Document:

Advisory Agreement dated July 1, 2010

 Exhibit 10.14 

KMP FUTURES FUND I LLC 

ADVISORY AGREEMENT 

ADVISORY AGREEMENT (this “Agreement”) dated as of the
1st day of July, 2010, by and among KMP FUTURES FUND I
LLC, a Delaware limited liability company (“KMPFF”), KENMAR PREFERRED INVESTMENTS CORP., a Delaware corporation (the “Managing Member”) and GRAHAM CAPITAL MANAGEMENT, L.P., a Delaware limited
partnership (the “Advisor”). 
 W I T N E S S E
T H: 
 WHEREAS, KMPFF has been organized primarily for the purpose of trading, buying, selling,
spreading or otherwise acquiring, holding or disposing of futures, forward and options contracts with respect to commodities. Other transactions also may be effected from time to time, including among others, those as more fully identified in
Exhibit A hereto; the foregoing commodities and other transactions are collectively referred to as “Commodities”; and 

WHEREAS, the Managing Member is the managing member of KMPFF; and 

WHEREAS, the Managing Member is authorized to utilize the services of one or more professional commodity trading advisors in
connection with the Commodities trading activities of KMPFF; and 
 WHEREAS, the Advisor’s present business includes
the management of Commodities accounts for its clients; and 
 WHEREAS, the Advisor is registered as a commodity trading
advisor under the United States Commodity Exchange Act, as amended (the “CE Act”), and is a member of the National Futures Association (the “NFA”) as a commodity trading advisor and will maintain such registration
and membership for the term of this Agreement; and 
 WHEREAS, KMPFF, the Managing Member and the Advisor desire to enter
into this Agreement in order to set forth the terms and conditions upon which the Advisor will render and implement commodity trading advisory services on behalf of KMPFF during the term of this Agreement. 

NOW, THEREFORE, the parties agree as follows: 

1. Duties of the Advisor. 

(a) Appointment. KMPFF hereby appoints the Advisor, and the Advisor hereby accepts such appointment, as
KMPFF’s limited attorney-in-fact to exercise discretion to invest and reinvest in Commodities during the term of this Agreement of the assets of KMPFF allocated to the Advisor (the “Allocated Assets”) on the terms and
conditions and for the purposes set forth herein. This limited power-of-attorney is a continuing power and shall continue in effect with respect to the Advisor until terminated hereunder. The Advisor shall have sole authority and responsibility for
independently directing the investment and reinvestment in Commodities of the Allocated Assets for the term of this Agreement pursuant to the trading programs, methods, systems, and strategies described in Exhibit A hereto, which KMPFF and the
Managing Member have selected to be utilized by the Advisor in trading the Allocated Assets (collectively referred to as the Advisor’s “Trading Approach”), subject to the trading policies and limitations as set forth in
KMPFF’s Confidential Information dated May 14, 2010, as 
  

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amended or supplemented from time to time (the “Memorandum”) and attached hereto as Exhibit B (the “Trading Policies and Limitations”), as the same may be
modified from time to time and provided in writing to the Advisor. The portion of the Allocated Assets to be allocated by the Advisor at any point in time to one or more of the various trading strategies comprising the Advisor’s Trading
Approach will be determined as set forth in Exhibit A hereto, as it may be amended from time to time, with the consent of the parties, it being understood that trading gains and losses automatically will alter the agreed upon allocations. Upon
receipt of a new allocation, the Advisor will determine and, if required, adjust its trading in light of the new allocation. 

(b) Allocation of Responsibilities. KMPFF will have the responsibility for the management of any portion of the
Allocated Assets that are not invested in Commodities. The Advisor will use its good faith and best efforts in determining the investment and reinvestment in Commodities of the Allocated Assets in compliance with the Trading Policies and
Limitations, and in accordance with the Advisor’s Trading Approach. In the event that KMPFF shall, in its sole discretion, determine in good faith following consultation appropriate under the circumstances with the Advisor that any trading
instruction issued by the Advisor violates the Trading Policies and Limitations, then KMPFF, following reasonable notice to the Advisor appropriate under the circumstances, may override such trading instruction and shall be responsible therefore.
Nothing herein shall be construed to prevent the Managing Member from imposing any limitation(s) on the trading activities of KMPFF beyond those enumerated in the Memorandum if the Managing Member determines that such limitation(s) are necessary or
in the best interests of KMPFF, in which case the Advisor will adhere to such limitations following written notification thereof. 

(c) Gains From Trading Approach. The Advisor agrees that at least 90% of the annual gross income and gain, if any,
generated by its Trading Approach for Allocated Assets will be “qualifying income” within the meaning of Section 7704(d) of the Code (it being understood that such income will largely result from buying and selling Commodities and
that the Trading Approach is not intended primarily to generate interest income). The Advisor also agrees that it will attempt to trade in such a manner as to allow non-U.S. investors in KMPFF (all investors in KMPFF, the “Members”)
to qualify for the safe harbors found in Section 864(b)(2) of the Code and as interpreted in the regulations promulgated or proposed thereunder. 

(d) Modification of Trading Approach. In the event the Advisor requests to use, or KMPFF requests the Advisor to
use, a trading program, system, method or strategy other than or in addition to the trading programs, systems, methods or strategies comprising the Trading Approach in connection with trading for KMPFF (including, without limitation, the deletion or
addition of an agreed upon trading program, system, method or strategy to the then agreed upon Trading Approach or a modification in the leverage employed), either in whole or in part, the Advisor may not do so and/or shall not be required to do so,
as appropriate, unless both KMPFF and the Advisor consent thereto in writing. 
 (e) Notification of Material
Changes. The Advisor also agrees to give KMPFF prior written notice of any proposed material change in its Trading Approach, and agrees not to make any material change in such Trading Approach (as applied to KMPFF) over the objection of KMPFF,
it being understood that the Advisor shall be free to institute non-material changes in its Trading Approach (as applied to KMPFF) without prior written notification. Without limiting the generality of the foregoing, refinements to the
Advisor’s Trading Approach, and the deletion (but not the addition) of Commodities (other than the addition of Commodities then being traded (i) on organized domestic commodities exchanges, (ii) on foreign commodities exchanges
recognized by the Commodity Futures Trading Commission (the “CFTC”) as providing customer protections comparable to those provided on domestic exchanges, or (iii) in the interbank foreign currency market) to or from the
Advisor’s Trading Approach shall not be deemed a material change in the Advisor’s Trading Approach, and prior approval of KMPFF 

 

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shall not be required therefore. The utilization of forward markets in addition to those enumerated in Exhibit C hereto would be deemed a material change to the Advisor’s Trading Approach
and prior approval shall be required therefor. 
 Subject to adequate assurances of confidentiality, the Advisor
agrees that it will discuss with KMPFF upon request any trading methods, programs, systems or strategies used by it for trading customer accounts which differ from the Trading Approach used for KMPFF, provided that nothing contained in this
Agreement shall require the Advisor to disclose what it deems to be proprietary or confidential information in its reasonable discretion. 

(f) Request for Information. The Advisor agrees to provide KMPFF with any reasonable information concerning the
Advisor that KMPFF may reasonably request (other than the identity of its customers or proprietary or confidential information concerning the Trading Approach), subject to receipt of adequate assurances of confidentiality by KMPFF, including, but
not limited to, information regarding any change in control, key personnel, Trading Approach and financial condition which KMPFF reasonably deems to be material to KMPFF; the Advisor also shall notify KMPFF of any such matters the Advisor, in its
reasonable judgment, believes may be material to KMPFF relating to the Advisor and its Trading Approach. During the term of this Agreement, the Advisor agrees to provide KMPFF with updated monthly information related to the Advisor’s
performance results within a reasonable period of time after the end of the month to which it relates. 
 (g)
Notice of Errors. The Advisor is responsible for promptly reviewing all oral and written confirmations it receives to determine that the Commodities trades were made in accordance with the Advisor’s instructions. If the Advisor
determines that an error was made in connection with a trade or that a trade was made other than in accordance with the Advisor’s instructions, the Advisor shall promptly notify KMPFF of this fact and shall utilize its reasonable efforts to
cause the error or discrepancy to be corrected. 
 (h) Liability. Neither the Advisor nor any employee,
partner or officer of the Advisor, nor any person who controls the Advisor, shall be liable to KMPFF, its Managing Member, officers, directors, shareholders, members, or employees, or any person who controls KMPFF, or any of their respective
successors or assignees under this Agreement, except by reason of acts or omissions in material breach of this Agreement or due to their willful misconduct or gross negligence or by reason of their not having acted in good faith in the reasonable
belief that such actions or omissions were in, or not opposed to, the best interests of KMPFF and its Members; it being understood that the Advisor makes no guarantee of profit nor guarantee against loss, and that all purchases and sales of
Commodities shall be for the account and risk of KMPFF, and the Advisor shall incur no liability for trading profits or losses resulting therefrom provided the Advisor would not otherwise be liable to KMPFF under the terms hereof. 

(i) Initial Allocation, Additional Allocations, and Reallocations. Initially, the Allocated Assets will total an
amount allocated to the Advisor by the Managing Member. 
 (j) Additional Allocations and Reallocations.
Subject to Section 10(a) below, KMPFF may, on a monthly basis, as described in the Memorandum, (i) allocate additional assets to the Advisor, (ii) reallocate the Allocated Assets away from the Advisor to another commodity trading
advisor (an “Other Advisor”), (iii) reallocate assets to the Advisor from an Other Advisor or (iv) allocate additional capital with respect to KMPFF to an Other Advisor. 

(k) Delivery of Disclosure Document. The Advisor agrees to provide to the Managing Member with any amendment or
supplement to the Disclosure Document attached hereto as Exhibit C (an “Update”) as soon as such Update is available for distribution following the filing of such update in final form with the NFA. 

 

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 2. Indemnification. 

(a) The Advisor. Subject to the provisions of Section 3 of this Agreement, the Advisor, each partner, officer
and employee of the Advisor, and each person who controls the Advisor, shall be indemnified, defended, and held harmless by KMPFF from and against any and all claims, losses, judgments, liabilities, damages, costs, expenses (including, without
limitation, reasonable investigatory and attorneys’ fees and expenses) and amounts paid in settlement of any claims in compliance with the conditions specified below (collectively, “Losses”) sustained by any of them (i) in
connection with any acts or omissions of KMPFF or the Managing Member ,or any of its partners, officers or employees constituting negligence or willful misconduct in connection with this Agreement, (ii) as a result of a material breach of this
Agreement by KMPFF or the Managing Member, provided that, (1) such Losses were not the result of negligence, misconduct or a material breach of this Agreement on the part of the Advisor, any of its partners, officers or employees or any
person controlling the Advisor, (2) the Advisor, and its partners, officers, employees, and each person controlling the Advisor, acted or omitted to act in good faith and in a manner reasonably believed by such person to be in or not opposed to
the best interests of KMPFF , and provided further, that no indemnification shall be permitted under this Section 2 for amounts paid in settlement if either (A) the Advisor fails to notify KMPFF of the terms of any settlement
proposed, at least fifteen (15) days before any amounts are paid, or (B) KMPFF does not approve the amount of the settlement within fifteen (15) days (such approval not to be withheld unreasonably). Notwithstanding the foregoing,
KMPFF shall, at all times, have the right to offer to settle any matter with the approval of the Advisor (which approval shall not be withheld unreasonably) and if KMPFF successfully negotiates a settlement and tenders payment therefore to the party
claiming indemnification (the “Indemnitee”) the Indemnitee must either use its reasonable efforts to dispose of the matter in accordance with the terms and conditions of the proposed settlement or the Indemnitee may refuse to settle
the matter and continue its defense in which latter event the maximum liability of KMPFF to the Indemnitee shall be the amount of said proposed settlement. Any indemnification by KMPFF under this Section 2, unless ordered by a court, shall be
made only as authorized in the specific case by KMPFF. 
 (b) The Managing Member and KMPFF. KMPFF and the
Managing Member, and each partner, officer and employee of the Managing Member, and each person who controls the Managing Member, shall be indemnified, defended, and held harmless by the Advisor, from and against any and all Losses sustained by
KMPFF or the Managing Member (i) in connection with any acts or omissions of the Advisor, or any of its partners, officers or employees relating to its management of the Allocated Assets constituting negligence or willful misconduct, including
in connection with this Agreement or otherwise as a result of the Advisor’s performance of services on behalf of KMPFF or its role as trading advisor to the Allocated Assets, (ii) as a result of a material breach of this Agreement by the
Advisor, or (iii) a breach of the disclosure requirements of the CE Act that relate to the Advisor’s past performance history, provided that, (1) such Losses were not the result of negligence, misconduct or a material breach of
this Agreement on the part of KMPFF, the Managing Member or any of its partners, officers or employees or any person controlling the Managing Member, and (ii) KMPFF, the Managing Member and its partners, officers, employees, and each person
controlling the Managing Member, acted or omitted to act in good faith and in a manner reasonably believed by such person to be in or not opposed to the best interests of the Advisor, and provided further, that no indemnification shall
be permitted under this Section 2 for amounts paid in settlement if either (A) the Managing Member fails to notify the Advisor of the terms of any settlement proposed, at least fifteen (15) days before any amounts are paid, or
(B) the Advisor does not approve the amount of the settlement within fifteen (15) days (such approval not to be withheld unreasonably). Notwithstanding the foregoing, the Advisor shall, at all times, have the right to offer to settle any
matter with the approval of the Managing Member (which approval shall not be 
  

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withheld unreasonably) and if the Advisor successfully negotiates a settlement and tenders payment therefore to the Indemnitee, the Indemnitee must either use its reasonable efforts to dispose of
the matter in accordance with the terms and conditions of the proposed settlement or the Indemnitee may refuse to settle the matter and continue its defense in which latter event the maximum liability of the Advisor to the Indemnitee shall be the
amount of said proposed settlement. 
 (c) Default Judgments and Confessions of Judgment. None of the
foregoing provisions for indemnification shall be applicable with respect to default judgments or confessions of judgment entered into by the Indemnitee, with its knowledge, without the prior consent of KMPFF. 

(d) Procedure. In the event that an Indemnitee under this Section 2 is made a party to an action, suit or
proceeding alleging both matters for which indemnification can be made hereunder and matters for which indemnification may not be made hereunder, such Indemnitee shall be indemnified only for that portion of the Losses incurred in such action, suit
or proceeding which relates to the matters for which indemnification can be made. 
 (e) Expenses.
Expenses incurred in defending a threatened or pending civil, administrative or criminal action, suit or proceeding against an Indemnitee shall be paid by KMPFF in advance of the final disposition of such action, suit or proceeding if (i) the
legal action, suit or proceeding, if sustained, would entitle the Indemnitee to indemnification pursuant to the terms of this Section 2, and (ii) the Advisor undertakes to repay the advanced funds to KMPFF in cases in which the Indemnitee
is not entitled to indemnification pursuant to this Section 2, and (iii) in the case of advancement of expenses , the Indemnitee is not likely not to be entitled to indemnification hereunder. 

3. Limits on Claims. 

(a) Prohibited Acts. The Advisor agrees that it will not take any of the following actions against KMPFF:
(i) seek a decree or order by a court having jurisdiction in the premises (A) for relief in respect of KMPFF in an involuntary case or proceeding under the Federal Bankruptcy Code or any other federal or state bankruptcy, insolvency,
reorganization, rehabilitation, liquidation or similar law or (B) adjudging KMPFF a bankrupt or insolvent, or seeking reorganization, rehabilitation, liquidation, arrangement, adjustment or composition of or in respect of KMPFF under the
Federal Bankruptcy Code or any other applicable federal or state law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of KMPFF or of any substantial part of any of its properties, or
ordering the winding up or liquidation of any of its affairs, (ii) seek a petition for relief, reorganization or to take advantage of any law referred to in the preceding clause or (iii) file an involuntary petition for bankruptcy
(collectively, “Bankruptcy or Insolvency Action”). 
 (b) No Member Liability. This
Agreement has been made and executed by and on behalf of KMPFF for the benefit of KMPFF and the obligations of KMPFF set forth herein are not binding upon any of the Members individually, but are binding only upon the assets and property identified
above and no resort shall be had to the Member’s personal property for the satisfaction of any obligation or claim hereunder. 

4. Obligations of KMPFF, the Managing Member and the Advisor. 

(a) The Memorandum. Each of KMPFF and the Managing Member agrees to cooperate and use its good faith and reasonable
efforts in connection with (i) the preparation by KMPFF of the Memorandum (and any amendments or supplements thereto), (ii) the filing of all documents (and any amendments or supplements thereto) with such governmental and self-regulatory
authorities as the Managing Member deems appropriate for the sale of limited liability company interests in KMPFF (the 

 

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“Interests”) and the taking of such other actions not inconsistent with this Agreement as the Managing Member may determine to be necessary or advisable in order to make the
proposed offer and sale of Interests lawful in any jurisdiction, and (iii) the taking of such other actions as the Managing Member may reasonably determine to be necessary or advisable in order to comply with any other legal or regulatory
requirements applicable to KMPFF. The Advisor agrees to make all required disclosures regarding itself, its officers and principals, trading performance, Trading Approach, customer accounts (other than the names of customers, unless such disclosure
is required by law or regulation) and otherwise as may be required, in the reasonable judgment of counsel to the Managing Member, to be made in the Memorandum and in applications to any such jurisdictions by reason of any law or regulation
applicable to KMPFF. Except as required by applicable law or regulations, no description of, or other information relating to, the Advisor may be distributed by the Managing Member without the prior written consent of the Advisor, which consent
shall not be unreasonably withheld or delayed; provided that distribution of performance information relating to KMPFF’s account shall not require consent of the Advisor. 

(b) Advisor Not A Promoter. The parties acknowledge that the Advisor has not been, either alone or in conjunction
with the Managing Member or its affiliates, an organizer or promoter of KMPFF, and it is not intended by the parties that the Advisor shall have any liability as such. 

5. Advisor Independence. 

(a) Independent Contractor. The Advisor shall for all purposes herein be deemed to be an independent contractor
with respect to KMPFF, the Managing Member and its affiliates and each other commodity trading advisor that may in the future provide commodity trading advisory services to KMPFF and the Managing Member and its affiliates, and shall, unless
otherwise expressly authorized, have no authority to act for or to represent KMPFF, the Managing Member and its affiliates, any other commodity trading advisor or the Selling Agent in any way or otherwise be deemed to be a general agent, joint
venturer or partner of KMPFF, the Managing Member and its affiliates or any other commodity trading advisor, or in any way be responsible for the acts or omissions of KMPFF, the Managing Member and its affiliates or any other commodity trading
advisor as long as it is acting independently of such persons. 
 (b) Purchase of Interests. Any of the
Advisor, its principals and employees may, in its discretion, purchase Interests in KMPFF. 
 (c)
Confidentiality. KMPFF and the Managing Member acknowledge that the Trading Approach of the Advisor is the confidential property of the Advisor. Nothing in this Agreement shall require the Advisor to disclose the confidential or proprietary
details of its Trading Approach. KMPFF and the Managing Member further agree that they will keep confidential and will not disseminate the Advisor’s trading advice to KMPFF, except as, and to the extent that, it may be determined by KMPFF to be
(i) necessary for the monitoring or conduct of the business of KMPFF, including the performance of brokerage services by KMPFF’s commodity broker(s), or (ii) expressly required by law or regulation. 

6. Commodity Broker. 

All Commodities traded for the account of KMPFF shall be made through such commodity broker or brokers or counterparty or
counterparties as KMPFF directs or otherwise in accordance with such order execution procedures as are agreed upon between the Advisor and KMPFF. Except as set forth below, the Advisor shall not have any authority or responsibility in selecting or
supervising any floor broker or counterparty for execution of Commodities trades of KMPFF or for negotiating floor brokerage commission rates or other compensation to be charged therefore. The Advisor

  

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shall not be responsible for determining that any such broker or counterparty used in connection with any Commodities transactions meets the financial requirements or standards imposed by
KMPFF’s Trading Policies and Limitations. At the present time it is contemplated that KMPFF will clear all Commodities trades through UBS Securities LLC or its affiliates, and it is contemplated that KMPFF will execute (but not clear) all
foreign currency forwards through its facility with Bank of America, N.A. (and the Advisor will have Bank of America, N.A. enter into appropriate “give-in” arrangements with UBS Securities LLC or its affiliates). The Advisor may, however,
with the consent of KMPFF, such consent not to be unreasonably withheld, execute transactions at such other firm(s), and upon such terms and conditions, as the Advisor and KMPFF agree if such firm(s) agree to “give up” all such
transactions to UBS Securities LLC for clearance. To the extent that KMPFF determines to utilize a broker or counterparty other than UBS Securities LLC or its affiliates, KMPFF will consult with the Advisor prior to directing it to utilize such
broker or counterparty, and will not retain the services of such firm(s) over the reasonable objection of the Advisor. 
 7.
Fees. 
 In consideration of and in compensation for the performance of the Advisor’s services
under this Agreement, the Advisor shall receive from KMPFF a monthly management fee (the “Management Fee”) and a quarterly incentive fee (the “Incentive Fee”) based on the Allocated Assets, which in all events shall
be unaffected by the performance of any other trading advisor, as follows: 
 (a) A
Management Fee equal to 1/12th of 2% (2% per annum) of the
Allocated Assets determined as of the close of business on the last day of each month. In the event that the Managing Member and the Advisor agree that the Trading Approach should be modified to alter the agreed upon trading level of 1.5:1, an
appropriate adjustment in the monthly Management Fee will be made to reflect the revised leverage. For purposes of determining the Management Fee, any distributions, redemptions, or reallocation of the Allocated Assets made as of the last day of a
month shall be added back to the Allocated Assets and there shall be no reduction for (i) the monthly Management Fees being calculated, (ii) any accrued but unpaid Incentive Fees due to the Advisor under paragraph (b) below for the
quarter in which such fees are being computed, or (iii) any accrued but unpaid extraordinary expenses (as defined in KMPFF’s Amended and Restated Limited Liability Company Agreement, as the same may be amended from time to time (the
“LLC Operating Agreement”)). The Management Fee determined for any month in which an Advisor manages the Allocated Assets for less than a full month shall be pro rated, such proration to be calculated on the basis of the number of
days in the month the Allocated Assets were under the Advisor’s management as compared to the total number of days in such month, with such proration to include appropriate adjustments for any funds taken away from the Advisor’s management
during the month for reasons other than distributions or redemptions. 
 (b) An Incentive Fee of 22% (the
“Incentive Fee”) of “New High Net Trading Profits” (as hereinafter defined) generated on the Allocated Assets, including realized and unrealized gains and losses thereon, as of the close of business on the last day
of each calendar quarter (the “Incentive Measurement Date”). For purposes of computing the Net Asset Value of the Allocated Assets only, the Incentive Fee will be accrued monthly. 

New High Net Trading Profits (for purposes of calculating the Advisor’s Incentive Fee only) will be computed as of
the Incentive Measurement Date and will include such profits (as outlined below) since the immediately preceding Incentive Measurement Date (each an “Incentive Measurement Period”). 

 

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 New High Net Trading Profits for any Incentive Measurement Period will be
the net profits, if any, from trading the Allocated Assets during such period (including (i) realized trading profit (loss) plus or minus (ii) the change in unrealized trading profit (loss) on open positions) and will be calculated after
the determination of (reduction for) the fees charged to KMPFF for brokerage commissions attributable to the Allocated Assets, KMPFF’s transaction fees and costs attributable to the Allocated Assets (including without limitation exchange fees
and NFA fees), the Advisor’s Management Fee, the operating expenses for which the Allocated Assets are responsible, and any extraordinary expenses (e.g., litigation, costs or damages) paid during an Incentive Measurement Period which are
specifically related to the Advisor, but before deduction of any Incentive Fees payable during the Incentive Measurement Period. New High Net Trading Profits will not include interest earned or credited on the Allocated Assets. New High Net Trading
Profits will be generated only to the extent that the Advisor’s cumulative New High Net Trading Profits exceed the highest level of cumulative New High Net Trading Profits achieved by the Advisor as of a previous Incentive Measurement Date.
Except as set forth below, net losses from prior quarters (including any cumulative net losses as of the close of business on June 30, 2010 with respect to World Monitor Trust II – Series E (“Series E”) which the Advisor
was required to recoup under the Trading Advisor Agreement dated September 17, 1999 as amended March 1, 2009 among Series E, Preferred Investment Solutions Corp. and the Advisor (the “Series E Agreement”) must be recouped
before New High Net Trading Profits can again be generated. If a withdrawal or distribution occurs or if this Agreement is terminated at any date that is not an Incentive Measurement Date, the date of the withdrawal or distribution or termination
will be treated as if it were an Incentive Measurement Date, but any Incentive Fee accrued in respect of the withdrawn assets on such date shall not be paid to the Advisor until the next scheduled Incentive Measurement Date. New High Net Trading
Profits for an Incentive Measurement Period shall exclude capital contributions to the Allocated Assets in an Incentive Measurement Period, distributions or redemptions paid or payable from the Allocated Assets during an Incentive Measurement
Period, as well as losses, if any, associated with redemptions, distributions, and reallocations of assets during the Incentive Measurement Period and prior to the Incentive Measurement Date (i.e., to the extent that assets are allocated away from
the Advisor (through redemptions, distributions or allocations caused by KMPFF), any loss carryforward attributable to the Advisor shall be reduced in the same proportion that the value of the assets allocated away from the Advisor comprises the
value of the Allocated Assets prior to such allocation away from the Advisor. In calculating New High Net Trading Profits, incentive fees paid for a previous Incentive Measurement Period will not reduce cumulative New High Net Trading Profits in
subsequent periods. 
 Any net gains that have accumulated since the most recent Incentive Measurement Date under
the Series E Agreement shall be carried forward to the next Incentive Measurement Date commencing with this Agreement. 

Notwithstanding the foregoing, the Advisor acknowledges and agrees that 

(c) Timing of Payment. Management Fees and Incentive Fees shall be paid generally within fifteen (15) business
days following the end of the period for which they are payable. Given that the Trading Advisor has been trading Series E assets under the Series E Agreement prior to the execution of this Agreement, the first incentive fee which may be due and
owing to the Advisor in respect of any New High Net Trading Profits will be due and owing as of the end of the first calendar quarter during which the Trading Advisor began managing the Allocated Assets under this Agreement. If an Incentive Fee
shall have been paid by KMPFF to the Advisor in respect of any calendar quarter and the Advisor shall incur subsequent losses on the Allocated Assets the Advisor shall nevertheless be entitled to retain amounts previously paid to it in respect of
New High Net Trading Profits. 
 (d) Fee Data. KMPFF will provide the Advisor with the data used by KMPFF
to compute the foregoing fees generally within fifteen (15) business days of the end of the relevant period. The Advisor shall be free to contest the calculations if in its reasonable judgment they are inaccurate. 

 

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 (e) Third Party Payments. Neither the Advisor, nor any of its
officers, directors, employees or stockholders, shall receive any commissions, compensation, remuneration or payments whatsoever from any broker with which KMPFF carries an account for transactions executed in KMPFF’s account. The parties
acknowledge that a spouse of any of the foregoing persons may receive floor brokerage commissions in respect of trades effected pursuant to the Advisor’s Trading Approach on behalf of KMPFF, which payment shall not violate the preceding
sentence. 
 8. Term and Termination. 

(a) Term. This Agreement shall commence on the date hereof and, unless sooner terminated pursuant to paragraphs
(b), (c) or (d) of this Section 8, shall continue in effect until the close of business on the last day of the month ending twelve (12) full months following the date hereof. Thereafter, unless this Agreement is terminated
pursuant to paragraphs (b), (c) or (d) of this Section 8, this Agreement shall be renewed automatically on the same terms and conditions set forth herein for successive additional twelve-month terms, each of which shall commence on
the first day of the month subsequent to the conclusion of the preceding term. Subject to Section 8(d)(iv) hereof, the automatic renewal(s) set forth in the preceding sentence hereof shall not be affected by (i) any allocation of the
Allocated Assets away from the Advisor pursuant to this Agreement, or (ii) the retention of Other Advisors following a reallocation, or otherwise. 

(b) Automatic Termination. This Agreement shall terminate automatically in the event that KMPFF or KMPFF is
terminated. In addition, this Agreement shall terminate automatically in the event that the Allocated Assets decline as of the end of any business day by at least 40% from the Allocated Assets (i) as of the date hereof, or (ii) as of the
first day of any calendar year, as adjusted in each instance on an ongoing basis by (A) any decline(s) in the Allocated Assets caused by distributions, redemptions, reallocations, and withdrawals, and (B) additions to the Allocated Assets
caused by additional allocations. 
 (c) Optional Termination Right of KMPFF. This Agreement may be
terminated at any time at the election of KMPFF in its sole discretion upon at least thirty (30) days’ prior written notice to the Advisor. This Agreement also may be terminated at the election of KMPFF upon prior written notice to the
Advisor in the event that: (i) KMPFF determines in good faith that the Advisor is unable to use its agreed upon Trading Approach to any material extent, as such Trading Approach may be refined or modified in the future in accordance with the
terms of this Agreement for the benefit of KMPFF; (ii) the Advisor’s registration as a commodity trading advisor under the CE Act or membership as a commodity trading advisor with the NFA is revoked, suspended, terminated or not renewed;
(iii) KMPFF determines in good faith that the Advisor has failed to conform, and after receipt of written notice, continues to fail to conform in any material respect, to (A) any of KMPFF’s Trading Policies and Limitations, or
(B) the Advisor’s Trading Approach; (iv) there is an unauthorized assignment of this Agreement by the Advisor; (v) the Advisor dissolves, merges or consolidates with another entity, sells or transfers a substantial portion of its
assets or its business goodwill, or sells or transfers any portion of its Trading Approach utilized with respect to the KMPFF, in each instance without the consent of KMPFF; (vi) Kenneth G. Tropin is not in control of the Advisor’s trading
activities for KMPFF; (vii) the Advisor becomes bankrupt (admitted or decreed) or insolvent; (viii) there is a material breach of this Agreement by the Advisor and after giving written notice to the Advisor which identifies such breach,
such material breach has not been cured within ten (10) days following receipt of such notice by the Advisor; or (ix) for any other reason if KMPFF determines in good faith that such termination is essential for the protection of KMPFF,
including without limitation a good faith determination by KMPFF that the Advisor has breached a material obligation to KMPFF under this Agreement relating to the trading of the Allocated Assets. 

 

 9 

 (d) Optional Termination Right of Advisor. The Advisor shall have the
right to terminate this Agreement at any time upon prior written notice to KMPFF, in the event: (i) of the receipt by the Advisor of an opinion of independent counsel satisfactory to the Advisor and KMPFF that by reason of the Advisor’s
activities with respect to KMPFF it is required to register as an investment adviser under the Investment Advisers Act of 1940 and it is not so registered; (ii) that the registration of the Managing Member as a commodity pool operator under the
CE Act or its NFA membership as a commodity pool operator is revoked, suspended, terminated or not renewed; (iii) that KMPFF (A) imposes additional trading limitation(s) pursuant to Section 1 of this Agreement which the Advisor does
not agree to follow in its management of the Allocated Assets or (B) overrides trading instructions of the Advisor; (iv) the amount of the Allocated Assets decreases to less than $10 million as the result of redemptions,
distributions, reallocations of Allocated Assets or deleveraging initiated by KMPFF, but not trading losses, as of the close of business on any Friday; (v) KMPFF elects (pursuant to Section 1 of this Agreement) to have the Advisor use a
different Trading Approach in the Advisor’s management of the Allocated Assets from that which the Advisor is then using to manage such assets and the Advisor objects to using such different Trading Approach; (vi) there is an unauthorized
assignment of this Agreement by KMPFF; (vii) there is a material breach of this Agreement by KMPFF or the Managing Member and after giving written notice to KMPFF or the Managing Member (as the case may be) which identifies such breach, such
material breach has not been cured within ten (10) days following receipt of such notice by KMPFF; or Managing Member (as the case may be); (viii) the Advisor provides KMPFF with at least ninety (90) days written notice of the
Advisor’s desire and intention to terminate this Agreement; or (ix) other good cause is shown and the written consent of KMPFF is obtained (which shall not be withheld or delayed unreasonably). 

(e) Termination Fees. In the event that this Agreement is terminated with respect to, or by, the Advisor pursuant
to this Section 8 or KMPFF allocates its assets to Other Advisors, the Advisor shall be entitled to, and KMPFF shall pay, the Management Fee and the Incentive Fee, if any, which shall be computed (i) with respect to the Management Fee, on
a pro rata basis, based upon the portion of the month for which the Advisor had the Allocated Assets under management, and (ii) with respect to the Incentive Fee, if any, as if the effective date of termination was the last day of the then
current calendar quarter. The rights of the Advisor to fees earned through the earlier to occur of the date of expiration or termination shall survive this Agreement until satisfied. 

(f) Termination and Open Positions. Once terminated, the Advisor shall have no responsibility for existing
positions, including delivery issues, if any, which may result from such positions. 
 9. Liquidation of Positions.

 The Advisor agrees to liquidate open positions in the amount that KMPFF informs the Advisor, in writing
via facsimile or other equivalent means, that KMPFF considers necessary or advisable to liquidate in order to (i) effect any termination or reallocation pursuant to Sections 1 or 8, respectively, or (ii) fund its pro rata share of any
redemption, distribution or KMPFF expense. KMPFF shall not, however, have authority to instruct the Advisor as to which specific open positions to liquidate, except as provided in Section 1 hereof. KMPFF shall provide the Advisor with such
reasonable prior notice of such liquidation as is practicable under the circumstances and will endeavor to provide at least one day prior notice. 
  

 10 

 10. Other Accounts of the Advisor. 

(a) Management of Other Accounts and Trading Proprietary Capital. Subject to paragraph (c) of this
Section 10, the Advisor shall be free to (i) manage and trade accounts for other investors (including other public and private commodity pools), and (ii) trade for its own account, and for the accounts of its partners, shareholders,
directors, officers and employees, as applicable, using the same or other information and Trading Approach utilized in the performance of services for KMPFF, so long as in the Advisor’s reasonable judgment the aggregate amount of capital being
managed or traded by the Adviser does not (A) materially impair the Advisor’s ability to carry out its obligations and duties to KMPFF pursuant to this Agreement, or (B) create a reasonable likelihood of the Advisor having to modify
materially its agreed upon Trading Approach being used for KMPFF in a manner which might reasonably be expected to have a material adverse effect on KMPFF. The aggregate amount of capital referred to in the preceding sentence hereinafter shall be
called “Advisor’s Capacity,” and currently is estimated by the Advisor to be an additional $2 billion beyond the amount presently invested in its quantitative strategies or in the future such different amount or amounts as the
Advisor may, in its judgment, believe it can trade. 
 (b) Equitable Treatment of Accounts. The Advisor
agrees, in its management of accounts other than the account of KMPFF pursuant to the Trading Approach being used by KMPFF, that it will not knowingly or deliberately favor any other account managed or controlled by it or any of its principals or
affiliates (in whole or in part) over KMPFF. The preceding sentence shall not be interpreted to preclude (i) the Advisor from charging another client fees which differ from the fees to be paid to it hereunder, or (ii) an adjustment by the
Advisor in the implementation of any agreed upon Trading Approach in accordance with the procedures set forth in Section 1 hereof which is undertaken by the Advisor in good faith in order to accommodate additional accounts. Notwithstanding the
foregoing, the Advisor also shall not be deemed to be favoring another commodity interest account over KMPFF’s account if the Advisor, in accordance with specific instructions of the owner of such account, shall trade such account at a degree
of leverage or in accordance with trading policies which shall be different from that which would normally be applied or if the Advisor, in accordance with the Advisor’s money management principles, shall not trade certain commodity interest
contracts for an account based on the amount of equity in such account. The Advisor, upon reasonable request and receipt of adequate assurances of confidentiality, shall provide KMPFF with an explanation of the differences, if any, in performance
between KMPFF and any other similar account pursuant to the same Trading Approach for which the Advisor or any of its principals or affiliates acts as a commodity trading advisor (in whole or in part), provided, however, that the Advisor may, in its
discretion, withhold from any such inspection the identity of the client for whom any such account is maintained. 

(c) Inspection of Records. Upon the reasonable request of, and upon reasonable notice from, KMPFF or the Managing
Member, the Advisor shall permit KMPFF or the Managing Member to review at the Advisor’s offices, in each case at its own expense, during normal business hours such trading records as it reasonably may request for the purpose of confirming that
KMPFF has been treated equitably with respect to advice rendered during the term of this Agreement by the Advisor for other accounts managed by the Advisor, which the parties acknowledge to mean that KMPFF or the Managing Member may inspect, subject
to such restrictions as the Advisor may reasonably deem necessary or advisable so as to preserve the confidentiality of proprietary information and the identity of its clients, all trading records of the Advisor as it reasonably may request during
normal business hours. The Advisor may, in its discretion, withhold from any such report or inspection the identity of the client for whom any such account is maintained and in any event, KMPFF or the Managing Member (as applicable) shall keep all
such information obtained by them from the Advisor confidential unless disclosure thereof legally is required or has been made public. Such right will terminate one year after the termination of this Agreement and does not permit access to computer
programs, records, or other information used in determining trading decisions. 
  

 11 

 11. Speculative Position Limits. 

If, at any time during the term of this Agreement, it appears to the Advisor that it may be required to aggregate
KMPFF’s Commodities positions with the positions of any other accounts it owns or controls for purposes of applying the speculative position limits of the CFTC, any exchange, self-regulatory body, or governmental authority, the Advisor promptly
will notify KMPFF if KMPFF’s positions under its management are included in an aggregate amount which equals or exceeds the applicable speculative limit. The Advisor agrees that, if its trading recommendations pursuant to its agreed upon
Trading Approach are altered because of the potential application of speculative position limits, the Advisor will modify its trading instructions to KMPFF and its other accounts in a good faith effort to achieve an equitable treatment of all
accounts; to wit, the Advisor will liquidate Commodities positions and/or limit the taking of new positions in all accounts it manages, including KMPFF, as nearly as possible in proportion to the assets available for trading of the respective
accounts (including “notional” equity) to the extent necessary to comply with applicable speculative position limits. The Advisor presently believes that its Trading Approach for the management of KMPFF’s account can be implemented
for the benefit of KMPFF notwithstanding the possibility that, from time to time, speculative position limits may become applicable. 

12. Redemptions, Distributions. Reallocations and Additional Allocations. 

(a) Notice. KMPFF agrees to give the Advisor at least one (1) business day prior notice of any proposed
redemptions, exchanges, distributions, reallocations, additional allocations, or withdrawals affecting the Allocated Assets. 

(b) Allocations. Redemptions, exchanges, withdrawals, and distributions of Interests shall be charged against the
Allocated Assets. 
 13. Brokerage Confirmations and Reports. 

KMPFF will instruct its brokers and counterparties to furnish the Advisor with copies of all trade confirmations, daily
equity runs, and monthly trading statements relating to the Allocated Assets. The Advisor will maintain records and will monitor all open positions relating thereto; provided, however, that the Advisor shall not be responsible for any
errors by KMPFF’s brokers or counterparties. KMPFF also will furnish the Advisor with a copy of the form of all reports, including but not limited to, monthly, quarterly and annual reports, sent to the Members and copies of all reports filed
with the CFTC and the NFA. The Advisor shall, at KMPFF’s request, make a good faith effort to provide KMPFF with copies of all trade confirmations, daily equity runs, monthly trading reports or other reports sent to the Advisor by KMPFF’s
commodity broker regarding KMPFF, and in the Advisor’s possession or control, as KMPFF deems appropriate if KMPFF cannot obtain such copies on its own behalf. Upon request, KMPFF will provide the Advisor with accurate information with respect
to the Allocated Assets. 
 14. The Advisor’s Representations and Warranties. 

The Advisor represents and warrants that: 

(a) it has full capacity and authority to enter into this Agreement, and to provide the services required of it hereunder;

 (b) it will not by entering into this Agreement and by acting as a commodity trading advisor to KMPFF,
(i) be required to take any action contrary to its incorporating or other formation documents or, to the best of its knowledge, any applicable statute, law or regulation of any jurisdiction or

  

 12 

 
(ii) breach or cause to be breached, to the best of its knowledge, any undertaking, agreement, contract statute, rule or regulation to which it is a party or by which it is bound which, in
the case of (i) or (ii), would materially limit or materially adversely affect its ability to perform its duties under this Agreement; 

(c) it is duly registered as a commodity trading advisor under the CE Act and is a member of the NFA as a commodity
trading advisor and it will maintain and renew such registration and membership during the term of this Agreement; 

(d) a copy of its most recent Commodity Trading Advisor Disclosure Document as required by Part 4 of the CFTC’s
regulations has been provided to KMPFF in the form of Exhibit C hereto (and KMPFF acknowledges receipt of such Disclosure Document) and, except as disclosed in such Disclosure Document, all information in such Disclosure Document (including, but not
limited to, background, performance, trading methods and trading systems) is true, complete and accurate in all material respects and is in conformity in all material respects with the provisions of the CE Act including the rules and regulations
thereunder, as well as all rules and regulations of the National Futures Association; 
 (e) neither the Advisor,
nor its stockholders, directors, officers, employees, agents, principals, affiliates, nor any of its or their respective successors or assigns: (i) shall knowingly use or distribute for any purpose whatsoever any list containing the names
and/or residence addresses of, and/or other information about, the Members; nor (ii) shall solicit any person it or they know is a Member for the purpose of soliciting commodity business from such Member, unless such Member shall have first
contacted the Advisor or is already a client of the Advisor or a prospective client with which the Advisor has commenced discussions or is introduced to or referred to the Advisor by an unaffiliated agent other than in violation of clause (i).

 (f) All references in the Memorandum as of the date of this Agreement to (i) the Advisor and its
affiliates and the controlling persons, shareholders, directors, officers and employees of any of the foregoing and (ii) the Advisor’s Trading Approach (as defined in the Advisory Agreement) are complete and accurate in all material
respects, and as to such persons, the Advisor’s Trading Approach and the Advisor’s Past Performance History, the Memorandum contain all information required to be included therein by the CE Act, and the regulations (including
interpretations thereof) thereunder, and the rules and regulations of the NFA and do 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 in which they were made, not misleading. The term “principal” in this Agreement shall have the same meaning as that term in CFTC Regulation § 4.10(e) under the CE Act. 

(g) The Advisor has all governmental and regulatory licenses, registrations and approvals required by law as may be
necessary to perform its obligations under this Agreement and to act as described in the Memorandum as of the date of this Agreement including, without limitation, registration as a commodity trading advisor under the CE Act and membership as a
commodity trading advisor with the NFA and it will maintain and renew any required licenses, registrations, approvals or memberships during the term of this Agreement. 

(h) On the date hereof the Advisor is, and at all times during the term of this Agreement will be, a corporation duly
formed and validly existing and in good standing under the laws of its jurisdiction of incorporation and in good standing and qualified to do business in each jurisdiction in which the nature or conduct of its business requires such qualifications
and the failure to be so qualified would materially adversely affect the Advisor’s ability to perform its obligations hereunder or under this Agreement. The Advisor has full capacity and authority to conduct its business and to perform its
obligations under this Agreement, and to act as described in the Memorandum. 
  

 13 

 (i) There (i) has not been any material adverse change in the
condition, financial or otherwise, of the Advisor or in the earnings, affairs or business prospects of the Advisor, whether or not arising in the ordinary course of business, and (ii) have not been any material transactions entered into by the
Advisor other than those in the ordinary course of its business. 
 (j) Except as disclosed in the Memorandum,
there is no pending, or to the best of its knowledge, threatened or contemplated action, suit or proceeding before or by any court, governmental, administrative or self-regulatory body or arbitration panel to which the Advisor or its principals is a
party, or to which any of the assets of the Advisor is subject which reasonably might be expected to result in any material adverse change in the condition (financial or otherwise), business or prospects of the Advisor or which reasonably might be
expected to materially adversely affect any of the material assets of the Advisor or which reasonably might be expected to (A) impair materially the Advisor’s ability to discharge its obligations to KMPFF or (B) result in a matter
which would require disclosure in the Memorandum; furthermore, the Advisor has not received any notice of an investigation by (i) the NFA regarding non-compliance with its rules or the CE Act, (ii) the CFTC regarding non-compliance with
the CE Act, or the rules and regulations thereunder, (iii) any exchange regarding non-compliance with the rules of such exchange, or (iv) the Securities and Exchange Commission or any state securities commission, which investigation
reasonably might be expected to materially impair the Advisor’s ability to discharge its obligations under this Agreement or the Advisory Agreement. 

The within representations and warranties shall be continuing during the term of this Agreement, and, if at any time, any
event has occurred which would make or tend to make any of the foregoing not true in any material respect with respect to the Advisor, the Advisor promptly will notify KMPFF in writing thereof. 

15. The Managing Member’s and KMPFF’s Representations and Warranties. 

Each of the Managing Member and KMPFF represents and warrants only as to itself (and, further, provided that only the
Managing Member is making the representations and warranties in Section 15(c) and Section 15(e)(ii), and only KMPFF is making the representations and warranties in Section 15(e)(i)) that: 

(a) each has the full capacity and authority to enter into this Agreement and to perform its obligations hereunder;

 (b) it will not (i) be required to take any action contrary to its incorporating or other formation
documents or any applicable statute, law or regulation of any jurisdiction or (ii) breach or cause to be breached (A) any undertaking, agreement, contract, statute, rule or regulation to which it is a party or by which it is bound or
(B) any order of any court or governmental or regulatory agency having jurisdiction over it, which in the case of (i) or (ii) would materially limit or materially adversely affect the performance of its duties under this Agreement;

 (c) it is registered as a commodity pool operator under the CE Act and is a commodity pool operator member of
the NFA, and it will maintain and renew such registration and membership during the term of this Agreement; 

(d) this Agreement has been duly and validly authorized, executed and delivered, and is a valid and binding agreement,
enforceable against each of them, in accordance with its terms; and 
  

 14 

 (e) on the date hereof, it is, and during the term of this Agreement, it
will be (i) in the case of KMPFF, in good standing under the laws of the State of Delaware, and in good standing and qualified to do business in each jurisdiction in which the nature and conduct of its business requires such qualification and
where the failure to be so qualified would materially adversely affect its ability to perform its obligations under this Agreement, and (ii) in the case of the Managing Member, a duly formed and validly existing corporation, in each case, in
good standing under the laws of the State of Delaware and in good standing and qualified to do business in each jurisdiction in which the nature and conduct of its business requires such qualification and where the failure to be so qualified would
materially adversely affect its ability to perform its obligations under this Agreement. 
 (f) On the date
hereof (i) KMPFF is, and at all times during the term of this Agreement will be, a duly formed and validly existing limited liability company in good standing under the laws of the State of Delaware, and is, and at all times during the term of
this Agreement will be, in good standing and qualified to do business in each jurisdiction in which the nature or conduct of its business requires such qualifications and in which the failure to be so qualified materially adversely would affect its
ability to perform its obligations under this Agreement and to operate as described in the Memorandum, and (ii) the Managing Member is, and at all times during the term of this Agreement will be, a duly formed and validly existing corporation
in good standing under the laws of the State of Delaware, and is, and at all times during the term of this Agreement will be, in good standing and qualified to do business as a foreign corporation in each other jurisdiction in which the nature or
conduct of its business requires such qualifications and in which the failure to be so qualified materially adversely would affect its ability to act as Managing Member of KMPFF and to perform its obligations hereunder and under this Agreement, and
each of KMPFF and the Managing Member has full capacity and authority to conduct its business and to perform its obligations under this Agreement, and to act as described in the Memorandum. 

(g) This Agreement has been duly and validly authorized, executed and delivered on behalf of KMPFF and the Managing
Member, is a valid and binding agreement of KMPFF and the Managing Member, and is enforceable in accordance with its terms. The performance of KMPFF’s and the Managing Member’s obligations under this Agreement and the consummation of the
transactions set forth in this Agreement and in the Memorandum are not contrary to the provisions of KMPFF’s LLC Operating Agreement or the Managing Member’s Articles of Incorporation or By-Laws, respectively, any applicable statute, law
or regulation of any jurisdiction and will not result in any violation, breach or default under any term or provision of any undertaking, contract, agreement or order, to which the Managing Member or KMPFF, is a party or by which the Managing Member
or KMPFF is bound. 
 (h) Each of the Managing Member and KMPFF (as the case may be) has obtained all required
governmental and regulatory licenses, registrations and approvals required by law as may be necessary to perform their obligations under this Agreement and to act as described in the Memorandum (including, without limitation, the Managing
Member’s registration as a commodity pool operator under the CE Act and membership as a commodity pool operator with the NFA) and will maintain and renew any required licenses, registrations, approvals and memberships required during the term
of this Agreement. 
 (i) The Memorandum contains all statements which are required to be made therein, conform
in all material respects with the requirements of the CE Act, and the rules and regulations of the CFTC, thereunder, and with the rules of the NFA and do 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 in which they are made, not misleading; and at all times subsequent hereto, the Memorandum will contain all statements required to be made therein and will
conform in all material respects with the requirements of the CE Act and the rules and regulations of the CFTC thereunder, and with the rules of the NFA and will not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein, in light of the circumstances in which they are made, not 
  

 15 

 
misleading; provided, however, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with information
furnished to the Managing Member, KMPFF by or on behalf of the Advisor for the express purpose of inclusion in the Memorandum, including, without limitation, references to the Advisor and its affiliates and controlling persons, shareholders,
directors, officers and employees, as well as to the Advisor’s Trading Approach provided such references have been approved by the Advisor in accordance with this Agreement. 

(j) There is no pending, or to its knowledge, threatened or contemplated action, suit or proceeding before any court or
arbitration panel or before or by any governmental, administrative or self-regulatory body to which KMPFF, the Managing Member or the principals of any is a party, or to which any of the assets of any of the foregoing persons is subject, which might
reasonably be expected to result in any material adverse change in their condition (financial or otherwise), business or prospects or reasonably might be expected to affect adversely in any material respect any of their assets or which reasonably
might be expected to materially impair their ability to discharge their obligations under this Agreement or under the Advisory Agreement; and neither KMPFF nor the Managing Member has received any notice of an investigation by (i) the NFA
regarding non-compliance with NFA rules or the CE Act, (ii) the CFTC regarding non-compliance with the CE Act or the rules and regulations thereunder, or (iii) any exchange regarding non-compliance with the rules of such exchange which
investigation reasonably might be expected to materially impair the ability of each of KMPFF and the Managing Member to discharge its obligations under this Agreement. 

The within representations and warranties shall be continuing during the term of this Agreement, and, if at any time, any
event has occurred which would make or tend to make any of the foregoing not true in any material respect, KMPFF in the case of its representations and warranties, and the Managing Member in the case of its representations and warranties, promptly
will notify the Advisor in writing. 
 16. Assignment. 

This Agreement may not be assigned by any of the parties hereto without the express prior written consent of the other
parties hereto, except that the Advisor need not obtain the consent of any Other Advisor. 
 17. Covenants of the
Advisor. 
 If, at any time during the term of this Agreement, the Advisor discovers any fact, omission,
event or that a change of circumstances has occurred, which would make the Advisor’s representations and warranties in Section 14 of this Agreement inaccurate or incomplete in any material respect, or which might reasonably be expected to
render the Memorandum, with respect to (i) the Advisor or its principals or (ii) the Advisor’s Trading Approach, untrue or misleading in any material respect, the Advisor will provide prompt written notification to KMPFF and the
Managing Member of any such fact, omission, event or change of circumstance, and the facts related thereto, and it is agreed that the failure to provide such notification or the failure to continue to be in compliance with the foregoing
representations and warranties during the term of this Agreement as soon as possible following such notification shall be cause for KMPFF to terminate this Agreement with the Advisor on prior written notice to the Advisor. 

 

 16 

 18. Covenants of KMPFF and the Managing Member. 

If, at any time during the term of this Agreement, the Managing Member or KMPFF discovers any fact, omission, or event or
that a change of circumstance has occurred which would make the Managing Member’s or KMPFF’s representations and warranties in Section 15 of this Agreement inaccurate or incomplete in any material respect, the Managing Member or
KMPFF, as appropriate, promptly will provide written notification to the Advisor of such fact, omission, event or change of circumstance and the facts related thereto. The Managing Member or KMPFF shall provide the Advisor with a copy of each
amendment or supplement to the Memorandum, and no amendment or supplement to the Memorandum which contains any statement or information regarding the Advisor will be filed or used unless the Advisor has received reasonable prior notice and a copy
thereof and has consented in writing to such statement or information being filed and used. 
 19. Successors. 

 This Agreement shall be binding upon and inure to the benefit of the parties hereto and the successors and
permitted assignees of each of them, and no other person (except as otherwise provided herein) shall have any right or obligation under this Agreement. The terms “successors” and “assignees” shall not include any purchasers, as
such, of Interests. 
 20. Amendment or Modification or Waiver. 

(a) Changes to Agreement. This Agreement may not be amended or modified, nor may any of its provisions be waived,
except upon the prior written consent of the parties hereto, except that an amendment to, a modification of, or a waiver of any provision of the Agreement as to the Advisor need not be consented to by any Other Advisor. 

(b) No Waiver. No failure or delay on the part of any party hereto in exercising any right, power or remedy
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. Any waiver granted hereunder
must be in writing and shall be valid only in the specific instance in which given. 
 21. Notices. 

Except as otherwise provided herein, all notices required to be delivered under this Agreement shall be effective only if
in writing and shall be deemed given by the party required to provide notice when received by the party to whom notice is required to be given and shall be delivered personally or by registered mail, postage prepaid, return receipt requested, or by
telecopy, as follows (or to such other address as the party entitled to notice shall hereafter designate by written notice to the other parties): 

If to the Managing Member or KMPFF: 

Kenmar Preferred Investment Solutions Corp. 

900 King Street, Suite 100 

Rye Brook, NY 10573 

Attention: General Counsel 

Facsimile: (914) 307 – 4045 

E-mail: legaldept@kenmar.com 
  

 17 

 and in either case with a copy to: 

Alston & Bird LLP 

90 Park Avenue 

New York, New York 10016 

Attention: Timothy P. Selby, Esq. 

Facsimile: (212) 210-9494 

E-mail: timothy.selby@alston.com 

If to the Advisor: 

Graham Capital Management, L.P. 

40 Highland Avenue 

Rowayton, CT 06853 

Attention: Isaac Finkle 

Facsimile: (203) 899-3500 

With a copy to: 

Graham Capital Management, L.P. 

40 Highland Avenue 

Rowayton, CT 06853 

Attention: Paul Sedlack 

Facsimile: (203) 899-3500 

22. Governing Law. 

Each party agrees that this Agreement shall be governed by and construed in accordance with the laws of the State of New
York without regard to the conflict of laws principles thereof. 
 23. Survival. 

The provisions of this Agreement shall survive the termination of this Agreement with respect to any matter arising while
this Agreement was in effect. 
 24. Promotional Literature. 

Each party agrees that prior to using any promotional literature in which reference to the other parties hereto (other
than Other Advisors) is made, it shall furnish in advance a copy of such information to the other parties and will not make use of any promotional literature containing references to such other parties to which such other parties object, except as
otherwise required by law or regulation. 
 25. No Liability of Members. 

This Agreement has been made and executed by and on behalf of KMPFF, and the obligations of KMPFF and/or the Managing
Member set forth herein are not binding upon any of the Members, individually, but rather, are binding only upon the assets and property of KMPFF. 
  

 18 

 26. Headings. 

Headings to sections herein are for the convenience of the parties only, and are not intended to be or to affect the
meaning or interpretation of this Agreement. 
 27. Complete Agreement. 

Except as otherwise provided herein, this Agreement and the Representation Agreement constitute the entire agreement
between the parties with respect to the matters referred to herein, and no other agreement, verbal or otherwise, shall be binding upon the parties hereto. 

28. Counterparts. 

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which,
when taken together, shall constitute one original instrument. 
 29. Arbitration, Remedies. 

Each party hereto agrees that any dispute relating to the subject matter of this Agreement shall be settled and determined
by arbitration in the City of New York pursuant to the rules of the NFA or, if the NFA should refuse to accept the matter, the American Arbitration Association. 

[Remainder of page left blank intentionally.] 

 

 19 

 IN WITNESS WHEREOF, this Agreement has been executed for and on behalf of the
undersigned as of the day and year first above written. 
  

							
	KMP FUTURES FUND I LLC
		
	By: 	 	KENMAR PREFERRED INVESTMENTS CORP., its sole Managing Member
			
		 	By: 	 	 /s/ Esther E. Goodman

		 		 	Name: 	 	Esther E. Goodman
		 		 	Title:	 	Chief Operating Officer and
		 		 		 	Senior Executive Vice President

  

					
	KENMAR PREFERRED INVESTMENTS CORP.
		
	By: 	 	 /s/ Esther E. Goodman

		 	Name: 	 	Esther E. Goodman
		 	Title:	 	Chief Operating Officer and
		 		 	Senior Executive Vice President

  

					
	GRAHAM CAPITAL MANAGEMENT, L.P.
		
	By: 	 	 /s/ Paul Sedlack

		 	Name: 	 	Paul Sedlack
		 	Title:	 	Chief Executive Officer

  

 20 

 EXHIBIT A 

TRADING APPROACH 

K4D-15V PROGRAM 
 The
Advisor will make its trading decisions for KMPFF according to its K4D-15V Program (formerly known as the Global Diversified Program at 150 Leverage) as described in Exhibit C as amended from time to time. 

[Remainder of page left blank intentionally.] 

 

 A-1 

 EXHIBIT B 

TRADING LIMITATIONS AND POLICIES 

The following limitations and policies are applicable to assets representing the Allocated Assets as a whole and at the outset to the
Advisor individually; since the Advisor initially will manage 50% of KMPFF’s Allocated Assets, such application of the limitations and policies is identical initially for KMPFF and the Advisor. The Advisor sometimes may be prohibited from
taking positions for the Allocated Assets which it would otherwise acquire due to the need to comply with these limitations and policies. KMPFF will monitor compliance with the trading limitations and policies set forth below, and it may impose
additional restrictions (through modification of such limitations and policies) upon the trading activities of the Advisor, as it, in good faith, deems appropriate in the best interests of KMPFF, subject to the terms of the Advisory Agreement.

 KMPFF will not approve a material change in the following trading limitations and policies without obtaining the prior
written approval of Members owning more than 50% of Interests in KMPFF. KMPFF may, however, impose additional trading limitations on the trading activities of KMPFF without obtaining such approval if KMPFF or the Managing Member determines such
additional limitations to be necessary in the best interests of KMPFF. 
 Trading Limitations 

The Advisor will not: (i) engage in pyramiding its commodities positions (i.e., the use of unrealized profits on existing
positions to provide margin for the acquisition of additional positions in the same or a related commodity provided, however, unrealized profits may be considered in determining the current Allocated Assets) but may take into account open trading
equity on existing positions in determining generally whether to acquire additional commodities positions; (ii) borrow or loan money (except with respect to the initiation or maintenance of commodities positions or obtaining lines of credit for
the trading of forward currency contracts; provided, however, that KMPFF is prohibited from incurring any indebtedness on a non-recourse basis); (iii) permit rebates to be received by KMPFF or its affiliates, or permit KMPFF or any affiliate to
engage in any reciprocal business arrangements which would circumvent the foregoing prohibition; (iv) permit the Advisor to share in any portion of the commodity brokerage fees paid by KMPFF; (v) commingle its assets, except as permitted
by law; or (vi) permit the churning of its commodity accounts. 
 The Advisor will conform in all respects to the rules,
regulations and guidelines of the markets on which its trades are executed. 
 Trading Policies 

Subject to the foregoing limitations, the Advisor has agreed to abide by the trading policies of KMPFF, which currently are as follows:

 (1) Allocated Assets will generally be invested in contracts which are traded in sufficient volume which, at
the time such trades are initiated, are reasonably expected to permit entering and liquidating positions. 
 (2)
Stop or limit orders may, in the Advisor’s discretion, be given with respect to initiating or liquidating positions in order to attempt to limit losses or secure profits. If stop or limit orders are used, no assurance can be given, however,
that the clearing broker will be able to liquidate a position at a specified stop or limit order price, due to either the volatility of the market or the inability to trade because of market limitations. 

 

 B-1 

 (3) KMPFF generally will not initiate an open position in a futures contract
(other than a cash settlement contract) during any delivery month in that contract, except when required by exchange rules, law or exigent market circumstances. This policy does not apply to forward and cash market transactions. 

(4) KMPFF may occasionally make or accept delivery of a commodity including, without limitation, currencies. KMPFF also
may engage in EFP transactions involving currencies and metals and other commodities. 
 (5) KMPFF may, from time
to time, employ trading techniques such as spreads, straddles and conversions. 
 (6) KMPFF will not initiate
open futures or option positions which would result in net long or short positions requiring as margin or premium for outstanding positions in excess of 15% of the Allocated Assets for any one commodity, or in excess of 66 2/3% of the Allocated
Assets for all commodities combined. Under certain market conditions, such as an inability to liquidate open commodities positions because of daily price fluctuations, KMPFF may be required to commit the Allocated Assets as margin in excess of the
foregoing limits and in such case KMPFF will cause the Advisor to reduce its open futures and option positions to comply to these limits before initiating new commodities positions. 

(7) To the extent KMPFF engages in transactions in forward currency contracts other than with or through UBS Securities
LLC, or its affiliates, KMPFF will only engage in such transactions with or through a bank or financial institution which as of the end of its last fiscal year had an aggregate balance in its capital, surplus and related accounts of at least $100
million, as shown by its published financial statements for such year, and through other broker-dealer firms with an aggregate balance in its capital, surplus and related accounts of at least $50 million. 

[Remainder of page left blank intentionally.] 

 

 B-2 

 EXHIBIT C 

DISCLOSURE DOCUMENT 
  

 C-1Amendment No. 8 to Credit Agreement

 EXHIBIT 10.1 

AMENDMENT NO. 8 TO CREDIT AGREEMENT AND CONSENT 

THIS AMENDMENT NO. 8 TO CREDIT AGREEMENT AND CONSENT (this “Amendment”), dated as of
April 30, 2010, is by and among ESTERLINE TECHNOLOGIES CORPORATION, a Delaware corporation (the “Borrower”), the lenders party hereto and WELLS FARGO BANK, NATIONAL ASSOCIATION (successor by merger to Wachovia
Bank, National Association), as Collateral Agent, Issuing Bank, Swingline Bank and Administrative Agent (in such capacities, the “Administrative Agent”). 

W I T N E S S E T H 

WHEREAS, the Borrower, the lenders from time to time party thereto (the “Lenders”) and the
Administrative Agent are parties to that certain Credit Agreement dated as of June 11, 2003 (as previously amended and as further amended, modified, supplemented or restated from time to time, the “Existing Credit Agreement”);

 WHEREAS, the Borrower intends to restructure (a) certain operations in Canada as set forth on
Exhibit I (the “Canadian Restructuring Transactions”) and (b) certain operations in France as set forth on Exhibit II attached hereto (the “French Restructuring Transactions”, and together with
the Canadian Restructuring Transactions, collectively the “Restructuring Transactions”); 

WHEREAS, the Borrower has requested certain amendments to the Credit Agreement and requested that the Required
Lenders consent to certain components of the Restructuring Transactions; and 
 WHEREAS, the Required
Lenders have agreed to such amendments and consented to the Restructuring Transactions subject to the terms and conditions set forth herein. 

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
 PART 1 

 CERTAIN DEFINITIONS 

1.1      Certain Definitions.    Unless otherwise defined
herein or the context otherwise requires, the following terms used in this Amendment, including its preamble and recitals, have the following meanings: 

“Amended Credit Agreement” means the Existing Credit Agreement as amended hereby. 

“Amendment No. 8 Effective Date” has the meaning ascribed thereto in Section 4.1. 

1.2      Other Definitions.    Unless otherwise defined
herein or the context otherwise requires, terms used in this Amendment, including its preamble and recitals, have the meanings provided in the Amended Credit Agreement. 

PART 2 

AMENDMENTS TO CREDIT AGREEMENT 
  

 

 Esterline Technologies Corporation 

Amendment No. 8 to Credit Agreement and Consent 

 2.1      Amendments to
Section 2.01.    The following definitions are hereby added to Section 1.01 of the Existing Credit Agreement in the appropriate alphabetical order: 

“Alberta” means Alberta ULC, a Canadian company. 

“Amendment No. 8” means that certain Amendment No. 8 to Credit
Agreement and Consent dated as of April 30, 2010, among the Borrower, the Lenders and the Administrative Agent. 

“ECLP” means Esterline Canada Limited Partnership, a Canadian company.

 “NewCanco” shall have the meaning set forth in Exhibit I to Amendment
No. 8. 
 “NewCanco Creditor” has the meaning specified in
Section 5.02(r). 
 “US LLC” shall have the meaning set forth in
Exhibit I to Amendment No. 8. 
 2.2      Amendment to
Section 5.02(r).    The lead in to Section 5.02(r) of the Existing Credit Agreement is hereby amended to read as follows: 

5.02(r)    Covenants Related to CMC
Acquisition.    Except as contemplated by the Canadian Restructuring Transactions, permit: 

2.3      Amendment to Section 5.02.    A new clause
(s) is hereby added to the end of Section 5.02 of the Existing Credit Agreement to read as follows: 

5.02(s)    Covenants Related to NewCanco.    Upon
completion of the Canadian Restructuring Transactions, permit: 

(i)        NewCanco to incur any Debt other than Debt owed to
another Subsidiary of the Borrower (any such Subsidiary, a “NewCanco Creditor”); 

(ii)      any NewCanco Creditor to incur any Debt other than Debt owed
to a Loan Party; 
 (iii)      NewCanco to hold any assets
(other than the Equity Interests of Alberta, ECLP and CMC) or conduct any business, operations or activities other than those directly related to payments on Debt owed to a NewCanco Creditor; 

(iv)      NewCanco to fail to own (A) 100% of the Equity Interests
of Alberta at any time, (B) 100% of the Equity Interests of CMC at any time and (C) 99.9% of the Equity Interests of ECLP at any time, unless such interests are owned by the Borrower or any other Loan Parties at such time; 

(v)        unless such NewCanco Creditor is a Loan Party, any
NewCanco Creditor to hold any assets (other than the Debt owed by NewCanco) or conduct any business, operations or activities other than those directly related to payments on Debt owed to a Loan Party or Debt owed by NewCanco; or 

 

 2 

 (vi)    the Equity Interests of
NewCanco to be held by any Person other than US LLC or any other Loan Parties, or the Equity Interests of any NewCanco Creditor to be held by any Person other than a Loan Party. 

2.4      Amendment to
Section 5.02(e).    Section 5.02(e) is hereby amended by adding the following clauses (viii) and (ix) to the end of such Section and by making the necessary grammatical changes thereto: 

(viii)    sales, transfers or other dispositions of assets among Subsidiaries that
are not Subsidiary Guarantors and other Subsidiaries that are not Subsidiary Guarantors; and 

(ix)       sales, transfers and dispositions of assets by any
Subsidiary that is not a Subsidiary Guarantor to the Borrower or any Subsidiary Guarantor. 
 PART 3 

CONSENT 

The Required Lenders hereby consent and the Administrative Agent approves (as the case may be), on a one-time basis, to
the Restructuring Transactions; provided, that upon completion of the Restructuring Transactions: 

(a)      None of the Restructuring Transactions shall be prohibited by the Senior
Subordinated Note Indenture or the 2007 Indenture. 
 (b)      All of the Canadian
Restructuring Transactions shall have been consummated by no later than November 30, 2010. 

(c)      All of the French Restructuring Transactions shall have been consummated by no
later than June 30, 2012. 
 (d)      For purposes of the Canadian
Restructuring Transactions set forth in Section 1 of Exhibit I, (i) the guaranty of U.S. LLC (as successor to ECHC) shall continue in full force and effect, and U.S. LLC shall continue to be a Subsidiary Guarantor under the Credit
Agreement, (ii) 100% of the Equity Interests of U.S. LLC shall have been pledged to the Collateral Agent pursuant to the terms of the Collateral Documents and (iii) the Administrative Agent shall have received such organizational
documents, legal opinions and other items as it may reasonably request in connection therewith. 

(e)      For purposes of the Canadian Restructuring Transactions set forth in
Section 2 of Exhibit I, (i) the consent of the Required Lenders to the Investment in Alberta ULC shall be limited to the 0.1% ownership interest in ECLP and (ii) the Administrative Agent shall have received such organizational
documents, legal opinions and other items as it may reasonably request in connection therewith. 

(f)      For purposes of the Canadian Restructuring Transactions set forth in
Section 4 of Exhibit I, (i) the consent of the Required Lenders to the Investment in Alberta ULC shall be limited to the Investment consisting solely of the ownership interests in Alberta ULC, ECLP and ECAS/CMC, (ii) 65% of the
Equity Interests of NewCanco shall have been pledged to the Collateral Agent pursuant to the terms of the Collateral Documents and (iii) the Administrative Agent shall have received such organizational documents, legal opinions and other items
(including Canadian legal opinions and collateral documents to the extent requested by the Administrative Agent) as it may reasonably request in connection therewith. 

 

 3 

 (g)      For purposes of the Canadian
Restructuring Transactions set forth in Section 6 of Exhibit I, to the extent the Borrower shall own the Equity Interests of NewCanco for greater than thirty (30) days prior to the transfer of such Equity Interests to U.S. LLC, the
Borrower shall have pledged 65% of the Equity Interests of NewCanco to the Collateral Agent pursuant to the terms of the Collateral Documents. 

(h)      For purposes of the Canadian Restructuring Transactions set forth in
Section 7 of Exhibit I, (i) U.S. LLC shall pledge the Equity Interests it owns in ECLP to the Collateral Agent and (ii) the Borrower shall pledge the Equity Interests it owns in ECLP to the Collateral Agent, in each case pursuant
to the terms of the Collateral Documents. 
 (i)      For purposes of the Canadian
Restructuring Transactions set forth in Section 8 of Exhibit I, all payments or other consideration paid by U.S. LLC to NewCanco in connection with the Subscription Agreement, the Debenture or otherwise shall be promptly paid to the
Borrower. 
 (j)      For purposes of the Canadian Restructuring Transactions set
forth in Section 8.5 of Exhibit I, 100% of the Equity Interests of U.S. LLC received by the Borrower in connection with the Esterline Reinvestment Agreement shall be promptly pledged to the Collateral Agent pursuant to the terms of the
Collateral Documents. 
 (k)      For purposes of the Canadian Restructuring
Transactions set forth in Section 8.6 of Exhibit I, 100% of the Equity Interests of NewCanco received by U.S. LLC in connection with the U.S. LLC Reinvestment Agreement shall be promptly pledged to the Collateral Agent pursuant to the
terms of the Collateral Documents (which shall include the delivery of any Canadian collateral documents to the extent requested by the Administrative Agent). 

(l)      For purposes of the Canadian Restructuring Transactions set forth in
Section 9 of Exhibit I, the consent of the Required Lenders to the transfer by U.S. LLC of the ownership interest of ECLP to Alberta ULC shall be limited to the transfer of 0.1% ownership interest in ECLP. 

(m)      For purposes of the French Restructuring Transactions set forth in Section 1
of Exhibit II, (i) ETD shall be dissolved on or before June 30, 2012, (ii) 100% of the Equity Interests of ETHL (including, without limitation, those received by ETD in connection with such transfer) shall have been pledged to
the Collateral Agent pursuant to the terms of the Collateral Documents and (iii) upon the dissolution of ETD, all assets of ETD shall be distributed to the Borrower. 

(n)      For purposes of the French Restructuring Transactions set forth in
Section 2.1 of Exhibit II, 100% of the Equity Interests of EFH shall have been pledged to the Collateral Agent pursuant to the terms of the Collateral Documents. 

(o)      For purposes of the French Restructuring Transactions set forth in
Section 2.6 of Exhibit II, (i) the consent of the Required Lenders to the Investment by ETHL in EFH shall be limited to the Investment made on the Amendment No. 8 Effective Date and shall not exceed USD $1,000,000 (the
“Capital Contribution”) and (ii) 100% of the proceeds of the Capital Contribution shall be used to purchase the Equity Interests of (A) LIE France from Leach International Corporation, (B) Auxitrol S.A. from ETHL and
(C) ESS Asia from EFH. 
 (p)      For purposes of the French Restructuring
Transactions set forth in Section 3.2 of Exhibit II, 100% of the proceeds of the EFH Loan shall be used to acquire the ORA from Esterline. 
  

 4 

 The consent set forth in this Part 3 shall be effective only to the extent
specifically set forth herein and shall not (a) be construed as a waiver of any breach or default nor as a waiver of any breach or default of which the Lenders have not been informed by the Borrower, (b) affect the right of the Lenders to
demand compliance by the Borrower and the other Loan Parties with all terms and conditions of the Credit Agreement, except as specifically consented to pursuant to the terms hereof, (c) be deemed a waiver of any transaction or future action on
the part of the Borrower or any other Loan Party requiring the Lenders’ or the Required Lenders’ consent or approval under the Credit Agreement, or (d) except as consented to and waived hereby, be deemed or construed to be a waiver or
release of, or a limitation upon, the Administrative Agent’s or the Lenders’ exercise of any rights or remedies under the Credit Agreement or any other Loan Document, whether arising as a consequence of any Event of Default which may now
exist or otherwise, all such rights and remedies hereby being expressly reserved. 
 PART 4 

CONDITIONS TO EFFECTIVENESS 

4.1      Closing Conditions. 

This Amendment shall become effective as of the date hereof (the “Amendment No. 8 Effective Date”)
upon satisfaction of the following conditions (in form and substance reasonably acceptable to the Administrative Agent): 

(a)      Executed Amendment.    Receipt by the
Administrative Agent of a copy of this Amendment duly executed by the Borrower and each of the Required Lenders and acknowledged and agreed to by each Subsidiary Guarantor. 

(b)      Expenses.    The Administrative Agent
shall have received all expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including, without limitation, the fees and expenses of Moore & Van Allen PLLC for which an invoice
has been presented to the Borrower. 

(c)      Information.    The Administrative
Agent shall not have become aware of any material information or other matter that is inconsistent in a material and adverse manner with any previous due diligence, information or matter (including any financial information and projections
previously delivered to the Administrative Agent). 

(d)      Other.    The Administrative Agent
shall have received such other documents, agreements or information which it may reasonably request relating to the Loan Parties and the transactions contemplated by this Amendment and any other matters relevant hereto or thereto, all in form and
substance satisfactory to the Administrative Agent. 
  

 5 

 PART 5 

MISCELLANEOUS 

5.1      Amended Terms.    All references to the Credit
Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as amended by this Amendment. Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby ratified and confirmed and shall remain in full
force and effect according to its terms. 
 5.2      Representations and
Warranties.  Each Loan Party represents and warrants as follows as of the date hereof: 

(a)      It has taken all necessary action to authorize the execution,
delivery and performance of this Amendment. 
 (b)      This
Amendment has been duly executed and delivered by such Loan Party and constitutes such Loan Party’s valid and legally binding obligations, enforceable in accordance with its terms, except as such enforceability may be subject to
(i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is
considered in a proceeding at law or in equity). 
 (c)      No
consent, approval, authorization or order of, or filing, registration or qualification with, any Governmental Authority or third party is required in connection with the execution, delivery or performance by such Loan Party of this Amendment.

 (d)      The representations and warranties set forth in
Article IV of the Credit Agreement are true and correct in all material respects as of the date hereof (except for those which expressly relate to an earlier date). 

(e)      There have been no changes to the organization documents
(including, as applicable, articles of incorporation, articles of formation, bylaws, operating agreement or equivalent organizational documents) of any Subsidiary Guarantor since the Amendment No. 7 Effective Date, other than amendments that
could not be reasonably expected to have a Material Adverse Effect or adversely affect the rights and interests of the Lender Parties. 

5.3      Loan Document.  This Amendment shall constitute a Loan
Document under the terms of the Credit Agreement. 

5.4      Entirety.  This Amendment and the other Loan Documents
embody the entire agreement between the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof. 

5.5      Counterparts; Telecopy.    This Amendment may be
executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. Delivery of an executed counterpart to this Amendment by telecopy shall be
effective as an original and shall constitute a representation that an original will be delivered. 
  

 6 

 5.6      GOVERNING
LAW.      THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 

5.7      Consent to Jurisdiction; Waiver of Jury
Trial.    The jurisdiction and waiver of jury trial provisions set forth in Sections 8.13 and 8.15 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis. 

5.8      Fees.  The Borrower agrees to pay all fees and expenses of
the Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including, without limitation, the fees and expenses of Moore & Van Allen PLLC. 

[remainder of page intentionally left blank] 
  

 7 

 IN WITNESS WHEREOF the Borrower, the Lenders, and the Administrative Agent
have caused this Amendment to be duly executed on the date first above written. 
  

									
	BORROWER:	 	 ESTERLINE TECHNOLOGIES

CORPORATION,
	 	
		 		 	   a Delaware corporation
	 	
					
		 		 	  By:
	 	   /s/ Robert D. George
	 	

									
		 		 	  Name:
	 	   Robert D. George
	 	
		 		 	  Title:
	 	   Vice President, Chief Financial Officer,
	 	
		 		 		 	   Secretary and Treasurer
	 	

  
  

 
  
  

 

 Esterline Technologies Corporation 

Amendment No. 8 to Credit Agreement and Consent 

									
	 ADMINISTRATIVE AGENT,

COLLATERAL AGENT,
 ISSUING
BANK,
 SWINGLINE BANK AND
	 		 		 		 	
	LENDER:	 		 	  WELLS FARGO BANK,

 NATIONAL ASSOCIATION (successor by merger

 to Wachovia Bank, National Association),

					
		 		 	  By:
	 	   /s/ Russ Carson
	 	

									
		 		 	  Name:
	 	   Russ Carson
	 	
		 		 	  Title:
	 	  Vice President
	 	

  
  

 
  
  

 

 Esterline Technologies Corporation 

Amendment No. 8 to Credit Agreement and Consent 

							
	LENDERS:	 	HSBC Bank USA, N.A.	 	
				
		 	 By:
	 	   /s/ Simon Philp
	 	
		 	 Name:    Simon Philp
	 	
		 	 Title:    VP, Relationship Manager
	 	
			
		 	U.S. BANK NATIONAL ASSOCIATION	 	
				
		 	 By:
	 	   /s/ Kurban H. Merchant
	 	
		 	 Name:    Kurban H. Merchant
	 	
		 	 Title:    Vice President
	 	
			
		 	THE BANK OF NEW YORK MELLON	 	
				
		 	 By:
	 	   /s/ Robert Besser
	 	
		 	 Name:    Robert Besser
	 	
		 	 Title:    Vice President
	 	
			
		 	THE BANK OF NOVA SCOTIA, as a Lender	 	
				
		 	 By:
	 	   /s/ Patrik G. Norris
	 	
		 	 Name:    Patrik G. Norris
	 	
		 	 Title:    Director
	 	
			
		 	BARCLAYS BANK PLC	 	
				
		 	 By:
	 	   /s/ J. D. Oliver
	 	
		 	 Name:   J. D. Oliver
	 	
		 	 Title:    Relationship Director
	 	
			
		 	Bank of America, N.A.	 	
				
		 	 By:
	 	   /s/ G. Scott Lambert
	 	
		 	 Name:    G. Scott Lambert
	 	
		 	 Title:    Vice President
	 	
			
		 	Commerzbank AG	 	
				
		 	 By:
	 	   /s/ Matias Cruces
	 	
		 	 Name:    Matias Cruces
	 	
		 	 Title:    Vice President
	 	
				
		 	 By:
	 	   /s/ Silke Soennecken
	 	
		 	 Name:    Silke Soennecken
	 	
		 	 Title:    Vice President
	 	

  
  

 Esterline Technologies Corporation 

Amendment No. 8 to Credit Agreement and Consent 

							
	LENDERS:	 	JPMORGAN CHASE BANK, N.A.
				
		 	 By:
	 	   /s/ Matthew H. Massie
	 	
		 	 Name:   Matthew H. Massie

		 	 Title:    Managing Director

  

 
  
  

 
  
  

 Esterline Technologies Corporation 

Amendment No. 8 to Credit Agreement and Consent 

 ACKNOWLEDGMENT AND CONSENT 

The undersigned do hereby acknowledge and consent to the foregoing Amendment. The undersigned do hereby confirm and agree
that, after giving effect to such Amendment, the Subsidiary Guaranty and each other Loan Document to which each of the undersigned is a party is and shall continue to be in full force and effect and is hereby confirmed and ratified in all respects.

  

			
	 ADVANCED INPUT DEVICES, INC.

	 ANGUS ELECTRONICS CO.

	 ARMTEC COUNTERMEASURES CO.

	 ARMTEC COUNTERMEASURES TNO CO.

	 ARMTEC DEFENSE PRODUCTS CO.

	 AVISTA, INCORPORATED

	 BVR TECHNOLOGIES CO.

	 CMC DATACOMM INC.

	 CMC ELECTRONICS ACTON INC.

	 CMC ELECTRONICS AURORA INC.

	 EA TECHNOLOGIES CORPORATION

	 ESTERLINE SENSORS SERVICES AMERICAS, INC.

	 (formerly known as Auxitrol Co.)

	 EQUIPMENT SALES CO.

	 H.A. SALES CO.

	 HAUSER, INC.

	 HYTEK FINISHES CO.

	 JANCO CORPORATION

	 KIRKHILL-TA CO.

	 KORRY ELECTRONICS CO.

	 LEACH HOLDING CORPORATION

	 LEACH INTERNATIONAL CORPORATION

	 LEACH TECHNOLOGY GROUP, INC.

	 MASON ELECTRIC CO.

	 MC TECH CO.

	 MEMTRON TECHNOLOGIES CO.

	 NORWICH AERO PRODUCTS, INC.

	 PALOMAR PRODUCTS, INC.

	 PRESSURE SYSTEMS, INC.

	 PRESSURE SYSTEMS INTERNATIONAL, INC.

	 UMM ELECTRONICS INC.

	 ESTERLINE CANADIAN HOLDING CORPORATION

	 ESTERLINE INTERNATIONAL COMPANY

	 NMC GROUP, INC.

	 RACAL ACOUSTICS, INC.

		
	 By:
	 	   /s/ Robert D. George

	 Name:                Robert D. George

	 Its:                      Secretary

  
  

 

 Esterline Technologies Corporation 

Amendment No. 8 to Credit Agreement and Consent 

			
	 ESTERLINE TECHNOLOGIES HOLDINGS LIMITED

		
	 By:
	 	   /s/ Robert D. George

	 Name:               Robert D. George

	
Its:                     Director

	
	 ESTERLINE TECHNOLOGIES LIMITED

		
	 By:
	 	   /s/ Robert D. George

		 	 Robert D. George, Director

	
	 LEACH INTERNATIONAL MEXICO,

S. DE R.L. DE C.V.

		
	 By:
	 	   /s/ Robert D. George

	 Name:  

	 Its:  

  

 
  
  

 
  

 Esterline Technologies Corporation 

Amendment No. 8 to Credit Agreement and Consent 

 EXHIBIT I 

Canadian Restructuring Plan 
  

Esterline Technologies Corporation (“Esterline”) proposes to restructure certain of its subsidiaries (with an emphasis on its
Canadian subsidiaries) in order to achieve tax benefits (the “Canadian Restructure”). References in this memorandum to Esterline’s Credit Agreement are to the June 11, 2003 Credit Agreement that was amended in its entirety on
April 30, 2009 (the “Credit Agreement”). As used in this memorandum, capitalized terms that are not otherwise defined herein shall have the meanings given to them in the Credit Agreement and section references are references to
sections in the Credit Agreement unless otherwise stated. Current and post-restructure organizational charts of Esterline and its Canadian subsidiaries are depicted in Exhibit A and Exhibit B, respectively. Many of the steps of the
Canadian Restructure do not require consent of the Lenders or the Administrative Agent. Esterline requests the consent the Required Lenders and the Administrative Agent to the steps for which consent is required. 

1.        CONVERSION OF ECHC TO U.S. LLC 

      In Step 1 of the Canadian Restructure, Esterline Canadian Holding Corporation (“ECHC”) would be
converted into a U.S. limited liability company (“U.S. LLC”). ECHC is a guarantor under the Credit Agreement and 100% of its stock has been pledged as collateral to secure the obligations under the Credit Agreement. Required Lender
consent is requested for the conversion. U.S. LLC would continue to guarantee the obligations of Esterline under the Credit Agreement and the membership interests of U.S. LLC would be pledged as collateral to secure the obligations under
the Credit Agreement. It should be noted that Section 11 of the Security Agreement precludes Esterline and the Subsidiary Guarantors (including ECHC) from changing their names or types of entities without providing the Administrative Agent at
least 30 days prior written notice and the taking of all actions required to maintain the perfection of all security interests granted pursuant to the Security Agreement. Required Lender consent is also requested to waive the 30-day notice.

 2.        FORMATION OF ALBERTA ULC 

      In Step 2 of the Canadian Restructure, U.S. LLC would form Alberta ULC, which will be a disregarded
entity for U.S. tax purposes. The intent is that Alberta ULC would not become a Subsidiary Guarantor. Required Lender consent is also requested to the formation of Alberta LLC. The value of the assets transferred to Alberta ULC would
not be significant given that according to the step plan, its assets would be limited to a 0.1% ownership interest in the stock of Esterline Canada Limited Partnership (see Step 9 below). Required Lender consent is requested to form
Alberta ULC, contribute a 0.1% ownership interest in the stock of Esterline Canada Limited Partnership and to not pledge the ownership units of Alberta ULC. 

 3.         MODIFICATION OF ECLP PARTNERSHIP
AGREEMENT 
       In Step 3 of the Canadian Restructure, the partnership agreement of Esterline Canada
Limited Partnership (“ECLP”) would be modified to reflect that income of ECLP is attributed to unit holders based upon the number of days during the relevant period that they held units. Section 5.02(h) of the Credit Agreement
precludes Esterline and its subsidiaries from amending their respective certificate of incorporation or bylaws or other constitutive or governing documents other than amendments that could not be reasonably expected to have a Material Adverse Effect
or adversely affect the rights and interests of the Lender Parties. It is assume that the proposed amendment would not have a Material Adverse Effect or adversely affect the rights of the Lender Parties. However, Required Lender consent is requested
as an abundance of caution. 
 4.        FORMATION OF NEWCANCO 

      In Step 4 of the Canadian Restructure, Esterline would form a new Canadian corporation as a wholly owned
subsidiary (“NewCanco”), which will be not be a disregarded entity for U.S. tax purposes and therefore would not become a Subsidiary Guarantor. 

5.        TRANSFER OF ECAC TO NEWCANCO 

      In Step 5 of the Canadian Restructure, Esterline would transfer 100% of the stock of Esterline Canadian
Acquisition Corporation (“ECAC”) to NewCanco in exchange for the issuance of additional stock of NewCanco. Since NewCanco will not be a Subsidiary Guarantor and given the value of NewCanco, Required Lender consent to the equity
contribution of ECAC by Esterline to NewCanco is requested. It is assumed that this step would be characterized as a contribution of ECAC stock by Esterline to the capital of NewCanco, as opposed to a sale of assets under Section 5.02(e), but
confirmation from the Required Lenders requested. It should be noted that Esterline has pledged 65% of the stock of ECAC to the Administrative Agent and Required Lender consent is requested for the release of that pledge. The transfer of ECAC stock
would also violate Section 5.02(r)(vi), which requires that the stock of ECAC be held by Esterline. Required Lender consent to this violation is requested. It is assumed that the consent of the Required Lenders would be conditioned on the
pledge of 65% of the stock of NewCanco in order to replace the pledge of 65% of the stock of ECAC. However, the pledge of 65% of the stock of NewCanco would be deferred until the completion of Step 6 as described below since Step 6 is to
occur on the same day as Step 5. 
 6.        TRANSFER OF NEWCANCO TO
U.S. LLC 
 In Step 6 of the Canadian Restructure, Esterline would transfer 100% of the stock of NewCanco to
U.S. LLC in exchange for the issuance of additional ownership units of U.S. LLC. It is assumed that this step would be characterized as a contribution of NewCanco stock by Esterline to the capital of U.S. LLC, as opposed to a sale of
assets under Section 5.02(e), but confirmation from the Required Lenders is requested. Since U.S. LLC will be a Subsidiary Guarantor, such transfer would be permitted under Section 5.02(f)(i)(B). As mentioned in the discussion of
Step 5, 65% of the stock of NewCanco would be pledged to the Administrative Agent in order to replace the pledge of 65% of the stock of ECAC. 

 7.        DISTRIBUTION BY U.S. LLC OF ECLP TO
ESTERLINE 
 In Step 7 of the Canadian Restructure, U.S. LLC would distribute 9.9% of its 10% ownership of the
stock of ECLP to Esterline. Such distribution would presumably constitute a “dividend” under the Credit Agreement and would be permitted by Section 5.02(g). Since the ownership units of ECLP that are currently owned by U.S. LLC
have been pledged to the Administrative Agent, such pledge would have to be released and Esterline would have to pledge to the Administrative Agent the ownership units released. 

8.        SALE OF ECLP BY ESTERLINE TO
NEWCANCO           
  

	8.1	Sale of ECLP and Issuance of Debenture 

In Step 8 of the Canadian Restructure, Esterline would sell its 99.9% ownership interest in ECLP to NewCanco at fair market value in
exchange for a USD denominated debenture in an amount equal to the USD equivalent of approximately CAD $261,000,000 (the “Debenture”), approximately CAD $44,000,000 in stock of NewCanco and other consideration. 

(a)        To the extent that the Debenture is deemed to constitute “Debt” under the
Credit Agreement, it would be permitted pursuant to Section 5.02(b)(ii) of the Credit Agreement, provided that such Debt (i) is on terms reasonably acceptable to the Administrative Agent and (ii) is evidenced by promissory notes in
form and substance reasonably satisfactory to the Administrative Agent. Administrative Agent approval is requested. 

(b)        Required Lender consent is requested for the sale by Esterline of 99.9% of the
ownership interests in ECLP to NewCanco. 
 (c)        Esterline would be expected to
pledge 65% of the additional stock of NewCanco issued to Esterline; provided, however, that the pledge of 65% of the additional stock of NewCanco would be deferred until Step 11 as described below is completed since Step 11 is to occur
three days after Step 8 
 (d)        The acquisition by NewCanco from Esterline of
99.9% of the ownership interests in ECLP would be permitted under Section 5.02(f)(i)(D) as an investment by a non-guarantor subsidiary in another non-guarantor subsidiary. 

(e)        Given the possible ambiguity over the nature of the Debenture, Required Lender consent
is requested for the possible future conversion of all or portions of interest and principal of the Debenture into equity. 

(f)        The Debenture would need to be pledged to the Administrative Agent as security for the
obligations of the Loan Parties under the Credit Agreement and other Loan Documents as required by Sections 1, 4 and 8 of the Security Agreement. 

	8.2	Subscription Agreement 

Concurrently with Step 8 of the Canadian Restructure, U.S. LLC and NewCanco would enter into a subscription agreement (the
“Subscription Agreement”), whereby U.S. LLC would subscribe for stock of NewCanco in order to fund the principal payments to Esterline under the Debenture. The subscription by U.S. LLC would constitute an investment by a
Subsidiary Guarantor in a non-guarantor subsidiary and consequently Required Lender consent is requested. In addition, 65% of any stock of NewCanco purchased by U.S. LLC would be pledged as acquired. 

 

	8.3	Guarantee by Esterline 

Concurrently with Step 8 of the Canadian Restructure, Esterline would guarantee the obligations of U.S. LLC under the
Subscription Agreement (the “Esterline Guarantee”). This guarantee would be permitted by Section 5.02(b)(iii)(F), which allows Contingent Obligations in respect of Debt or other obligations of a Loan Party (which would include
U.S. LLC). 
  

	8.4	Irrevocable Direction 

Concurrently with Step 8 of the Canadian Restructure, NewCanco would direct U.S. LLC to make payments under the Subscription
Agreement directly to Esterline to be applied by Esterline against the obligations of NewCanco under the Debenture. The irrevocable direction is not prohibited by the Credit Agreement. 

 

	8.5	Preferred Stock Reinvestment Agreement - Esterline and U.S. LLC 

Concurrently with Step 8 of the Canadian Restructure, Esterline and U.S. LLC would enter into a preferred stock reinvestment
agreement (the “Esterline Reinvestment Agreement”), whereby Esterline would agree to transfer any preferred stock in NewCanco that it receives under the Debenture in lieu of cash to U.S. LLC in exchange for additional ownership units
of U.S. LLC. It is assumed that this step would be characterized as a contribution of NewCanco preferred stock by Esterline to the capital of U.S. LLC, as opposed to a sale of assets under Section 5.02(e), but confirmation from the
Requested Lender is requested. The contribution to the capital of U.S. LLC would constitute in an Investment under the Credit Agreement that would be permitted by Section 5.02(f)(i)(B) assuming that U.S LLC becomes a Subsidiary
Guarantor. The additional ownership units of U.S. LLC would have to be pledged to the Administrative Agent and the 65% of additional stock of NewCanco would be pledged to the Administrative Agent. A mechanism for the periodic pledging of such
equity interests should be established with the Administrative Agent. 

	8.6	Preferred Stock Reinvestment Agreement - U.S. LLC and NewCanco 

Concurrently with Step 8 of the Canadian Restructure, U.S. LLC and NewCanco would enter into a preferred stock reinvestment
agreement (the “U.S. LLC Reinvestment Agreement”), whereby U.S. LLC would agree to transfer any preferred stock in NewCanco that it receives under the Esterline Reinvestment Agreement in exchange for common stock of NewCanco.
This step essentially results in a trade of preferred stock for common stock of NewCanco. It is assumed that this step would be characterized as a contribution of NewCanco stock by Esterline to the capital of U.S. LLC, as opposed to a sale of
assets under Section 5.02(e), but confirmation from the Required Lenders is requested. It is not clear whether this step would be deemed to constitute an Investment by U.S. LLC under the Credit Agreement, but Required Lender consent is
requested. 65% of additional stock of NewCanco would be pledged to the Administrative Agent. A mechanism for the periodic pledging of such equity interests should be established with the Administrative Agent. 

 

	8.7	Assignment for Security 

Concurrently with Step 8 of the Canadian Restructure, NewCanco would assign to Esterline, for security purposes, NewCanco’s
rights under the Subscription Agreement and the Esterline Guarantee. This assignment would not be precluded by the Credit Agreement. 
  

	8.8	Escrow Agreement 

Concurrently with Step 8 of the Canadian Restructure, NewCanco, U.S. LLC Esterline and a third-party escrow agent would enter
into an escrow agreement, pursuant to which share certificates to be issued pursuant to the Subscription Agreement are put into escrow. It should be noted that 65% of any stock of NewCanco purchased by U.S. LLC pursuant to the Subscription
Agreement would be pledged as acquired and once release from escrow. 
  

	8.9	Interest Payments on Debentures 

Interest on the Debentures will be payable in cash or, at the election of NewCanco, the issuance of preferred stock of NewCanco to
Esterline. In the event interest is paid in preferred stock, the preferred stock would be transferred by Esterline to U.S. LLC in exchange for ownership units of U.S. LLC pursuant to the Esterline Reinvestment Agreement and the preferred
stock of NewCanco would be transferred by U.S. LLC to NewCanco in exchange for common stock of NewCanco. See discussion in Sections 8.5 and 8.6 of this memorandum. 

9.        TRANSFER OF 0.1% OF ECLP BY U.S. LLC TO ALBERTA ULC 

In Step 9 of the Canadian Restructure, U.S. LLC would transfer 0.1% of the ownership units of ECLP to Alberta ULC in exchange
for the issuance of additional stock of Alberta ULC. It is assumed that this step would be characterized as a contribution of ECLP ownership units by U.S. LLC to the capital of Alberta ULC, as opposed to a sale of assets under
Section 5.02(e), but confirmation from the Required Lenders is requested. Since Alberta ULC will not become a Subsidiary Guarantor, Required Lender consent is requested for such transfer. 

 10.        TRANSFER OF ALBERTA ULC BY
U.S. LLC TO NEWCANCO 
 In Step 10 of the Canadian Restructure, U.S. LLC would transfer 100% of the stock of
Alberta ULC to NewCanco in exchange for the issuance of additional stock of NewCanco. It is assumed that this step would be characterized as a contribution of Alberta ULC stock by U.S. LLC to the capital of NewCanco, as opposed to a
sale of assets under Section 5.02(e), but confirmation from the Required Lenders is requested. Since NewCanco will not become a Subsidiary Guarantor, Required Lender consent is requested for such transfer. 

11.        TRANSFER OF NEWCANCO STOCK BY ESTERLINE TO U.S. LLC 

In Step 11 of the Canadian Restructure, Esterline would transfer the stock of NewCanco issued in connection with Step 8 to
U.S. LLC in exchange for the issuance of additional ownership units of U.S. LLC. It is assumed that this step would be characterized as a contribution of NewCanco stock by Esterline to the capital of U.S. LLC, as opposed to a sale of
assets under Section 5.02(e), but confirmation from the Required Lenders is requested. Since U.S. LLC would become a Subsidiary Guarantor, such transfer would be permitted under Section 5.02(f)(i)(B). 

12.        PAYMENT OF ACCRUED INTEREST 

In Step 12 of the Canadian Restructure, ECAC would pay accrued interest on its indebtedness to ECLP. The payment of interest on
inter-company debt is not prohibited by the Credit Agreement. 
 13.        ECAC
AMALGAMATION WITH CMC 
 In Step 13 of the Canadian Restructure, ECAC amalgamates with CMC, with CMC being the
surviving entity. It is assumed that an amalgamation under Canadian law is a merger or consolidation under U.S. law, and accordingly, this step would be permissible under Section 5.02(d)(ii) of the Credit Agreement, but Required Lender consent
is requested as an abundance of caution. The amalgamation would violate Section 5.02(r)(iv) since the result of the amalgamation would be that the stock of CMC would be owned by NewCanco. Accordingly, Required Lender consent is requested for
such violation. 

 EXHIBIT A 

Canadian Subsidiaries Current Structure 

 

 

 EXHIBIT B 

Canadian Subsidiaries Post-Restructure 
  

 

 

 EXHIBIT II 

French Restructuring Plan 

Esterline Technologies Corporation (“Esterline”) proposes to restructure certain of its subsidiaries (with an emphasis on its
French subsidiaries) in order to achieve tax benefits (the “French Restructure”). References in this memorandum to Esterline’s Credit Agreement are to the June 11, 2003 Credit Agreement that was amended in its entirety on
April 30, 2009 (the “Credit Agreement”). As used in this memorandum, capitalized terms that are not otherwise defined herein shall have the meanings given to them in the Credit Agreement and section references are references to
sections in the Credit Agreement unless otherwise stated. Current and post-restructure organizational charts of Esterline and its French subsidiaries are depicted in Exhibit A and Exhibit B, respectively. Many of the steps of the French
Restructure do not require consent of the Lenders or the Administrative Agent. Esterline requests the consent the Required Lenders and the Administrative Agent to the steps for which consent is required. It should be noted that each request for
Required Lender approval would be without the use of any investment or other baskets provided for in the Credit Agreement. 

1.        TRANSFER OF ASSETS AND DISSOLUTION OF ETD 

 

	1.1	Transfer of ETD Assets 

As a preliminary step of the French Restructure, Esterline Technologies Denmark ApS (“ETD”) would transfer all of its assets to
Esterline Technologies Holdings Ltd. (“ETHL”), including its ownership interests in Auxitrol S.A., Auxitrol Sensors Services Asia PTE Ltd. and ETL in exchange for shares of ETHL. It should be noted that 100% of the shares of ETHL have been
pledged to the Collateral Agent. The ETHL shares that will be issued to ETD will be distributed to Esterline and can again be pledged to the Collateral Agent once ETD is dissolved. Section 5.02(e) of the Credit Agreement precludes Esterline and
its subsidiaries from transferring or otherwise disposing of assets with certain exceptions, none of which apply to this proposed transfer. The transfer by ETD to ETHL constitutes an Investment that would be permitted under
Section 5.02(f)(i)(B). 
  

	1.2	DISSOLUTION OF ETD 

 ETD
would be dissolved in 2011 and the assets of ETD would be distributed to Esterline. Although the dissolution of ETD does not seem to be precluded by the Credit Agreement, the transfer of assets from ETD to Esterline is prohibited by
Section 5.02(e) and would require the consent of the Required Lenders. 

 2.        TRANSFER OF ASSETS AND DISSOLUTION OF
ETD 
  

	2.1	Creation of EFH 

 In
Part I, Step 1 of the French restructure, ETHL would create Esterline French Holdings SAS (“EFH”) as a wholly owned subsidiary. EFH would be disregarded for U.S. federal income tax purposes, but would not become a Subsidiary
Guarantor in order to avoid issues related to the enforceability of guaranties from French entities. Accordingly, to the extent that the creation of EFH would result in an Investment under the Credit Agreement, such Investment would require the
consent of the Required Lenders. Since EFH will be a disregarded entity for tax purposes, 100% of the equity interests of EFH could be pledged to the Administrative Agent. Required Lender consent should be requested in order to avoid using any
Investment baskets in connection with the creation and transfer of assets to EFH. The consent should be broad enough to allow EFH to directly hold the following: 100% of the stock of Esterline French R&D SAS (“EF R&D”) (see
discussion in Section 2.2 below), 83% of the stock of Leach International Europe S.A. (“LIE France”) (see discussion in Section 2.6 below), and 100% of the stock of Auxitrol S.A. (see discussion in Section 2.7 below), and to
receive the cash contribution described in Section 2.5 below. The Required Lender consent would not permit additional contributions to the capital of EFH without the use of the Investment baskets provided for in Section 5.02(f)(i)(C) and
Section 5.02(f)(ix), except as described in Section 3.2 below as it relates to the conversion of inter-company debt to equity. 
  

	2.2	Creation of French R&D SAS 

Also in Part I, Step 1 of the French Restructure, EFH would create EF R&D as a wholly owned subsidiary. EF R&D would
not be a disregarded entity for U.S. federal income tax purposes. The formation of EF R&D would be permitted by Section 5.02(o). Required Lender consent is requested for the initial and future Investment by EFH in EF R&D. 

 

	2.3	Complete Valuations 

 In
Part I, Step 2 of the French Restructure, there would be a valuation of LIE France and Auxitrol S.A. These valuations are not prohibited by the Credit Agreement. 

 

	2.4	Loan from Esterline to ETHL 

In Part I, Step 3 of the French Restructure, Esterline would make a short term loan to ETHL (the “ETHL Loan”). ETHL
would be permitted to obtain the ETHL Loan pursuant to Section 5.02(b)(ii) provided that the ETHL Loan (a) is on terms reasonably acceptable to the Administrative Agent and (b) is evidenced by a promissory note in form and substance
reasonably satisfactory to the Administrative Agent. The ETHL Loan also constitutes an Investment by Esterline in ETHL, which Investment would be permitted by Section 5.02(f)(i)(B). Administrative Agent approval is requested of the terms of the
ETHL Loan and the form of promissory note evidencing the ETHL Loan. 

	2.5	Contribution of Capital by ETHL to EFH 

In Part I, Step 4 of the French Restructure, ETHL would make a capital contribution of cash to EFH. Since EFH would not become
a Subsidiary Guarantor as described in Section 2.1 of this memorandum, consent of the Required Lenders should be obtained in order to avoid using the Investment baskets for the cash contribution. 

 

	2.6	Purchase of LIE Shares by EFH 

In Part I, Step 5 of the French Restructure, the 83% of the shares of “LIE France that are held by Leach International
Corporation would be sold for cash. Since the sale by Leach International Corporation would be for cash, the sale would be permitted under Section 5.02(e)(v) so long as the sale price is for fair market value and is less than or equal to
$75,000,000. Required Lender consent is requested for the purchase of LIE France shares by EFH. 
  

	2.7	Purchase of Auxitrol S.A. by EFH 

Also in Part I, Step 5 of the French Restructure, ETHL would sell the 10.8% of the shares of Auxitrol S.A. to EFH for cash.
Since the sale by ETHL would be for cash, the sale would be permitted under Section 5.02(e)(v) so long as the sale price is for fair market value and is less than or equal to $75,000,000. Required Lender consent is requested for the purchase of
Auxitrol S.A. shares by EFH. 
  

	2.8	Purchase of ESS Asia by EFH 

In Part I, Step 6 of the French Restructure, ETHL would sell the 3% of the shares of Auxitrol Sensors Services Asia PTE Ltd.
(“ESS Asia”) to EFH for cash. Since the sale by ETHL would be for cash, the sale would be permitted under Section 5.02(e)(v) so long as the sale price is for fair market value and is less than or equal to $75,000,000. Required Lender
consent is requested for the purchase of ESS Asia shares by EFH. 
  

	2.9	Contribution of ESS Asia Shares to Auxitrol S.A. 

Also in Part I, Step 6 of the French Restructure, EFH would contribute its shares in ESS Asia to Auxitrol S.A. Since Auxitrol
S.A. cannot become a Subsidiary Guarantor, Required Lender consent is requested for the equity contribution by EFH to Auxitrol S.A. 
  

	2.10	Upstream of Cash 

 In
Part I, Step 7 of the French Restructure, Leach International Corporation would distribute cash to Leach Holding Corporation in the form of a dividend and Leach Holding Corporation distributes cash to ETHL in the form of a dividend. These
upstream dividends payable to Loan Parties are permitted by Section 5.02(g). 

	2.11	Repayment of ETHL Loan 

In Part I, Step 8 of the French Restructure, ETHL repays the ETHL Loan. This step is not prohibited by the Credit Agreement.

  

	2.12	Tax Consolidation 

 In
Part I, Step 9 of the French Restructure, EFH, Auxitrol S.A. and EF R&D make an election for tax consolidation. This step is not prohibited by the Credit Agreement. 

3.        REPLACEMENT OF ORA 

 

	3.1	Previous Transactions 

As a result of past transactions, a hybrid debt instrument or convertible debt (the “ORA”) in the initial principal amount of
€45 million was issued by Auxitrol Technologies, S.A. (“Auxitrol Tech”) to ETD. ETD transferred the ORA to Esterline as partial payment of an inter-company loan from Esterline to ETD. The obligations of Auxitrol Tech were assumed
by Auxitrol S.A. by operation of law when Auxitrol Tech was merged into Auxitrol S.A. on February 23, 2007. On August 9, 2007, Esterline sold the interest receivable in the ORA to ETD in exchange for a note payable to Esterline. ETD
converted interest receivable on the ORA into capital through a share capital increase in Auxitrol S.A. As described in Part I, Step 2described in Section 1.2 above, ETD is to be dissolved in 2011 and the assets of ETD will be
distributed to Esterline. Required Lender consent is requested for these past steps. 
  

	3.2	EFH Loan 

 In
Part II, Step 1 of the French Restructure, EFH would obtain a long term Euro denominated loan from Esterline (the “EFH Loan”). The EFH Loan would be permitted pursuant to Section 5.02(b)(ii) of the Credit Agreement, with
Administrative Agent approval of (a) the terms of the EFH Loan and (b) the Administrative Agent approves the form of promissory note evidencing the EFH Loan. Administrative Agent approval is requested of the terms of the ETHL Loan and the
form of promissory note evidencing the ETHL Loan. Since EFH would not become a Subsidiary Guarantor, Required Lender consent is requested in order to permit Esterline to convert all or any portion of the EFH Loan (principal and interest) to equity
without the use of the Investment baskets. 
  

	3.3	Purchase of ORA by EFH 

In Part II, Step 2 of the French Restructure, EFH would use the proceeds of the EFH Loan to acquire the ORA from Esterline.
Since EFH would not become a Subsidiary Guarantor, the sale of the ORA would require the consent of the Required Lenders. 

	3.4	Contribution of ORA to Auxitrol S.A. 

In Part II, Step 3 of the French Restructure, EFH would contribute the ORA to the capital of Auxitrol S.A. Required Lender
consent is requested for such capital contribution. 
  

	3.5	Cancellation of ORA 

 In
Part II, Step 4 of the French Restructure, Auxitrol S.A. would cancel the ORA since it would then be the sole holder and sole obligor of the ORA. This step would not be prohibited by the Credit Agreement. 

4.        RESEARCH AND DEVELOPMENT EXPENDITURES 

There are various incentives under French and UK law regarding related to research and development costs and patents and patentable
inventions. In order to take advantage of such incentives, EF R&D will enter into a contract with Weston Aerospace Limited (“Weston”) and Auxitrol S.A., whereby EF R&D will manage all ongoing and future research and development
projects for Weston and Auxitrol S.A. and EF R&D would be the owner of patents and patentable inventions that result from such work. EF R&D would license the intellectual property derived from such research. Section 5.01(i) provides
that Esterline shall “Conduct, and cause each of its Subsidiaries to conduct, all transactions otherwise permitted under the Loan Documents with any of their Affiliates on terms that are fair and reasonable and no less favorable to the Borrower
or such Subsidiary than it would obtain in a comparable arm’s-length transaction with a Person not an Affiliate.” So long as the agreements referred to above meet such requirements, they would be permitted under the Credit Agreement.

 5.        GROUP RELIEF – TAX RECEIVABLES 

Although not specific to the French Restructure, Esterline and its subsidiaries are seeking consent from the Required Lenders to, from
time to time, convert to equity principal and interest on inter-company debt incurred in connection with tax receivables. Required Lender consent is requested for such conversions. 

 EXHIBIT A 

 

 

 EXHIBIT B 

Esterline French Structure (Post-Restructure)

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