Document:

Exhibit 102

		
			Exhibit 10.2 
		

		
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			ISDA
		

		
			International Swaps and Derivatives Association, Inc.
		

		
			2002 MASTER AGREEMENT
		

		
			dated as of November 4, 2016
		

			
					
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						MUFG UNION BANK, N.A.

					
					
						and

					
					
						Pricesmart, Inc.

				
	
					
						(“Party A”)

					
					
						 

					
					
						(“Party B”)

				

		
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			have entered and/or anticipate entering into one or more transactions (each a “Transaction”) that are or will be governed by this 2002 Master Agreement, which includes the schedule (the “Schedule”), and the documents and other confirming evidence (each a “Confirmation”) exchanged between the parties or otherwise effective for the purpose of confirming or evidencing those Transactions. This 2002 Master Agreement and the Schedule are together referred to as this “Master Agreement”.
		

		
			Accordingly, the parties agree as follows:—
		

		
			1.Interpretation
		

		
			(a)Definitions. The terms defined in Section 14 and elsewhere in this Master Agreement will have the meanings therein specified for the purpose of this Master Agreement.
		

		
			(b)Inconsistency. In the event of any inconsistency between the provisions of the Schedule and the other provisions of this Master Agreement, the Schedule will prevail. In the event of any inconsistency between the provisions of any Confirmation and this Master Agreement, such Confirmation will prevail for the purpose of the relevant Transaction.
		

		
			(c)Single Agreement. All Transactions are entered into in reliance on the fact that this Master Agreement and all Confirmations form a single agreement between the parties (collectively referred to as this “Agreement”), and the parties would not otherwise enter into any Transactions.
		

		
			2.Obligations
		

		
			(a)General Conditions.
		

		
			(i)Each party will make each payment or delivery specified in each Confirmation to be made by it, subject to the other provisions of this Agreement.
		

		
			(ii)Payments under this Agreement will be made on the due date for value on that date in the place of the account specified in the relevant Confirmation or otherwise pursuant to this Agreement, in freely transferable funds and in the manner customary for payments in the required currency. Where settlement is by delivery (that is, other than by payment), such delivery will be made for receipt on the due date in the manner customary for the relevant obligation unless otherwise specified in the relevant Confirmation or elsewhere in this Agreement.
		

		

		

		 

		

			Copyright © 2002 by International Swaps and Derivatives Association, Inc.

		

		

			 

		

 

		(iii)Each obligation of each party under Section 2(a)(i) is subject to (1) the condition precedent that no Event of Default or Potential Event of Default with respect to the other party has occurred and is Continuing,
		

		
			(2)the condition precedent that no Early Termination Date in respect of the relevant Transaction has occurred or been effectively designated and (3) each other condition specified in this Agreement to be a condition precedent for the purpose of this Section 2(a)(iii).
		

		
			(b)Change of Account. Either party may change its account for receiving a payment or delivery by giving notice to the other party at least five Local Business Days prior to the Scheduled Settlement Date for the payment or delivery to which such change applies unless such other party gives timely notice of a reasonable objection to such change.
		

		
			(c)Netting of Payments. If on any date amounts would otherwise be payable:—
		

		
			(i)in the same currency; and
		

		
			(ii)in respect of the same Transaction,
		

		
			by each party to the other, then, on such date, each party’s obligation to make payment of any such amount will be automatically satisfied and discharged and, if the aggregate amount that would otherwise have been payable by one party exceeds the aggregate amount that would otherwise have been payable by the other party, replaced by an obligation upon the party by which the larger aggregate amount would have been payable to pay to the other party the excess of the larger aggregate amount over the smaller aggregate amount.
		

		
			The parties may elect in respect of two or more Transactions that a net amount and payment obligation will be determined in respect of all amounts payable on the same date in the same currency in respect of those Transactions, regardless of whether such amounts are payable in respect of the same Transaction. The election may be made in the Schedule or any Confirmation by specifying that “Multiple Transaction Payment Netting” applies to the Transactions identified as being subject to the election (in which case clause (ii) above will not apply to such Transactions). If Multiple Transaction Payment Netting is applicable to Transactions, it will apply to those Transactions with effect from the starting date specified in the Schedule or such Confirmation, or, if a starting date is not specified in the Schedule or such Confirmation, the starting date otherwise agreed by the parties in writing. This election may be made separately for different groups of Transactions and will apply separately to each pairing of Offices through which the parties make and receive payments or deliveries.
		

		
			(d)Deduction or Withholding for Tax.
		

		
			(i)Gross-Up. All payments under this Agreement will be made without any deduction or withholding for or on account of any Tax unless such deduction or withholding is required by any applicable law, as modified by the practice of any relevant governmental revenue authority, then in effect. If a party is so required to deduct or withhold, then that party (“X”) will:—
		

		
			(1)promptly notify the other party (“Y”) of such requirement;
		

		
			(2)pay to the relevant authorities the full amount required to be deducted or withheld (including the full amount required to be deducted or withheld from any additional amount paid by X to Y under_this_.Se.ction..2(d))_promptly upon.-the earlier-of-determining that such deduction or withholding is required or receiving notice that such amount has been assessed against Y;
		

		
			(3)promptly forward to Y an official receipt (or a certified copy), or other documentation reasonably acceptable to Y, evidencing such payment to such authorities; and
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		(4)if such Tax is an Indemnifiable Tax, pay to Y, in addition to the payment to which Y is otherwise entitled under this Agreement, such additional amount as is necessary to ensure that the net amount actually received by Y (free and clear of Indemnifiable Taxes, whether assessed against X or Y) will equal the full amount Y would have received had no such deduction or withholding been required. However, X will not be required to pay any additional amount to Y to the extent that it would not be required to be paid but for;—
		

		
			(A)the failure by Y to comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d); or
		

		
			(B)the failure of a representation made by Y pursuant to Section 3(f) to be accurate and true unless such failure would not have occurred but for (I) any action taken by a taxing authority, or brought in a court of competent jurisdiction, after a Transaction is entered into (regardless of whether such action is taken or brought with respect to a party to this Agreement) or (II) a Change in Tax Law.
		

		
			(ii)Liability. If:—
		

		
			(1)X is required by any applicable law, as modified by the practice of any relevant governmental revenue authority, to make any deduction or withholding in respect of which X would not be required to pay an additional amount to Y under Section 2(d)(i)(4);
		

		
			(2)X does not so deduct or withhold; and
		

		
			(3)a liability resulting from such Tax is assessed directly against X,
		

		
			then, except to the extent Y has satisfied or then satisfies the liability resulting from such Tax, Y will promptly pay to X the amount of such liability (including any related liability for interest, but including any related liability for penalties only if Y has failed to comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)).
		

		
			3.Representations
		

		
			Each party makes the representations contained in Sections 3(a), 3(b), 3(c), 3(d), 3(e) and 3(f) and, if specified in the Schedule as applying, 3(g) to the other party (which representations will be deemed to be repeated by each party on each date on which a Transaction is entered into and, in the case of the representations in Section 3(f), at all times until the termination of this Agreement). If any “Additional Representation” is specified in the Schedule or any Confirmation as applying, the party or parties specified for such Additional Representation will make and, if applicable, be deemed to repeat such Additional Representation at the time or times specified for such Additional Representation.
		

		
			(a)Basic Representations.
		

		
			(i)Status. It is duly organized and validly existing under the laws of the jurisdiction of its organization or incorporation and, if relevant under such laws, in good standing;
		

		
			(ii)Powers. It has the power to execute this Agreement and any other documentation relating to this Agreement to which it is a party, to deliver this Agreement and any other documentation relating to this Agreement that it is required by this Agreement to deliver and to perform its obligations under this Agreement and any obligations it has under any Credit Support Document to which it is a party and has taken all necessary action to authorize such execution, delivery and performance;
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		(iii)No Violation or Conflict. Such execution, delivery and performance do not violate or conflict with any law applicable to it, any provision of its constitutional documents, any order or judgment of any court or other agency of government applicable to it or any of its assets or any contractual restriction binding on or affecting it or any of its assets;
		

		
			(iv)Consents. All governmental and other consents that are required to have been obtained by it with respect to this Agreement or any Credit Support Document to which it is a party have been obtained and are in full force and effect and all conditions of any such consents have been complied with; and
		

		
			(v)Obligations Binding. Its obligations under this Agreement and any Credit Support Document to which it is a party constitute its legal, valid and binding obligations, enforceable in accordance with their respective terms (subject to applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting creditors’ rights generally and subject, as to enforceability, to equitable principles of general application (regardless of whether enforcement is sought in a proceeding in equity or at law)).
		

		
			(b)Absence of Certain Events. No Event of Default or Potential Event of Default or, to its knowledge, Termination Event with respect to it has occurred and is continuing and no such event or circumstance would occur as a result of its entering into or performing its obligations under this Agreement or any Credit Support Document to which it is a party.
		

		
			(c)Absence of Litigation. There is not pending or, to its knowledge, threatened against it, any of its Credit Support Providers or any of its applicable Specified Entities any action, suit or proceeding at law or in equity or before any court, tribunal, governmental body, agency or official or any arbitrator that is likely to affect the legality, validity or enforceability against it of this Agreement or any Credit Support Document to which it is a party or its ability to perform its obligations under this Agreement or such Credit Support Document.
		

		
			(d)Accuracy of Specified Information. All applicable information that is furnished in writing by or on behalf of it to the other party and is identified for the purpose of this Section 3(d) in the Schedule is, as of the date of the information, true, accurate and complete in every material respect.
		

		
			(e)Payer Tax Representation. Each representation specified in the Schedule as being made by it for the purpose of this Section 3(e) is accurate and true.
		

		
			(f)Payee Tax Representations. Each representation specified in the Schedule as being made by it for the purpose of this Section 3(f) is accurate and true.
		

		
			(g)No Agency. It is entering into this Agreement, including each Transaction, as principal and not as agent of any person or entity.
		

		
			4.Agreements
		

		
			Each party agrees with the other that, so long as either party has or may have any obligation under this Agreement or under any Credit Support Document to which it is a party:—
		

		
			(a)Furnish Specified Information. It will deliver to the other party or, in certain cases under clause (iii) below, to such government or taxing authority as the other party reasonably directs:—
		

		
			(i)any forms, documents or certificates relating to taxation specified in the Schedule or any Confirmation,
		

		
			(ii)any other documents specified in the Schedule or any Confirmation; and
		

		
			(iii)upon reasonable demand by such other party, any form or document that may be required or 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		reasonably requested in writing in order to allow such other party or its Credit Support Provider to make a payment under this Agreement or any applicable Credit Support Document without any deduction or withholding for or on account of any Tax or with such deduction or withholding at a reduced rate (so long as the completion, execution or submission of such form or document would not materially prejudice the legal or commercial position of the party in receipt of such demand), with any such form or document to be accurate and completed in a manner reasonably satisfactory to such other party and to be executed and to be delivered with any reasonably required certification,
		

		
			in each case by the date specified in the Schedule or such Confirmation or, if none is specified, as soon as reasonably practicable.
		

		
			(b)Maintain Authorizations. It will use all reasonable efforts to maintain in full force and effect all consents of any governmental or other authority that are required to be obtained by it with respect to this Agreement or any Credit Support Document to which it is a party and will use all reasonable efforts to obtain any that may become necessary in the future.
		

		
			(c)Comply With Laws. It will comply in all material respects with all applicable laws and orders to which it may be subject if failure so to comply would materially impair its ability to perform its obligations under this Agreement or any Credit Support Document to which it is a party.
		

		
			(d)Tax Agreement. It will give notice of any failure of a representation made by it under Section 3(f) to be accurate and true promptly upon learning of such failure.
		

		
			(e)Payment of Stamp Tax. Subject to Section 11, it will pay any Stamp Tax levied or imposed upon it or in respect of its execution or performance of this Agreement by a jurisdiction in which it is incorporated, organized, managed and controlled or considered to have its seat, or where an Office through which it is acting for the purpose of this Agreement is located (“Stamp Tax Jurisdiction”), and will indemnify the other party against any Stamp Tax levied or imposed upon the other party or in respect of the other party’s execution or performance of this Agreement by any such Stamp Tax Jurisdiction which is not also a Stamp Tax Jurisdiction with respect to the other party.
		

		
			5.Events of Default and Termination Events
		

		
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			(a)Events of Default. The occurrence at any time with respect to a party or, if applicable, any Credit Support Provider of such party or any Specified Entity of such party of any of the following events constitutes (subject to Sections 5(c) and 6(e)(iv)) an event of default (an “Event of Default”) with respect to such party:—
		

		
			(i)Failure to Pay or Deliver. Failure by the party to make, when due, any payment under this Agreement or delivery under Section 2(a)(i) or 9(h)(i)(2) or (4) required to be made by it if such failure is not remedied on or before the first Local Business Day in the case of any such payment or the first Local Delivery Day in the case of any such delivery after, in each case, notice of such failure is given to the party;
		

		
			(ii)Breach ofAgreement; Repudiation of Agreement.
		

		
			(1)Failure by the party to comply with or perform any agreement or obligation (other than an obligation to make any payment-under this Agreement or delivery under Section 2(a)(i) or 9(h)(i)(2)or (4) or to give notice of a Termination Event or any agreement or obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the party in accordance with this Agreement if such failure is not remedied within 30 days after notice of such failure is given to the party; or
		

		
			(2)the party disaffirms, disclaims, repudiates or rejects, in whole or in part, or challenges 
		
		
 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		the validity of, this Master Agreement, any Confirmation executed and delivered by that party or any Transaction evidenced by such a Confirmation (or such action is taken by any person or entity appointed or empowered to operate it or act on its behalf);

		
		
			(iii)Credit Support Default.
		

		
			(1)Failure by the party or any Credit Support Provider of such party to comply with or perform any agreement or obligation to be complied with or performed by it in accordance with any Credit Support Document if such failure is continuing after any applicable grace period has elapsed;
		

		
			(2)the expiration or termination of such Credit Support Document or the failing or ceasing of such Credit Support Document, or any security interest granted by such party or such Credit Support Provider to the other party pursuant to any such Credit Support Document, to be in full force and effect for the purpose of this Agreement (in each case other than in accordance with its terms) prior to the satisfaction of all obligations of such party under each Transaction to which such Credit Support Document relates without the written consent of the other party; or
		

		
			(3)the party or such Credit Support Provider disaffirms, disclaims, repudiates or rejects, in whole or in part, or challenges the validity of, such Credit Support Document (or such action is taken by any person or entity appointed or empowered to operate it or act on its behalf);
		

		
			(iv)Misrepresentation. A representation (other than a representation under Section 3(e) or 3(f)) made or repeated or deemed to have been made or repeated by the party or any Credit Support Provider of such party in this Agreement or any Credit Support Document proves to have been incorrect or misleading in any material respect when made or repeated or deemed to have been made or repeated;
		

		
			(v)Default Under Specified Transaction. The party, any Credit Support Provider of such party or any applicable Specified Entity of such party:—
		

		
			(1)defaults (other than by failing to make a delivery) under a Specified Transaction or any credit support arrangement relating to a Specified Transaction and, after giving effect to any applicable notice requirement or grace period, such default results in a liquidation of, an acceleration of obligations under, or an early termination of, that Specified Transaction;
		

		
			(2)defaults, after giving effect to any applicable notice requirement or grace period, in making any payment due on the last payment or exchange date of, or any payment on early termination of, a Specified Transaction (or, if there is no applicable notice requirement or grace period, such default continues for at least one Local Business Day);
		

		
			(3)defaults in making any delivery due under (including any delivery due on the last delivery or exchange date of) a Specified Transaction or any credit support arrangement relating to a Specified Transaction and, after giving effect to any applicable notice requirement or grace period, such default results in a liquidation of, an acceleration of obligations under, or an early termination of, all transactions outstanding under the documentation applicable to that Specified Transaction; or
		

		
			(4)disaffirms, disclaims, repudiates or rejects, in whole or in part, or challenges the validity of, a Specified Transaction or any credit supportarrangement relating to a-Specified-Transaction that is, in either case, confirmed or evidenced by a document or other confirming evidence executed and delivered by that party, Credit Support Provider or Specified Entity (or such action is taken by any person or entity appointed or empowered to operate it or act on its behalf);
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		(vi)Cross-Default. If “Cross-Default” is specified in the Schedule as applying to the party, the occurrence or existence of:—
		

		
			(1)a default, event of default or other similar condition or event (however described) in respect of such party, any Credit Support Provider of such party or any applicable Specified Entity of such party under one or more agreements or instruments relating to Specified Indebtedness of any of them (individually or collectively) where the aggregate principal amount of such agreements or instruments, either alone or together with the amount, if any, referred to in clause (2) below, is not less than the applicable Threshold Amount (as specified in the Schedule) which has resulted in such Specified Indebtedness becoming, or becoming capable at such time of being declared, due and payable under such agreements or instruments before it would otherwise have been due and payable; or
		

		
			(2)a default by such party, such Credit Support Provider or such Specified Entity (individually or collectively) in making one or more payments under such agreements or instruments on the due date for payment (after giving effect to any applicable notice requirement or grace period) in an aggregate amount, either alone or together with the amount, if any, referred to in clause (1) above, of not less than the applicable Threshold Amount;
		

		
			(vii)Bankruptcy. The party, any Credit Support Provider of such party or any applicable Specified Entity of such party:—
		

		
			(1) is dissolved (other than pursuant to a consolidation, amalgamation or merger); (2) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due; (3) makes a general assignment, arrangement or composition with or for the benefit of its creditors; (4)(A) institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organization or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official, or (B) has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation, and such proceeding or petition is instituted or presented by a person or entity not described in clause (A) above and either (I) results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation or (II) is not dismissed, discharged, stayed or restrained in each case within 15 days of the institution or presentation thereof; (5) has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); (6) seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets; (7) has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 15 days thereafter; (8) causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in clauses (1) to (7) above (inclusive); or (9) takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts; or
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		(viii)Merger Without Assumption. The party or any Credit Support Provider of such party consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its assets to, or reorganizes, reincorporates or reconstitutes into or as, another entity and, at the time of such consolidation, amalgamation, merger, transfer, reorganization, reincorporation or reconstitution:—
		

		
			(1)the resulting, surviving or transferee entity fails to assume all the obligations of such party or such Credit Support Provider under this Agreement or any Credit Support Document to which it or its predecessor was a party; or
		

		
			(2)the benefits of any Credit Support Document fail to extend (without the consent of the other party) to the performance by such resulting, surviving or transferee entity of its obligations under this Agreement.
		

		
			(b)Termination Events. The occurrence at any time with respect to a party or, if applicable, any Credit Support Provider of such party or any Specified Entity of such party of any event specified below constitutes (subject to Section 5(c)) an Illegality if the event is specified in clause (i) below, a Force Majeure Event if the event is specified in clause (ii) below, a Tax Event if the event is specified in clause (iii) below, a Tax Event Upon Merger if the event is specified in clause (iv) below, and, if specified to be applicable, a Credit Event Upon Merger if the event is specified pursuant to clause (v) below or an Additional Termination Event if the event is specified pursuant to clause (vi) below:—
		

		
			(i)Illegality. After giving effect to any applicable provision, disruption fallback or remedy specified in, or pursuant to, the relevant Confirmation or elsewhere in this Agreement, due to an event or circumstance (other than any action taken by a party or, if applicable, any Credit Support Provider of such party) occurring after a Transaction is entered into, it becomes unlawful under any applicable law (including without limitation the laws of any country in which payment, delivery or compliance is required by either party or any Credit Support Provider, as the case may be), on any day, or it would be unlawful if the relevant payment, delivery or compliance were required on that day (in each case, other than as a result of a breach by the party of Section 4(b)):—
		

		
			(1)for the Office through which such party (which will be the Affected Party) makes and receives payments or deliveries with respect to such Transaction to perform any absolute or contingent obligation to make a payment or delivery in respect of such Transaction, to receive a payment or delivery in respect of such Transaction or to comply with any other material provision of this Agreement relating to such Transaction; or
		

		
			(2)for such party or any Credit Support Provider of such party (which will be the Affected Party) to perform any absolute or contingent obligation to make a payment or delivery which such party or Credit Support Provider has under any Credit Support Document relating to such Transaction, to receive a payment or delivery under such Credit Support Document or to comply with any other material provision of such Credit Support Document;
		

		
			(ii)Force Majeure Event. After giving effect to any applicable provision, disruption fallback or remedy specified in, or pursuant to, the relevant Confirmation or elsewhere in this Agreement, by reason of force majeure or act of state occurring after a Transaction is entered into, on any day:—
		

		
			(1) the Office through which such party (which will be the Affected Party) makes and receives payments or deliveries with respect to such Transaction is prevented from performing any absolute or contingent obligation to make a payment or delivery in respect of such Transaction, from receiving a payment or delivery in respect of such Transaction or from complying with any other material provision of this Agreement relating to such Transaction (or would be so prevented if such payment, delivery or compliance were required on that day), or it becomes 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		impossible or impracticable for such Office so to perform, receive or comply (or it would be impossible or impracticable for such Office so to perform, receive or comply if such payment, delivery or compliance were required on that day); or
		

		
			(2)such party or any Credit Support Provider of such party (which will be the Affected Party) is prevented from performing any absolute or contingent obligation to make a payment or delivery which such party or Credit Support Provider has under any Credit Support Document relating to such Transaction, from receiving a payment or delivery under such Credit Support Document or from complying with any other material provision of such Credit Support Document (or would be so prevented if such payment, delivery or compliance were required on that day), or it becomes impossible or impracticable for such party or Credit Support Provider so to perform, receive or comply (or it would be impossible or impracticable for such party or Credit Support Provider so to perform, receive or comply if such payment, delivery or compliance were required on that day),
		

		
			so long as the force majeure or act of state is beyond the control of such Office, such party or such Credit Support Provider, as appropriate, and such Office, party or Credit Support Provider could not, after using all reasonable efforts (which will not require such party or Credit Support Provider to incur a loss, other than immaterial, incidental expenses), overcome such prevention, impossibility or impracticability;
		

		
			(iii)Tax Event. Due to (1) any action taken by a taxing authority, or brought in a court of competent jurisdiction, after a Transaction is entered into (regardless of whether such action is taken or brought with respect to a party to this Agreement) or (2) a Change in Tax Law, the party (which will be the Affected Party) will, or there is a substantial likelihood that it will, on the next succeeding Scheduled Settlement Date (A) be required to pay to the other party an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section 9(h)) or (B) receive a payment from which an amount is required to be deducted or withheld for or on account of a Tax (except in respect of interest under Section 9(h)) and no additional amount is required to be paid in respect of such Tax under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or (B));
		

		
			(iv)Tax Event Upon Merger. The party (the “Burdened Party”) on the next succeeding Scheduled Settlement Date will either (1) be required to pay an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section 9(h)) or (2) receive a payment from which an amount has been deducted or withheld for or on account of any Tax in respect of which the other party is not required to pay an additional amount (other than by reason of Section 2(d)(i)(4)(A) or (B)), in either case as a result of a party consolidating or amalgamating with, or merging with or into, or transferring all or substantially all its assets (or any substantial part of the assets comprising the business conducted by it as of the date of this Master Agreement) to, or reorganizing, reincorporating or reconstituting into or as, another entity (which will be the Affected Party) where such action does not constitute a Merger Without Assumption;
		

		
			(v)Credit Event Upon Merger. If “Credit Event Upon Merger” is specified in the Schedule as applying to the party, a Designated Event (as defined below) occurs with respect to such party, any Credit Support Provider of such party or any applicable Specified Entity of such party (in each case, “X”) and such Designated Event does not constitute a Merger Without Assumption, and the creditworthiness of X or, if applicable, the successor, surviving or transferee entity of X, after taking into account any applicable Credit Support Document, is materially weaker immediately after the occurrence of such Designated Event than that of X immediately prior to the occurrence of such Designated Event (and, in any such event, such party or its successor, surviving or transferee entity, as appropriate, will be the Affected Party). A “Designated Event” with respect to X means that:—
		

		
			(1)X consolidates or amalgamates with, or merges with or into, or transfers all or 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		substantially all its assets (or any substantial part of the assets comprising the business conducted by X as of the date of this Master Agreement) to, or reorganizes, reincorporates or reconstitutes into or as, another entity;
		

		
			(2)any person, related group of persons or entity acquires directly or indirectly the beneficial ownership of (A) equity securities having the power to elect a majority of the board of directors (or its equivalent) of X or (B) any other ownership interest enabling it to exercise control of X; or
		

		
			(3)X effects any substantial change in its capital structure by means of the issuance, incurrence or guarantee of debt or the issuance of (A) preferred stock or other securities convertible into or exchangeable for debt or preferred stock or (B) in the case of entities other than corporations, any other form of ownership interest; or
		

		
			(vi)Additional Termination Event. If any “Additional Termination Event” is specified in the Schedule or any Confirmation as applying, the occurrence of such event (and, in such event, the Affected Party or Affected Parties will be as specified for such Additional Termination Event in the Schedule or such Confirmation).
		

		
			(c)Hierarchy of Events.
		

		
			(i)An event or circumstance that constitutes or gives rise to an Illegality or a Force Majeure Event will not, for so long as that is the case, also constitute or give rise to an Event of Default under Section 5(a)(i), 5(a)(ii)(l) or 5(a)(iii)(l) insofar as such event or circumstance relates to the failure to make any payment or delivery or a failure to comply with any other material provision of this Agreement or a Credit Support Document, as the case may be.
		

		
			(ii)Except in circumstances contemplated by clause (i) above, if an event or circumstance which would otherwise constitute or give rise to an Illegality or a Force Majeure Event also constitutes an Event of Default or any other Termination Event, it will be treated as an Event of Default or such other Termination Event, as the case may be, and will not constitute or give rise to an Illegality or a Force Majeure Event.
		

		
			(iii)If an event or circumstance which would otherwise constitute or give rise to a Force Majeure Event also constitutes an Illegality, it will be treated as an Illegality, except as described in clause (ii) above, and not a Force Majeure Event.
		

		
			(d)Deferral of Payments and Deliveries During Waiting Period. If an Illegality or a Force Majeure Event has occurred and is continuing with respect to a Transaction, each payment or delivery which would otherwise be required to be made under that Transaction will be deferred to, and will not be due until:—
		

		
			(i)the first Local Business Day or, in the case of a delivery, the first Local Delivery Day (or the first day that would have been a Local Business Day or Local Delivery Day, as appropriate, but for the occurrence of the event or circumstance constituting or giving rise to that Illegality or Force Majeure Event) following the end of any applicable Waiting Period in respect of that Illegality or Force Majeure Event, as the case may be; or
		

		
			(ii)if earlier, the date on which the event or circumstance constituting or giving rise to that Illegality or Force Majeure Event ceases to.existor._ifsuch.date is not a Local Business-Day or, in the case of-a delivery, a Local Delivery Day, the first following day that is a Local Business Day or Local Delivery Day, as appropriate.
		

		
			(e)Inability of Head or Home Office to Perform Obligations of Branch. If (i) an Illegality or a Force 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		Majeure Event occurs under Section 5(b)(i)(l) or 5(b)(ii)(l) and the relevant Office is not the Affected Party’s head or home office, (ii) Section 10(a) applies, (iii) the other party seeks performance of the relevant obligation or compliance with the relevant provision by the Affected Party’s head or home office and (iv) the Affected Party’s head or home office fails so to perform or comply due to the occurrence of an event or circumstance which would, if that head or home office were the Office through which the Affected Party makes and receives payments and deliveries with respect to the relevant Transaction, constitute or give rise to an Illegality or a Force Majeure Event, and such failure would otherwise constitute an Event of Default under Section 5(a)(i) or 5(a)(iii)(l) with respect to such party then, for so long as the relevant event or circumstance continues to exist with respect to both the Office referred to in Section 5(b)(i)(l) or 5(b)(ii)(l), as the case may be, and the Affected Party’s head or home office, such failure will not constitute an Event of Default under Section 5(a)(i) or 5(a)(iii)(l).
		

		
			6.Early Termination; Close-Out Netting
		

		
			(a)Right to Terminate Following Event of Default. If at any time an Event of Default with respect to a party (the “Defaulting Party”) has occurred and is then continuing, the other party (the “Non-defaulting Party”) may, by not more than 20 days notice to the Defaulting Party specifying the relevant Event of Default, designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of all outstanding Transactions. If, however, “Automatic Early Termination” is specified in the Schedule as applying to a party, then an Early Termination Date in respect of all outstanding Transactions will occur immediately upon the occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(l), (3), (5), (6) or, to the extent analogous thereto, (8), and as of the time immediately preceding the institution of the relevant proceeding or the presentation of the relevant petition upon the occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8).
		

		
			(b)Right to Terminate Following Termination Event.
		

		
			(i)Notice. If a Termination Event other than a Force Majeure Event occurs, an Affected Party will, promptly upon becoming aware of it, notify the other party, specifying the nature of that Termination Event and each Affected Transaction, and will also give the other party such other information about that Termination Event as the other party may reasonably require. If a Force Majeure Event occurs, each party will, promptly upon becoming aware of it, use all reasonable efforts to notify the other party, specifying the nature of that Force Majeure Event, and will also give the other party such other information about that Force Majeure Event as the other party may reasonably require.
		

		
			﻿
		

		
			(ii)Transfer to Avoid Termination Event. If a Tax Event occurs and there is only one Affected Party, or if a Tax Event Upon Merger occurs and the Burdened Party is the Affected Party, the Affected Party will, as a condition to its right to designate an Early Termination Date under Section 6(b)(iv), use all reasonable efforts (which will not require such party to incur a loss, other than immaterial, incidental expenses) to transfer within 20 days after it gives notice under Section 6(b)(i) all its rights and obligations under this Agreement in respect of the Affected Transactions to another of its Offices or Affiliates so that such Termination Event ceases to exist.
		

		
			If the Affected Party is not able to make such a transfer it will give notice to the other party to that effect within such 20 day period, whereupon the other party may effect such a transfer within 30 days after the notice is given under Section 6(b)(i).
		

		
			Any such transfer by a party under this Section 6(b)(ii) will be subject to and conditional upon the prior written consent of the other party, which consent will not be withheld if such other party’s policies in effect at such time would permit it to enter into transactions with the transferee on the terms proposed.
		

		
			﻿
		

		
			(iii)Two Affected Parties. If a Tax Event occurs and there are two Affected Parties, each party will use all reasonable efforts to reach agreement within 30 days after notice of such occurrence is given under 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		Section 6(b)(i) to avoid that Termination Event.
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		(iv)Right to Terminate.
		

		
			(1)If:-
		

		
			(A)a transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii), as the case may be, has not been effected with respect to all Affected Transactions within 30 days after an Affected Party gives notice under Section 6(b)(i); or
		

		
			(B)a Credit Event Upon Merger or an Additional Termination Event occurs, or a Tax Event Upon Merger occurs and the Burdened Party is not the Affected Party,
		

		
			the Burdened Party in the case of a Tax Event Upon Merger, any Affected Party in the case of a Tax Event or an Additional Termination Event if there are two Affected Parties, or the Non- affected Party in the case of a Credit Event Upon Merger or an Additional Termination Event if there is only one Affected Party may, if the relevant Termination Event is then continuing, by not more than 20 days notice to the other party, designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of all Affected Transactions.
		

		
			(2)If at any time an Illegality or a Force Majeure Event has occurred and is then continuing and any applicable Waiting Period has expired:—
		

		
			(A)Subject to clause (B) below, either party may, by not more than 20 days notice to the other party, designate (I) a day not earlier than the day on which such notice becomes effective as an Early Termination Date in respect of all Affected Transactions or (II) by specifying in that notice the Affected Transactions in respect of which it is designating the relevant day as an Early Termination Date, a day not earlier than two Local Business Days following the day on which such notice becomes effective as an Early Termination Date in respect of less than all Affected Transactions. Upon receipt of a notice designating an Early Termination Date in respect of less than all Affected Transactions, the other party may, by notice to the designating party, if such notice is effective on or before the day so designated, designate that same day as an Early Termination Date in respect of any or all other Affected Transactions.
		

		
			(B)An Affected Party (if the Illegality or Force Majeure Event relates to performance by such party or any Credit Support Provider of such party of an obligation to make any payment or delivery under, or to compliance with any other material provision of, the relevant Credit Support Document) will only have the right to designate an Early Termination Date under Section 6(b)(iv)(2)(A) as a result of an Illegality under Section 5(b)(i)(2) or a Force Majeure Event under Section 5(b)(ii)(2) following the prior designation by the other party of an Early Termination Date, pursuant to Section 6(b)(iv)(2)(A), in respect of less than all Affected Transactions.
		

		
			(c)Effect of Designation.
		

		
			(i)If notice designating an Early Termination Date is given under Section 6(a) or 6(b), the Early Termination Date will occur on the date so designated, whether or not the relevant Event of Default or Termination Event is then continuing.
		

		
			(ii)Upon the occurrence or effective designation of an Early Termination Date, no further payments or deliveries under Section 2(a)(i) or 9(h)(i) in respect of the Terminated Transactions will be required to be made, but without prejudice to the other provisions of this Agreement. The amount, if any, payable in respect of an Early Termination Date will be determined pursuant to Sections 6(e) and 9(h)(ii).
		

		
			(d)Calculations; Payment Date.
		

		
			(1)Statement. On or as soon as reasonably practicable following the occurrence of an Early Termination Date, each party will make the calculations on its part, if any, contemplated by Section 6(e) 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		and will provide to the other party a statement (1) showing, in reasonable detail, such calculations (including any quotations, market data or information from internal sources used in making such calculations),
		

		
			(2)specifying (except where there are two Affected Parties) any Early Termination Amount payable and
		

		
			(3)giving details of the relevant account to which any amount payable to it is to be paid. In the absence of written confirmation from the source of a quotation or market data obtained in determining a Close-out Amount, the records of the party obtaining such quotation or market data will be conclusive evidence of the existence and accuracy of such quotation or market data.
		

		
			(ii) Payment Date. An Early Termination Amount due in respect of any Early Termination Date will, together with any amount of interest payable pursuant to Section 9(h)(ii)(2), be payable (1) on the day on which notice of the amount payable is effective in the case of an Early Termination Date which is designated or occurs as a result of an Event of Default and (2) on the day which is two Local Business Days after the day on which notice of the amount payable is effective (or, if there are two Affected Parties, after the day on which the statement provided pursuant to clause (i) above by the second party to provide such a statement is effective) in the case of an Early Termination Date which is designated as a result of a Termination Event.
		

		
			(e)Payments on Early Termination. If an Early Termination Date occurs, the amount, if any, payable in respect of that Early Termination Date (the “Early Termination Amount”) will be determined pursuant to this Section 6(e) and will be subject to Section 6(f).
		

		
			(i)Events of Default. If the Early Termination Date results from an Event of Default, the Early Termination Amount will be an amount equal to (1) the sum of (A) the Termination Currency Equivalent of the Close-out Amount or Close-out Amounts (whether positive of negative) determined by the Nondefaulting Party for each Terminated Transaction or group of Terminated Transactions, as the case may be, and (B) the Termination Currency Equivalent of the Unpaid Amounts owing to the Non-defaulting Party less (2) the Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party. If the Early Termination Amount is a positive number, the Defaulting Party will pay it to the Non-defaulting Party; if it is a negative number, the Non-defaulting Party will pay the absolute value of the Early Termination Amount to the Defaulting Party.
		

		
			(ii) Termination Events. If the Early Termination Date results from a Termination Event:—
		

		
			(1)One Affected Party. Subject to clause (3) below, if there is one Affected Party, the Early Termination Amount will be determined in accordance with Section 6(e)(i), except that references to the Defaulting Party and to the Non-defaulting Party will be deemed to be references to the Affected Party and to the Non-affected Party, respectively.
		

		
			(2)Two Affected Parties. Subject to clause (3) below, if there are two Affected Parties, each party will determine an amount equal to the Termination Currency Equivalent of the sum of the Close-out Amount or Close-out Amounts (whether positive or negative) for each Terminated Transaction or group of Terminated Transactions, as the case may be, and the Early Termination Amount will be an amount equal to (A) the sum of II) one-half of the difference between the higher amount so determined (by party ‘T’) and the lower amount so determined (by party “Y”) and (II) the Termination Currency Equivalent of the Unpaid Amounts owing to X less (B) the Termination Currency Equivalent of the Unpaid Amounts owing to Y. If the Early Termination Amount is a positive number, Y will pay it to X; if it is a negative number, X will pay the absolute value of the Early Termination Amount to Y.
		

		
			(3)Mid-Market Events. If that Termination Event is an Illegality or a Force Majeure Event, then the Early Termination Amount will be determined in accordance with clause (1) or (2) above, as appropriate, except that, for the purpose of determining a Close-out Amount or Close-out Amounts, the Determining Party will:—
		

		
			(A)if obtaining quotations from one or more third parties (or from any of the Determining Party’s Affiliates), ask each third party or Affiliate (I) not to take account of the current creditworthiness of the Determining Party or any existing Credit Support 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		Document and (II) to provide mid-market quotations; and
		

		
			(B)in any other case, use mid-market values without regard to the creditworthiness of the Determining Party.
		

		
			(iii)Adjustment for Bankruptcy. In circumstances where an Early Termination Date occurs because Automatic Early Termination applies in respect of a party, the Early Termination Amount will be subject to such adjustments as are appropriate and permitted by applicable law to reflect any payments or deliveries made by one party to the other under this Agreement (and retained by such other party) during the period from the relevant Early Termination Date to the date for payment determined under Section 6(d)(ii).
		

		
			(iv)Adjustment for Illegality or Force Majeure Event. The failure by a party or any Credit Support Provider of such party to pay, when due, any Early Termination Amount will not constitute an Event of Default under Section 5(a)(i) or 5(a)(iii)(l) if such failure is due to the occurrence of an event or circumstance which would, if it occurred with respect to payment, delivery or compliance related to a Transaction, constitute or give rise to an Illegality or a Force Majeure Event. Such amount will (1) accrue interest and otherwise be treated as an Unpaid Amount owing to the other party if subsequently an Early Termination Date results from an Event of Default, a Credit Event Upon Merger or an Additional Termination Event in respect of which all outstanding Transactions are Affected Transactions and (2) otherwise accrue interest in accordance with Section 9(h)(ii)(2).
		

		
			(v)Pre-Estimate. The parties agree that an amount recoverable under this Section 6(e) is a reasonable pre-estimate of loss and not a penalty. Such amount is payable for the loss of bargain and the loss of protection against future risks, and, except as otherwise provided in this Agreement, neither party will be entitled to recover any additional damages as a consequence of the termination of the Terminated Transactions.
		

		
			(f)Set-Off Any Early Termination Amount payable to one party (the “Payee”) by the other party (the “Payer”), in circumstances where there is a Defaulting Party or where there is one Affected Party in the case where either a Credit Event Upon Merger has occurred or any other Termination Event in respect of which all outstanding Transactions are Affected Transactions has occurred, will, at the option of the Non-defaulting Party or the Non- affected Party, as the case may be (“X”) (and without prior notice to the Defaulting Party or the Affected Party, as the case may be), be reduced by its set-off against any other amounts (“Other Amounts”) payable by the Payee to the Payer (whether or not arising under this Agreement, matured or contingent and irrespective of the currency, place of payment or place of booking of the obligation). To the extent that any Other Amounts are so set off, those Other Amounts will be discharged promptly and in all respects. X will give notice to the other party of any set-off effected under this Section 6(f).
		

		
			For this purpose, either the Early Termination Amount or the Other Amounts (or the relevant portion of such amounts) may be converted by X into the currency in which the other is denominated at the rate of exchange at which such party would be able, in good faith and using commercially reasonable procedures, to purchase the relevant amount of such currency.
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		If an obligation is unascertained, X may in good faith estimate that obligation and set off in respect of the estimate, subject to the relevant party accounting to the other when the obligation is ascertained.
		

		
			Nothing in this Section 6(f) will be effective to create a charge or other security interest. This Section 6(f) will be without prejudice and in addition to any right of set-off, offset, combination of accounts, lien, right of retention or withholding or similar right or requirement to which any party is at any time otherwise entitled or subject (whether by operation of law, contract or otherwise).
		

		
			7.Transfer
		

		
			Subject to Section 6(b)(ii) and to the extent permitted by applicable law, neither this Agreement nor any interest or obligation in or under this Agreement may be transferred (whether by way of security or otherwise) by either party without the prior written consent of the other party, except that:—
		

		
			(a)a party may make such a transfer of this Agreement pursuant to a consolidation or amalgamation with, or merger with or into, or transfer of all or substantially all its assets to, another entity (but without prejudice to any other right or remedy under this Agreement); and
		

		
			(b)a party may make such a transfer of all or any part of its interest in any Early Termination Amount payable to it by a Defaulting Party, together with any amounts payable on or with respect to that interest and any other rights associated with that interest pursuant to Sections 8, 9(h) and 11.
		

		
			Any purported transfer that is not in compliance with this Section 7 will be void.
		

		
			8.Contractual Currency
		

		
			(a)Payment in the Contractual Currency. Each payment under this Agreement will be made in the relevant currency specified in this Agreement for that payment (the “Contractual Currency”). To the extent permitted by applicable law, any obligation to make payments under this Agreement in the Contractual Currency will not be discharged or satisfied by any tender in any currency other than the Contractual Currency, except to the extent such tender results in the actual receipt by the party to which payment is owed, acting in good faith and using commercially reasonable procedures in converting the currency so tendered into the Contractual Currency, of the full amount in the Contractual Currency of all amounts payable in respect of this Agreement. If for any reason the amount in the Contractual Currency so received falls short of the amount in the Contractual Currency payable in respect of this Agreement, the party required to make the payment will, to the extent permitted by applicable law, immediately pay such additional amount in the Contractual Currency as may be necessary to compensate for the shortfall. If for any reason the amount in the Contractual Currency so received exceeds the amount in the Contractual Currency payable in respect of this Agreement, the party receiving the payment will refund promptly the amount of such excess.
		

		
			(b)Judgments. To the extent permitted by applicable law, if any judgment or order expressed in a currency other than the Contractual Currency is rendered (i) for the payment of any amount owing in respect of this Agreement, (ii) for the payment of any amount relating to any early termination in respect of this Agreement or (iii) in respect of a judgment or order of another court for the payment of any amount described in clause (i) or (ii) above, the party seeking recovery, after recovery in full of the aggregate amount to which such party is entitled pursuant to the judgment or order, will be entitled to receive immediately from the other party the amount of any shortfall of the Contractual Currency received by such party as a consequence of sums paid in such other currency and will refund promptly to the other party any excess of the Contractual Currency received by such party as a consequence of sums paid in such other currency if such shortfall or such excess arises or results from any variation between the rate of exchange at which the Contractual Currency is converted into the currency of the judgment or order for the purpose of such judgment or order and the rate of exchange at which such party is able, acting in good faith and using
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		commercially reasonable procedures in converting the currency received into the Contractual Currency, to purchase the Contractual Currency with the amount of the currency of the judgment or order actually received by such party.
		

		
			(c)Separate Indemnities. To the extent permitted by applicable law, the indemnities in this Section 8 constitute separate and independent obligations from the other obligations in this Agreement, will be enforceable as separate and independent causes of action, will apply notwithstanding any indulgence granted by the party to which any payment is owed and will not be affected by judgment being obtained or claim or proof being made for any other sums payable in respect of this Agreement.
		

		
			(d)Evidence of Loss. For the purpose of this Section 8, it will be sufficient for a party to demonstrate that it would have suffered a loss had an actual exchange or purchase been made.
		

		
			9.Miscellaneous
		

		
			(a)Entire Agreement. This Agreement constitutes the entire agreement and understanding of the parties with respect to its subject matter. Each of the parties acknowledges that in entering into this Agreement it has not relied on any oral or written representation, warranty or other assurance (except as provided for or referred to in this Agreement) and waives all rights and remedies which might otherwise be available to it in respect thereof, except that nothing in this Agreement will limit or exclude any liability of a party for fraud.
		

		
			(b)Amendments. An amendment, modification or waiver in respect of this Agreement will only be effective if in writing (including a writing evidenced by a facsimile transmission) and executed by each of the parties or confirmed by an exchange of telexes or by an exchange of electronic messages on an electronic messaging system.
		

		
			(c)Survival of Obligations. Without prejudice to Sections 2(a)(iii) and 6(c)(ii), the obligations of the parties under this Agreement will survive the termination of any Transaction.
		

		
			(d)Remedies Cumulative. Except as provided in this Agreement, the rights, powers, remedies and privileges provided in this Agreement are cumulative and not exclusive of any rights, powers, remedies and privileges provided by law.
		

		
			(e)Counterparts and Confirmations.
		

		
			(i)This Agreement (and each amendment, modification and waiver in respect of it) may be executed and delivered in counterparts (including by facsimile transmission and by electronic messaging system), each of which will be deemed an original.
		

		
			(ii)The parties intend that they are legally bound by the terms of each Transaction from the moment they agree to those terms (whether orally or otherwise). A Confirmation will be entered into as soon as practicable and may be executed and delivered in counterparts (including by facsimile transmission) or be created by an exchange of telexes, by an exchange of electronic messages on an electronic messaging system or by an exchange of e-mails, which in each case will be sufficient for all purposes to evidence a binding supplement to this Agreement. The parties will specify therein or through another effective means that any such counterpart, telex, electronic message or e-mail constitutes a Confirmation.
		

		
			(f)No Waiver of Rights.    A-failure-or-delay-in- exercising-any-right-power-or privilege-in respect of this Agreement will not be presumed to operate as a waiver, and a single or partial exercise of any right, power or privilege will not be presumed to preclude any subsequent or further exercise, of that right, power or privilege or the exercise of any other right, power or privilege.
		

		
			(g)Headings. The headings used in this Agreement are for convenience of reference only and are not to affect the construction of or to be taken into consideration in interpreting this Agreement.
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		(h)Interest and Compensation.
		

		
			(i)Prior to Early Termination. Prior to the occurrence or effective designation of an Early Termination Date in respect of the relevant Transaction:—
		

		
			(1)Interest on Defaulted Payments. If a party defaults in the performance of any payment obligation, it will, to the extent permitted by applicable law and subject to Section 6(c), pay interest (before as well as after judgment) on the overdue amount to the other party on demand in the same currency as the overdue amount, for the period from (and including) the original due date for payment to (but excluding) the date of actual payment (and excluding any period in respect of which interest or compensation in respect of the overdue amount is due pursuant to clause (3)(B) or
		

		
			(C)below), at the Default Rate.
		

		
			(2)Compensation for Defaulted Deliveries. If a party defaults in the performance of any obligation required to be settled by delivery, it will on demand (A) compensate the other party to the extent provided for in the relevant Confirmation or elsewhere in this Agreement and (B) unless otherwise provided in the relevant Confirmation or elsewhere in this Agreement, to the extent permitted by applicable law and subject to Section 6(c), pay to the other party interest (before as well as after judgment) on an amount equal to the fair market value of that which was required to be delivered in the same currency as that amount, for the period from (and including) the originally scheduled date for delivery to (but excluding) the date of actual delivery (and excluding any period in respect of which interest or compensation in respect of that amount is due pursuant to clause (4) below), at the Default Rate. The fair market value of any obligation referred to above will be determined as of the originally scheduled date for delivery, in good faith and using commercially reasonable procedures, by the party that was entitled to take delivery.
		

		
			(3)Interest on Deferred Payments. If:—
		

		
			(A)a party does not pay any amount that, but for Section 2(a)(iii), would have been payable, it will, to the extent permitted by applicable law and subject to Section 6(c) and clauses (B) and (C) below, pay interest (before as well as after judgment) on that amount to the other party on demand (after such amount becomes payable) in the same currency as that amount, for the period from (and including) the date the amount would, but for Section 2(a)(iii), have been payable to (but excluding) the date the amount actually becomes payable, at the Applicable Deferral Rate;
		

		
			(B)a payment is deferred pursuant to Section 5(d), the party which would otherwise have been required to make that payment will, to the extent permitted by applicable law, subject to Section 6(c) and for so long as no Event of Default or Potential Event of Default with respect to that party has occurred and is continuing, pay interest (before as well as after judgment) on the amount of the deferred payment to the other party on demand (after such amount becomes payable) in the same currency as the deferred payment, for the period from (and including) the date the amount would, but for Section 5(d), have been payable to (but excluding) the earlier of the date the payment is no longer deferred pursuant to Section 5(d) and the date during the deferral period upon which an Event of Default or Potential Event of Default with respect to that party occurs, at the Applicable Deferral Rate; or
		

		
			(C)a party fails to make any payment due to the occurrence of an Illegality or a Force Majeure Event (after giving effect to any deferral period contemplated by clause (B) above), it will, to the extent permitted by applicable law, subject to Section 6(c) and 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		for so long as the event or circumstance giving rise to that Illegality or Force Majeure Event continues and no Event of Default or Potential Event of Default with respect to that party has occurred and is continuing, pay interest (before as well as after judgment) on the overdue amount to the other party on demand in the same currency as the overdue amount, for the period from (and including) the date the party fails to make the payment due to the occurrence of the relevant Illegality or Force Majeure Event (or, if later, the date the payment is no longer deferred pursuant to Section 5(d)) to (but excluding) the earlier of the date the event or circumstance giving rise to that Illegality or Force Majeure Event ceases to exist and the date during the period upon which an Event of Default or Potential Event of Default with respect to that party occurs (and excluding any period in respect of which interest or compensation in respect of the overdue amount is due pursuant to clause (B) above), at the Applicable Deferral Rate.
		

		
			(4)Compensation for Deferred Deliveries. If:—
		

		
			(A)a party does not perform any obligation that, but for Section 2(a)(iii), would have been required to be settled by delivery;
		

		
			(B)a delivery is deferred pursuant to Section 5(d); or
		

		
			(C)a party fails to make a delivery due to the occurrence of an Illegality or a Force Majeure Event at a time when any applicable Waiting Period has expired,
		

		
			the party required (or that would otherwise have been required) to make the delivery will, to the extent permitted by applicable law and subject to Section 6(c), compensate and pay interest to the other party on demand (after, in the case of clauses (A) and (B) above, such delivery is required) if and to the extent provided for in the relevant Confirmation or elsewhere in this Agreement.
		

		
			(ii)Early Termination. Upon the occurrence or effective designation of an Early Termination Date in respect of a Transaction:—
		

		
			(1)Unpaid Amounts. For the purpose of determining an Unpaid Amount in respect of the relevant Transaction, and to the extent permitted by applicable law, interest will accrue on the amount of any payment obligation or the amount equal to the fair market value of any obligation required to be settled by delivery included in such determination in the same currency as that amount, for the period from (and including) the date the relevant obligation was (or would have been but for Section 2(a)(iii) or 5(d)) required to have been performed to (but excluding) the relevant Early Termination Date, at the Applicable Close-out Rate.
		

		
			(2)Interest on Early Termination Amounts. If an Early Termination Amount is due in respect of such Early Termination Date, that amount will, to the extent permitted by applicable law, be paid together with interest (before as well as after judgment) on that amount in the Termination Currency, for the period from (and including) such Early Termination Date to (but excluding) the date the amount is paid, at the Applicable Close-out Rate.
		

		
			(iii)Interest Calculation. Any interest pursuant to this Section 9(h) will be calculated on the basis of
		

		
			daily compounding and the actual number.of days elapsed.
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		10.Offices; Multibranch Parties
		

		
			(a)If Section 10(a) is specified in the Schedule as applying, each party that enters into a Transaction through an Office other than its head or home office represents to and agrees with the other party that, notwithstanding the place of booking or its jurisdiction of incorporation or organization, its obligations are the same in terms of recourse against it as if it had entered into the Transaction through its head or home office, except that a party will not have recourse to the head or home office of the other party in respect of any payment or delivery deferred pursuant to Section 5(d) for so long as the payment or delivery is so deferred. This representation and agreement will be deemed to be repeated by each party on each date on which the parties enter into a Transaction.
		

		
			(b)If a party is specified as a Multibranch Party in the Schedule, such party may, subject to clause (c) below, enter into a Transaction through, book a Transaction in and make and receive payments and deliveries with respect to a Transaction through any Office listed in respect of that party in the Schedule (but not any other Office unless otherwise agreed by the parties in writing).
		

		
			(c)The Office through which a party enters into a Transaction will be the Office specified for that party in the relevant Confirmation or as otherwise agreed by the parties in writing, and, if an Office for that party is not specified in the Confirmation or otherwise agreed by the parties in writing, its head or home office. Unless the parties otherwise agree in writing, the Office through which a party enters into a Transaction will also be the Office in which it books the Transaction and the Office through which it makes and receives payments and deliveries with respect to the Transaction. Subject to Section 6(b)(ii), neither party may change the Office in which it books the Transaction or the Office through which it makes and receives payments or deliveries with respect to a Transaction without the prior written consent of the other party.
		

		
			11.Expenses
		

		
			A Defaulting Party will on demand indemnify and hold harmless the other party for and against all reasonable out-of- pocket expenses, including legal fees, execution fees and Stamp Tax, incurred by such other party by reason of the enforcement and protection of its rights under this Agreement or any Credit Support Document to which the Defaulting Party is a party or by reason of the early termination of any Transaction, including, but not limited to, costs of collection.
		

		
			12.Notices
		

		
			(a)Effectiveness. Any notice or other communication in respect of this Agreement may be given in any manner described below (except that a notice or other communication under Section 5 or 6 may not be given by electronic messaging system or e-mail) to the address or number or in accordance with the electronic messaging system or e-mail details provided (see the Schedule) and will be deemed effective as indicated:—
		

		
			(i)if in writing and delivered in person or by courier, on the date it is delivered;
		

		
			(ii)if sent by telex, on the date the recipient’s answerback is received;
		

		
			(iii)if sent by facsimile transmission, on the date it is received by a responsible employee of the recipient in legible form (it being agreed that the burden of proving receipt will be on the sender and will not be met by a transmission report generated by the sender’s facsimile machine);
		

		
			(iv)if sent by certified or registered mail (airmail, if overseas) or the equivalent (return receipt requested), on the date it is delivered or its delivery is attempted;
		

		
			(v)if sent by electronic messaging system, on the date it is received; or
		

		
			(vi)if sent by e-mail, on the date it is delivered,
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		unless the date of that delivery (or attempted delivery) or that receipt, as applicable, is not a Local Business Day or that communication is delivered (or attempted) or received, as applicable, after the close of business on a Local Business Day, in which case that communication will be deemed given and effective on the first following day that is a Local Business Day.
		

		
			(b)Change of Details. Either party may by notice to the other change the address, telex or facsimile number or
		

		
			electronic messaging system or e-mail details at which notices or other communications are to be given to it.
		

		
			13. Governing Law and Jurisdiction
		

		
			(a)Governing Law. This Agreement will be governed by and construed in accordance with the law specified in the Schedule.
		

		
			(b)Jurisdiction. With respect to any suit, action or proceedings relating to any dispute arising out of or in connection with this Agreement (“Proceedings”), each party irrevocably:—
		

		
			(i)submits:—
		

		
			(1)if this Agreement is expressed to be governed by English law, to (A) the non-exclusive jurisdiction of the English courts if the Proceedings do not involve a Convention Court and (B) the exclusive jurisdiction of the English courts if the Proceedings do involve a Convention Court; or
		

		
			(2)if this Agreement is expressed to be governed by the laws of the State of New York, to the non-exclusive jurisdiction of the courts of the State of New York and the United States District Court located in the Borough of Manhattan in New York City;
		

		
			(ii)waives any objection which it may have at any time to the laying of venue of any Proceedings brought in any such court, waives any claim that such Proceedings have been brought in an inconvenient forum and further waives the right to object, with respect to such Proceedings, that such court does not have any jurisdiction over such party; and
		

		
			(iii)agrees, to the extent permitted by applicable law, that the bringing of Proceedings in any one or more jurisdictions will not preclude the bringing of Proceedings in any other jurisdiction.
		

		
			(c)Service of Process. Each party irrevocably appoints the Process Agent, if any, specified opposite its name in the Schedule to receive, for it and on its behalf, service of process in any Proceedings. If for any reason any party’s Process Agent is unable to act as such, such party will promptly notify the other party and within 30 days appoint a substitute process agent acceptable to the other party. The parties irrevocably consent to service of process given in the manner provided for notices in Section 12(a)(i), 12(a)(iii) or 12(a)(iv). Nothing in this Agreement will affect the right of either party to serve process in any other manner permitted by applicable law.
		

		
			(d)Waiver of Immunities. Each party irrevocably waives, to the extent permitted by applicable law, with respect to itself and its revenues and assets (irrespective of their use or intended use), all immunity on the grounds of sovereignty or other similar grounds from-(i) suit,(ii) jurisdiction-of any court, (iii) relief by way-of injunction or order for specific performance or recovery of property, (iv) attachment of its assets (whether before or after judgment) and (v) execution or enforcement of any judgment to which it or its revenues or assets might otherwise be entitled in any Proceedings in the courts of any jurisdiction and irrevocably agrees, to the extent permitted by applicable law, that it will not claim any such immunity in any Proceedings.
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		14.Definitions
		

		
			As used in this Agreement:—
		

		
			“AdditionalRepresentation” has the meaning specified in Section 3.
		

		
			“Additional Termination Event” has the meaning specified in Section 5(b).
		

		
			“AffectedParty” has the meaning specified in Section 5(b).
		

		
			“Affected Transactions” means (a) with respect to any Termination Event consisting of an Illegality, Force Majeure Event, Tax Event or Tax Event Upon Merger, all Transactions affected by the occurrence of such Termination Event (which, in the case of an Illegality under Section 5(b)(i)(2) or a Force Majeure Event under Section 5(b)(ii)(2), means all Transactions unless the relevant Credit Support Document references only certain Transactions, in which case those Transactions and, if the relevant Credit Support Document constitutes a Confirmation for a Transaction, that Transaction) and (b) with respect to any other Termination Event, all Transactions.
		

		
			“Affiliate” means, subject to the Schedule, in relation to any person, any entity controlled, directly or indirectly, by the person, any entity that controls, directly or indirectly, the person or any entity directly or indirectly under common control with the person. For this purpose, “control” of any entity or person means ownership of a majority of the voting power of the entity or person.
		

		
			“Agreement” has the meaning specified in Section 1(c).
		

		
			“Applicable Close-out Rate” means:—
		

		
			(a)in respect of the determination of an Unpaid Amount:—
		

		
			(i)in respect of obligations payable or deliverable (or which would have been but for Section 2(a)(iii)) by a Defaulting Party, the Default Rate;
		

		
			(ii)in respect of obligations payable or deliverable (or which would have been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default Rate;
		

		
			(iii)in respect of obligations deferred pursuant to Section 5(d), if there is no Defaulting Party and for so long as the deferral period continues, the Applicable Deferral Rate; and
		

		
			(iv)in all other cases following the occurrence of a Termination Event (except where interest accrues pursuant to clause (iii) above), the Applicable Deferral Rate; and
		

		
			(b)in respect of an Early Termination Amount:—
		

		
			(i)for the period from (and including) the relevant Early Termination Date to (but excluding) the date (determined in accordance with Section 6(d)(ii)) on which that amount is payable:—
		

		
			(1) —if the Early Termination Amount is payable by a Defaulting Party, the Default Rate;
		

		
			(2)if the Early Termination Amount is payable by a Non-defaulting Party, the Non-default Rate; and
		

		
			(3)in all other cases, the Applicable Deferral Rate; and
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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			(ii)for the period from (and including) the date (determined in accordance with Section 6(d)(ii)) on which that amount is payable to (but excluding) the date of actual payment:—
		

		
			(1)if a party fails to pay the Early Termination Amount due to the occurrence of an event or circumstance which would, if it occurred with respect to a payment or delivery under a Transaction, constitute or give rise to an Illegality or a Force Majeure Event, and for so long as the Early Termination Amount remains unpaid due to the continuing existence of such event or circumstance, the Applicable Deferral Rate;
		

		
			(2)if the Early Termination Amount is payable by a Defaulting Party (but excluding any period in respect of which clause (I) above applies), the Default Rate;
		

		
			(3)if the Early Termination Amount is payable by a Non-defaulting Party (but excluding any period in respect of which clause (1) above applies), the Non-default Rate; and
		

		
			(4)in all other cases, the Termination Rate.
		

		
			“Applicable Deferral Rate” means:—
		

		
			(a)for the purpose of Section 9(h)(i)(3)(A), the rate certified by the relevant payer to be a rate offered to the payer by a major bank in a relevant interbank market for overnight deposits in the applicable currency, such bank to be selected in good faith by the payer for the purpose of obtaining a representative rate that will reasonably reflect conditions prevailing at the time in that relevant market;
		

		
			(b)for purposes of Section 9(h)(i)(3)(B) and clause (a)(iii) of the definition of Applicable Close-out Rate, the rate certified by the relevant payer to be a rate offered to prime banks by a major bank in a relevant interbank market for overnight deposits in the applicable currency, such bank to be selected in good faith by the payer after consultation with the other party, if practicable, for the purpose of obtaining a representative rate that will reasonably reflect conditions prevailing at the time in that relevant market; and
		

		
			(c)for purposes of Section 9(h)(i)(3)(C) and clauses (a)(iv), (b)(i)(3) and (b)(ii)(l) of the definition of Applicable Close-out Rate, a rate equal to the arithmetic mean of the rate determined pursuant to clause (a) above and a rate per annum equal to the cost (without proof or evidence of any actual cost) to the relevant payee (as certified by it) if it were to fund or of funding the relevant amount.
		

		
			“Automatic Early Termination ” has the meaning specified in Section 6(a).
		

		
			“Burdened Party” has the meaning specified in Section 5(b)(iv).
		

		
			“Change in Tax Law” means the enactment, promulgation, execution or ratification of, or any change in or amendment to, any law (or in the application or official interpretation of any law) that occurs after the parties enter into the relevant Transaction.
		

		
			“Close-out Amount” means, with respect to each Terminated Transaction or each group of Terminated Transactions and a Determining Party, the amount of the losses or costs of the Determining Party that are or would be incurred under then prevailing circumstances J'expressed-as a-positiye.numbert or gains of the-Determining Party-that-are or would be realized under then prevailing circumstances (expressed as a negative number) in replacing, or in providing for the Determining Party the economic equivalent of, (a) the material terms of that Terminated Transaction or group of Terminated Transactions, including the payments and deliveries by the parties under Section 2(a)(i) in respect of that Terminated Transaction or group of Terminated Transactions that would, but for the occurrence of the relevant Early Termination Date, have been required after that date (assuming satisfaction of the conditions precedent in
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		Section 2(a)(iii)) and (b) the option rights of the parties in respect of that Terminated Transaction or group of Terminated Transactions.
		

		
			Any Close-out Amount will be determined by the Determining Party (or its agent), which will act in good faith and use commercially reasonable procedures in order to produce a commercially reasonable result. The Determining Party may determine a Close-out Amount for any group of Terminated Transactions or any individual Terminated Transaction but, in the aggregate, for not less than all Terminated Transactions. Each Close-out Amount will be determined as of the Early Termination Date or, if that would not be commercially reasonable, as of the date or dates following the Early Termination Date as would be commercially reasonable.
		

		
			Unpaid Amounts in respect of a Terminated Transaction or group of Terminated Transactions and legal fees and out- of-pocket expenses referred to in Section 11 are to be excluded in all determinations of Close-out Amounts.
		

		
			In determining a Close-out Amount, the Determining Party may consider any relevant information, including, without limitation, one or more of the following types of information:—
		

		
			(i)quotations (either firm or indicative) for replacement transactions supplied by one or more third parties that may take into account the creditworthiness of the Determining Party at the time the quotation is provided and the terms of any relevant documentation, including credit support documentation, between the Determining Party and the third party providing the quotation;
		

		
			(ii)information consisting of relevant market data in the relevant market supplied by one or more third parties including, without limitation, relevant rates, prices, yields, yield curves, volatilities, spreads, correlations or other relevant market data in the relevant market; or
		

		
			(iii)information of the types described in clause (i) or (ii) above from internal sources (including any of the Determining Party’s Affiliates) if that information is of the same type used by the Determining Party in the regular course of its business for the valuation of similar transactions.
		

		
			The Determining Party will consider, taking into account the standards and procedures described in this definition, quotations pursuant to clause (i) above or relevant market data pursuant to clause (ii) above unless the Determining Party reasonably believes in good faith that such quotations or relevant market data are not readily available or would produce a result that would not satisfy those standards. When considering information described in clause (i), (ii) or
		

		
			(iii)above, the Determining Party may include costs of funding, to the extent costs of funding are not and would not be a component of the other information being utilized. Third parties supplying quotations pursuant to clause (i) above or market data pursuant to clause (ii) above may include, without limitation, dealers in the relevant markets, end-users of the relevant product, information vendors, brokers and other sources of market information.
		

		
			Without duplication of amounts calculated based on information described in clause (i), (ii) or (iii) above, or other relevant information, and when it is commercially reasonable to do so, the Determining Party may in addition consider in calculating a Close-out Amount any loss or cost incurred in connection with its terminating, liquidating or re-establishing any hedge related to a Terminated Transaction or group of Terminated Transactions (or any gain resulting from any of them).
		

		
			Commercially reasonable procedures used in determining a Close-out Amount may include the following:—
		

		
			(1) application to relevant market data from third parties pursuant to clause (ii) above or information from internal sources pursuant to clause (iii) above of pricing or other valuation models that are, at the time of the determination of the Close-out Amount, used by the Determining Party in the regular course of its business in pricing or valuing transactions between the Determining Party and unrelated third parties that are similar to the Terminated Transaction or group of Terminated Transactions; and
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		(2) application of different valuation methods to Terminated Transactions or groups of Terminated Transactions depending on the type, complexity, size or number of the Terminated Transactions or group of Terminated Transactions.
		

		
			“Confirmation" has the meaning specified in the preamble.
		

		
			“consent" includes a consent, approval, action, authorization, exemption, notice, filing, registration or exchange control consent.
		

		
			“Contractual Currency” has the meaning specified in Section 8(a).
		

		
			“Convention Court” means any court which is bound to apply to the Proceedings either Article 17 of the 1968 Brussels Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters or Article 17 of the 1988 Lugano Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters.
		

		
			“Credit Event Upon Merger” has the meaning specified in Section 5(b).
		

		
			“Credit Support Document” means any agreement or instrument that is specified as such in this Agreement.
		

		
			“Credit Support Provider” has the meaning specified in the Schedule.
		

		
			“Cross-Default” means the event specified in Section 5(a)(vi).
		

		
			“Default Rate” means a rate per annum equal to the cost (without proof or evidence of any actual cost) to the relevant payee (as certified by it) if it were to fund or of funding the relevant amount plus 1% per annum.
		

		
			“Defaulting Party” has the meaning specified in Section 6(a).
		

		
			“Designated Event” has the meaning specified in Section 5(b)(v).
		

		
			“Determining Party” means the party determining a Close-out Amount.
		

		
			“Early Termination Amount” has the meaning specified in Section 6(e).
		

		
			“Early Termination Date” means the date determined in accordance with Section 6(a) or 6(b)(iv).
		

		
			“electronic messages” does not include e-mails but does include documents expressed in markup languages, and “electronic messaging system” will be construed accordingly.
		

		
			“English law” means the law of England and Wales, and “English” will be construed accordingly.
		

		
			“Event of Default” has the meaning specified in Section 5(a) and, if applicable, in the Schedule.
		

		
			“Force Majeure Event” has the meaning specified in Section 5(b).
		

		
			“General Business Day” means a day on which commercial banks are open for general business (including dealings in foreign exchange and foreign currency deposits).
		

		
			“Illegality” has the meaning specified in Section 5(b).
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		“Indemnifiable Tax” means any Tax other than a Tax that would not be imposed in respect of a payment under this Agreement but for a present or former connection between the jurisdiction of the government or taxation authority imposing such Tax and the recipient of such payment or a person related to such recipient (including, without limitation, a connection arising from such recipient or related person being or having been a citizen or resident of such jurisdiction, or being or having been organized, present or engaged in a trade or business in such jurisdiction, or having or having had a permanent establishment or fixed place of business in such jurisdiction, but excluding a connection arising solely from such recipient or related person having executed, delivered, performed its obligations or received a payment under, or enforced, this Agreement or a Credit Support Document).
		

		
			“law” includes any treaty, law, rule or regulation (as modified, in the case of tax matters, by the practice of any relevant governmental revenue authority), and “unlawful” will be construed accordingly.
		

		
			“Local Business Day” means (a) in relation to any obligation under Section 2(a)(i), a General Business Day in the place or places specified in the relevant Confirmation and a day on which a relevant settlement system is open or operating as specified in the relevant Confirmation or, if a place or a settlement system is not so specified, as otherwise agreed by the parties in writing or determined pursuant to provisions contained, or incorporated by reference, in this Agreement, (b) for the purpose of determining when a Waiting Period expires, a General Business Day in the place where the event or circumstance that constitutes or gives rise to the Illegality or Force Majeure Event, as the case may be, occurs, (c) in relation to any other payment, a General Business Day in the place where the relevant account is located and, if different, in the principal financial center, if any, of the currency of such payment and, if that currency does not have a single recognized principal financial center, a day on which the settlement system necessary to accomplish such payment is open, (d) in relation to any notice or other communication, including notice contemplated under Section 5(a)(i), a General Business Day (or a day that would have been a General Business Day but for the occurrence of an event or circumstance which would, if it occurred with respect to payment, delivery or compliance related to a Transaction, constitute or give rise to an Illegality or a Force Majeure Event) in the place specified in the address for notice provided by the recipient and, in the case of a notice contemplated by Section 2(b), in the place where the relevant new account is to be located and (e) in relation to Section 5(a)(v)(2), a General Business Day in the relevant locations for performance with respect to such Specified Transaction.
		

		
			“Local Delivery Day” means, for purposes of Sections 5(a)(i) and 5(d), a day on which settlement systems necessary to accomplish the relevant delivery are generally open for business so that the delivery is capable of being accomplished in accordance with customary market practice, in the place specified in the relevant Confirmation or, if not so specified, in a location as determined in accordance with customary market practice for the relevant delivery.
		

		
			“Master Agreement” has the meaning specified in the preamble.
		

		
			“Merger Without Assumption” means the event specified in Section 5(a)(viii).
		

		
			“Multiple Transaction Payment Netting” has the meaning specified in Section 2(c).
		

		
			Non-affected Party” means, so long as there is only one Affected Party, the other party.
		

		
			“Non-default Rate” means the rate certified by the Non-defaulting Party to be a rate offered to the Non-defaulting Party by a major bank in a relevant interbank market for overnight deposits in the applicable currency, such bank to be selected in good faith by the Non-defaulting Party for the purpose of obtaining a representative rate that will reasonably reflect conditions prevailing at the time in that relevant market. 
		

		
			“Non-defaulting Party” has the meaning specified in Section 6(a).
		

		
			“Office” means a branch or office of a party, which may be such party’s head or home office. “Other Amounts” has the meaning specified in Section 6(f).
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		“Payee” has the meaning specified in Section 6(f).
		

		
			“Payer” has the meaning specified in Section 6(f).
		

		
			“Potential Event of Default” means any event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default.
		

		
			“Proceedings” has the meaning specified in Section 13(b).
		

		
			“Process Agent” has the meaning specified in the Schedule.
		

		
			“rate of exchange” includes, without limitation, any premiums and costs of exchange payable in connection with the purchase of or conversion into the Contractual Currency.
		

		
			“Relevant Jurisdiction” means, with respect to a party, the jurisdictions (a) in which the party is incorporated, organized, managed and controlled or considered to have its seat, (b) where an Office through which the party is acting for purposes of this Agreement is located, (c) in which the party executes this Agreement and (d) in relation to any payment, from or through which such payment is made.
		

		
			“Schedule” has the meaning specified in the preamble.
		

		
			“Scheduled Settlement Date” means a date on which a payment or delivery is to be made under Section 2(a)(i) with respect to a Transaction.
		

		
			“SpecifiedEntity” has the meaning specified in the Schedule.
		

		
			“Specified Indebtedness” means, subject to the Schedule, any obligation (whether present or future, contingent or otherwise, as principal or surety or otherwise) in respect of borrowed money.
		

		
			“Specified Transaction” means, subject to the Schedule, (a) any transaction (including an agreement with respect to any such transaction) now existing or hereafter entered into between one party to this Agreement (or any Credit Support Provider of such party or any applicable Specified Entity of such party) and the other party to this Agreement (or any Credit Support Provider of such other party or any applicable Specified Entity of such other party) which is not a Transaction under this Agreement but (i) which is a rate swap transaction, swap option, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option, credit protection transaction, credit swap, credit default swap, credit default option, total return swap, credit spread transaction, repurchase transaction, reverse repurchase transaction, buy/sell-back transaction, securities lending transaction, weather index transaction or forward purchase or sale of a security, commodity or other financial instrument or interest (including any option with respect to any of these transactions) or (ii) which is a type of transaction that is similar to any transaction referred to in clause (i) above that is currently, or in the future becomes, recurrently entered into in the financial markets (including terms and conditions incorporated by reference in such agreement) and which is a forward, swap, future, option or other derivative on one or more rates, currencies, commodities, equity securities or other equity instruments, debt securities or other debt instruments, economic indices or measures of economic risk or value, or other benchmarks against which payments or deliveries are to be made, (b) any- combination of these transactions and any other transaction identified as a Specified Transaction in this Agreement or the relevant confirmation.
		

		
			﻿
		

		
			“Stamp Tax” means any stamp, registration, documentation or similar tax.
		

		
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			“Stamp Tax Jurisdiction” has the meaning specified in Section 4(e).
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		“Tax” means any present or future tax, levy, impost, duty, charge, assessment or fee of any nature (including interest, penalties and additions thereto) that is imposed by any government or other taxing authority in respect of any payment under this Agreement other than a stamp, registration, documentation or similar tax.
		

		
			“Tax Event” has the meaning specified in Section 5(b).
		

		
			“Tax Event Upon Merger” has the meaning specified in Section 5(b).
		

		
			“Terminated Transactions” means, with respect to any Early Termination Date, (a) if resulting from an Illegality or a Force Majeure Event, all Affected Transactions specified in the notice given pursuant to Section 6(b)(iv), (b) if resulting from any other Termination Event, all Affected Transactions and (c) if resulting from an Event of Default, all Transactions in effect either immediately before the effectiveness of the notice designating that Early Termination Date or, if Automatic Early Termination applies, immediately before that Early Termination Date.
		

		
			“Termination Currency” means (a) if a Termination Currency is specified in the Schedule and that currency is freely available, that currency, and (b) otherwise, euro if this Agreement is expressed to be governed by English law or United States Dollars if this Agreement is expressed to be governed by the laws of the State of New York.
		

		
			“Termination Currency Equivalent” means, in respect of any amount denominated in the Termination Currency, such Termination Currency amount and, in respect of any amount denominated in a currency other than the Termination Currency (the “Other Currency”), the amount in the Termination Currency determined by the party making the relevant determination as being required to purchase such amount of such Other Currency as at the relevant Early Termination Date, or, if the relevant Close-out Amount is determined as of a later date, that later date, with the Termination Currency at the rate equal to the spot exchange rate of the foreign exchange agent (selected as provided below) for the purchase of such Other Currency with the Termination Currency at or about 11:00 a.m. (in the city in which such foreign exchange agent is located) on such date as would be customary for the determination of such a rate for the purchase of such Other Currency for value on the relevant Early Termination Date or that later date. The foreign exchange agent will, if only one party is obliged to make a determination under Section 6(e), be selected in good faith by that party and otherwise will be agreed by the parties.
		

		
			“Termination Event” means an Illegality, a Force Majeure Event, a Tax Event, a Tax Event Upon Merger or, if specified to be applicable, a Credit Event Upon Merger or an Additional Termination Event.
		

		
			“Termination Rate” means a rate per annum equal to the arithmetic mean of the cost (without proof or evidence of any actual cost) to each party (as certified by such party) if it were to fund or of funding such amounts.
		

		
			“Threshold Amount” means the amount, if any, specified as such in the Schedule.
		

		
			“Transaction” has the meaning specified in the preamble.
		

		
			“Unpaid Amounts” owing to any party means, with respect to an Early Termination Date, the aggregate of (a) in respect of all Terminated Transactions, the amounts that became payable (or that would have become payable but for Section 2(a)(iii) or due but for Section 5(d)) to such party under Section 2(a)(i) or 2(d)(i)(4) on or prior to such Early Termination Date and which remain unpaid as at such Early Termination Date, (b) in respect of each Terminated Transaction, for each obligation under Section 2(a)(i) which was (or would have been but for Section 2(a)(iii) or 5(d)) required to be settled by delivery to such party on or prior to such Early Termination Date and which has not been so settled as at such Early Termination Date, an amount equal to the fair market value of that which was (or would have been) required to be delivered and (c) if the Early Termination Date results from an Event of Default, a Credit Event Upon Merger or an Additional Termination Event in respect of which all outstanding Transactions are Affected Transactions, any Early Termination Amount due prior to such Early Termination Date and which remains unpaid as of such Early Termination Date, in each case together with any amount of interest accrued or other
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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						ISDA® 2002

				

		

			 

		

 

		compensation in respect of that obligation or deferred obligation, as the case may be, pursuant to Section 9(h)(ii)(l) or (2), as appropriate. The fair mar ket value of any obligation referred to in clause (b) above will be determined as of the originally scheduled date for delivery, in good faith and using commercially reasonable procedures, by the party obliged to make the determination under Section 6(e) or, if each party is so obliged, it will be the average of the Termination Currency Equivalents of the fair market values so determined by both parties. .
		

		
			"Waiting Period” means:—
		

		
			(a)in respect of an event or circumstance under Section 5(b)(i), other than in the case of Section 5(b)(i)(2) where the relevant payment, delivery or compliance is actually required on the relevant day (in which case no Waiting Period will apply), a period of three Local Business Days (or days that would have been Local Business Days but for the occurrence of that event or circumstance) following the occurrence of that event or circumstance; and
		

		
			(b)in respect of an event or circumstance under Section 5(b)(ii), other than in the case of Section 5(b)(ii)(2) where the relevant payment, delivery or compliance is actually required on the relevant day (in which case no Waiting Period will apply), a period of eight Local Business Days (or days that would have been Local Business Days but for the occurrence of that event or circumstance) following the occurrence of that event or circumstance.
		

		
			IN WITNESS WHEREOF the parties have executed this document on the respective dates specified below with effect from the date specified on the first page of this document.
		

			
					
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						MUFG UNION BANK, N.A.

					
					
						PRICESMART, INC.

				

		
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			ISDA®
		

		
			International Swaps and Derivatives Association, Inc.
		

		
			﻿
		

		
			SCHEDULE
		

		
			to the
		

		
			2002 MASTER AGREEMENT

		

		
			dated as of November 4,2016
		

		
			between
		

		
			MUFG Union Bank, N.A. (“Party A”),
a national banking association
organized and existing
under the laws of the United States
		

		
			and
		

		
			Pricesmart, Inc. (“Party B")
a corporation
organized and existing
under the laws of the State of California
		

		
			Part 1
		

		
			Termination Provisions
		

		
			"Specified Entity " means in relation to Party A for the purpose of:
		

		
			Section 5(a)(v):None.
		

		
			Section 5(a)(vi):None.
		

		
			Section 5(a)(vii):None.
		

		
			Section 5(b)(v):None.
		

		
			and in relation to Party B for the purpose of:
		

		
			Section 5(a)(v):None.
		

		
			Section 5(a)(vi):None.
		

		
			Section 5(a)(vii): _________________None.
		

		
			Section 5(b)(v):None.
		

		
			(b)“Specified Transaction” will have the meaning specified in Section 14 of this Agreement.
		

		
			(c) The “Cross Default” provisions of Section 5(a)(vi) will apply to Party A and will apply to Party B; provided that Section 5(a)(vi) is hereby amended by adding the following at the end thereof:
		

		
			; provided, that notwithstanding the foregoing, an Event of Default will not occur under either (1) or above, if (a) the default, or similar event or condition referred to in (1) or the failure to pay referred to in (2) is a failure to pay or deliver caused by an error or omission of an administrative or operational nature, (b) funds were available to such party to enable it to make the relevant payment or delivery when due and (c) such relevant payment or delivery 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		is made within two (2) Local Business Days following receipt of notice from an interested party of such failure to pay.
		

		
			“Specified Indebtedness” has the meaning set forth in Section 14 and shall also include in respect of Party B (i) all reimbursement obligations in respect of letters of credit and bankers’ acceptances, (ii) all capital and synthetic lease obligations, and (iii) all obligations arising under any transaction of the type listed in clause (a)(i) or (a)(ii) of the definition of “Specified Transaction”, but entered into between such person and any counterparty other than Party A. Notwithstanding the foregoing, in respect of Party A such term shall not include deposits received in the normal course of business.
		

		
			“Threshold Amount” means (i) with respect to Party A, 3% of Shareholders’ Equity of Party A, and (ii) with respect to Party B, any Credit Support Provider of Party B and any Specified Entity of Party B, the “threshold amount” designated for cross-defaults of other indebtedness under the Credit Agreement.
		

		
			“Shareholders' Equity” means with respect to Party A, at any time, the sum (as shown in the most recent annual audited financial statements of Party A) of (i) its capital stock (including preferred stock) outstanding, taken at par value, (ii) its capital surplus and (iii) its retained earnings, minus (iv) treasury stock, each to be determined in accordance with GAAP.
		

		
			(c)“Credit Event Upon Merger” will apply to Party A and Party B, provided, as to Party A, the definition
		

		
			of “Designated Event” set forth in the “Credit Event Upon Merger” provisions of Section 5(b)(v) of the Agreement is amended to read as follows:
		

		
			A “Designated Event” with respect to X means that X consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its assets (or any substantial part of the assets comprising the business conducted by X as of the date of this Agreement) to, or reorganizes, reincorporates or reconstitutes into or as, another entity; or
		

		
			(d)The “Automatic Early Termination” provision of Section 6(a) will not apply to Party A and will not apply to Party B
		

		
			(e)“Termination Currency” means United States Dollars.
		

		
			(f)Additional Termination Event. The following Additional Termination Events shall apply, in respect of which Party B shall be the sole Affected Party and (except as otherwise expressly set forth below) all Transactions shall be Affected Transactions:
		

		
			(i)Credit Document Events.
		

		
			(1)ThtTCfedifAgreement is terminated, ceases to be in full force and effect, or is not binding, or is unlawful or unenforceable in any material respect, or Party B shall assert any of the foregoing; or
		

		
			(2)The loans or advances under the Credit Agreement are repaid in full, with any commitment of Party A to make further loans or advances thereunder being canceled or reduced to zero; or
		

		
			(3)In connection with an interest rate swap, cap, collar or other Transaction intended to mitigate interest rate risk relating to loans arising under the Credit Agreement (such Transaction, a “Specified Swap”), the principal amount outstanding, or, in the case of a revolving loan or line of credit, the maximum revolving facility or commitment amount, under the relevant Credit Agreement shall, at any given time, be reduced to an amount less than the Notional Amount (as defined and specified ip the Confirmation for such Specified Swap); provided, however, that (A) an Additional Termination Event of the type described in this clause (3) shall only permit Party A to terminate the Specified Swap to the extent necessary to reduce such then scheduled Notional Amount to an amount equal to the principal amount, or maximum revolving facility or commitment amount, in the case of a revolving loan or line of credit, which then remains outstanding or in effect under such Credit Agreement, after giving effect to such payment or facility or commitment reduction, and (B) the relevant Specified Swap shall be the only Affected Transaction.
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		(ii)Confirmation ATE’s. The occurrence of any event designated in a Confirmation as an “Additional Termination Event”, as to which (unless otherwise specified in such Confirmation) the Transaction relating to such Confirmation shall be the sole Affected Transaction.
		

		
			Part 2
		

		
			Tax Representations
		

		
			(a)Payer Representations. For the purpose of Section 3(e) of this Agreement, Party A and Party B each make the following representation:
		

		
			It is not required by any applicable law, as modified by the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to make any deduction or withholding for or on account of any Tax from any payment (other than interest under Section 9(h) of this Agreement) to be made by it to the other party under this Agreement. In making this representation, it may rely on (i) the accuracy of any representations made by the other party pursuant to Section 3(f) of this Agreement, (ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and effectiveness of any document provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement, and (iii) the satisfaction of the agreement of the other party contained in Section 4(d) of this Agreement, except that it will not be a breach of this representation where reliance is placed on clause (ii) above and the other party does not deliver a form or document under Section 4(a)(iii) by reason of material prejudice to its legal or commercial position.
		

		
			(b)Payee Representations.
		

		
			(i) For the purpose of Section 3(f) of this Agreement, Party A makes the following representation:
		

		
			It is a national banking association under the laws of the United States and a “U.S. person” (as that term is used in section 1.1441-4(a)(3)(h) of the United States Treasury Regulations (as amended, the “Regulations”)) for purposes of the U.S. Internal Revenue Code of 1986 (as amended, “Code”).
		

		
			(ii) , For the purpose of Section 3(f) of the Agreement, Party B makes the following representations: It is a “U.S. person” (as that term is used in section 1.144 l-4(a)(3)(ii) of the Regulations) for purposes of the Code.
		

		
			(c)FATCA. Withholding Tax imposed on payments to non-US counterparties under the United States Foreign Account Tax Compliance Act. “Tax” as used in Part 2(a) of this Schedule (Payer Tax Representation) and “Indemnifiable Tax” as defined in Section 14 of this Agreement shall not include any U.S. federal withholding tax imposed or collected pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code, or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code (a "FATCA Withholding Tax"). For the avoidance of doubt, a FATCA Withholding Tax is a Tax the deduction or withholding of which is required by applicable law for the purposes of Section 2(d) of this Agreement.
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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			Part 3
		

		
			Agreement to Deliver Documents
		

		
			For the purpose of Sections 4(a)(i) and 4(a)(ii) of this Agreement, each party agrees to deliver the following documents, as applicable:
		

		
			(a)Tax forms, documents or certificates to be delivered are:
		

		
			﻿
		

			
					
						﻿Party required to deliver document

					
					
						 

					
					
						Form/Document/Certificate

					
					
						 

					
					
						Date by which to be delivered

				
	
					
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						Party A

					
					
						 

					
					
						An Executed United States IRS Form W-9 (or any successor thereto).

					
					
						 

					
					
						(i) Upon execution and delivery of this Agreement, (ii) promptly upon reasonable demand by the other party, and (Hi) promptly upon learning that any form previously provided to the other party has become obsolete, incorrect, or ineffective.

				
	
					
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						Party B

					
					
						 

					
					
						An executed United States IRS Form W9, W-8BEN, United States IRS Form W-8BEN-E, and/or an IRS Form W-8ECI (or any successor thereto), as applicable.

					
					
						 

					
					
						(i) Upon execution and delivery of this Agreement, (ii) promptly upon reasonable demand by the other party, and (iii) promptly upon learning that any form previously provided to the other party has become obsolete, incorrect, or ineffective.

				
	
					
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						Party A and Party B

					
					
						 

					
					
						Any form or document that may be required or reasonably requested in order to allow the other party to make a payment under this Agreement without any deduction or withholding for or on account of any Tax or with such deduction or withholding at a reduced rate, completed accurately and in a manner reasonably satisfactory to the other party.

					
					
						 

					
					
						Promptly upon the earlier of (i) reasonable demand by the other party, and (ii) learning that the form or document is required.

				

		
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			(b)Other documents to be delivered are:
		

		
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						Party Required to Deliver Document

					
					
						 

					
					
						Form/Document/Certificate

					
					
						 

					
					
						Date by which Document shall be Delivered

					
					
						 

					
					
						Covered by Section 3(d) Representation

				
	
					
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						Party A and Party B

					
					
						 

					
					
						Certified evidence of the authority, incumbency and specimen signature of each authorized person executing any document on its behalf or on behalf of its Credit Support Provider (if any) in connection with this Agreement and any Credit Support Document upon execution of each document by any such person including, (A) in  the case of a corporation or bank, board resolutions and certificate of incumbency certified by the secretary or an assistant secretary of such party, (B) in the case of a general or limited partnership, a certified copy of the partnership agreement and certificate of the partner incumbency, (C) in the case of a limited liability company, certificates of members or managing members, (D) in the case of personal or family trusts, a trust certificate in the form provided by Party A, and (E) in all other cases, and in the case of foreign (non0U.S.) entities, such documents and instruments (including powers of attorney) as the receiving party may reasonably request in order to evidence the due authorization and capacity of the relevant signer and entity.

					
					
						 

					
					
						On or before execution of this Agreement and any Credit Support Document.

					
					
						 

					
					
						Yes.

				
	
					
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						Party A and Party B

					
					
						 

					
					
						A copy of the most recent annual audited consolidated financial statements for itself or its Credit Support Provider, as applicable, prepared in accordance with accounting principles that are generally accepted for institutions of its type in the jurisdiction of its organization and certified by independent public accounts.

					
					
						 

					
					
						For Party B, as and when required by the Credit

					
					
						 

					
					
						Yes

				
	
					
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						Party B

					
					
						 

					
					
						A copy of the most recent unaudited quarterly consolidated financial statements for itself or its Credit Support Provider, as applicable, prepared in accordance with GAAP, consistently applied.

					
					
						 

					
					
						As and when required by the Credit Agreement.

					
					
						 

					
					
						Yes

				
	
					
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						Party B

					
					
						 

					
					
						The Credit Support Documents referred to in Part 4(f) in form and substance satisfactory to Party A.

					
					
						 

					
					
						Upon execution of this Agreement.

					
					
						 

					
					
						Yes

				
	
					
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						Party B

					
					
						 

					
					
						Such other documents, instruments and agreements, if any, as are specified in the relevant Confirmation, each in such manner and at such time or times as may be specified therein.

					
					
						 

					
					
						Upon request

					
					
						 

					
					
						Yes

				

		
			﻿
		

		
			Part 4
		

		
			Miscellaneous
		

		
			(a)Addresses for Notices. For the purpose of Section 12(a) of this Agreement:
		

		
			(i) Address for notices or communications to Party A:
		

		
			MUFG Union Bank, N.A.
		

		
			1221 Avenue of the Americas, 7th floor New York, New York 10020
		

		
			Attention: Manager, IB&M - Sales & Trading Product Management
		

		
			Telephone No: (212) 782-6593 Facsimile No: (212) 782-6428 Email: ISDAgroup@us.mufg.jp
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		For any notices with respect to Section 5, except for Section 5(a)(i), and/or notices with respect to Section 6 of this Agreement for Party A an additional copy shall be sent to:
		

		
			MUFG Union Bank, N.A.
		

		
			445 South Figueroa Street, 11th Floor (G11-120)
		

		
			Los Angeles, CA 90071 Attention: Head of Sales and Trading Facsimile: (213) 236-7018 Telephone: (213) 236-5563 Email: ISDAgroup@us.mufg.jp
		

		
			(ii) Address for notices or communications to Party B:
		

		
			Pricesmart, Inc.
		

		
			9740 Scranton Road
		

		
			San Diego, CA 92121
		

		
			Attention: Atul Patel, SVP and Treasurer
		

		
			Phone: (858) 404-8831
		

		
			Email: apatel@pricesmart.com
		

		
			(For all purposes)
		

		
			(b)Process Agent. For the purpose of Section 13(c) of this Agreement:
		

		
			Party A appoints as its Process Agent: Not Applicable.
		

		
			Party B appoints as its Process Agent:Not Applicable.
		

		
			(c)Offices. The provisions of Section 10(a) will apply to this Agreement.
		

		
			(d)Multibranch Party. For the purpose of Section 10(b) of this Agreement:
		

		
			Party A is not a Multibranch Party and for the purposes of this Agreement may act only through the following Office:- Los Angeles.
		

		
			Party B is not a Multibranch Party.
		

		
			(e)Calculation Agent. The Calculation Agent is Party A, unless otherwise specified in a Confirmation in relation to the relevant Transaction.
		

		
			(f)Credit Support Document “Credit Support Document” means in relation to Party A: Not Applicable]
		

		
			“Credit Support Document” means in relation to Party B: Any document or agreement which by its terms secures, guarantees or otherwise supports Party B's obligations hereunder from time to time, whether or not this Agreement, any Transaction or any type of transaction entered into hereunder is specifically referenced or described in any such document.
		

		
			(g)Credit Support Provider. “Credit Support Provider” means in relation to Party A: None.
		

		
			“Credit Support Provider ” means in relation to Party B: Any person now or hereafter party to a Credit Support Document, other than Party B, that provides security, a guaranty or other credit support for Party B's obligations hereunder.
		

		
			(h)Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of New York (without reference to choice of law doctrine other than New York General Obligations 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		Law Section 5-1401).
		

		
			(i)Netting of Payments. “Multiple Transaction Payment Netting” will not apply for the purpose of Section 2(c) of this Agreement.
		

		
			(j)“Affiliate” (i) in the case of Party A means MUFG Americas Holdings Corporation and any entity controlled, directly or indirectly, by MUFG Americas Holdings Corporation (with “control” meaning ownership of the majority of the voting power of the entity), and (ii) in the case of Party B has the meaning specified in Section 14 of this Agreement.
		

		
			(k)Absence of Litigation. For the purpose of Section 3(c):
		

		
			“Specified Entity” means in relation to Party A: None.
		

		
			“Specified Entity” means in relation to Party B: Any Affiliate.
		

		
			(l)No Agency. The provisions of Section 3(g) will apply to this Agreement with regard to Party A and Party B.
		

		
			(m)Additional Representation will apply. For the purpose of Section 3 of this Agreement, the following will constitute Additional Representations:
		

		
			(1)Advice of Counsel; Absence of Commitment. Each party represents to the other party on the date on which it enters into this Agreement that:
		

		
			(i)Advice of Counsel. It has been advised by counsel of its own choosing, or has had the opportunity to consult with counsel of its own choosing, in the negotiation, execution and delivery of this Agreement.
		

		
			(ii)Absence of Commitment. It acknowledges and agrees that neither party has any obligation to enter into any given Transaction, or any Transaction.
		

		
			(2)Status of Parties; Line of Business. Each party represents to the other party as of the date on which it enters into this Agreement, and will be deemed to represent to the other party on the date on which it enters into a Transaction, that:
		

		
			(i)Eligible Contract Participant. It is an “eligible contract participant” as such term is defined in the U.S. Commodity Exchange Act, as amended.
		

		
			(ii)Status of Parties. The other party has no fiduciary obligation to it, and is not acting as its advisor, in respect of this Agreement or such Transaction.
		

		
			(iii)Line of Business. It has entered into this Agreement and such Transaction in conjunction with its line of business (including financial intermediation services) or the financing of its business.
		

		
			(3)Relationship Between Parties. Each party represents to the other party on the date on which it enters into a Transaction that (absent a written agreement between the parties that expressly imposes affirmative obligations to the contrary for such Transaction):
		

		
			(i)Non-Reliance. It is acting for its own account, and it has made its own independent decisions to enter into such Transaction and as to whether such Transaction is appropriate or proper for it based upon its own judgment and advice from such advisers as it has deemed necessary. It is not relying on any 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		communication (written or oral) of the other party as investment advice or as a recommendation to enter into such Transaction, it being understood that information and explanations related to the terms and conditions of a Transaction will not be considered investment advice or a recommendation to enter into such Transaction. No communication (written or oral) received from the other party will be deemed to be an assurance or guarantee as to the expected results of such Transaction.
		

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

		
			(4)ERISA. Each party represents to the other on the date on which it enters into this Agreement and at all times thereafter that it is not (i) an employee benefit plan as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or a plan as defined in Section 4975(e)(1) of the Code, subject to Title I of ERISA or Section 4975 of the Code, or a plan as so defined but which is not subject to Title I of ERISA or Section 4975 of the Code but which is subject to another law materially similar to Title I of ERISA or Section 4975 of the Code (each, an “ERISA Plan (ii) a person or entity acting on behalf of an ERISA Plan, or (iii) a person or entity the assets of which constitute assets of an ERISA Plan.
		

		
			(5)Special Entity. Party B represents to Party A as of the date hereof and as of each date of a Transaction hereunder that it is not a Special Entity as defined under CFTC Regulation S. 23.401(c).
		

		
			(6)Compliance with Policies. Party B further represents and warrants to Party A, on each date on which it enters into a Transaction hereunder, that such Transaction, and its terms and conditions, complies in all respects with all policies and management directives and guidelines of Party B, together with all resolutions, bylaws and other provisions of Party B’s constitutional documents. Party B acknowledges and agrees that Party A has no obligation to confirm Party B’s compliance with, or to forbear from transacting with Party B on account of, any such policies, directives, guidelines, resolutions, bylaws or constitutional documents, whether or not Tarty A may have knowledge of same.
		

		
			Protocol Covered Agreement. For purposes of the ISDA August 2012 DF Protocol Agreement published on August 13,2012 and the ISDA March 2013 DF Protocol Agreement published on March 22, 2013 (the “Protocol Agreement”), the parties acknowledge and agree that this Agreement shall constitute a Protocol Covered Agreement as defined under the Protocol Agreement.
		

		
			(o)Incorporation of Credit Agreement Provisions. The (i) covenants and agreements (other than in respect of the payment of amounts owing under the Credit Agreement) and (ii) representations and warranties of Party B contained in the Credit Agreement, as in effect from time to time (together, the “Incorporated Provisions”), are hereby incorporated by reference into and made a part of Section 4 (as to covenants and agreements) and Section 3 (as to representations and warranties, which shall be Additional Representations, repeated as of the date of this Agreement and each date a Transaction is entered into) of this Agreement as though set out in full herein, mutatis mutandis. If the Credit Agreement is terminated or ceases to be in full force and effect, the Incorporated Provisions will nevertheless remain in full force and effect for purposes of this Agreement.
		

		
			(p)Recording of Conversations. Each party (i) consents to the recording of telephone conversations between the trading, marketing and other relevant personnel of the parties in connection with this Agreement or any potential Transaction, (ii) agrees to obtain any necessary consent of, and give any necessary notice of such recording to, its relevant personnel, and (iii) agrees, to the extent permitted by applicable law, that recordings may be submitted in evidence in any Proceedings.
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		(q)Accuracy of Specified Information. Section 3(d) is hereby amended by adding in the third line thereof after the word “respect” and before the period, the phrase “or, in the case of audited or unaudited financial statements, a fair presentation of the financial condition of the relevant person”.
		

		
			Part 5
		

		
			Other Provisions
		

		
			(a) ISDA Definitions. The definitions and provisions contained in the 2006 ISDA Definitions (the “2006 Definitions’*), as published by the International Swaps and Derivatives Association, Inc., as such definitions are in effect on the respective Trade Dates of respective Transactions, are incorporated into this Agreement and any Confirmation which supplements and forms a part of this Agreement, and all capitalized terms used in this Agreement or a Confirmation, unless otherwise defined in this Agreement or the Confirmation, shall have the respective meanings set forth in the 2006 Definitions. In the event of any conflict between the provisions of this Agreement and the provisions of the 2006 Definitions, the provisions of this Agreement shall apply, and in the event of any conflict between the provisions of this Agreement and a Confirmation, the provisions of the Confirmation shall apply.
		

		
			(b) Additional Defined Terms.
		

		
			“Bank Affiliate” means, as to Party A, any direct or indirect subsidiary of Party A’s ultimate parent entity, Mitsubishi UFJ Financial Group, Inc. or its successor.
		

		
			“Credit Agreement” means, individually and collectively, each instrument or agreement now existing or hereafter arising evidencing or relating to Specified Indebtedness incurred by Party B from Party A.
		

		
			“GAAP” means, as at any entity, generally accepted accounting principles as to such type of entity in the jurisdiction of such entity’s organization.
		

		
			(b)Service of Process.
		

		
			(i)The third sentence of Section 13(c) is amended in its entirety to read as follows:
		

		
			The parties irrevocably consent to service of process given in the manner provided for notices in Section 12(a)(i) or 12(a)(iv).
		

		
			(c)USA Patriot Act Notice. Party A is subject to the USA Patriot Act and hereby notifies Party B that pursuant to the requirements of that Act, Party A is required to obtain, verify and record information that identifies Party B, which information includes the name and address of Party B and other information that will allow Party A to identify Party B in accordance with that Act.
		

		
			(d)Safe Harbors; No Merger of Swap Transactions. Each party to this Agreement acknowledges that:
		

		
			(i)This Agreement, including any Credit Support Document, is a “swap agreement” and a “master netting agreement” as defined in the U.S. Bankruptcy Code (the “Bankruptcy Code”), and a “netting contract” as defined in the netting provisions of the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDIC1A’’);
		

		
			(ii)Party A is a “master netting agreement participant,” a “financial institution,” a “financial participant,” a “forward contract merchant” and a “swap participant” as defined in the Bankruptcy Code, and a “financial institution” as defined in the netting provisions of FDICIA; and
		

		
			(iii)If and to the extent Transactions may be intended to mitigate interest rate risk associated with, or otherwise be entered into in connection with, loans (including bilateral and syndicated) provided or to be provided by Party A to Party B (the “Relevant Loans”), such Transactions are intended 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		to be separate and independent from and not merged with and into the Relevant Loans. Accordingly, (1) the rights and obligations of the parties in respect of the Transactions shall be governed exclusively by this Agreement and the Credit Support Documents, (2) Close-out Amounts in respect of such Transactions shall not be deemed prepayment penalties or default interest in respect of the Relevant Loans, (3) the existence of any commitment of Party A to extend further Relevant Loans shall not imply any commitment of Party A to enter into Transactions in respect of such Relevant Loans, and (4) waivers, amendments and other accommodations provided from time to time by Party A in respect of the Relevant Loan documents shall not be deemed applicable to this Agreement unless expressly agreed to have such effect by Party A.
		

		
			(e)WAIVER OF JURY TRIAL. EACH PARTY EXPRESSLY, INTENTIONALLY, AND IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY SUCH PARTY MAY OTHERWISE HAVE IN ANY LEGAL PROCEEDING IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION.
		

		
			(f)Disputes. All claims, causes of action or other disputes concerning this Agreement or any Transaction (each a “Claim”), including any and all questions of law or fact relating thereto, shall, at the written request of any party, be determined by judicial reference pursuant to the California Code of Civil Procedure. The parties shall select a single neutral referee, who shall be a retired state or federal judge. In the event that the parties cannot agree upon a referee, the referee shall be appointed by the court. The referee shall report a statement of decision to the court. Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies,Tbreclose against collateral or obtain provisional remedies. The parties shall bear the fees and expenses of the referee equally unless the referee orders otherwise. The referee shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph. The parties acknowledge that the Claims will not be adjudicated by a jury.
		

		
			(g)Consent to Disclosure. Party B consents to Party A effecting such disclosure as Party A may deem appropriate to enable Party A to transfer Party B’s records and information to process and execute Party B’s instructions, or in pursuance of Party A’s or Party B’s commercial interest, to any of its Affiliates.
		

		
			For the avoidance of doubt, Party B’s consent to disclosure includes the right on the part of Party A to allow access to any intended recipient of Party B’s information, to the records of Party A by any means.
		

		
			(h)Transfer. Section 7 of the Agreement shall be amended by adding the following immediately prior to the final sentence thereof: “In addition, Party B hereby consents to the transfer and assignment, with or without novation, by Party A of its interest in and obligations under this Agreement and any or all Transactions to (i) any Bank Affiliate, or (ii) any person to whom Party A is assigning or transferring its interests and obligations as a lender under and in accordance with the Credit Agreement.”
		

		
			(j)  Procedures for Entering into Transactions. With respect to all Transactions, Section 9(e)(ii) of the Agreement is amended by adding the following at the end thereof:
		

		
			On or promptly following the Trade Date of a Transaction, the Calculation Agent will send to the other party to this Agreement a Confirmation. Such other party will promptly thereafter confirm the accuracy of, or request the correction of, such Confirmation. If the party other than the Calculation Agent fails to accept or dispute with reasonable specificity the Confirmation within three Local Business Days after it was sent to such party, the Confirmation shall be deemed to be a correct reflection of the parties’ agreement on the terms of the Transaction referred to therein, absent manifest error. The requirement set forth in this Section and elsewhere in this Agreement that the parties exchange Confirmations shall for all purposes be deemed satisfied by a Confirmation sent and an acknowledgment deemed given as provided herein.
		

		
			(k)2002 Master Agreement Protocol. The parties agree that the definitions and provisions of the ISDA 2002 Master Agreement Protocol as published by the International Swaps and Derivatives Association, Inc. on July 15, 2003 (the “Protocol”) are incorporated into and apply to this Agreement as if set out in full herein, for the purpose of indicating agreement by the parties to the amendments set out in Annexes 1 to 18 of the 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		Protocol. References in the Protocol to a 2002 Master Agreement shall be deemed to be references to this Agreement.
		

		
			(l)Transactions legally binding. A Transaction is concluded, and the parties are legally bound by the terms of such Transaction, from the moment they agree to the terms of such Transaction, whether orally or otherwise. As such, once a Transaction is entered into between the parties, it may not be cancelled (unless the parties agree to the terms of such a cancellation including the amount of costs and fees payable in connection therewith) and after a premium or any other payment is made by a party pursuant to the terms of a Transaction, such payment shall not be refundable (unless otherwise agreed by the parties). For the avoidance of doubt, nothing in this clause shall interfere with the rights of the parties to designate an Early Termination Date or, if applicable, the operation of Automatic Early Termination.
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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		IN WITNESS WHEREOF the parties have executed this document as of the date specified on the first page of this document.
		

		
			
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

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						[Rev. 09/28/16]EX-10.1

Exhibit 10.1

AMENDMENT TO

MEMBERSHIP INTEREST PURCHASE AGREEMENT

This Amendment to Membership Interest Purchase Agreement (this “Amendment”) is entered into in
Raleigh, North Carolina, U.S.A., on December 30, 2016, by and among:

TransEnterix, Inc., a U.S., Delaware corporation having its registered office at 635 Davis
Drive, Suite 300, Morrisville, North Carolina, represented by Mr. Joseph Slattery, duly authorized
to execute this Amendment by virtue of a resolution of the board of directors adopted on December
27, 2016, a copy of which is attached as Exhibit A (“Parent”), on behalf of itself and its
wholly owned subsidiaries, including TransEnterix Italia S.r.l.,

and

TransEnterix International, Inc., a U.S., Delaware corporation having its registered office at
635 Davis Drive, Suite 300, Morrisville, North Carolina, represented by Mr. Joseph Slattery, duly
authorized to execute this Amendment by virtue of a resolution of the board of directors adopted on
September 16, 2015, a copy of which is attached hereto as Exhibit A (“Buyer”),

and

SOFAR, S.p.A., an Italian societa’ per azioni having its registered office in Milan, Italy, at
Via Firenze 40, 20060 Trezzano Rosa, tax code 03428610152, registered at no. MI-852745 of the
enterprises’ register of Milan, registered by Mr. Andrea Biffi, duly authorized to execute this
Amendment by virtue of a resolution of the board of directors adopted on December 28, 2016, a copy
of which is attached hereto as Exhibit B (the “Seller”).

The Parent, Buyer and Seller are each individually referred to as a “Party” and collectively
the “Parties” to this Amendment. Unless otherwise defined in this Amendment, the capitalized terms
used herein without definition have the meanings set forth in the Agreement.

RECITALS

WHEREAS, the Parties are three of the parties to that certain Membership Interest Purchase
Agreement, dated September 18, 2015 (the “Agreement”), pursuant to which Seller sold to Buyer the
business operations consisting of development of an advanced robotic system for minimally invasive
laparoscopic surgery known then as TELELAP ALF-X and now known as the Senhance System, including
all related assets, employees and contracts;

WHEREAS, under the Agreement, the cash portion of the Purchase Price is payable in four
tranches with Tranche 2 for Ten Million Euro (€10.000.000) payable (a) the earlier of receipt of
approval or clearance, as applicable, from the U.S. Food and Drug Administration for the TELELAP
ALF-X or after December 31, 2016, and (b) if either (i) Parent has US $50,000,000 in cash on its
balance sheet or (ii) Parent has raised at least US $50,000,000 in financing transactions occurring
after the Closing Date;

WHEREAS, while Tranche 2 may become payable by its terms during 2017, the Parties desire to
amend the Agreement to restructure the terms for the payment of Tranche 2; and

WHEREAS, the Parties intend to enter into this Amendment to effectuate the restructuring of
the Tranche 2 terms.

AGREEMENT

NOW, THEREFORE, in consideration of the premises and mutual promises herein made, and in
consideration of the representations, warranties and covenants herein contained, Parent and Seller
hereby agree as follows:

ARTICLE 1

AMENDMENT TO TRANCHE 2

1.1 Restructuring of Tranche 2. Section 2.1(d)(ii) of the Agreement is hereby deleted and
replaced with the following:

“(d)(ii) The second tranche of the Cash Consideration (the “Second Tranche”) shall
be in the amount of Ten Million Euro (€10.000.000), and shall be paid as follows:

(A) shares of Parent’s Common Stock with a fair market value of Five Million Euro (€
5.000.000), calculated based on the average of the closing prices of Parent’s Common
Stock on ten consecutive trading days ending one day before the execution of this
Amendment (the “Shares”), issued as soon as practical after execution of this
Amendment; and

(B) Five Million Euro (€ 5.000.000) in cash upon the occurrence of any one of the
following events: (1) receipt of approval or clearance, as applicable, from the U.S.
Food and Drug Administration for the Senhance System or (2) Parent having
cash on hand (which shall mean cash and cash equivalents, as defined by US GAAP), at
any time of at least Fifty Million Dollars (US $50,000,000), or (3)
successful completion of a new financing or financings by Buyer and/or Parent and
its Subsidiaries and its Persons – on a consolidated basis — raising at least Fifty
Million Dollars (US $50,000,000) in gross proceeds to Buyer or Parent and commenced
after the Closing Date, exclusive of any financing proceeds related to the December
2016 purchase agreement between Parent and Lincoln Park Capital Fund, LLC. The Five
Million Euro (€ 5.000.000) payment provided in this Section 2.1(d)(ii)(B) will begin
to accrue simple interest at a rate of 9% per annum beginning on December 31, 2016
and continue to accrue interest until paid in full; and will be due immediately upon
the completion of one of the three events identified above, except that Parent may,
in its sole discretion, defer payment until December 31, 2017 in the event that any
of the three events occurs before December 31, 2017;”.

1.2 Registration of the Shares. Parent shall issue the Shares pursuant to a prospectus
supplement issued under its effective Registration Statement on Form S-3, SEC File No. 333-199998,
initially filed on November 7, 2014, and the Post-Effective Amendment thereto on March 8, 2016 and
declared effective by the SEC on June 22, 2016 (the “Registration Statement”).

ARTICLE 2

REPRESENTATIONS AND WARRANTIES OF SELLER

In connection with the issuance and sale of the Shares, Seller represents and warrants as
follows:

2.1 Organization and Authority. The Seller has full power, authority and legal capacity to
execute and deliver this Amendment and to perform its obligations thereunder. This Amendment
constitutes the valid and legally binding obligation of Seller, enforceable against Seller in
accordance with the terms of this Amendment. The execution, delivery and performance of this
Amendment have been duly authorized by the board of directors of Seller. Upon the execution and
delivery by Seller of this Amendment, this Amendment will constitute the valid and legally binding
obligation of Seller, enforceable against Seller in accordance with its terms, subject to
bankruptcy, insolvency, reorganization or similar laws of general application affecting the rights
and remedies of creditors, and to general equity principles.

2.2 No Conflicts. Neither the execution and delivery of this Amendment nor the performance of
the transactions contemplated hereby will, directly or indirectly, with or without notice or lapse
of time: (a) violate any Law to which Seller is subject; (b) violate, conflict with, result in a
breach of, constitute a default under, result in the acceleration of or give any Person the right
to accelerate the maturity or performance of, or to cancel, terminate, modify or exercise any
remedy under, any Contract to which Seller is a party or by which Seller is bound; or (d) result in
the imposition of any Encumbrance on any of Seller’s Interests. The Seller need not notify, make
any filing with, or obtain any Consent of, any Person in order to perform the transactions
contemplated hereby.

2.3 Litigation. There is no Proceeding pending or, to Seller’s Knowledge, threatened against
Seller relating to or affecting the transactions contemplated hereby.

2.4 No Brokers’ Fees. The Seller has no Liability for any fee, commission or payment to any
broker, finder or agent with respect to the transactions contemplated hereby for which Parent could
be liable.

2.5 Securities Law.

(a) The Seller acknowledges: (i) Seller has been furnished via the SEC’s EDGAR system with a
copy of Parent’s Form 10-K for the year ended December 31, 2015 filed with the SEC on March 3,
2016, and all quarterly and current reports or documents required to be filed thereafter with the
SEC pursuant to the Exchange Act (the “SEC Filings”); (ii) Seller has been provided with all other
reasonably requested material information regarding Parent and its Subsidiaries; and (iii) Seller
has been afforded an opportunity to ask questions of, and receive answers from, management of
Parent in connection with the Shares. The Seller has not been furnished with any oral or written
representation in connection with the purchase of the Shares by or on behalf of Parent or any
Subsidiary that Seller has relied on that is not contained in this Amendment.

(b) The Seller: (i) is an “accredited investor” as defined in Rule 501 of Regulation D under
the Securities Act; (ii) is not a “U.S. Person” within the meaning of Rule 902 of Regulation S
promulgated under the Securities Act; (iii) has obtained, in its judgment, sufficient information
to evaluate the merits and risks of the purchase of the Shares; (iv) has sufficient knowledge and
experience in financial and business matters to evaluate the merits and risks associated with such
purchase of the Shares and to make an informed investment decision with respect thereto; and (v)
has consulted with its own advisors with respect to the purchase of the Shares.

(c) The Shares are being acquired for Seller’s own account for investment and not for the
benefit or account of any other Person and not with a view to, or in connection with, any resale or
distribution thereof. In particular, Seller has no intention to distribute directly or indirectly,
any of the Shares in the United States or to U.S. Persons, except pursuant to an effective
registration statement under the Securities Act and in accordance with applicable state and
provincial securities Laws.

(d) The Seller will not acquire the Shares as a result of, and will not engage, in any way, in
any “directed selling efforts” (as defined in Regulation S) in the United States with respect to
the Shares which would include any activities undertaken for the purpose of, or that could
reasonably be expected to have the effect of, conditioning the market in the United States for the
resale of any of any of the Shares; provided, however, that Seller may sell or otherwise dispose of
the Shares Consideration pursuant to registration thereof under the Securities Act and any
applicable state and provincial securities laws or under an exemption from such registration
requirements.

(e) The Seller meets any additional suitability standards and/or financial requirements which
may be required in the jurisdiction in which Seller is organized. In addition to resale
restrictions imposed under US securities Laws, there may be additional restrictions on Seller’s
ability to resell any of the Shares under the laws governing the resale of securities in the
country in which Seller is organized and in which the Shares are sold. The Seller agrees to
strictly abide with such laws.

(f) The Seller understands and agrees that all offers and sales of the Shares shall be made
only in compliance with the registration provisions of the Securities Act or an exemption therefrom
and in each case only in accordance with applicable state and provincial securities Laws.

2.6 Exclusivity of Representations. The representations and warranties made by Seller in this
Article 2 are the exclusive representations and warranties made by Seller. The Seller hereby
disclaims any other express or implied representations or warranties. Each of Parent and Buyer
acknowledges that it is not relying on any representations and warranties made by Seller other than
those representations and warranties set forth in this Article 2.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY

Parent, on behalf of itself and its Subsidiaries, including Buyer, hereby represents and
warrants to Seller as follows;

3.1 Organization and Authority. Each of Parent and Buyer is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation. Each
of Parent and Buyer has full corporate power and authority to execute and deliver this Amendment
and to perform its obligations thereunder. The execution and delivery by each of Parent and Buyer
of this Amendment, and their respective performance hereunder, have been duly approved by all
requisite corporate action of Parent and Buyer. This Amendment constitutes the valid and legally
binding obligation of each of Parent and Buyer, enforceable against Parent and Buyer in accordance
with its terms. Upon the execution and delivery by Parent and Buyer of this Amendment, it will
constitute the valid and legally binding obligation of Parent and Buyer, enforceable against each
of Parent and Buyer in accordance with its terms.

3.2 No Conflicts. Neither the execution and delivery of this Amendment nor the performance
of the transactions contemplated hereby will, with or without notice or lapse of time: (a) violate
any Law to which Parent or any of its Subsidiaries are subject; (b) violate any Organizational
Document of Parent; or (c) violate, conflict with, result in a material breach of, constitute a
material default under, result in the acceleration of or give any Person the right to accelerate
the maturity or performance of, or to cancel, terminate, modify or exercise any remedy under, any
Contract to which Parent is a party or by which Parent is bound or the performance of which is
guaranteed by Parent.

3.3 Capitalization. As of the date hereof, the authorized capital stock of Parent is set
forth in the SEC Filings. Except as disclosed in the Registration Statement, the SEC Filings or
described to Seller, (a) no shares of Parent’s capital stock are subject to preemptive rights or
any other similar rights or any liens or encumbrances suffered or permitted by Parent, (b) there
are no outstanding debt securities, (c) there are no outstanding options, warrants, scrip, rights
to subscribe to, calls or commitments of any character whatsoever relating to, or securities or
rights convertible into, any shares of capital stock of Parent or any of its Subsidiaries, or
contracts, commitments, understandings or arrangements by which Parent or any of its Subsidiaries
is or may become bound to issue additional shares of capital stock of Parent or any of its
Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, any shares of capital
stock of Parent or any of its Subsidiaries, (d) there are no agreements or arrangements under which
Parent or any of its Subsidiaries is obligated to register the sale of any of their securities
under the Securities Act, (e) there are no outstanding securities or instruments of Parent or any
of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts,
commitments, understandings or arrangements by which Parent or any of its Subsidiaries is or may
become bound to redeem a security of Parent or any of its Subsidiaries, (f) there are no securities
or instruments containing anti-dilution or similar provisions that will be triggered by the
issuance of the Shares as described in this Amendment and (g) Parent does not have any stock
appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. True
and correct copies of Parent’s Certificate of Incorporation, as amended and as in effect on the
date hereof (the “Certificate of Incorporation”), and Parent’s Bylaws, as amended and as in
effect on the date hereof (the “Bylaws”), and summaries of the terms of all securities
convertible into or exercisable for Common Stock, if any, and copies of any documents containing
the material rights of the holders thereof in respect thereto are part of the SEC Filings.

3.4 Issuance of the Shares. Upon issuance and payment thereof in accordance with the terms
and conditions of this Amendment, the Shares shall be validly issued, fully paid and non-assessable
and free from all taxes, liens, charges, restrictions, rights of first refusal and preemptive
rights with respect to the issue thereof, with the holders being entitled to all rights accorded to
a holder of Common Stock. The Shares have been duly authorized and reserved for issuance upon
purchase under this Amendment. The issuance of the Shares has been registered under the Securities
Act by Parent pursuant to the Registration Statement. Upon receipt of the Shares, Seller will have
good and marketable title to such Shares.

3.5 SEC Filings; Financial Statements. Parent has filed all reports, schedules, forms,
statements and other documents required to be filed by Parent under the Securities Act and the
Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the twelve months preceding
the date hereof on a timely basis or has received a valid extension of such time of filing and has
filed any such SEC Filings prior to the expiration of any such extension.  As of their respective
dates and to Parent’s knowledge, the SEC Filings complied in all material respects with the
requirements of the Securities Act and the Exchange Act, as applicable. None of the SEC Filings,
when filed, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading. The financial statements of Parent
included in the SEC Filings comply in all material respects with applicable accounting requirements
and the rules and regulations of the SEC with respect thereto as in effect at the time of
filing.  Such financial statements have been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except
that unaudited financial statements may not contain all footnotes required by GAAP, and fairly
present in all material respects the financial position of Parent and its consolidated Subsidiaries
as of and for the dates thereof and the results of operations and cash flows for the periods then
ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit
adjustments. Except as publicly available through the SEC’s Electronic Data Gathering, Analysis,
and Retrieval system (EDGAR) or in connection with a confidential treatment request submitted to
the SEC, Parent has received no notices or correspondence from the SEC for the one year preceding
the date hereof other than SEC comment letters relating to Parent’s filings under the Exchange Act
and the Securities Act. There are no “open” SEC comments. To Parent’s Knowledge, the SEC has not
commenced any enforcement proceedings against Parent or any of its Subsidiaries.

3.6 Absence of Certain Changes. Since December 31, 2015, except as disclosed in the
Registration Statement or the SEC Filings, there has been no material adverse change in the
business, properties, operations, financial condition or results of operations of Parent or its
Subsidiaries. Parent has not taken any steps, and does not currently expect to take any steps, to
seek protection pursuant to any Bankruptcy Law nor does Parent or any of its Subsidiaries have any
knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy or
insolvency proceedings. Parent is financially solvent and is generally able to pay its debts as
they become due.

3.7 Absence of Litigation. Except as disclosed in the Registration Statement or the SEC
Filings, there is no action, suit, proceeding, inquiry or investigation before or by any court,
public board, government agency, self-regulatory organization or body pending or, to the knowledge
of Parent or any of its Subsidiaries, threatened against or affecting Parent, the Common Stock or
any of Parent’s Subsidiaries or any of Parent’s or Parent’s Subsidiaries’ officers or directors in
their capacities as such, which would reasonably be expected to have a Material Adverse Effect.

3.8 No Integrated Offering. Neither Parent, nor any of its Affiliates, nor any Person acting
on its or their behalf has, directly or indirectly, made any offers or sales of any security or
solicited any offers to buy any security, under circumstances that would cause this offering of the
Shares to be integrated with prior offerings by Parent in a manner that would require stockholder
approval pursuant to the rules of the Principal Market on which the Company’s Common Stock is
then listed or traded. The issuance and sale of the Shares hereunder does not contravene the
rules and regulations of the Principal Market. For purposes of this Amendment, the term “Principal
Market” means the NYSE MKT (or any nationally recognized successor thereto); provided, however,
that in the event the Company’s Common Stock is ever listed or traded on The NASDAQ Capital Market,
The NASDAQ Global Market, The NASDAQ Global Select Market, the New York Stock Exchange, the NYSE
Arca, the OTC Bulletin Board, or the OTCQB or the OTCQX operated by the OTC Markets Group, Inc. (or
any nationally recognized successor to any of the foregoing), then the “Principal Market” shall
mean such other market or exchange.

3.9 Intellectual Property Rights. Except as disclosed in the Registration Statement or the
SEC Filings, Parent and its Subsidiaries own or possess adequate rights or licenses to use all
material trademarks, trade names, service marks, service mark registrations, service names,
patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations,
trade secrets and rights necessary to conduct their respective businesses as now conducted. None
of Parent’s material trademarks, trade names, service marks, service mark registrations, service
names, patents, patent rights, copyrights, inventions, licenses, approvals, government
authorizations, trade secrets or other intellectual property rights have expired or terminated, or,
by the terms and conditions thereof, could expire or terminate within two years from the date of
this Amendment, except as would not reasonably be expected to have a Material Adverse Effect.
Parent and its Subsidiaries do not have any knowledge of any infringement by Parent or its
Subsidiaries of any material trademark, trade name rights, patents, patent rights, copyrights,
inventions, licenses, service names, service marks, service mark registrations, trade secret or
other similar rights of others, or of any such development of similar or identical trade secrets or
technical information by others and there is no claim, action or proceeding being made or brought
against, or to Parent’s knowledge, being threatened against, Parent or its Subsidiaries regarding
trademark, trade name, patents, patent rights, invention, copyright, license, service names,
service marks, service mark registrations, trade secret or other infringement, which would
reasonably be expected to have a Material Adverse Effect.

3.10 Environmental Laws. Except as disclosed in the Registration Statement or the SEC
Filings, Parent and its Subsidiaries (a) are in compliance with any and all applicable foreign,
federal, state and local laws and regulations relating to the protection of human health and
safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants
(“Environmental Laws”), (b) have received all permits, licenses or other approvals required of them
under applicable Environmental Laws to conduct their respective businesses and (c) are in
compliance with all terms and conditions of any such permit, license or approval, except where, in
each of the three foregoing clauses, the failure to so comply could not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect.

3.11 Title. Except as disclosed in the Registration Statement or the SEC Filings, Parent and
the Subsidiaries have good and marketable title in fee simple to all real property owned by them
and good and marketable title in all personal property owned by them that is material to the
business of Parent and the Subsidiaries, in each case free and clear of all Encumbrances, except
for Encumbrances as do not materially affect the value of such property and do not materially
interfere with the use made and proposed to be made of such property by Parent and the Subsidiaries
and Encumbrances for the payment of federal, state or other taxes, the payment of which is neither
delinquent nor subject to penalties.  Any real property and facilities held under lease by Parent
and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which
Parent and the Subsidiaries are in compliance with such exceptions as are not material and do not
interfere with the use made and proposed to be made of such property and buildings by Parent and
its Subsidiaries.

3.12 Insurance. Parent and each of its Subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as management of Parent
believes to be prudent and customary in the businesses in which Parent and its Subsidiaries are
engaged. Neither Parent nor any such Subsidiary has been refused any insurance coverage sought or
applied for and neither Parent nor any such Subsidiary has any reason to believe that it will not
be able to renew its existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its business at a cost that
would not materially and adversely affect the financial condition or the earnings, business or
operations of Parent and its Subsidiaries, taken as a whole.

3.13 Regulatory Permits. Except as disclosed in the Registration Statement or the SEC
Filings, Parent and its Subsidiaries possess all certificates, authorizations and permits issued by
the appropriate federal, state or foreign regulatory authorities necessary to conduct their
respective businesses as currently conducted, except where the failure to possess such
certificates, authorizations, or permits would not reasonably be expected to have a Material
Adverse Effect, and neither Parent nor any such Subsidiary has received any notice of proceedings
relating to the revocation or modification of any such certificate, authorization or permit.

3.14 Tax Status. Except as disclosed in the Registration Statement or the SEC Filings, Parent
and each of its Subsidiaries has made or filed all federal and state income and all other material
tax returns, reports and declarations required by any jurisdiction to which it is subject (unless
and only to the extent that Parent and each of its Subsidiaries has set aside on its books
provisions reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all
taxes and other governmental assessments and charges that are material in amount, shown or
determined to be due on such returns, reports and declarations, except those being contested in
good faith and has set aside on its books provision reasonably adequate for the payment of all
taxes for periods subsequent to the periods to which such returns, reports or declarations apply.
There are no unpaid taxes in any amount claimed to be due by the taxing authority of any
jurisdiction, except as would not reasonably be expected to have a Material Adverse Effect, and the
officers of Parent know of no basis for any such claim.

3.15 Transactions With Affiliates.  Except as disclosed in the Registration Statement or the
SEC Filings, none of the officers or directors of Parent and, to the knowledge of Parent, none of
the employees of Parent is presently a party to any transaction with Parent or any Subsidiary
(other than for services as employees, officers and directors), including any contract, agreement
or other arrangement providing for the furnishing of services to or by, providing for rental of
real or personal property to or from, or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of Parent, any entity in which any officer,
director, or any such employee has a substantial interest or is an officer, director, trustee or
partner, in each case in excess of $120,000 other than for (i) payment of salary or consulting fees
for services rendered, (ii) reimbursement for expenses incurred on behalf of Parent and (iii) other
employee benefits, including stock option agreements under any stock option plan of Parent.

3.16 Foreign Corrupt Practices.  Neither Parent, nor to the knowledge of Parent, any agent or
other Person acting on behalf of Parent, has (a) directly or indirectly, used any funds for
unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or
domestic political activity, (b) made any unlawful payment to foreign or domestic government
officials or employees or to any foreign or domestic political parties or campaigns from corporate
funds, (c) failed to disclose fully any contribution made by Parent (or made by any Person acting
on its behalf of which Parent is aware) which is in violation of law, or (iv) violated in any
material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

3.17 Registration Statement. Parent has prepared and filed with the SEC in accordance with
the provisions of the Securities Act the Registration Statement. The Registration Statement was
declared effective by order of the SEC on June 22, 2016. The Registration Statement is effective
pursuant to the Securities Act and available for the issuance of the Shares thereunder, and Parent
has not received any written notice that the SEC has issued or intends to issue a stop order or
other similar order with respect to the Registration Statement or the Prospectus or that the SEC
otherwise has (a) suspended or withdrawn the effectiveness of the Registration Statement or
(b) issued any order preventing or suspending the use of the Prospectus or any Prospectus
Supplement, in either case, either temporarily or permanently or intends or has threatened in
writing to do so. The “Plan of Distribution” section of the Prospectus permits the issuance of the
Shares hereunder. At the time the Registration Statement and any amendments thereto became
effective, at the date of this Amendment and at each deemed effective date thereof pursuant to
Rule 430B(f)(2) of the Securities Act, the Registration Statement and any amendments thereto
complied and will comply in all material respects with the requirements of the Securities Act and
did not and will not contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein not misleading; and
the Base Prospectus and any Prospectus Supplement thereto, at the time such Base Prospectus or such
Prospectus Supplement thereto was issued and on the Commencement Date, complied and will comply in
all material respects with the requirements of the Securities Act and did not and will not contain
an untrue statement of a material fact or omit to state a material fact necessary in order to make
the statements therein, in light of the circumstances under which they were made, not misleading;
provided that this representation and warranty does not apply to statements in or omissions from
any Prospectus Supplement made in reliance upon and in conformity with information relating to
Seller furnished to Parent in writing by or on behalf of Seller expressly for use therein. Parent
meets all of the requirements for the use of a registration statement on Form S-3 pursuant to the
Securities Act for the offering and sale of the Shares contemplated by this Amendment without
reliance on General Instruction I.B.6. of Form S-3, and the SEC has not notified Parent of any
objection to the use of the form of the Registration Statement pursuant to Rule 401(g)(1) of the
Securities Act. The Registration Statement, as of its effective date, meets the requirements set
forth in Rule 415(a)(1)(x) pursuant to the Securities Act. Parent has not been since March 31,
2016, and currently is not, an Ineligible Issuer (as defined in Rule 405 of the Securities Act).

3.18 Sarbanes-Oxley. Parent is in material compliance with all provisions of the
Sarbanes-Oxley Act of 2002, as amended, which are applicable to it as of the date hereof.

3.19 No Brokers. No brokerage or finder’s fees or commissions are or will be payable by Parent
to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or
other Person with respect to the transactions contemplated by this Amendment.

3.20 Investment Parent. Parent is not required to be registered as, and immediately after
receipt of payment for the Shares will not be required to be registered as, an “investment company”
within the meaning of the Investment Parent Act of 1940, as amended.

3.21 Listing and Maintenance Requirements. The Common Stock is registered pursuant to
Section 12(b) of the Exchange Act, and Parent has taken no action designed to, or which to its
knowledge is likely to have the effect of, terminating the registration of the Common Stock
pursuant to the Exchange Act nor has Parent received any notification that the SEC is currently
contemplating terminating such registration. Parent has not, in the twelve (12) months preceding
the date hereof, received any notice from the Principal Market to the effect that Parent is not in
compliance with the listing or maintenance requirements of the Principal Market. Parent is in
compliance with all such listing and maintenance requirements.

3.22 Accountants. Parent’s accountants are set forth in the SEC Filings and, to the Knowledge
of Parent, such accountants are an independent registered public accounting firm as required by the
Securities Act.

3.23 No Market Manipulation. Parent has not, and to its knowledge no Person acting on its
behalf has, (a) taken, directly or indirectly, any action designed to cause or to result in the
stabilization or manipulation of the price of any security of Parent to facilitate the sale or
resale of any of the Shares, (b) sold, bid for, purchased, or, paid any compensation for soliciting
purchases of, any of the Shares, or (c) paid or agreed to pay to any Person any compensation for
soliciting another to purchase any other securities of Parent.

ARTICLE 4

MISCELLANEOUS

4.1 Further Assurances. Each Party agrees to furnish upon request to any other Party such
further information, to execute and deliver to any other Party such other documents, and to do such
other acts and things, all as any other Party may reasonably request, of the requesting Party’s
sole cost and expense, for the purpose of carrying out the intent of this Amendment.

4.2 No Third-Party Beneficiaries4.3 . This Amendment does not confer any rights or remedies
upon any Person other than the Parties.

4.4 Agreement in Full Force and Effect 4.5 . Except as amended by this Amendment, the
Agreement continues in full force and effect and is valid and binding on the Parties as well any
related agreements, and the applicable provisions of the Agreement apply to this Amendment as if
included herein, including, without limitation, the provisions of Article XI of the Agreement not
repeated in this Amendment.

4.6 Successors and Assigns4.7 . This Amendment is binding upon and inures to the benefit of
the Parties and their respective successors and permitted assigns. The Seller may not assign,
delegate or otherwise transfer (whether by operation of law or otherwise) any of Seller’s rights,
interests or obligations in this Amendment without the prior written approval of Parent. Parent
may assign any or all of its rights or interests, or delegate any or all of its obligations, in
this Amendment to (a) any successor to Parent, or any acquirer of a material portion of the
businesses or assets of Parent, (b) one or more of Parent’s Affiliates, or (c) any lender to Parent
as security for obligations to such lender; provided, however, that Parent shall remain fully
liable for all covenants set forth herein, including payment of the Tranche 2 when due.

4.8 Counterparts4.9 . This Amendment may be executed by the Parties in counterparts and shall
be effective as of the date set forth above when each Party shall have executed and delivered a
counterpart hereof, whether or not the same counterpart is executed and delivered by each Party.
When so executed and delivered, each such counterpart shall be deemed an original and all such
counterparts shall be deemed one and the same document. Transmission of images of signed signature
pages by facsimile, e-mail or other electronic means shall have the same effect as the delivery of
manually signed documents in person.

4.10 Notices4.11 . Any notice pursuant to this Amendment must be in writing and will be
deemed effectively given to another Party on the earliest of the date (a) one Business Day after
receipt of confirmation if such notice is sent by facsimile, (b) three Business Days after delivery
of such notice into the custody and control of an overnight international courier, (c) one Business
Day after delivery of such notice in person and (d) such notice is received by that Party; in each
case to the appropriate address below (or to such other address as a Party may designate by notice
to the other Parties):

If to Seller:

Andrea Biffi, CEO

SOFAR, S.p.A

Via Firenze 40

20060 Trezzano Rosa (MI), Italy

Fax: 0039 02-90967239

Phone: 0039 02-9093621

Copy to (which will not constitute notice):

Stefano Candela

Franzosi Dal Negro Setti

Via Brera, 5

20121 Milan, Italy

Fax: 0039 02-80299259

Phone: 0039 02-85909220

If to Parent and Buyer:

Todd Pope, CEO

TransEnterix, Inc.

635 Davis Drive, Suite 300

Morrisville, North Carolina 27560

Phone: (919) 765-8400

Copy to (which will not constitute notice):

Joshua Weingard

Chief Legal Officer

TransEnterix, Inc.

635 Davis Drive, Suite 300

Morrisville, North Carolina 27560

Phone: 305-575-4602

Mary Mullany

Ballard Spahr LLP

1735 Market Street, 51st Floor

Philadelphia, PA 19103

Phone: 215-864-8631

4.12 Governing Law4.13 . This Amendment will be governed by the laws of the Republic of Italy
without giving effect to any choice or conflict of law principles of any jurisdiction; provided,
however, that the issuance of the Shares shall be governed by the laws of the State of Delaware
A.S.A.P. and the U.S. federal securities laws.

4.14 Amendments and Waivers4.15 . No amendment of any provision of this Amendment will be
valid unless the amendment is in writing and signed by Parent and Seller. No waiver of any
provision of this Amendment will be valid unless the waiver is in writing and signed by the waiving
Party. The failure of a Party at any time to require performance of any provision of this
Amendment will not affect such Party’s rights at a later time to enforce such provision. No waiver
by any Party of any breach of this Amendment will be deemed to extend to any other breach hereunder
or affect in any way any rights arising by virtue of any other breach.

[Signature page follows]The Parties have executed and delivered this Amendment to the
Membership Interest Purchase Agreement as of the date first written above.

“Buyer”:

TRANSENTERIX INTERNATIONAL, INC.

By: /s/ Joseph P. Slattery

Name: Joseph P. Slattery

Title: EVP and Chief Financial Officer

“Seller”:

SOFAR, S.P.A.

By: /s/ Andrea Biffi

Name: Andrea Biffi

Title: Chief Executive Officer

“Parent”:

TRANSENTERIX, INC.

By: /s/ Joseph P. Slattery

Name: Joseph P. Slattery

Title: EVP and Chief Financial Officer

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