Rating Letter evidencing such Debt Rating and an updated Private Rating Rationale Report with respect to such Debt Rating. In addition to the foregoing information and any information specifically required to be included in any Private Rating Letter or Private Rating Rationale Report (as set forth in the respective definitions thereof), if the SVO or any other governmental authority having jurisdiction over any holder of any Notes from time to time requires any additional information with respect to the Debt Rating of the Notes, the Company shall use commercially reasonable efforts to procure such information from the Acceptable Rating Agency.

**Section 9.9. Monthly Focus Reports**. The Company will cause each Broker-Dealer Subsidiary to file monthly Financial and Operational Combined Uniform Single (FOCUS) reports with FINRA.

**Section 9.10. Broker-Dealer Subsidiaries**. The Company will cause each Broker- Dealer Subsidiary to at all times remain and conduct, in each case, all activities related to the transactions contemplated by this Agreement, in compliance with all securities laws and rules (state, federal or otherwise) which may be applicable, in each case to the extent necessary to ensure that non-compliance with such laws and rules would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company shall cause all Broker- Dealer Subsidiaries to take all commercially reasonable action to maintain all rights, privileges, broker-dealer licenses and memberships, broker-dealer registrations necessary or desirable in the normal conduct of its business, except, in each case, where such failure would not reasonably be expected to have a Material Adverse Effect.

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**Section 9.11. Registration Status**. The Company shall maintain each Broker-Dealer Subsidiary's (a) registration as registered "broker-dealers" under the Exchange Act and under the laws of each state in which such registration is required and where a failure to obtain such registration would be likely to have a Material Adverse Effect, and (b) with respect to each of Clear Street LLC and CS Enhanced Lending LLC, to maintain its membership in FINRA, except where the failure to maintain such registration would not reasonably be expected to have a Material Adverse Effect.

**Section 9.12. Tax Treatment**. At all times any Notes are outstanding, the Company shall be classified and treated as a partnership or a disregarded entity for U.S. federal income tax purposes and for all U.S. state and local income (and, if applicable, franchise) tax purposes.

**Section 9.13. Priority of Obligations**. The Company will ensure that its payment obligations under this Agreement and the Notes will at all times rank at least pari passu, without preference or priority, with all other unsecured and unsubordinated Indebtedness of the Company.

**Section 9.14. Interest Reserve Account**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company will maintain the Minimum Interest Reserve Amount in the Interest Reserve Account in cash at all times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, at any time, the Notes do not have an Investment Grade Rating, the Company will promptly (and in any event within 15 days of such occurrence) cause the Notes to be secured by a Lien on the Interest Reserve Account and the proceeds maintained therein pursuant to documentation in form and substance reasonably acceptable to the Required Holders.

**SECTION 10. NEGATIVE COVENANTS.** 

The Company covenants that so long as any of the Notes are outstanding:

**Section 10.1. Transactions with Affiliates**. The Company will not, and will not permit any Subsidiary to, enter into directly or indirectly any Material transaction or Material group of related transactions (including the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary), except pursuant to the reasonable requirements of the Company's or such Subsidiary's business and upon fair and reasonable terms no less favorable to the Company or such Subsidiary than would be obtainable in a comparable arm's-length transaction with a Person not an Affiliate.

**Section 10.2. Merger, Consolidation, Etc.**. The Company will not consolidate with or merge with any other Person or convey, divide, transfer or lease all or substantially all of its assets in a single transaction or series of transactions to any Person unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of any such transaction involving the Company, the successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, division, transfer or lease all or substantially all of the assets of the Company as an entirety, as the case may be, shall be a solvent corporation or limited liability company organized and existing under the laws of the United States or any state thereof (including

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the District of Columbia), and, if the Company is not such corporation or limited liability company, (i) such corporation or limited liability company shall have executed and delivered to each holder of any Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement and the Notes and (ii) such corporation or limited liability company shall have caused to be delivered to each holder of any Notes an opinion of nationally recognized independent counsel, or other independent counsel reasonably satisfactory to the Required Holders, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) immediately before and immediately after giving effect to such transaction or each transaction in any such series of transactions, no Default or Event of Default shall have occurred and be continuing.

No such conveyance, division, transfer or lease of substantially all of the assets of the Company shall have the effect of releasing the Company or any successor corporation or limited liability company that shall theretofore have become such in the manner prescribed in this Section 10.2, from its liability under this Agreement or the Notes.

**Section 10.3. Line of Business; Sale of Equity Interests**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company will not and will not permit any Subsidiary to engage in any business if, as a result, the general nature of the business in which the Company and its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business in which the Company and its Subsidiaries, taken as a whole, are engaged on the date of this Agreement as described in the Presentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except to the extent permitted by Sections 10.2 and 10.8, the Company (i) will not sell, transfer or convey any of the equity securities or other Equity Interests of any Subsidiary and (ii) will not permit any Subsidiary to issue equity securities or other Equity Interests to any Person other than the Company or another Subsidiary.

**Section 10.4. Economic Sanctions, Etc.**. The Company will not, and will not permit any Controlled Entity to (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or (b) directly or indirectly have any investment in or engage in any dealing or transaction (including any investment, dealing or transaction involving the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any holder or any affiliate of such holder to be in violation of, or subject to sanctions under, any law or regulation applicable to such holder, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions Laws.

**Section 10.5. Liens**. The Company will not and will not permit any of its Non-regulated Subsidiaries to directly or indirectly create, incur, assume or permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to any property or asset (including any document or instrument in respect of goods or accounts receivable) of the Company or any such Subsidiary, whether now owned or held or hereafter acquired, or any income or profits therefrom, or assign or otherwise convey any right to receive income or profits, except:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Liens securing any existing Indebtedness or other obligations of the Company or any Subsidiary as described on <u>Schedule 5.15</u>, or any amendments, modifications, or refinancing of any such Indebtedness, *provided* that (i) such Lien shall not apply to any other property or asset of the Company or any Subsidiary and (ii) such Lien shall secure only the Indebtedness or other obligations which it secures on the date hereof and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Liens securing Indebtedness under this Agreement or the Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Permitted Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Liens granted solely on (i) assets or Equity Interests acquired from third parties to secure Indebtedness primarily used to finance the acquisition of such assets or Equity Interests or (ii) Equity Interests of a Subsidiary that holds only assets or Equity Interests acquired from third parties as referenced in clause (i) above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) other Liens securing Indebtedness of any Non-regulated Subsidiary not otherwise permitted by clauses (a), (b), (c) or (d) above, *provided* that the aggregate principal amount (without duplication) of Indebtedness that has a maturity date that is one year or more from the issuance date of such Indebtedness and that is secured by Liens incurred pursuant to this clause (e), does not exceed 25% of Consolidated Total Indebtedness (determined as of the end of the most recent fiscal quarter for which financial statements have been delivered or were required to be delivered pursuant to Section 7.1), *provided*, *further*, that notwithstanding the foregoing, the Company shall not permit any of its Non-regulated Subsidiaries to secure pursuant to this Section 10.5(e) any Indebtedness outstanding under or pursuant to any Material Credit Facility or any 364-Day Facility unless and until the Notes (and any guaranty delivered in connection therewith) shall concurrently be secured equally and ratably with such Indebtedness pursuant to documentation reasonably acceptable to the Required Holders in substance and in form; *provided*, *further*, that notwithstanding the foregoing, the Company shall not permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to the Interest Reserve Account.

Notwithstanding anything to the contrary herein, the Company shall not, and shall not permit any Subsidiary to, create, incur, assume or suffer to exist any Lien upon any of the Equity Interests of any Regulated Subsidiary, unless concurrently therewith, pursuant to documentation reasonably acceptable to the Required Holders in substance and in form, the Notes are secured with such Lien on an equal and ratable basis.

**Section 10.6. Financial Covenants**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Indebtedness to Total Capitalization (Leverage)*. The Company will not, at any time, permit Indebtedness of the Company at such time to exceed 50% of its Total Capitalization.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Minimum Net Worth*. The Company will not, at any time, permit Net Worth to be less than the sum of (a) $555,435,200.46, plus (b) the greater of (i) zero and (ii) 25% of aggregate Consolidated Net Income earned on and after the date of the Closing, as measured on the date of the most recent consolidated financial statements of the Company and its Subsidiaries delivered or required to have been delivered pursuant to Section 7.1. For the avoidance of doubt, if Consolidated Net Income is less than zero ($0), the minimum Net Worth required under this section shall not be reduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Company Interest Coverage Ratio*. The Company will not, at any time, permit the Company Interest Coverage Ratio to be less than 4.00 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Minimum Consolidated EBITDA*. The Company will not permit Consolidated EBITDA, as of the end of any fiscal quarter and calculated for the most recently completed four fiscal quarters, to be less than $140,000,000; provided that, if Consolidated EBITDA for any such four fiscal quarter period is less than $140,000,000, the Company shall have fifteen (15) days to cure such deficit by setting aside cash or Cash Equivalents in an amount equal to any such deficit in a segregated account at the Company until the Company delivers evidence in accordance with Section 7.2 establishing compliance with the requirements of this Section 10.6(d) without giving effect to this proviso (such cure, an "**EBITDA Cure**"). The Company shall not permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to such segregated account. The Company may exercise an EBITDA Cure no more than three (3) times during the term of the Notes and no more than two (2) fiscal quarters in succession. Upon the written request of any holder of a Note, the Company shall provide reasonable evidence of such cure. For the avoidance of doubt, the Company shall not be in breach of this Section 10.6(d) if it timely cures the deficit in the manner as set forth above.

**Section 10.7. Subsidiary Indebtedness**. The Company will not permit any of its Non- regulated Subsidiaries to create, incur, assume, permit to exist or have outstanding or otherwise become liable with respect to, any Indebtedness except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Indebtedness owed by such Non-regulated Subsidiary existing at the time of Closing and set forth on Schedule 5.15, and the extension, renewal, or replacement of such Indebtedness, *provided* that such extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Indebtedness under this Agreement or the Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) unsecured intercompany Indebtedness from another Subsidiary (other than a Regulated Subsidiary) or from the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Indebtedness not otherwise permitted by clauses (a), (b) or (c) above, *provided* that, the aggregate principal amount (without duplication) of all Indebtedness (including under any 364-Day Facilities) outstanding pursuant to this clause (d) plus all Indebtedness outstanding secured by Liens pursuant to Section 10.5(e), does not at any time exceed 25% of Consolidated Total Indebtedness (determined as of the end of the most recent fiscal quarter for which financial statements have been delivered or were required to be delivered pursuant to Section 7.1).

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**Section 10.8. Sale of Assets**. The Company will not, and will not permit any Subsidiary to, directly or indirectly, sell, lease, transfer or otherwise dispose of (each, or any combination thereof, a "**Disposition**" and the term "**Disposed**" shall have the correlative meaning) any of its properties or assets other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Dispositions of inventory, and of obsolete or worn out property, in each case in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Dispositions of equipment or real property to the extent that (i) such equipment or real property is exchanged for credit against the purchase price of similar replacement equipment or real property or (ii) the proceeds of such Disposition are within 120 days thereafter applied to the purchase price of such replacement equipment or real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Dispositions of any property that is not intellectual property by any Subsidiary to the Company or to any other Subsidiary, or by the Company to any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Dispositions permitted by Section 10.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) leases, licenses, subleases or sublicenses (including the provision of open source software under an open source license) granted in the ordinary course of business and on ordinary commercial terms that do not interfere in any material respect with the business of the Company and its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Dispositions of intellectual property rights that are no longer used or useful in the business of the Company and its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Dispositions of any product or asset (including any intellectual property or technology) that may be acquired or developed by the Company or any Subsidiary after the date of Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the discount, write-off or Disposition of accounts receivable overdue by more than 30 days, in each case in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Dispositions of any cash, cash equivalents, securities, notes or other instruments, any futures, options, derivatives, other financial assets, and/or any other investments and financial products that may be purchased, sold, traded or exchanged by the Company or any Subsidiary in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Dispositions of ownership interests in any Subsidiary pursuant to a joint back office arrangement where the purchaser of such Subsidiary ownership interests does not obtain an allocation of profits of the Subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Dispositions by the Company and any Subsidiary not otherwise permitted under this Section; *provided* that the higher of the market value or consideration receivable when aggregated with the higher of the market value or consideration received for all property Disposed of pursuant to this clause (k) does not exceed an amount equal to 5% of Consolidated Total Assets in any fiscal year (determined as of the end of the most recently ended fiscal year of the Company for which financial statements have been delivered or were required to be delivered pursuant to Section 7.1).

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Notwithstanding anything to the contrary herein, the Company shall not, and shall not permit any Subsidiary to, (x) Dispose of intellectual property rights that are material to the business of the Company and its Subsidiaries except (1) Dispositions to the Company or another Non-regulated Subsidiary or (2) leases or licenses of intellectual property rights in the ordinary course of business, or (y) directly or indirectly Dispose of any of the Equity Interests of any Regulated Subsidiary except (1) to the Company or another Subsidiary or (2) in connection with ordinary course joint back office arrangements.

**Section 10.9. Restricted Payments; Salaries; Related Party Transactions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company will not declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that the Company may make Restricted Payments so long as (i) at the time such Restricted Payment is made and immediately after giving effect thereto, no Default or Event of Default shall have occurred and be continuing, (ii) after giving effect to such Restricted Payment, the Company shall be in pro forma compliance with the financial covenants set forth in Section 10.6 (such compliance to be determined as of the end of the most recently ended fiscal period for which financial statements have been provided pursuant to Section 7.1 as though such Restricted Payment had been made on the last day of such period) and (iii) other than Restricted Payments made for the purpose of facilitating the payment of required dividends by Clear Street Group Inc. to holders of preferred shares of Clear Street Group Inc. pursuant to the contracted terms of such shares in effect as of the date of this Agreement, the Company is in compliance with the requirements of Section 10.6(d) without giving effect to any EBITDA Cure at the time such Restricted Payment is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At any time a Default or Event of Default shall have occurred and be continuing, the Company will not (i) increase the salary of or provide any discretionary cash bonus payments to employees or members of the Company, or (ii) make any payments pursuant to a related party transaction, other than payments to third parties in the ordinary course of business and/or payments permitted under Section 10.1 (and including, for the avoidance of doubt, any expense sharing agreements similar to those in effect on the date of the Closing, and any agreements pursuant to which the Company or any of its Subsidiaries may lease or rent office space from one or more Affiliates on market terms).

**Section 10.10. Company Indebtedness**. The Company will not issue, create, assume, incur or guarantee or otherwise become liable in respect of any indebtedness (including Indebtedness, Securities Financings, credit default swaps or other credit derivatives) unless, (i) immediately before giving effect to such indebtedness, no Default or Event of Default has occurred and is continuing, (ii) after giving effect to such indebtedness, the Company shall be in pro forma compliance with the financial covenants set forth in Section 10.6 (such compliance to be determined as of the end of the most recently ended fiscal period for which financial statements have been provided pursuant to Section 7.1 as though such indebtedness had been incurred on the last day of such period), and (iii) except in the case of guarantees of indebtedness of Regulated Subsidiaries, the Company shall have delivered, or caused to be delivered, to the holders a Private Rating Letter issued by an Acceptable Rating Agency reaffirming the Debt Rating for the Notes, which shall not be lower than BBB-, and the related Private Rating Rationale Report with respect to such Debt Rating.

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**SECTION 11. EVENTS OF DEFAULT.** 

An "**Event of Default**" shall exist if any of the following conditions or events shall occur and be continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company defaults in the payment of any principal, Make-Whole Amount, if any, or Premium, if any, on any Note when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company defaults in the payment of any interest on any Note for more than five Business Days after the same becomes due and payable; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Company defaults in the performance of or compliance with any term contained in Sections 7.1(a), 7.1(b), 7.1(c), 7.1(g), 9.14 or Section 10; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Company defaults in the performance of or compliance with any term contained herein (other than those referred to in Sections 11(a), (b) and (c)) and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a "notice of default" and to refer specifically to this Section 11(d)); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in this Agreement or any writing furnished in connection with the transactions contemplated hereby proves to have been false or incorrect in any material respect on the date as of which made; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (i) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any Indebtedness that is outstanding in an aggregate principal amount of at least $10,000,000 (or its equivalent in the relevant currency of payment) beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of or compliance with any term of any evidence of any Indebtedness in an aggregate outstanding principal amount of at least $10,000,000 (or its equivalent in the relevant currency of payment) or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such Indebtedness has become, or has been declared (or one or more Persons are entitled to declare such Indebtedness to be), due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of Indebtedness to convert such Indebtedness into Equity Interests), (x) the Company or any Subsidiary has become obligated to purchase or repay Indebtedness before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least $10,000,000 (or its equivalent in the relevant currency of payment), or (y) one or more Persons have the right to require the Company or any Subsidiary so to purchase or repay such Indebtedness; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Company or any Subsidiary (i) is generally not paying, or admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes limited liability or similar action for the purpose of any of the foregoing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) a court or other Governmental Authority of competent jurisdiction enters an order appointing, without consent by the Company or any of its Subsidiaries, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company or any of its Subsidiaries, or any such petition shall be filed against the Company or any of its Subsidiaries and such petition shall not be dismissed within 60 days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any event occurs with respect to the Company or any Subsidiary which under the laws of any jurisdiction is analogous to any of the events described in Section 11(g) or Section 11(h), *provided* that the applicable grace period, if any, which shall apply shall be the one applicable to the relevant proceeding which most closely corresponds to the proceeding described in Section 11(g) or Section 11(h); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) one or more final judgments or orders for the payment of money aggregating in excess of $10,000,000 (or its equivalent in the relevant currency of payment), including any such final order enforcing a binding arbitration decision, are rendered against one or more of the Company and its Subsidiaries and which judgments are not, within 60 days after entry thereof, paid, bonded, discharged or stayed pending appeal, or are not discharged within 60 days after the expiration of such stay; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the Code for any plan year or part thereof or a waiver of such standards or extension of any amortization period is sought or granted under section 412 of the Code, (ii) a notice of intent to terminate any Plan shall have been or is reasonably expected to be filed with the PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) there is any "amount of unfunded benefit liabilities" (within the meaning of section 4001(a)(18) of ERISA) under one or more Plans, determined in accordance with

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Title IV of ERISA, (iv) the aggregate present value of accrued benefit liabilities under all funded Non-U.S. Plans exceeds the aggregate current value of the assets of such Non-U.S. Plans allocable to such liabilities, (v) the Company or any ERISA Affiliate shall have incurred or is reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, (vi) the Company or any ERISA Affiliate withdraws from any Multiemployer Plan, (vii) the Company or any Subsidiary establishes or amends any employee welfare benefit plan that provides post-employment welfare benefits in a manner that would increase the liability of the Company or any Subsidiary thereunder with respect to post-employment welfare benefits, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code, (viii) the Company or any Subsidiary fails to administer or maintain a Non-U.S. Plan in compliance with the requirements of any and all applicable laws, statutes, rules, regulations or court orders or any Non-U.S. Plan is involuntarily terminated or wound up, or (ix) the Company or any Subsidiary becomes subject to the imposition of a financial penalty (which for this purpose shall mean any tax, penalty or other liability, whether by way of indemnity or otherwise) with respect to one or more Non-U.S. Plans; and any such event or events described in clauses (i) through (ix) above, either individually or together with any other such event or events, could reasonably be expected to have a Material Adverse Effect. As used in this Section 11(k), the terms "**employee benefit plan**" and "**employee welfare benefit plan**" shall have the respective meanings assigned to such terms in section 3 of ERISA.

**SECTION 12. REMEDIES ON DEFAULT, ETC.** 

**Section 12.1. Acceleration**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If an Event of Default with respect to the Company described in Section 11(g), (h) or (i) (other than an Event of Default described in clause (i) of Section 11(g) or described in clause (vi) of Section 11(g) by virtue of the fact that such clause encompasses clause (i) of Section 11(g)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any other Event of Default has occurred and is continuing, the Required Holders may at any time at its or their option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Event of Default described in Section 11(a) or (b) has occurred and is continuing, any holder or holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due and payable.

Upon any Notes becoming due and payable under this Section 12.1, whether automatically or by declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest thereon (including interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount or Premium, as applicable, determined in respect of such principal amount as if such principal amount was prepaid pursuant to Section 8.2, shall all be immediately due and payable, in each and every case without presentment, demand, protest or

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further notice, all of which are hereby waived. The Company acknowledges, and the parties hereto agree, that each holder of a Note has the right to maintain its investment in the Notes free from repayment by the Company (except as herein specifically provided for) and that the provision for payment of a Make-Whole Amount or Premium, as applicable, by the Company in the event that the Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances.

**Section 12.2. Other Remedies**. If any Default or Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 12.1, the holder of any Note at the time outstanding may proceed to protect and enforce the rights of such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise.

**Section 12.3. Rescission**. At any time after any Notes have been declared due and payable pursuant to Section 12.1(b) or (c), the Required Holders, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all principal of, Make-Whole Amount, if any, and Premium, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal, Make-Whole Amount, if any, and Premium, if any, and (to the extent permitted by applicable law) any overdue interest in respect of the Notes, at the Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 17, and (d) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon.

**Section 12.4. No Waivers or Election of Remedies, Expenses, Etc.**. No course of dealing and no delay on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder's rights, powers or remedies. No right, power or remedy conferred by this Agreement or any Note upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise. Without limiting the obligations of the Company under Section 15, the Company will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all reasonable costs and expenses of such holder incurred in any enforcement or collection under this Section 12, including reasonable attorneys' fees, expenses and disbursements.

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**SECTION 13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES; GLOBAL NOTE.** 

**Section 13.1. Registration of Notes**. The Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes. The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register. If any holder of one or more Notes is a nominee, then (a) the name and address of the beneficial owner of such Note or Notes shall also be registered in such register as an owner and holder thereof and (b) at any such beneficial owner's option, either such beneficial owner or its nominee may execute any amendment, waiver or consent pursuant to this Agreement. Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary. The Company shall give to any holder of a Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes.

**Section 13.2. Transfer and Exchange of Notes**. Upon surrender of any Note to the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)), for registration of transfer or exchange (and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by the registered holder of such Note or such holder's attorney duly authorized in writing and accompanied by the relevant name, address and other information for notices of each transferee of such Note or part thereof), within 10 Business Days thereafter, the Company shall execute and deliver, at the Company's expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of <u>Schedule 1</u>. Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of less than $100,000, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $100,000. Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representation set forth in Section 6.2 and Section 6.3.

**Section 13.3. Replacement of Notes**. Upon receipt by the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)) of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least $100,000,000 or a Qualified Institutional Buyer, such Person's own unsecured agreement of indemnity shall be deemed to be satisfactory), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of mutilation, upon surrender and cancellation thereof,

within 10 Business Days thereafter, the Company at its own expense shall execute and deliver, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

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**Section 13.4. Global Note**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Notes being purchased by Purchasers pursuant to this Agreement will be issued in the form of one or more Global Notes registered in the name of DTC or a nominee thereof and delivered to DTC on the date of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any other provision herein, no Global Note may be exchanged in whole or in part for Notes registered, and no transfer of a Global Note in whole or in part may be registered, in the name of any person other than DTC or a nominee thereof unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) DTC advises the Company in writing that DTC is no longer willing or able to properly discharge its responsibilities as the depository with respect to such Global Note, and no qualified successor is appointed by the Company within 90 days of receipt by the Company of such notice,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) DTC ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended and no successor is appointed by the Company within 90 days after obtaining knowledge of such event,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Company elects to terminate the book-entry system through DTC, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) an Event of Default shall have occurred and be continuing.

Upon the occurrence of any event specified in clause (i), (ii), (iii) or (iv) of this Section 13.4(b) above, the Company or its agent shall notify DTC and instruct DTC to notify all owners of beneficial interests in the Global Note of the occurrence of such event and of the availability of Notes to such owners of beneficial interests requesting the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Global Note is to be exchanged for other Notes or canceled in part, or if another Note is to be exchanged in whole or in part for a beneficial interest in a Global Note, then either (i) such Global Note shall be so surrendered for exchange or cancellation as provided in this Section 13.4(c) or (ii) the principal amount thereof shall be reduced or increased by an amount equal to the portion thereof to be so exchanged or canceled, or equal to the principal amount of such other Note to be so exchanged for a beneficial interest therein, as the case may be, by means of an appropriate adjustment made on the records of the Company, whereupon the Company, in accordance with the applicable rules and procedures of DTC ("**DTC Procedures**"), shall instruct DTC or its authorized representative to make a corresponding adjustment to its records. Upon any such surrender or adjustment of a Global Note by DTC, accompanied by registration instructions, the Company shall execute and deliver any Notes issuable in exchange for such Global Note (or any portion thereof) in accordance with the instructions of DTC.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Every Note executed and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Note or any portion thereof shall be executed and delivered in the form of, and shall be, a Global Note, unless such Global Note is registered in the name of a person other than DTC or a nominee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) DTC or its nominee, as the registered owner of any Global Note, shall be the holder of such Global Note for all purposes under the Note, and owners of beneficial interests in such Global Note shall hold such interests pursuant to DTC Procedures. Accordingly, any such owner's beneficial interest in such Global Note shall be shown only on, and the transfer of such interest shall be effected only through, records maintained by DTC or its nominee or its participants. If applicable, the Company shall be entitled to deal with DTC for all purposes relating to such Global Note (including the payment of principal and interest thereon and the giving of instructions or directions by owners of beneficial interests therein and the giving of notices) as the sole holder of the Notes and shall have no obligations to the owners of beneficial interests therein. The Company shall have no liability in respect of any transfers affected by DTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The rights of owners of beneficial interests in the Global Notes shall be exercised only through DTC and shall be limited to those established by law and agreements between such owners and DTC and/or its participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No holder of any beneficial interest in the Global Notes held on its behalf by DTC shall have any rights with respect to such Global Notes, and DTC may be treated by the Company and any agent of the Company as the owner of the Global Notes for all purposes whatsoever. Neither the Company nor any agent of the Company will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Note or maintaining, supervising or reviewing any records relating to such beneficial ownership interests. Notwithstanding the foregoing, nothing herein shall prevent the Company or any agent of the Company from giving effect to any written certification, proxy or other authorization furnished by DTC or impair, as between DTC and such holders of beneficial interests, the operation of customary practices governing the exercise of the rights of DTC (or its nominee) as holder of any Note.

**SECTION 14. PAYMENTS ON NOTES.** 

**Section 14.1. Place of Payment**. Subject to Section 14.2, payments of principal, Make- Whole Amount, if any, Premium, if any, and interest becoming due and payable on the Notes shall be made in the State of Texas at the principal office of the Paying Agent in such jurisdiction. The Company may at any time, by notice to each holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or trust company in such jurisdiction.

**Section 14.2. Payment by Wire Transfer**. So long as any Purchaser or its nominee shall be the holder of any Note, and notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal, Make- Whole Amount, if any, other premium, if any, interest and all other amounts becoming due

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hereunder by the method and at the address specified for such purpose below such Purchaser's name in the Purchaser Schedule, or by such other method or at such other address as such Purchaser shall have from time to time specified to the Company in writing for such purpose at least fifteen (15) days prior to such applicable due date (or will pay to the Paying Agent or DTC and cause the Paying Agent or DTC, as applicable, to pay), without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 14.1. Prior to any sale or other disposition of any Note held by a Purchaser or its nominee, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 13.2. The Company will afford the benefits of this Section 14.2 to any Institutional Investor that is the direct or indirect transferee of any Note purchased by a Purchaser under this Agreement and that has made the same agreement relating to such Note as the Purchasers have made in this Section 14.2. Notwithstanding the foregoing, interest payments made on account of beneficial ownership interests of a Global Note shall be payable to the holders of record of such beneficial ownership interest as of the close of business on the fifteenth (15th) calendar day preceding the applicable interest payment date.

**Section 14.3. FATCA Information**. By acceptance of any Note, the holder of such Note agrees that such holder will with reasonable promptness duly complete and deliver to the Company, or to such other Person as may be reasonably requested by the Company, from time to time (a) in the case of any such holder that is a United States Person, such holder's United States tax identification number or other Forms reasonably requested by the Company necessary to establish such holder's status as a United States Person under FATCA and as may otherwise be necessary for the Company to comply with its obligations under FATCA and (b) in the case of any such holder that is not a United States Person, such documentation prescribed by applicable law (including as prescribed by section 1471(b)(3)(C)(i) of the Code) and such additional documentation as may be necessary for the Company to comply with its obligations under FATCA and to determine that such holder has complied with such holder's obligations under FATCA or to determine the amount (if any) to deduct and withhold from any such payment made to such holder. Nothing in this Section 14.3 shall require any holder to provide information that is confidential or proprietary to such holder unless the Company is required to obtain such information under FATCA and, in such event, the Company shall treat any such information it receives as confidential.

**SECTION 15. EXPENSES, ETC.** 

**Section 15.1. Transaction Expenses**. Whether or not the transactions contemplated hereby are consummated, the Company will pay all costs and expenses (including reasonable attorneys' fees of a special counsel and, if reasonably required by the Required Holders, local or other counsel) incurred by the Purchasers and each other holder of a Note in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of this Agreement or the Notes (whether or not such amendment, waiver or consent becomes effective), including: (a) the reasonable costs and expenses incurred in enforcing or defending (or

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determining whether or how to enforce or defend) any rights under this Agreement or the Notes or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement or the Notes, or by reason of being a holder of any Note, (b) the reasonable costs and expenses, including financial advisors' fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes and (c) the reasonable costs and expenses incurred in connection with the initial filing of this Agreement and all related documents and financial information with the SVO; *provided*, that such costs and expenses under this clause (c) shall not exceed $5,500. If required by the NAIC, the Company shall obtain and maintain at its own cost and expense a Legal Entity Identifier (LEI).

The Company will pay, and will save each Purchaser and each other holder of a Note harmless from, (i) all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than those, if any, retained by a Purchaser or other holder in connection with its purchase of the Notes), (ii) any and all wire transfer fees that any bank or other financial institution deducts from any payment under such Note to such holder or otherwise charges to a holder of a Note with respect to a payment under such Note and (iii) any judgment, liability, claim, order, decree, fine, penalty, cost, fee, expense (including reasonable attorneys' fees and expenses) or obligation resulting from the consummation of the transactions contemplated hereby, including the use of the proceeds of the Notes by the Company.

**Section 15.2. Certain Taxes**. The Company agrees to pay all stamp, documentary or similar taxes or fees which may be payable in respect of the execution and delivery or the enforcement of this Agreement or the execution and delivery (but not the transfer) or the enforcement of any of the Notes in the United States or any other jurisdiction where the Company has assets or of any amendment of, or waiver or consent under or with respect to, this Agreement or of any of the Notes, and to pay any value added tax due and payable in respect of reimbursement of costs and expenses by the Company pursuant to this Section 15, and will save each holder of a Note to the extent permitted by applicable law harmless against any loss or liability resulting from nonpayment or delay in payment of any such tax or fee required to be paid by the Company hereunder.

**Section 15.3. Survival**. The obligations of the Company under this Section 15 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and the termination of this Agreement.

**SECTION 16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.** 

All representations and warranties contained herein or in the certificates referenced in Section 4.3 shall survive the execution and delivery of this Agreement and the Notes, the purchase or transfer by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of such Purchaser or any other holder of a Note. All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed representations and warranties of the Company under this Agreement. Subject to the preceding sentence, this Agreement and the Notes embody the entire agreement and understanding between each Purchaser and the Company and supersede all prior agreements and understandings relating to the subject matter hereof.

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**SECTION 17. AMENDMENT AND WAIVER.** 

**Section 17.1. Requirements**. This Agreement and the Notes may be amended, and the observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), only with the written consent of the Company and the Required Holders, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) no amendment or waiver of any of Sections 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used therein), will be effective as to any Purchaser unless consented to by such Purchaser in writing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no amendment or waiver may, without the written consent of each Purchaser and the holder of each Note at the time outstanding, (i) subject to Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of (x) interest on the Notes or (y) the Make-Whole Amount or other premium, (ii) change the percentage of the principal amount of the Notes the holders of which are required to consent to any amendment or waiver, or (iii) amend any of Sections 8 (except as set forth in the second sentence of Section 8.2), 11(a), 11(b), 12, 17 or 20.

**Section 17.2. Solicitation of Holders of Notes**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Solicitation*. The Company will provide each holder of a Note with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the Notes. The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to this Section 17 to each holder of a Note promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Payment*. The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder of a Note as consideration for or as an inducement to the entering into by such holder of any waiver or amendment of any of the terms and provisions hereof or any Note unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each holder of a Note even if such holder did not consent to such waiver or amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Consent in Contemplation of Transfer*. Any consent given pursuant to this Section 17 by a holder of a Note that has transferred or has agreed to transfer its Note to (i) the Company, (ii) any Subsidiary or any other Affiliate or (iii) any other Person in connection with, or in anticipation of, such other Person acquiring, making a tender offer for or merging with the Company and/or any of its Affiliates, in each case in connection

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with such consent, shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such holder.

**Section 17.3. Binding Effect, Etc.**. Any amendment or waiver consented to as provided in this Section 17 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon. No course of dealing between the Company and any holder of a Note and no delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note.

**Section 17.4. Notes Held by Company, Etc.**. Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Notes, or have directed the taking of any action provided herein or the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding.

**SECTION 18. NOTICES.** 

Except to the extent otherwise provided in Section 7.4, all notices and communications provided for hereunder shall be in writing and sent (a) by registered or certified mail with return receipt requested (postage prepaid), or (b) by an internationally recognized overnight delivery service (charges prepaid), or (c) by e-mail if the recipient has provided an e-mail address in its notice details (provided that such sent e-mail is kept on file, whether electronically or otherwise, by the sending party and the sending party does not receive an automatically generated message from the recipient's email server that such e-mail could not be delivered to its recipient). Any such notice must be sent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to any Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications in the Purchaser Schedule, or at such other address as such Purchaser or nominee shall have specified to the Company in writing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Company in writing, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if to the Company, to the Company at its address set forth at the beginning hereof to the attention of the Chief Financial Officer, or at such other address as the Company shall have specified to the holder of each Note in writing.

Notices under this Section 18 will be deemed given only when actually received.

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**SECTION 19. REPRODUCTION OF DOCUMENTS.** 

This Agreement and all documents relating thereto, including (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser at the Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced. The Company agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. This Section 19 shall not prohibit the Company or any other holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

**SECTION 20. CONFIDENTIAL INFORMATION.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For the purposes of this Section 20, "**Confidential Information**" means information delivered to any Purchaser by or on behalf of the Company or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser as being confidential information of the Company or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser or any Person acting on such Purchaser's behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by the Company or any Subsidiary or (d) constitutes financial statements delivered to such Purchaser under Section 7.1 that are otherwise publicly available. Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser and will not otherwise use any of such Confidential Information other than in the administration and oversight of its investment in the Notes, provided that such Purchaser may deliver or disclose Confidential Information to (i) its directors, officers, employees, agents, attorneys, trustees and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by its Notes), (ii) its auditors, financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with this Section 20, (iii) any other holder of any Note, (iv) any Institutional Investor to which it sells or offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by this Section 20), (v) any Person from which it offers to purchase any Security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by this Section 20), (vi) any federal or state regulatory authority having jurisdiction over such Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating

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agency that requires access to information about such Purchaser's investment portfolio, or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser's Notes or this Agreement. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 20 as though it were a party to this Agreement. On reasonable request by the Company in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Company embodying this Section 20.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding other provisions of this Section 20, in the event that any Purchaser is compelled by any governmental authority (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process) to disclose any Confidential Information, such Purchaser will provide the Company with notice of such request or requirement as promptly as practicable (unless not permitted by applicable law) so that the Company may seek a protective order or other appropriate remedy. Each Purchaser shall cooperate reasonably with the Company in connection with the Company's reasonable efforts to seek such an order or remedy. If the Company does not obtain such protective order or other remedy, or the Company waives compliance with this Section 20(b), such Purchaser will furnish only that portion of the applicable Confidential Information that is reasonably required, and will exercise reasonable efforts to obtain assurance that the confidential treatment will be accorded such disclosed Confidential Information. Notwithstanding anything to the contrary in this Section 20(b), the Purchasers may disclose Confidential Information to any regulatory authority having jurisdiction over such Purchasers or their Affiliates during the course of any routine examination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that as a condition to receiving access to information relating to the Company or its Subsidiaries in connection with the transactions contemplated by or otherwise pursuant to this Agreement, any Purchaser or holder of a Note is required to agree to a confidentiality undertaking (whether through Intralinks, another secure website, a secure virtual workspace or otherwise) which is different from this Section 20, this Section 20 shall not be amended thereby and, as between such Purchaser or such holder and the Company, this Section 20 shall supersede any such other confidentiality undertaking.

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**SECTION 21. SUBSTITUTION OF PURCHASER.** 

Each Purchaser shall have the right to substitute any one of its Affiliates or another Purchaser or any one of such other Purchaser's Affiliates (a "**Substitute Purchaser**") as the purchaser of the Notes that it has agreed to purchase hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser and such Substitute Purchaser, shall contain such Substitute Purchaser's agreement to be bound by this Agreement and shall contain a confirmation by such Substitute Purchaser of the accuracy with respect to it of the representations set forth in Section 6. Upon receipt of such notice, any reference to such Purchaser in this Agreement (other than in this Section 21), shall be deemed to refer to such Substitute Purchaser in lieu of such original Purchaser. In the event that such Substitute Purchaser is so substituted as a Purchaser hereunder and such Substitute Purchaser thereafter transfers to such original Purchaser all of the Notes then held by such Substitute Purchaser, upon receipt by the Company of notice of such transfer, any reference to such Substitute Purchaser as a "**Purchaser**" in this Agreement (other than in this Section 21), shall no longer be deemed to refer to such Substitute Purchaser, but shall refer to such original Purchaser, and such original Purchaser shall again have all the rights of an original holder of the Notes under this Agreement.

**SECTION 22. MISCELLANEOUS.** 

**Section 22.1. Successors and Assigns.** All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including any subsequent holder of a Note) whether so expressed or not, except that, subject to Section 10.2, the Company may not assign or otherwise transfer any of its rights or obligations hereunder or under the Notes without the prior written consent of each holder. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto and their respective successors and assigns permitted hereby) any legal or equitable right, remedy or claim under or by reason of this Agreement.

**Section 22.2. Accounting Terms**. All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with GAAP. Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP. For purposes of determining compliance with this Agreement (including Section 9, Section 10 and the definition of "Indebtedness"), any election by the Company to measure any financial liability using fair value (as permitted by Financial Accounting Standards Board Accounting Standards Codification Topic No. 825-10-25 – *Fair Value Option*, International Accounting Standard 39 – *Financial Instruments: Recognition and Measurement* or any similar accounting standard) shall be disregarded and such determination shall be made as if such election had not been made.

**Section 22.3. Severability**. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.

**Section 22.4. Construction, Etc.**. Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.

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Defined terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation." The word "will" shall be construed to have the same meaning and effect as the word "shall." Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein) and, for purposes of the Notes, shall also include any such notes issued in substitution therefor pursuant to Section 13, (b) subject to Section 22.1, any reference herein to any Person shall be construed to include such Person's successors and assigns, (c) the words "herein," "hereof" and "hereunder," and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Sections and Schedules shall be construed to refer to Sections of, and Schedules to, this Agreement, and (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time.

**Section 22.5. Counterparts; Electronic Signatures**. This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto. The parties agree to electronic contracting and signatures with respect to this Agreement (but not, for the avoidance of doubt, the Notes). Delivery of an electronic signature to, or a signed copy of, this Agreement by facsimile, email or other electronic transmission shall be fully binding on the parties to the same extent as the delivery of the signed originals and shall be admissible into evidence for all purposes. The words "execution," "execute", "signed," "signature," and words of like import in or related to any document to be signed in connection with this Agreement (other than the Notes) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Company and the Purchasers, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. Notwithstanding the foregoing, if any Purchaser shall request manually signed counterpart signatures to this Agreement, the Company hereby agrees to use its reasonable endeavors to provide such manually signed signature pages as soon as reasonably practicable.

**Section 22.6. Governing Law**. This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

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**Section 22.7. Jurisdiction and Process; Waiver of Jury Trial**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company irrevocably submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the Notes. To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company agrees, to the fullest extent permitted by applicable law, that a final judgment in any suit, action or proceeding of the nature referred to in Section 22.7(a) brought in any such court shall be conclusive and binding upon it subject to rights of appeal, as the case may be, and may be enforced in the courts of the United States of America or the State of New York (or any other courts to the jurisdiction of which it or any of its assets is or may be subject) by a suit upon such judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company consents to process being served by or on behalf of any holder of Notes in any suit, action or proceeding of the nature referred to in Section 22.7(a) by mailing a copy thereof by registered, certified, priority or express mail (or any substantially similar form of mail), postage prepaid, return receipt or delivery confirmation requested, to it at its address specified in Section 18 or at such other address of which such holder shall then have been notified pursuant to said Section. The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it. Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Nothing in this Section 22.7 shall affect the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH.

\* \* \* \* \*

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If you are in agreement with the foregoing, please sign the form of agreement on a counterpart of this Agreement and return it to the Company, whereupon this Agreement shall become a binding agreement between you and the Company.

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| | |
|:---|:---|
| Very truly yours,<br>CLEAR STREET HOLDINGS LLC | Very truly yours,<br>CLEAR STREET HOLDINGS LLC |
| By: | /s/ Ed Tilly |
| Name: Ed Tilly | Name: Ed Tilly |
| Title: Co-Chief Executive Officer | Title: Co-Chief Executive Officer |

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This Agreement is hereby accepted and agreed to as of the date hereof.

**PURCHASER:** 

By:

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| |
|:---|
| By: |
|  Name: |
|  Title: |

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Signature Page to Note Purchase Agreement

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**Defined Terms** 

As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term:

"**364-Day Facilities**" means any facility of the Company or its Subsidiaries that has a maturity date that is less than one-year from the issuance date of such facility.

"**Acceptable Rating Agency**" means (a) Kroll Bond Rating Agency or its successor, or (b) any other credit rating agency (other than Egan-Jones Ratings Company and any successor thereto) that is recognized as a nationally recognized statistical rating organization by the SEC and approved by the Required Holders, so long as, in each case, any such credit rating agency described in clause (a) or (b) above continues to be a nationally recognized statistical rating organization recognized by the SEC and is approved as a "Credit Rating Provider" (or other similar designation) by the NAIC.

"**Affiliate**" means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person, and, with respect to the Company, shall include any Person beneficially owning or holding, directly or indirectly, 25% or more of any class of voting or Equity Interests of the Company or any Subsidiary or any Person of which the Company and its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 25% or more of any class of voting or Equity Interests. Unless the context otherwise clearly requires, any reference to an "Affiliate" is a reference to an Affiliate of the Company.

"**Agreement**" means this Note Purchase Agreement, including all Schedules attached to this Agreement.

"**Anti-Corruption Laws**" means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding bribery or any other corrupt activity, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010.

"**Anti-Money Laundering Laws**" means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes, including the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy Act) and the USA PATRIOT Act.

"**Applicable Rate**" means, with respect to each Note as of any date of determination, a rate of 8.00% per annum plus:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 1.00% per annum if the Notes have a Debt Rating but do not have an Investment Grade Rating as of such date *<u>plus</u>* an additional 1.00% per annum if the Notes have a Debt Rating below "BB-" (or the equivalent) as of such date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 2.00% per annum if the Notes do not have a Debt Rating as of such date.

"**Approved Bank**" is defined in the definition of "Cash Equivalents".

Schedule A-1

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"**Blocked Person**" means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization, country or regime that is blocked or a target of sanctions that have been imposed under U.S. Economic Sanctions Laws or (c) a Person that is an agent, department or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any Person, entity, organization, country or regime described in clause (a) or (b).

"**Broker-Dealer Subsidiary**" means each Subsidiary of the Company registered, or required to be registered, as a broker-dealer pursuant to the Exchange Act or under any similar foreign law or regulatory regime established for the registration of brokers and/or dealers of securities.

"**BMO Credit Agreement**" means that certain Credit Agreement, dated as of December 4, 2020, by and among Clear Street LLC, a Delaware limited liability company, as borrower, BMO Bank N.A., as administrative agent, and the financial institutions from time to time party thereto as lenders.

"**BMO Credit Documents**" means collectively, the BMO Credit Agreement and the BMO Guaranty.

"**BMO Guaranty**" means that certain Guaranty, dated as of December 4, 2020, by the Company in favor of BMO Bank N.A., acting as administrative agent thereunder for the Guaranteed Creditors (as defined therein).

"**Business Day**" means (a) for the purposes of Section 8.6 only, any day other than a Saturday, a Sunday or a day on which commercial banks in New York City are required or authorized to be closed, and (b) for the purposes of any other provision of this Agreement, any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are required or authorized to be closed.

"**Called Principal**" is defined in Section 8.6.

"**Capital Lease**" means, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP.

"**Cash Equivalents**" means, as at any date, (a) securities issued or directly and fully guaranteed or insured by the United States or any agency or instrumentality thereof (provided that the full faith and credit of the United States is pledged in support thereof) having maturities of not more than twelve (12) months from the date of acquisition, (b) Dollar denominated time deposits and certificates of deposit of (i) any domestic commercial bank of recognized standing having capital and surplus in excess of $500,000,000 or (ii) any bank whose short term commercial paper rating from S&P Global Ratings (or any successor thereto or any Affiliate thereof that provides similar ratings) is at least A-1 or the equivalent thereof or from Moody's Investors Service, Inc. is at least P-1 or the equivalent thereof (any such bank being an "**Approved Bank**"), in each case with maturities of not more than twelve (12) months from the date of acquisition, (c) commercial paper and variable or fixed rate notes issued by any Approved Bank (or by the parent company thereof) or any variable rate notes issued by, or guaranteed by, any domestic corporation rated A-

Schedule A-2

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1 (or the equivalent thereof) or better by S&P Global Ratings (or any successor thereto or any Affiliate thereof that provides similar ratings) or P-1 (or the equivalent thereof) or better by Moody's Investors Service, Inc. and maturing within twelve (12) months of the date of acquisition, (d) repurchase agreements entered into by any Person with a bank or trust company or recognized securities dealer having capital and surplus in excess of $500,000,000 for direct obligations issued by or fully guaranteed by the United States in which such Person shall have a perfected first priority security interest (subject to no other Liens) and having, on the date of purchase thereof, a Fair Market Value of at least 100% of the amount of the repurchase obligations and (e) investments, classified in accordance with GAAP as current assets, in money market investment programs registered under the Investment Company Act of 1940 which are administered by reputable financial institutions having capital of at least $500,000,000 and the portfolios of which are limited to Investments of the character described in the foregoing clauses (a) through (d).

"**Change of Control**" means any event or series of events by which any Person or group of Persons other than (a) the Ownership Group and/or (b) Affiliates of the Company, shall acquire ownership, directly or indirectly, of the voting membership interests or other voting Equity Interests, in each case representing more than 50% of the voting power of the Company.

"**Closing**" is defined in Section 3.

"**Code**" means the Internal Revenue Code of 1986 and the rules and regulations promulgated thereunder from time to time.

"**Company**" is defined in the first paragraph of this Agreement.

"**Company Interest Coverage Ratio**" means, for the most recently completed fiscal quarter, the ratio of (a) the sum of (i) Distributed Cash for such period plus (ii) Qualified Cash as of the last day of such period to (b) Company Interest Expense for such period, as determined by reference to the most recent consolidated financial statements delivered or required to be delivered pursuant to Section 7.1.

"**Company Interest Expense**" means, for any period, the interest expense of the Company (for the avoidance of doubt, excluding any Subsidiary) for such period with respect to indebtedness for borrowed money.

"**Company Notice**" is defined in Section 8.8(a).

"**Confidential Information**" is defined in Section 20(a).

"**Consolidated EBITDA**" means, for the Company and its Subsidiaries for any period, the (a) Consolidated Net Income of the Company and its Subsidiaries for such period, plus, (b) without duplication and to the extent deducted in determining such Consolidated Net Income, and in each case calculated on a consolidated basis, each of the following adjustments: (i) Consolidated Interest Expense, (ii) income tax expense and any other provision for income taxes, (iii) depreciation expense, (iv) amortization expense, (v) unusual, one-time or non-recurring charges, expenses or losses, (vi) other non-cash charges, expenses or losses (excluding any such non-cash charge to the extent it represents an accrual or reserve for potential cash charge in any future period or amortization of a prepaid cash charge that was paid in a prior period), (vii) reasonable and

Schedule A-3

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customary out-of-pocket transaction expenses and fees incurred in connection with the Agreement, the Notes and the issuance thereof within 90 days after the date of the Closing and paid in cash to third parties during such period, (viii) reasonable and customary out-of-pocket transaction expenses and fees incurred in connection with any acquisition or proposed acquisition by the Company or any of its Subsidiaries (whether or not consummated), paid in cash to third parties during such period and in an aggregate amount not to exceed $100,000 during any fiscal quarter, minus (c) to the extent included in determining such Consolidated Net Income, and in each case calculated on a consolidated basis, each of the following adjustments, without duplication: (i) income tax credits and refunds (to the extent not netted from income tax expense), and (ii) cash expenditures made in respect of any non-cash expense or charge that was added back in such period or a prior period pursuant to clause (b)(v) or (vi) above, in each case, determined in accordance with GAAP.

"**Consolidated Interest Expense**" means, for any period, the consolidated interest expense of the Company and its Subsidiaries for such period with respect to unsecured indebtedness for borrowed money that has a maturity date that is one year or more from the issuance date of such indebtedness, determined in accordance with GAAP.

"**Consolidated Net Income**" means, for any period, the total earnings (or profit) of the Company and its Subsidiaries, on a consolidated basis for such period, determined by subtracting the costs of the Company and its Subsidiaries doing business for such period, including depreciation, interest, taxes and other expenses, from revenues of the Company and its Subsidiaries for such period. For the avoidance of doubt, Consolidated Net Income shall be calculated in accordance with GAAP.

"**Consolidated Total Assets**" means the total assets of the Company and its Subsidiaries determined on a consolidated basis in accordance with GAAP.

"**Consolidated Total Indebtedness**" means, at any date, the aggregate principal amount of all Indebtedness of the Company and its Subsidiaries that would be reflected on a consolidated balance sheet of the Company and its Subsidiaries as of such date in accordance with GAAP.

"**Control**" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; and the terms "**Controlled**" and "**Controlling**" shall have meanings correlative to the foregoing.

"**Controlled Entity**" means (a) any of the Subsidiaries of the Company and any of their or the Company's respective Controlled Affiliates and (b) if the Company has a parent company, such parent company and its Controlled Affiliates.

"**Debt Rating**" means the debt rating of the Notes as determined from time to time by any Acceptable Rating Agency.

"**Default**" means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default.

Schedule A-4

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"**Default Rate**" means that rate of interest per annum that is 2.00% above the Applicable Rate.

"**Digital Asset**" means any digital representation of value recorded on a cryptographically secured, distributed ledger (blockchain) or similar technology. The term "Digital Asset" includes controllable electronic records and does not include a controllable account, a controllable payment intangible, a deposit account, an electronic copy of a record evidencing chattel paper, an electronic document of title, electronic money, investment property or a transferable record, each as defined in the Uniform Commercial Code as in effect from time to time in the State of New York, or as the context may require, any other applicable jurisdiction.

"**Disclosure Documents**" is defined in Section 5.3.

"**Dispose**" and "**Disposition**" are defined in Section 10.8.

"**Distributed Cash**" means, for any period, the cash distributions and dividends paid to the Company for such period.

"**DTC**" is defined in Section 1.

"**DTC Procedures**" is defined in Section 13.4(c).

"**EBITDA Cure**" is defined in Section 10.6(d).

"**EDGAR**" means the SEC's Electronic Data Gathering, Analysis and Retrieval System or any successor SEC electronic filing system for such purposes.

"**Environmental Laws**" means any and all federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including those related to Hazardous Materials.

"**Equity Interests**" means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interest. As used in this Agreement, "Equity Interests" shall not include convertible Indebtedness unless and until such Indebtedness has been converted to capital stock.

"**ERISA**" means the Employee Retirement Income Security Act of 1974 and the rules and regulations promulgated thereunder from time to time in effect.

"**ERISA Affiliate**" means any trade or business (whether or not incorporated) that is treated as a single employer together with the Company under section 414 of the Code.

"**Event of Default**" is defined in Section 11.

Schedule A-5

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"**Exchange Act**" means the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder from time to time in effect.

"**FATCA**" means (a) sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), together with any current or future regulations or official interpretations thereof, (b) any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the United States of America and any other jurisdiction, which (in either case) facilitates the implementation of the foregoing clause (a), and (c) any agreements entered into pursuant to section 1471(b)(1) of the Code.

"**FINRA**" is defined in Section 5.19.

"**First Relevant Date**" means September 30, 2027.

"**Form 10-K**" is defined in Section 7.1(b).

"**Form 10-Q**" is defined in Section 7.1(a).

"**GAAP**" means (a) generally accepted accounting principles as in effect from time to time in the United States of America and (b) for purposes of Section 9.6, with respect to any Subsidiary, generally accepted accounting principles (including International Financial Reporting Standards, as applicable) as in effect from time to time in the jurisdiction of organization of such Subsidiary.

"**Global Notes**" is defined in Section 1.

"**Governmental Authority**" means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the government of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the United States of America or any state or other political subdivision thereof, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any other jurisdiction in which the Company or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or any Subsidiary, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.

"**Governmental Official**" means any governmental official or employee, employee of any government-owned or government-controlled entity, political party, any official of a political party, candidate for political office, official of any public international organization or anyone else acting in an official capacity.

Schedule A-6

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"**Guaranty**" means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including obligations incurred through an agreement, contingent or otherwise, by such Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to purchase such indebtedness or obligation or any property constituting security therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to advance or supply funds (i) for the purchase or payment of such indebtedness or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such indebtedness or obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such indebtedness or obligation of the ability of any other Person to make payment of the indebtedness or obligation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) otherwise to assure the owner of such indebtedness or obligation against loss in respect thereof.

In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor.

"**Hazardous Materials**" means any and all pollutants, toxic or hazardous wastes or other substances that might pose a hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized by any applicable law, including asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.

"**holder**" means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the Company pursuant to Section 13.1, *provided*, *however*, that if such Person is a nominee, then for the purposes of Sections 7, 12, 17.2 and 18 and any related definitions in this <u>Schedule A</u>, "holder" shall mean the beneficial owner of such Note whose name and address appears in such register.

"**INHAM Exemption**" is defined in Section 6.2(e).

"**Indebtedness**" with respect to any Person means, at any time, without duplication,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) its liabilities for borrowed money and its redemption obligations in respect of mandatorily redeemable Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) its liabilities for the deferred purchase price of property acquired by such Person (excluding accounts payable arising in the ordinary course of business but including all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property);

Schedule A-7

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) all liabilities appearing on its balance sheet in accordance with GAAP in respect of Capital Leases and (ii) all liabilities which would appear on its balance sheet in accordance with GAAP in respect of Synthetic Leases assuming such Synthetic Leases were accounted for as Capital Leases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it has assumed or otherwise become liable for such liabilities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all its liabilities in respect of letters of credit or instruments serving a similar function issued or accepted for its account by banks and other financial institutions (whether or not representing obligations for borrowed money); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Guaranty of such Person with respect to liabilities of a type described in any of clauses (a) through (e) hereof.

Indebtedness of any Person shall include all obligations of such Person of the character described in clauses (a) through (f) to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP. For the avoidance of doubt, notwithstanding anything in this Agreement to the contrary, the definition of "Indebtedness" shall not include liabilities or obligations for or with respect to any liabilities incurred in the ordinary course of business, including but not limited to (i) credit default swaps or other credit derivatives entered into solely for the purpose of hedging, (ii) Securities Financing and (iii) guarantees issued to or for trading counterparties.

"**Institutional Investor**" means (a) any Purchaser of a Note, (b) any holder of a Note holding (together with one or more of its affiliates) more than 5% of the aggregate principal amount of the Notes then outstanding, (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any holder of any Note.

"**Interest Reserve Account**" means a segregated non-interest bearing account of the Company maintained with BMO Bank N.A. with account number xxx5131, or any replacement depositary reasonably acceptable to the Required Holders.

"**Investment Grade Rating**" means a rating assigned to the Notes from an Acceptable Rating Agency equal to or higher than (a) "BBB-" (or the equivalent) by Fitch, S&P or Kroll Bond Rating Agency, or (b) "Baa3" by Moody's; *provided that* (i) if the Company has obtained a Debt Rating on the Notes from two Acceptable Rating Agencies and the then lower of the most recent Debt Ratings from such Acceptable Rating Agencies that are in full force and effect (not having been withdrawn) is less than an Investment Grade Rating, then the Notes shall be deemed not to have an "Investment Grade Rating" and (ii) if the Company has obtained a Debt Rating on the Notes from three or more Acceptable Rating Agencies and the then second lowest of the most recent Debt Ratings from such Acceptable Rating Agencies that is in full force and effect (not having been withdrawn) is less than an Investment Grade Rating, then the Notes shall be deemed not to have an "Investment Grade Rating" (provided, for the avoidance of doubt, if two or more of the most recent Debt Ratings are equal or equivalent as the lowest such Debt Rating, then one of such equal or equivalent Debt Ratings will be deemed to be the second lowest Rating for purposes of such determination).

Schedule A-8

------

"**Lien**" means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital Lease, upon or with respect to any property or asset of such Person (including in the case of stock, stockholder agreements, voting trust agreements and all similar arrangements).

"**Make-Whole Amount**" is defined in Section 8.6.

"**Material**" means material in relation to the business, operations, affairs, financial condition, assets, properties, or prospects of the Company and its Subsidiaries taken as a whole.

"**Material Adverse Effect**" means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole, (b) the ability of the Company to perform its obligations under this Agreement and the Notes, or (c) the validity or enforceability of this Agreement or the Notes.

"**Material Credit Facility**" means, as to the Company and its Subsidiaries,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Note Purchase Agreement dated May 6, 2021 by and between the Company and the holders of the notes from time to time party thereto, including any renewals, extensions, amendments, supplements, restatements, replacements or refinancing thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Note Purchase Agreement dated October 23, 2024 by and between the Company and the holders of the notes from time to time party thereto, including any renewals, extensions, amendments, supplements, restatements, replacements or refinancing thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other agreement(s) creating or evidencing indebtedness for borrowed money entered into on or after the date of Closing by the Company or any Non-regulated Subsidiary, or in respect of which the Company or any Non-regulated Subsidiary is an obligor or otherwise provides a guarantee or other credit support in a principal amount outstanding or available for borrowing, in each case, equal to or greater than $50,000,000 (or the equivalent of such amount in the relevant currency of payment, determined as of the date of the closing of such facility based on the exchange rate of such other currency).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the avoidance of doubt, no 364-Day Facility shall constitute a "Material Credit Facility" for purposes of this Agreement.

"**Maturity Date**" is defined in the first paragraph of each Note.

"**Minimum Interest Reserve Amount**" means, as of any date of determination, an amount equal to interest payable for the next twelve (12) months (or such lesser number of months until the Maturity Date of the Notes), which amount shall be calculated based on the aggregate principal amount of the Notes then outstanding.

Schedule A-9

------

"**Multiemployer Plan**" means any Plan that is a "multiemployer plan" (as such term is defined in section 4001(a)(3) of ERISA).

"**NAIC**" means the National Association of Insurance Commissioners.

"**Net Worth**" means, at any time, the members' capital or stockholders' equity of the Company as reflected on its most recent balance sheet delivered or required to have been delivered pursuant to Section 7.1.

"**Non-regulated Subsidiary**" means any Subsidiary that is not a Regulated Subsidiary.

"**Non-U.S. Plan**" means any plan, fund or other similar program that (a) is established or maintained outside the United States of America by the Company or any Subsidiary primarily for the benefit of employees of the Company or one or more Subsidiaries residing outside the United States of America, which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and (b) is not subject to ERISA or the Code.

"**Notes**" is defined in Section 1.

"**OFAC**" means the Office of Foreign Assets Control of the United States Department of the Treasury.

"**OFAC Sanctions Program**" means any economic or trade sanction that OFAC is responsible for administering and enforcing. A list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx.

"**Officer's Certificate**" means a certificate of a Senior Financial Officer or of any other officer of the Company whose responsibilities extend to the subject matter of such certificate.

"**Ownership Group**" means (a) any and all Persons who, directly or indirectly, own Equity Interests in the Company, as of the date of the Closing or affiliates of such Persons, (b) the spouses, children, siblings, parents or other lineal descendants of the parents of, (x) in the case of a Person in clause (a) above who is a natural person, any such Person described in clause (a) above or (y) in the case of a Person in clause (a) above that is an entity, the beneficial owners of any such Person described in clause (a) above (in each case, including in the case of adoption), (c) any trust settled by the Persons described in clause (a) or clause (b) above, and/or (d) any entity that is wholly owned by the Persons described in clause (a), clause (b) or clause (c) above.

"**Paying Agent**" means UMB Bank, National Association, as paying agent and registrar for the Notes, and any replacement thereof reasonably acceptable to the Required Holders.

"**PBGC**" means the Pension Benefit Guaranty Corporation referred to and defined in ERISA.

Schedule A-10

------

"**Permitted Liens**" means any of following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens to secure taxes, assessments and other governmental charges which are not yet due and payable or the payment of which is not required hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Deposits or pledges (other than Liens imposed by ERISA) made in the ordinary course of business and not made in connection with the borrowing of money (i) in connection with, or to secure payment of, workers' compensation, unemployment insurance, old age pensions or other social security benefits, (ii) in connection with casualty insurance maintained in accordance with this Agreement, (iii) to secure the performance of bids, tenders, contracts (other than contracts relating to Indebtedness) or leases (other than Capital Leases), (iv) to secure statutory obligations or surety or appeal bonds, or (v) to secure indemnity, performance or other similar bonds in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liens of carriers, warehouses, mechanics and similar Liens, in each case (i) in existence less than 120 days from the date of creation thereof or (ii) being contested in good faith by the Company or any Subsidiary in appropriate proceedings (so long as the Company or such Subsidiary shall, in accordance with GAAP, have set aside on its books adequate reserves with respect thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Encumbrances in the nature of (i) zoning restrictions, easements or restrictions of record on the use of real property, (ii) landlords' and lessors' Liens on any leased or rented premises and (iii) restrictions on transfers or assignment of leases, which in each case do not materially detract from the value of the encumbered property or impair the use thereof in the business of the Company or any Subsidiary.

For the avoidance of doubt, the definition of "Permitted Liens" shall include Liens securing any liabilities or obligations for or with respect to liabilities or obligations incurred in the ordinary course of business, including but not limited to (i) credit default swaps or other credit derivatives entered into solely for the purpose of hedging, (ii) Securities Financing and (iii) guarantees issued to or for trading counterparties.

"**Person**" means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, business entity or governmental authority.

"**Plan**" means an "employee benefit plan" (as defined in section 3(3) of ERISA) subject to Title I of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any liability.

"**Preferred Stock**" means any class of capital stock of a Person that is preferred over any other class of capital stock (or similar Equity Interests) of such Person as to the payment of dividends or the payment of any amount upon liquidation or dissolution of such Person.

"**Premium**" means, with respect to the outstanding principal amount of any Note, the amount in excess of par to be paid pursuant to Section 8.2(b), Section 8.2(c) or Section 8.8, other than accrued interest.

Schedule A-11

------

"**Presentation**" is defined in Section 5.3.

"**Private Rating Letter**" means a letter issued by an Acceptable Rating Agency in connection with any private Debt Rating for the Notes, which (a) sets forth the Debt Rating for the Notes, (b) refers to the Private Placement Number issued by Standard & Poor's CUSIP Bureau Service in respect of the Notes, (c) addresses the likelihood of payment of both principal and interest on the Notes (which requirement shall be deemed satisfied if either (x) such letter includes confirmation that the rating reflects the Acceptable Rating Agency's assessment of the Company's ability to make timely payment of principal and interest on the Notes or a similar statement or (y) such letter is silent as to the Acceptable Rating Agency's assessment of the likelihood of payment of both principal and interest and does not include any indication to the contrary), (d) includes such other information describing the relevant terms of the Notes as may be required from time to time by the SVO or any other governmental authority having jurisdiction over any holder of any Notes and (e) shall not be subject to confidentiality provisions or other restrictions which would prevent or limit the letter from being shared with the SVO or any other governmental authority having jurisdiction over any holder of any Notes.

"**Private Rating Rationale Report**" means, with respect to any Private Rating Letter, a report issued by the Acceptable Rating Agency in connection with such Private Rating Letter setting forth an analytical review of the Notes explaining the transaction structure, methodology relied upon, and, as appropriate, analysis of the credit, legal, and operational risks and mitigants supporting the assigned Debt Rating for the Notes, in each case, on the letterhead of the Acceptable Rating Agency or its controlled website and generally consistent with the work product that an Acceptable Rating Agency would produce for a similar publicly rated security and otherwise in form and substance generally required by the SVO or any other governmental authority having jurisdiction over any holder of any Notes from time to time. Such report shall not be subject to confidentiality provisions or other restrictions which would prevent or limit the report from being shared with the SVO or any other governmental authority having jurisdiction over any holder of any Notes.

"**property**" or "**properties**" means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate.

"**PTE**" is defined in Section 6.2(a).

"**Purchaser**" or "**Purchasers**" means each of the purchasers that has executed and delivered this Agreement to the Company and such Purchaser's successors and assigns (so long as any such assignment complies with Section 13.2), *provided*, *however*, that any Purchaser of a Note that ceases to be the registered holder or a beneficial owner (through a nominee) of such Note as the result of a transfer thereof pursuant to Section 13.2 shall cease to be included within the meaning of "Purchaser" of such Note for the purposes of this Agreement upon such transfer.

"**Purchaser Schedule**" means the Purchaser Schedule to this Agreement listing the Purchasers of the Notes and including their notice and payment information.

Schedule A-12

------

"**Qualified Cash**" means, as of any date of determination, the aggregate amount of unencumbered and unrestricted cash and Cash Equivalents of the Company's Subsidiaries as of such date that (a) can be freely used by such Subsidiaries for immediate or general business use, (b) can be distributed directly or indirectly to the Company as of such date without the consent, waiver or other approval of any other Person and (c) is not classified as restricted cash on the financial statements of such Subsidiaries. Without limiting the foregoing, Distributable Cash and Cash Equivalents will not include (x) any cash or Cash Equivalents of a Subsidiary that is not permitted to make distributions or dividends with respect to such cash or Cash Equivalents as of such date under the terms of any Material Credit Facility, 364-Day Facility, Securities Financing or any other agreement or (y) any cash or Cash Equivalents held in escrow, trust or other fiduciary capacity for or on behalf of any Person or subject to any other restriction.

"**Qualified Institutional Buyer**" means any Person who is a "qualified institutional buyer" within the meaning of such term as set forth in Rule 144A(a)(1) under the Securities Act.

"**QPAM Exemption**" is defined in Section 6.2(d).

"**Regulated Subsidiary**" means (a) any Subsidiary that is subject to oversight by a U.S., state or foreign regulatory body for securities markets, trading, asset management, investment advice, investor protection and related matters and (b) any Subsidiary that is primarily engaged in the business of trading, custody or otherwise facilitating business relating to Digital Assets; provided that, notwithstanding the foregoing, "Regulated Subsidiary" will not include any Subsidiary that (x) owns any intellectual property rights that are material to the business of the Company and its Subsidiaries or (y) directly owns the Equity Interests of a Regulated Subsidiary.

"**Related Fund**" means, with respect to any holder of any Note, any fund or entity that (a) invests in Securities or bank loans, and (b) is advised or managed by such holder, the same investment advisor as such holder or by an affiliate of such holder or such investment advisor.

"**Required Holders**" means at any time on or after the Closing, the holders of more than 50% in principal amount of the Notes at the time outstanding (exclusive of Notes then owned by the Company or any of its Affiliates).

"**Responsible Officer**" means any Senior Financial Officer and any other officer of the Company with responsibility for the administration of the relevant portion of this Agreement.

"**Restricted Payment**" means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interests of any Person, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, defeasance, acquisition, cancellation or termination of any such Equity Interests or on account of any return of capital to such Person's stockholders, partners or members (or the equivalent Person thereof), or any option, warrant or other right to acquire any such dividend or other distribution or payment.

"**SEC**" means the Securities and Exchange Commission of the United States of America.

"**Second Relevant Date**" means September 30, 2028.

"**Securities**" or "**Security**" shall have the meaning specified in section 2(1) of the Securities Act.

Schedule A-13

------

"**Securities Act**" means the Securities Act of 1933 and the rules and regulations promulgated thereunder from time to time in effect.

"**Securities Financing**" means any transaction where securities are used to borrow cash or where cash or securities are used to borrow securities, including but not limited to repurchase transactions, securities lending and sell-back or buy-back transactions.

"**Senior Financial Officer**" means the chief financial officer, principal accounting officer, treasurer or comptroller of the Company.

"**SIPC**" is defined in Section 5.19.

"**Source**" is defined in Section 6.2.

"**State Sanctions List**" means a list that is adopted by any state Governmental Authority within the United States of America pertaining to Persons that engage in investment or other commercial activities in Iran or any other country that is a target of economic sanctions imposed under U.S. Economic Sanctions Laws.

"**Subsidiary**" means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries (unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a "**Subsidiary**" is a reference to a Subsidiary of the Company.

"**Substitute Purchaser**" is defined in Section 21.

"**SVO**" means the Securities Valuation Office of the NAIC.

"**Synthetic Lease**" means, at any time, any lease (including leases that may be terminated by the lessee at any time) of any property (a) that is accounted for as an operating lease under GAAP and (b) in respect of which the lessee retains or obtains ownership of the property so leased for U.S. federal income tax purposes, other than any such lease under which such Person is the lessor.

"**Third Relevant Date**" means September 30, 2029.

"**Total Capitalization**" means, at any time, the sum of (a) Net Worth and (b) Indebtedness of the Company as reflected on its most recent balance sheet delivered or required to have been delivered pursuant to Section 7.1.

"**United States Person**" has the meaning set forth in Section 7701(a)(30) of the Code.

Schedule A-14

------

**USA PATRIOT Act**" means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 and the rules and regulations promulgated thereunder from time to time in effect.

"**U.S. Economic Sanctions Laws**" means those laws, executive orders, enabling legislation or regulations administered and enforced by the United States pursuant to which economic sanctions have been imposed on any Person, entity, organization, country or regime, including the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran Sanctions Act, the Sudan Accountability and Divestment Act and any other OFAC Sanctions Program.

"**Wholly-Owned Subsidiary**" means, at any time, any Subsidiary all of the Equity Interests (except directors' or managers' qualifying shares) and voting interests of which are owned by any one or more of the Company and the Company's other Wholly-Owned Subsidiaries at such time.

Schedule A-15

------

**Schedule 1** 

**[Form of Note]** 

**[THIS 8.00% SENIOR NOTE DUE SEPTEMBER 30, 2030 (THIS "NOTE") IS A GLOBAL NOTE WITHIN THE MEANING OF THE NOTE PURCHASE AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY ("DTC") OR A NOMINEE OF DTC. THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE AGREEMENT, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.** 

**UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE BY DTC TO CLEAR STREET HOLDINGS LLC FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]<sup>1</sup>** 

**[THIS 8.00% SENIOR NOTE DUE SEPTEMBER 30, 2030 (THIS "NOTE")]<sup>2</sup>/ [THIS NOTE]<sup>3</sup> HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAW. NEITHER THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO COMPLY WITH THE FOREGOING RESTRICTIONS AND TO OFFER, SELL OR OTHERWISE TRANSFER THIS NOTE ONLY TO THE EXTENT PERMITTED UNDER AND PURSUANT TO THE TERMS OF THE NOTE PURCHASE AGREEMENT REFERENCED IN THIS NOTE.** 

<sup>1</sup> Include for a Global Note.

<sup>2</sup> Include if not a Global Note.

<sup>3</sup> Include if a Global Note.

Schedule 5.15

to Note Purchase Agreement

------

**THIS NOTE IS SUBJECT TO CERTAIN RESALE RESTRICTIONS SET FORTH IN A NOTE PURCHASE AGREEMENT DATED SEPTEMBER 17, 2025.** 

Schedule 5.15

to Note Purchase Agreement

------

**CLEAR STREET HOLDINGS LLC** 

**8.00% Senior Note Due September 30, 2030** 

---

| | |
|:---|:---|
| No. R-[____] | [Date] |
| $[______] | CUSIP No.: 18469L AE9 (QIB)<br> CUSIP No.: 18469L AF6 |

---

For Value Received, the undersigned, **CLEAR STREET HOLDINGS LLC** (herein called the "**Company**"), a limited liability company organized and existing under the laws of the State of Delaware, hereby promises to pay to [___________], or registered assigns, the principal sum of [__________________] DOLLARS (or so much thereof as shall not have been prepaid) on September 30, 2030 (the "**Maturity Date**"), with interest (computed on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance hereof at the Applicable Rate from the date hereof, payable semiannually, on the 30th day of March and September in each year, [commencing with the March 30 or September 30 next succeeding the date hereof]<sup>4</sup>, and on the Maturity Date, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, (x) on any overdue payment of interest and (y) during the continuance of an Event of Default, on such unpaid balance and on any overdue payment of any Make-Whole Amount, Premium or other premium, at a rate per annum from time to time equal to the Default Rate, payable semiannually as aforesaid (or, at the option of the registered holder hereof, on demand).

Payments of principal of, interest on and any Make-Whole Amount or Premium with respect to this Note are to be made in lawful money of the United States of America to the Paying Agent at its principal office, as designated from time to time, or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreement referred to below.

This Note is one of a series of Senior Notes (herein called the "**Notes**") issued pursuant to the Note Purchase Agreement, dated September 17, 2025 (as from time to time amended, the "**Note Purchase Agreement**"), between the Company and the respective Purchasers named therein and is entitled to the benefits thereof. Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.

This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder's attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the Person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

<sup>4</sup> For the Global Note issued at the Closing, insert "commencing with March 30, 2026" in lieu of the bracketed language.

Schedule 5.15

to Note Purchase Agreement

------

This Note is subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise.

If an Event of Default occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make- Whole Amount, Premium or other premium) and with the effect provided in the Note Purchase Agreement.

This Note shall be construed and enforced in accordance with, and the rights of the Company and the holder of this Note shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

---

| | |
|:---|:---|
|  **CLEAR STREET HOLDINGS LLC** | **CLEAR STREET HOLDINGS LLC** |
| By: |  |
|  | [Title] |

---

Schedule 5.15

to Note Purchase Agreement

------

**SCHEDULE A** 

**INFORMATION RELATING TO PURCHASERS** 

---

| |
|:---|
| **Purchaser** |
| Principal Amount of Notes to be Purchased |
| DTC Settlement Instructions |
| Alternate payment instructions<br>|
| Accompanying Information<br>|
| Address / Fax # / Email for all Notices and Communications |
| Signature Block Format |
| Tax Identification Number |

---

Schedule A - 1

## Exhibit 16.1

**Exhibit 16.1** 

**[RSM Letterhead]** 

January 20, 2026

Securities and Exchange Commission

Washington, D.C. 20549

Commissioners:

We have read Clear Street Group Inc.'s statements included under the heading Change in Independent Registered Public Accounting Firm in its registration statement on Form S-1 filed on January 20, 2026 and we have the following statements:

1) We agree with such statements made in the first four paragraphs concerning our firm; and

2) We have no basis on which to agree or disagree with the statements made in the fifth paragraph.

/s/ RSM US LLP

## Exhibit 21.1

**Exhibit 21.1** 

**Subsidiaries of Clear Street Group Inc.** 

---

| | |
|:---|:---|
| **Name of Subsidiary** | **Jurisdiction of Incorporation or Organization** |
| Clear Street Canada Inc. | Canada |
| Clear Street Client Services LLC | Delaware, United States |
| Clear Street Derivatives LLC | Delaware, United States |
| Clear Street Digital LLC | Delaware, United States |
| Clear Street Digital NY LLC | Delaware, United States |
| Clear Street Europe B.V. | Netherlands |
| Clear Street Holdings LLC | Delaware, United States |
| Clear Street LLC | Delaware, United States |
| Clear Street Management LLC | Delaware, United States |
| Clear Street Services UK Limited | United Kingdom |
| Clear Street Singapore Pte Ltd | Singapore |
| Clear Street Technologies Developers Holdings Inc. | Delaware, United States |
| Clear Street Technologies Developers Holdings LLC | Delaware, United States |
| Clear Street Technologies India Pvt. Ltd. | India |
| Clear Street Technologies LLC | Delaware, United States |
| Clear Street Technologies Sweden AB | Sweden |
| Clear Street Technologies USVI LLC | US Virgin Islands |
| Clear Street UK Limited | United Kingdom |
| Clear Street UK Nominees Ltd | United Kingdom |
| CS Enhanced Lending LLC | Delaware, United States |

---

------

---

| | |
|:---|:---|
| CS OpCo LLC | Delaware, United States |
| CS OpCo II LLC | Delaware, United States |
| CS OpCo III LLC | Delaware, United States |
| React Consulting Services LLC | Illinois, United States |
| South Cove Acquisition I Sponsor LLC | Delaware, United States |
| South Cove Acquisition II Sponsor LLC | Delaware, United States |
| Stiching Bewaarbedrijf Clear Street Europe | Netherlands |

---

## Exhibit 23.1

**Exhibit 23.1** 

**Consent of Independent Registered Public Accounting Firm** 

We consent to the reference to our firm under the caption "Experts" and to the use of our report dated November 4, 2025, in the Registration Statement (Form S-1) and related Prospectus of Clear Street Group Inc. for the registration of shares of its Class A common stock.

/s/ Ernst & Young LLP

New York, New York

January 20, 2026

## Exhibit 23.2

**Exhibit 23.2** 

**Consent of Independent Registered Public Accounting Firm** 

We consent to the use in this Registration Statement on Form S-1 of Clear Street Group Inc. of our report dated November 4, 2025, relating to the consolidated financial statements of Clear Street Group Inc., appearing in the Prospectus, which is part of this Registration Statement.

We also consent to the reference to our firm under the headings "Experts" and "Change in Independent Registered Public Accounting Firm" in such Prospectus.

/s/ RSM US LLP

New York, New York

January 20, 2026

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**S-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Clear Street Group Inc.**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Security Type**  | **Security Class Title**  | **Fee Calculation or Carry Forward Rule**  | **Maximum Aggregate Offering Price**  | **Fee Rate**  | **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Class A common stock, par value $0.00001 per share | 457(o) | $100000000.00 | 0.0001381 | $13810.00 |
| Fees Previously Paid |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $100000000.00  |  | $13810.00  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $13810.00  |

---

 **Offering Note** <br>

<sup>1</sup> (1) Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended. (2) Includes the aggregate offering price of additional shares that the underwriters have the option to purchase.

---

| | |
|:---|:---|
| | |
| **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |
| **Rule 457(p)** | **Rule 457(p)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Security Type**  | **Security Class Title**  | **Amount of Securities Previously Registered**  | **Maximum Aggregate Offering Price of Securities Previously Registered**  | **Form Type**  | **File Number**  | **Initial Effective Date**  |
| N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |

---