Document:

Fully Disclosed Clearing Agreement of Pershing, LLC

 Exhibit 10.24 
 FULLY DISCLOSED CLEARING AGREEMENT 
 OF 
 PERSHING LLC 
 (FINRA MEMBER) 
 THIS AGREEMENT is made and entered into this 19th day of March, 2008 by and between Pershing LLC (“Pershing”), a limited liability company, and Summit Brokerage Services, Inc. (“Broker”), a Florida corporation.

  

	1.0	APPROVAL 

 This Agreement shall be subject to approval by
the New York Stock Exchange, Inc. (“FINRA”) and by any other self-regulatory organization vested with the authority to review or approve it. Pershing shall submit this Agreement to FINRA and Broker shall submit the Agreement to any other
such organization from which Broker is required to obtain approval. In the event of disapproval, the parties shall bargain in good faith to achieve the requisite approval. 
  

	2.0	AGREEMENT 

 From the date of this Agreement until the
termination of this Agreement as provided in Paragraph 23 hereof, Pershing shall carry the proprietary accounts of Broker and the cash and margin accounts of the customers of Broker introduced by Broker to Pershing, and accepted by Pershing, and
shall clear transactions on a fully disclosed basis for such accounts, in the manner and to the extent set forth in this Agreement. 
  

	3.0	ALLOCATION OF RESPONSIBILITY 

 3.1 Responsibilities of the Parties.

 Pursuant to FINRA Rule 382, responsibility for compliance with applicable laws, rules, and regulations of the Securities and Exchange
Commission (“SEC”), FINRA, and any other regulatory or self-regulatory agency or organization (collectively the “Rules”) shall be allocated between Pershing and Broker as set forth in this Agreement. To the extent that a
particular function is allocated to one party under this Agreement, the other party shall supply that party with information in its possession pertinent to the performance and supervision of that function. 
 3.2 Relationship with Customers. 
 Pershing shall
provide services under this Agreement to Broker only to the extent explicitly required by specific provisions contained in this Agreement and shall not be responsible for any duties or obligations not specifically allocated to Pershing pursuant to
this Agreement. Broker shall enter into appropriate contractual arrangements with customers on its own behalf, and such agreements shall make Broker, and not Pershing, responsible to customers for the provision of services. Broker shall not be
deemed to be an agent of Pershing for any purpose, nor shall Pershing be deemed to have a fiduciary relationship with any of Broker’s customers. Broker acknowledges that Pershing does not control the business or operations of Broker.

  

 Pg. 1 

	4.0	REPRESENTATIONS AND WARRANTIES 

 4.1 Broker. Broker represents and
warrants that: 
 4.1.1 Corporation Duly Organized. Broker is a corporation duly organized, validly existing, and in good standing under the laws of
the state of its incorporation. 
 4.1.2 Registration. Broker is duly registered and in good standing as a broker-dealer with the SEC. 
 4.1.3 Authority to Enter Agreement. Broker has all requisite authority, whether arising under applicable federal or state law or the rules and regulations of any
regulatory or self-regulatory organization to which Broker is subject, to enter into this Agreement and to retain the services of Pershing in accordance with the terms of this Agreement. 
 4.1.4 Material Compliance with Rules and Regulations. Broker and each of its employees is in material compliance with, and during the term of this Agreement shall remain in material compliance with, the
registration, qualification, capital, financial reporting, customer protection, and other requirements of every self-regulatory organization of which Broker is a member, of the SEC, and of every state to the extent that Broker or any of its
employees is subject to the jurisdiction of that state. 
 4.1.5 No Pending Action, Suit, Investigation, or Inquiry. Broker has disclosed to Pershing
every material action, suit, investigation, inquiry, or proceeding (formal or informal) pending or threatened against or affecting Broker, any of its affiliates, or any officer, director, or managing general securities principal or financial and
operations principal of Broker, or their respective property or assets, by or before any court or other tribunal, any arbitrator, any governmental authority, or any self-regulatory organization of which any of them is a member. Broker shall notify
Pershing promptly of the initiation of any action, suit, investigation, inquiry, or proceeding that may have a material impact on the capital of Broker. 
 4.1.6 Broker Responsibility. Broker shall be responsible for all internal operations related to its business including without limitation (i) all accounting, bookkeeping, record-keeping, cashiering, commodity transactions, or
any other transactions not involving securities; or any matter not contemplated by the Agreement; (ii) preparation of Broker’s payroll records, financial statements, or any analysis thereof; (iii) preparation or issuance of checks in
payment of Broker’s expenses, other than expenses incurred by Pershing on behalf of Broker pursuant to this Agreement; and (iv) payment of commissions to Broker’s sales personnel. 
 4.2 Pershing. Pershing represents and warrants that: 
 4.2.1 Duly
Organized. Pershing is a Limited Liability Company duly organized, validly existing, and in good standing under the laws of the state of Delaware. 
 4.2.2 Registration. Pershing is duly registered and in good standing as a broker-dealer with the SEC and is a member firm in good standing of FINRA. 
 4.2.3 Authority to Enter Agreement. Pershing has all requisite authority, whether arising under applicable federal or state law, or the rules and regulations of any regulatory or self-regulatory organization to
which Pershing is subject, to enter into this Agreement and to provide services in accordance with the terms of this Agreement. 
  

 Pg. 2 

 4.2.4 Compliance with Registration. Pershing and each of its employees is in material compliance with, and during
the term of this Agreement shall remain in material compliance with the registration, qualification, capital, financial reporting, customer protection, and other requirements of every self-regulatory organization of which Pershing is a member, of
the Securities and Exchange Commission (“SEC”), and every state. 
  

	5.0	ESTABLISHING AND ACCEPTING NEW ACCOUNTS 

 5.1 Acceptance of New
Accounts. Broker shall be responsible for opening and approving new accounts in compliance with the Rules. 
 5.1.1 Pershing reserves the right to reject
any account that the Broker may forward to Pershing as a potential new account for commercially reasonable reasons, including but not limited to, credit and reputational considerations. Pershing also reserves the right to terminate any account
previously accepted by it as a new account. 
 5.2 Maintenance of Account Information. Pershing may rely without inquiry on the validity of all
customer information furnished to it by Broker. Possession of any such documents or information, however provided, concerning Broker’s customers does not create a duty on the part of Pershing to review or understand the content of those
documents. 
 5.3 Pershing Operations Manual. Broker acknowledges receipt and familiarity with the Pershing “Quick Reference Guide” and
“Bulletins” and agrees to familiarize itself with any modifications or supplements to such documents that may be issued from time to time. Broker further agrees to abide by Pershing’s “Quick Reference Guide” and
“Bulletins” and any modifications or supplements to such documents that may be issued from time to time and delivered or made available to Broker. 
  

	6.0	SUPERVISION OF ORDERS AND ACCOUNTS 

 6.1 Responsibility for
Compliance. Broker shall be solely responsible for compliance with suitability, “Know Your Customer” rules, and other requirements of federal and state law and regulatory and self-regulatory rules and regulations governing transactions
and accounts. Possession by Pershing of surveillance records, exception reports, or other similar data shall not obligate Pershing to review or be aware of their contents. Pershing shall not be required to make any investigation into the facts
surrounding any transaction that it may execute or clear for Broker or any customer of Broker. 
 6.2 Compliance Procedures. Broker agrees to
supervise compliance with the Rules. Broker shall review transactions and accounts to assure compliance with prohibitions against manipulative practices, insider trading, market timing and late trading of mutual fund shares and other requirements of
federal and state law and applicable regulatory and self-regulatory rules and regulations to which Broker or its customer are subject. Without limiting the above, Broker shall be responsible for compliance with the supervisory requirements in
Section 15(b)(4) of the Securities Exchange Act of 1934, as amended, FINRA Rule 3010, FINRA Rules 342, 351 and 431, and similar rules adopted by any other regulatory or self-regulatory agency or organization, to the extent applicable.

 6.3 Knowledge of Customer’s Financial Resources and Investment Objectives. Broker shall comply with Rule 405(1) of FINRA or comparable
requirements of similar rules of any other regulatory or self-regulatory organization to which Broker is subject. Broker shall obtain all essential facts relating to each customer, each cash and margin account, each order, and each person holding a
power of attorney over any account, in order to assess the suitability of transactions (when required by applicable rules), the authenticity 

  

 Pg. 3 

 
of orders, signatures, endorsements, certificates, or other documentation, and the frequency of trading. Broker warrants that, to the best of its knowledge,
Broker will not open or maintain accounts for persons who are minors or who are otherwise legally incompetent and that Broker will comply with FINRA Rule 407 and other laws, rules, or regulations that govern the manner and circumstances in which
accounts may be opened or transactions authorized. 
 6.4 Furnishing of Investment Advice. Broker shall be solely responsible for any recommendation
or advice it may offer to its customers. 
 6.5 Discretionary Accounts. Broker shall be solely responsible for obtaining customer approval for and
supervising discretionary accounts. 
 6.6 Obligations Regarding Certain Disclosures. Broker shall make any disclosures and obtain any agreements from
its customers required by applicable law or regulation, including, without limitation, any disclosures or agreements required for margin, listed options, IPO’s, mutual funds, penny stocks, derivative securities, account transfers or
conversions. The cost of making such disclosures or obtaining such agreements shall be borne by Broker. 
  

	7.0	EXTENSION OF NONPURPOSE CREDIT 

 7.1 Nonpurpose Credit. Pershing
may, but is not required to, extend and maintain nonpurpose credit to customers of Broker not for purposes of purchasing, carrying, or trading in securities, but all extensions of credit to a customer will be deemed to be purpose credit subject to
Regulation T unless, prior to extending the credit, Broker has furnished Pershing with an executed Federal Reserve Form T-4. 
 7.2 Nonpurpose
Lending Requirements. Nonpurpose credit extended by Pershing shall be subject to nonpurpose lending requirements as established and modified by Pershing from time to time. Pershing reserves the right to refuse to extend nonpurpose credit without
the actual receipt of the necessary underlying collateral and to impose a higher underlying collateral value requirement for a particular account when, in Pershing’s discretion, the past history or nature of the account or other factors or the
securities held in it warrant such action. In all instances, Broker may require a lower loan advance rate to collateral value than imposed by Pershing for any particular account, group of accounts, or all accounts introduced by Broker to Pershing.
In any case where Broker requests Pershing to extend nonpurpose credit upon control or restricted securities, pursuant to Rule 144 under the Securities Act of 1933, as amended, or otherwise; Broker shall submit to Pershing such documentation,
agreements and information as shall be reasonably required by Pershing to decide to extend such credit. Any extension of nonpurpose credit so approved shall be subject to Pershing’s credit policies as shall be in effect from time to time.

 7.3 Managed/advisory Accounts as Underlying Collateral 
 7.3.1 Managed/Advisory Account Eligible to Support Extension of Non Purpose Credit 
 Pershing may, but is not required to,
allow accounts meeting the following criteria to participate in the non-purpose credit program and to be pledged by customers of Broker to support the extension of non-purpose credit: 
 a) Separately managed accounts managed by a third party money manager or managers, 
 b) Mutual fund wrap programs where the Broker acts as Corporate Registered Investment Advisor (“RIA”) 
 c) Advisory programs where Broker acts as Corporate RIA 
  

 Pg. 4 

 d) Advisory programs where a Turnkey Asset Management Provider (TAMP) acts as Corporate
RIA, 
 e) Advisory programs where an individually registered RIA manages clients’ assets on a fully discretionary basis.

 f) Advisory programs where Representatives of Broker have the ability to adjust the actual client investments, on a
discretionary basis, within a set of parameters set forth, approved and overseen by the Corporate RIA (the Corporate RIA maintains the ADV agreement with the end customer). 
 7.3.2 Utilization of Managed/Advisory Accounts as Underlying Collateral. Broker will be responsible for ensuring that managed/advisory account(s) pledged to support the extension of non purpose credit continue
to meet the requirements of a managed/advisory account at all times. Accounts listed on the Federal Reserve Form T4 will be recognized by Pershing as separately managed/advisory accounts. In the event that a managed/advisory account(s) pledged to
support the extension of non purpose credit cease to be classified as a managed/advisory account(s), the Broker agrees to notify Pershing immediately and take the necessary actions to ensure compliance with Regulation T. Upon such notification,
Pershing may, but is not required to maintain the pledge relationship. 
 In the event the Broker fails to take necessary actions to ensure compliance with
Regulation T, Pershing may remove the managed account from the non-purpose credit program and may require immediate full payment of the loan. In the event that the removal from the program or the requirement of immediate full payment of the loan
results in a margin call, the Broker shall be responsible for taking the necessary actions to satisfy the margin call as prescribed in the Agreement. 
 7.4
Underlying Collateral Maintenance and Compliance with Regulation T and SEC Rule 15c3-3(m). 
  

	7.4.1	Initial Underlying Collateral. Broker shall be responsible for the initial underlying collateral requirement for any extension of nonpurpose credit until such initial
underlying collateral has been received by Pershing in acceptable form. 

  

	7.4.2	Underlying Collateral Calls. After the initial underlying collateral for an extension of nonpurpose credit has been received, subsequent underlying collateral calls may be
made by Pershing at its discretion. Pershing shall calculate the maintenance requirement and notify Broker of any amounts due. Broker shall be responsible for issuing the underlying collateral call to its customer and obtaining the amount due
directly from Broker’s customer. If Broker fails to take the appropriate action, Pershing reserves the right to collect the amount due directly from Broker’s customer. Broker agrees to cooperate with Pershing in complying with and
obtaining underlying collateral in response to such calls. 

  

	7.4.3	Actions Upon Failure to Meet Underlying Collateral Calls or Deliver Securities. In the event that satisfactory underlying collateral is not provided within the time specified
by Pershing, or securities sold are not delivered as required, Pershing may take such actions as Pershing deems appropriate, including, but not limited to, entering orders to buy in or sell-out. Broker shall cooperate with Pershing by entering
orders to buy-in or sell-out securities. Compliance with a request to withhold action shall not be deemed a waiver by Pershing of any of its rights under the Agreement. 

  

	7.5	Charging of Interest and Disclosures Pursuant to Rule 10b-16. Interest charged with respect to the extension of nonpurpose credit shall be determined in accordance with
Schedule A attached to this Agreement. Broker shall send each customer a written disclosure statement, in a form acceptable to Pershing, at the time of the extension of nonpurpose credit as required by SEC Rule 10b-16. 

  

 Pg. 5 

 7.6 Unsecured Debits. Pershing shall charge against the accounts of Broker an amount equal to the value of any
unsecured debit (on a “mark to market” basis) in a customer account if that position has not been promptly resolved by payment or delivery. Any remaining debit may be charged against Broker pursuant to Pershing’s right to offset in
the Agreement. 
 7.7 Equal Credit Opportunity Act (“ECOA”). In all cases, the introducing Broker/Dealer shall abide by all Federal Law
rules & regulations as it pertains to the (“ECOA”). More specifically, this law is designed to prohibit discrimination in the extension or terms of credit to creditworthy applicants on any one of the following “prohibited
bases”: race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to contract) or on the basis that all or part of applicant’s income is derived from a public assistance program or
the fact that the applicant has, in good faith, exercised any “rights” under the Consumer Credit Protection Act, of which (“ECOA”) is a part. Under (“ECOA”) and Regulation B, the introducing Broker/Dealer may not
discriminate against any applicant on a prohibited basis “regarding any aspect of a credit transaction”. 
 7.8 Deduction or Withholding for
Tax. All payments made by a borrower, who participates in Pershing’s non-purpose credit program, shall be made without any deduction or withholding for or on account of any tax imposed by any laws, other than US state or federal laws,
applicable to any payment under this agreement (“Local Laws”). The undersigned shall indemnify Pershing against any tax levied or imposed upon Pershing by Local Laws in respect of any payment under this agreement in the event such tax is
not otherwise paid. 
  

	8.0	MAINTENANCE OF BOOKS AND RECORDS 

 8.1 Stock Records. Pershing shall
maintain stock records and other prescribed books and records of all transactions executed or cleared through it. Unless otherwise required by law, Pershing shall have no obligation to maintain, or make available to Broker, such books and records
after termination of this Agreement. If, however, Pershing does make such books and records available to Broker after the termination of this Agreement, Broker shall reimburse Pershing for its costs and expenses in retrieving such books and records.

 8.2 Regulatory Reports and Records. Broker shall prepare, submit, and maintain copies of all reports, records, and regulatory filings required of
Broker by any entity that regulates it, including, but not limited to, copies of all account agreements and similar documentation obtained pursuant to Paragraph 5 of this Agreement and any reports and records required to be made or kept under the
Currency and Foreign Transactions Reporting Act of 1970, (the “Bank Secrecy Act”), and any rules and regulations promulgated pursuant thereto. 
 8.3 ANTI-MONEY LAUNDERING, OFFICE OF FOREIGN ASSETS CONTROL, AND ANTI-TERRORIST FINANCING OBLIGATIONS 
 8.3.1 Broker’s Responsibilities:

 a. Anti-Money Laundering Obligations. Broker hereby agrees and acknowledges that it is obligated to and hereby represents and warrants that it now
does and will continue to comply with anti-money laundering laws and regulations, including any future obligations that may be imposed on Broker by laws or regulations, to know its customers, their source and use of funds, and to monitor for and
identify suspicious activity. 
  

 Pg. 6 

 b. Anti-Money Laundering Program. Broker represents and warrants that it has established and maintains an
anti-money laundering program, consisting of, at a minimum, written internal policies, procedures and controls including a means for monitoring and identifying suspicious activity, the designation of an anti-money laundering compliance officer
(whose identity shall be made known to Pershing and FINRA), an ongoing employee training program, an independent audit function to test such programs annually, and any additional requirements set forth in the rules of any self-regulatory
organization of which Broker is a member. Broker will allow Pershing access to such information as Pershing deems necessary in order for Pershing to test Broker’s adherence to Broker’s anti-money laundering program. To the extent the
testing would be conducted at Broker’s office, Pershing needs to provide Broker with reasonable prior notice (at least three business days) and the testing needs to be done on a business day and during regular business hours. 
 8.3.2 Broker to File CTRs and Provide Copies to Pershing. Broker is responsible for filing currency transaction reports (“CTRs”) and will provide a copy
of all such reports to Pershing at the same time as they are filed in accordance with applicable regulations. 
 a. Suspicious Activity Reports.
Broker shall be responsible for reviewing for suspicious activities and filing suspicious activity reports on Form SAR-SF and shall coordinate such filing with Pershing. Broker shall, as soon as practical after identifying a suspicious activity and
in any event prior to filing a suspicious activity report on SAR-SF, notify Pershing’s Anti-Money Laundering Compliance Officer and shall communicate with Pershing about the transaction for purposes of sharing information about the transaction
and determining whether Broker or Pershing shall file the SAR-SF, unless such sharing of information is prohibited by law. Broker will provide Pershing with copies of all SAR-SFs and other communications it files with respect to accounts held at
Pershing, unless prohibited by law. In addition, Broker shall promptly notify Pershing regarding any account activity Broker reasonably believes to be suspicious, not legitimate, not having a reasonably apparent explanation, or could support the
filing of a Form SAR-SF. 
 b. Other Transaction Reports. Prior to filing any report with the Treasury Department, the IRS, the U.S. Customs Service
or any regulatory body or organization relating to the reporting of currency transactions or the transfer of currency or monetary instruments into or outside of the United States, including, but not limited to, CTRs, CMIRs and SAR-SFs, Broker shall
notify Pershing’s Anti-Money Laundering Compliance Officer (unless such notification is prohibited by law) and cooperate with Pershing as Pershing may deem appropriate. Broker will provide Pershing with copies of all reports and other
communications with respect to accounts held at Pershing that Broker files with the Treasury Department, the IRS, the U.S. Customs Service, or any regulatory body or organization relating to the reporting of currency transactions, the transfer of
currency or monetary instruments into or outside of the United States, or in regard to any suspicious activity, including, but not limited to, CTRs, CMIRs and SAR-SFs, unless the provision of such reports or communications is prohibited by law.

 8.3.3. Reports by Pershing. Pershing has the obligation and reserves the right to make and file such suspicious activity or other reports as listed
in Paragraph 8.3.2 when it deems it necessary or appropriate; and Broker recognizes that when Pershing does so, Pershing does not thereby assume any responsibility for making and filing reports on behalf of Broker or relieve Broker of its own
responsibility for making and filing reports as necessary under U.S. or other laws and regulations. Pershing will provide Broker a copy of any such report that relates to an account of the Broker or a customer of the Broker, unless prohibited by law
from doing so. 
  

 Pg. 7 

 8.3.4. Restrictions and Conditions on Certain Accounts. Broker hereby agrees and acknowledges that it is obligated
to comply with restrictions and conditions on opening and accepting certain accounts, including but not limited to, the following: 
 a. Know Your Customer
and Government List Obligations, Including OFAC. At the time of the opening of any new account, Broker must obtain sufficient information (but no less than the minimum required under Section 326 of the USA PATRIOT Act) from its customer in
order to reasonably identify and verify the identity of the client and the source of the client’s funds. Broker also must satisfy itself that opening the account would not violate the provisions of various Executive Orders and regulations
administered by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) or be subject to other restriction based on such relevant government lists as may be published from time to time. Broker will immediately inform
Pershing of the existence of any account subject to an OFAC or government list restriction. Pershing uses interdiction software and will provide such relevant information as may from time to time be available to assist Broker in detecting possible
OFAC and government list violations. 
 b. Non-Resident Alien Accounts Carried Directly or Through an Investment Advisor. For any account opened for a
non-resident alien, Broker shall record the customer’s passport number and obtain a copy of the government document used to verify the individual’s identity at the time the account is opened. Broker shall also obtain a copy of a passport
or other governmental identification for any of the following: the grantor/settlor of a foreign trust; and any beneficial owner of an offshore corporate account if: (1) the account is a personal holding company or private investment company; or
(2) the beneficial owner of the entity which maintains the account holds more than a 10% interest in the entity. Broker shall not open any introduced account for a personal holding company or private investment company if one or more beneficial
owners are U.S. persons. With respect to those accounts involving registered investment advisers, Broker shall obtain, record and verify information as outlined above about the adviser’s customer, including ascertaining the identity of each
beneficial owner, of any such account prior to opening the account unless Broker has ascertained that the investment adviser meets the exception set forth in SEC No Action letter dated February 13, 2004 relating to reliance on investment
advisers or other SEC guidance applies. 
 c. Restrictions on Numbered Accounts. Broker will not establish or maintain specially coded or numbered
accounts. 
 d. Source and Use of Funds. Broker will use reasonable efforts to ascertain that the source of a customer’s funds are purportedly
from customer, the customer is not engaged in unlawful activities, the assets being invested have been legitimately obtained, and any disbursements to a customer or third party are for legitimate purposes. 
 e. Transaction Reports and Transaction Monitoring Systems. In order to detect suspicious activity, Broker shall utilize the transaction reports and transaction
monitoring systems provided by Pershing or shall otherwise perform its own transaction monitoring in order to detect suspicious activity. 
 f. CIP.
In order to induce reasonable reliance by Pershing on Broker with respect to Broker’s customer identification program (“CIP”), Broker represents and warrants: (1) it has a written CIP consistent with Section 326 of the USA
PATRIOT Act and the rules thereunder; (2) it is subject to a rule implementing 31 U.S.C. 5318(h); (3) it is regulated by a Federal functional regulator as that term is defined under 31.C.F.R. § 103.120(a)(2); and (4) it will
certify annually to Pershing that it has implemented an anti-money laundering program and will perform the requirements set forth in Broker’s written CIP. 
 g. Shell Bank Accounts, Foreign Bank Accounts, and Private Banking Accounts. Broker, working in conjunction with Pershing, shall implement the provisions of sections 312, 313, and 319 of the USA PATRIOT Act as set forth in
Informational Bulletins disseminated by Pershing from time to time. Copies of all certifications obtained by Broker shall be forwarded to Pershing. 
  

 Pg. 8 

 8.3.5 Pershing’s Responsibilities: 
 a. Anti-Money Laundering Obligations. Pershing hereby agrees and acknowledges that it is obligated to comply with anti-money laundering laws and regulations, including any future obligations that may be imposed
on Pershing, and that it is responsible to combat money laundering and terrorist financing. Pershing shall (1) make available to Broker such information as it may from time to time recognize as potentially useful through use of Pershing’s
various interdiction monitoring tools to assist Broker in detecting possible money laundering and terrorist financing schemes, and (2) conduct various manual and systematic screenings to assist Broker in order to detect suspicious activity and
OFAC and other government list violations. The actual systems and tools used for these purposes may vary from time to time, at Pershing’s discretion. 
 b. Anti-Money Laundering Program. Pershing has established and shall continue to maintain an anti-money laundering compliance program in accordance with § 352 of the USA PATRIOT Act as well as FINRA and FINRA rules. Pershing
further represents and warrants: (1) it has written anti-money laundering policies and procedures including procedures to identify and report suspicious activity; (2) it has a designated Anti-Money Laundering Compliance Officer (whose
identity has been made known to Broker and FINRA); (3) it provides continuous anti-money laundering training to its employees; and (4) its anti-money laundering program is independently audited on an annual basis. 
 c. Transaction Reports. Pershing shall provide Broker with anti-money laundering and other activity reports that can be used to detect suspicious activity in
order to assist Broker to meet its obligations. Pershing will offer training in the use of such reports. Pershing will also, upon request, provide Broker with relevant information in Pershing’s possession that the Broker needs in order to file
various required reports, including Forms CTR, CMIR, and SAR-SF and will provide such further assistance as may be required in the filing of such reports. 
 d. Transaction Monitoring Systems. Pershing shall make available to Broker various information pertinent to
Broker’s anti-money laundering efforts, including certain systematic transaction monitoring tools such as The Rules EngineTM anti-money
laundering rules. Pershing will provide training in the use of such system to assist Broker in detecting suspicious activity and in screening electronic customer account data stored by Pershing on behalf of Broker against various databases through
third-party service providers, for purposes of detecting names of OFAC prohibited individuals, entities in countries and other adverse information about the customer (“negative verification”). 
 e. Notification if Pershing Detects Suspicious Activity. Through its trained employees and the use of automated systems, Pershing will review for (including, but
not limited to, the items set forth in f through j below) and may detect suspicious activity utilizing a risk-based approach. Pershing’s review does not relieve Broker of its own responsibilities to review for suspicious activity which may
involve the use of reports and systems listed in c and d above. In such circumstances when Pershing detects suspicious activity, Pershing will contact Broker about the transaction for purposes of sharing information about the transaction, unless
Pershing believes that Broker itself may be engaged in suspicious activity or Pershing would be prohibited by law from sharing with Broker information about the suspicious transaction. Nothing in this Paragraph shall be read to prohibit Pershing
from filing its own suspicious activity and other reports, as it believes necessary or appropriate. Broker shall take such steps as Pershing may reasonably request in connection with any potential suspicious activity in an account, including closing
the account. 
 f. Incoming FedWires. For all incoming federal fund wires (“FedWires”), Pershing shall initially check relevant information,
including the remitter’s name, address, and account number, and the originating bank’s name and address (to the extent provided on an incoming wire) to detect possible OFAC restrictions. 
  

 Pg. 9 

 g. Outgoing FedWires for Third Parties. Requests for third-party wires are processed by Pershing on an exception
basis using a risk-based approach. When allowed, for outgoing FedWires ordered to the delivery of a person or entity other than the account holder, Pershing shall review relevant information, including the payee’s name, address, and account
number, and the recipient bank’s name and address, to detect possible violations of OFAC restrictions. 
 h. Incoming Securities. For securities
received, Pershing shall review the names of the specified holder of the security to detect possible violations of OFAC restrictions in those circumstances when the registration on the security received is different than the name on the account into
which the securities are deposited. 
 i. Outgoing Securities for Third Parties. For outgoing securities to third parties, Pershing shall check the
names and addresses of the third party to whom the security is to be delivered to detect possible violations of OFAC restrictions. 
 j. Systematic Daily
Screening, Government Lists Including OFAC. On a daily basis, Pershing shall compare all new accounts opened on its systems and all substantial changes made to account data resident on its systems to determine if any such new or changed account
may be subject to an OFAC or other designated government list. In addition, Pershing shall compare its existing customer database to added restrictions as may be published by the Federal Government from time to time. Further, periodically Pershing
shall compare its existing customer database to the existing OFAC government lists. In the event that Pershing’s comparisons indicate that an account may be subject to an OFAC or government list restriction, Pershing will notify Broker if it
believes there is a match. Broker shall cooperate fully with Pershing to determine whether, in fact, the account is subject to any such restriction. Broker will cooperate with Pershing in implementing any such action as may be determined by Pershing
to be necessary or appropriate. Broker acknowledges that Pershing may rely on a third-party vendor to provide current OFAC and other government restricted list data, and Pershing shall not be held liable for any errors or omissions caused by such
third-party vendor. 
 k. Funds Transfer Rule and Travel Rule. Pershing represents it has systems designed to comply with the electronic transfer of
funds rules, specifically the “Funds Transfer Rule” and the “Travel Rule,” 31 C.F.R. 103.33(f) and (g), when processing disbursements on behalf of Broker. Pershing shall comply with these rules based on information provided by
Broker. 
 8.3.6 Bulletins and Other Informational Memoranda. Pershing shall from time to time issue Bulletins or other informational memoranda to
Broker setting forth Pershing’s policies and procedures regarding anti-money laundering and terrorist financing. Broker agrees to become familiar with such Bulletins and informational memoranda and to abide by them. 
 8.3.7 Cooperation. Consistent with Section 314(b) of the USA PATRIOT Act and this Agreement, Broker and Pershing shall cooperate with each other and exchange
information to assist each other in detecting money laundering and terrorist financing. Broker and Pershing shall each submit to FinCEN the notice set forth in 31 CFR Part 103.110(b)(2) and shall renew such notice each year. Each instance of
information sharing shall constitute a confirmation by Broker to Pershing and by Pershing to Broker that the requisite notice has been filed. Pershing and Broker agree to consult with each other from time to time on each other’s anti-money
laundering responsibilities. 
 8.3.8 No Party to Cause Violation by the Other. Neither Pershing nor Broker shall knowingly take any action to cause
the other party to be in violation of any anti-money laundering laws or regulations. 
  

 Pg. 10 

	9.0	RECEIPT AND DELIVERY OF FUNDS AND SECURITIES 

 9.1 Receipt and Delivery
of Funds and Securities. 
 9.1.1 Cashiering Functions. Pershing shall perform cashiering functions for accounts introduced by Broker. These
functions shall include receipt and delivery of securities; receipt and payment of funds owed by or to customers; and provision of custody for securities and funds. Broker shall provide Pershing with the data and documents that are necessary or
appropriate to permit Pershing to perform its obligations under this Paragraph, including but not limited to copies of records documenting receipt of customers’ funds and securities received directly by Broker. Such data and documents must be
compatible with the requirements of Pershing’s data processing systems. 
 9.1.2 Purchases. Broker shall be responsible for purchases (including
transactions on a “when issued” basis) made for customers until actual and complete payment has been received by Pershing. Broker shall not introduce accounts requiring settlement on a “delivery versus payment” or “receive
versus payment” basis unless such account utilizes the facilities of a securities depository or qualified vendor as defined in FINRA Rule 387 for all depository eligible transactions. 
 9.1.3 Sales. Broker shall be responsible for sales (including those on a “when issued” basis), until Pershing has received, in acceptable form, the
securities involved in the transaction. If Pershing does not receive delivery of securities in an acceptable form, Pershing may buy-in all or part of the securities. 
 9.1.4 Funds and Securities Received by Broker. Broker shall promptly deposit with Pershing funds or securities received by Broker from its customers, together with such information as may be relevant or
necessary to enable Pershing to record such remittances and receipts in the respective customer accounts. 
 9.1.5 Failure to Settle or Pay. In the
event of a failure to timely deposit required funds or securities, Pershing may take appropriate remedial action. Without waiving or otherwise limiting its right to take other remedial action, Pershing may at its option charge interest at rates as
agreed in Schedule A (“Fully Disclosed Pricing Schedule”) to this Agreement. Broker may pass such charges on to its customers but Broker remains responsible therefor until actually paid. 
 9.1.6 Check Writing Authority. Pershing may, but is not required to, authorize certain of Broker’s employees to sign checks to Broker’s customers for
amounts due to, and requested by them, with respect to their accounts. Broker shall designate, in writing, the names of any employees it wishes to receive the authorization described in this Paragraph. All checks must be signed by two employees who
have received written authorization from Pershing. No check or checks totaling more than $100,000 shall be provided to any customer by Broker on the same business day. All expenses incurred in connection with the issuance of checks under the
authority described in this Paragraph shall be charged to Broker. Broker remains responsible for the disbursement and delivery of such checks to its customers. Any lien on the customer’s property granted by the customer to Broker or Pershing
shall extend to any funds which may be segregated in a separate account in connection with the exercise of the authority described in this Paragraph. Broker has established, and shall maintain and enforce, supervisory procedures with respect to the
issuance of such instruments that are satisfactory to Pershing. 
 9.2 Restricted and Control Stock Requirements. Broker shall be responsible for
determining whether any securities held in Broker’s or its customer accounts are restricted or control securities as defined by applicable laws, rules, or regulations. Broker is responsible for assuring that orders and other transactions
executed for such securities comply with such laws, rules, and regulations. 
 9.3 Corporate Action Requests/Soliciting Dealer Agreements. Broker
requests and authorizes Pershing to execute as Broker’s agent-in-fact any and all Soliciting Dealer Agreements (except as provided in Paragraph 13.8) for corporate actions involving 

  

 Pg. 11 

 
securities or other interests held by Broker’s customers on the books of Pershing. Pershing agrees to provide a written advice of the pending corporate
action to Broker at its designated locations. Pershing further agrees to collect and submit corporate action requests from Broker and submit them to the soliciting party in accordance with the instructions received from the soliciting party.
Pershing agrees to use commercially reasonable efforts to communicate corporate action information to Broker and, where applicable, Broker’s customers, but shall not be liable for a) any delays in the communication of corporate action
information or b) delays in the transmission of collected corporate action requests to the soliciting party unless caused by Pershing’s gross negligence. All fees received from the soliciting party will be credited to Broker. In consideration
of providing this service to Broker, Broker agrees to indemnify and hold harmless Pershing, its affiliates, officers, agents and employees from all claims, suits, investigations, damages and defense costs (including reasonable attorney’s fees)
that arise in connection with this Paragraph. 
  

	10.0	SAFEGUARDING OF FUNDS AND SECURITIES 

 Except as otherwise
provided in this Agreement, Pershing shall be responsible for the safekeeping of all money and securities received by it pursuant to this Agreement. However, Pershing will not be responsible for any funds or securities delivered by a customer to
Broker until such funds or securities are actually received by Pershing or deposited in bank accounts maintained by Pershing. 
  

	11.0	CONFIRMATIONS AND STATEMENTS 

 11.1 Preparation and Transmission of
Confirmations and Statements. Pershing shall prepare confirmations and summary periodic statements and shall, to the extent required by the Rules, transmit them to customers and Broker in a timely fashion except to the extent the parties agree
in writing that Broker may transmit confirmations to customers. Confirmations and statements shall be prepared on forms disclosing that the account is carried on a fully-disclosed basis for the Broker in accordance with applicable rules,
regulations, and interpretations. Broker will have the ultimate responsibility for compliance with the prospectus delivery requirements of the Securities Act of 1933, as amended, regardless of its retention of a prospectus fulfillment service to
perform delivery of same. 
 11.2 Examination and Notification of Errors. Broker shall examine all confirmations, statements, and other reports in
whatever medium provided to Broker by Pershing. Broker must notify Pershing of any error claimed by Broker in any account; as to purchase and sales transactions prior to settlement date and as to all other transactions within the time in which
Pershing is able to, without violating applicable law, reverse the transaction. If Broker fails to do so, Broker shall be deemed to have waived its right to make any claim against Pershing with respect to such error. 
  

	12.0	ACCEPTANCE AND EXECUTION OF TRANSACTIONS 

 12.1 Responsibility to Accept
or Reject Trades. Pershing shall execute transactions in customers’ accounts and release or deposit money or securities to or for accounts only upon Broker’s instructions. Pershing reserves the right to accept written or oral
transaction orders from Broker’s customers in circumstances where it determines that either (i) the customers are unable to execute those transactions through Broker or (ii) Pershing is required to do so by applicable or relevant law.
Notwithstanding any instructions to the contrary, Pershing may, after notifying Broker orally or in writing: (i) refuse to confirm a transaction or cancel a confirmation; (ii) reject a delivery or receipt of securities or money;
(iii) refuse to clear a trade executed by Broker; or (iv) refuse to execute a trade for the account of a customer or Broker. 
  

 Pg. 12 

 12.2 Responsibility for Errors in Execution. Broker shall be responsible for transmission to Pershing of all
orders and for any errors in the Broker’s recording or transmission of such orders. 
 12.3 Best Execution. In accordance with the Rules,
Pershing will provide best execution on all transactions routed to the desk of Pershing or of a Pershing affiliate. 
  

	13.0	OTHER OBLIGATIONS AND RESPONSIBILITIES OF BROKER 

 13.1 Other Clearing
Agreements. During the term of this Agreement, Broker shall not enter into any other similar agreement or obtain the services contemplated by this Agreement from any other party or supply the services contemplated by the Agreement without prior
written consent of Pershing, with the exception of Broker’s current agreement with First Clearing, LLC (FCC). Notwithstanding the foregoing, this provision does not apply in connection with any account of Broker that is advised by any BNY
Mellon Asset Management affiliates. Broker may execute and clear transactions at any clearing broker for any of Broker’s account(s) advised by BNY Mellon Asset Management affiliates. Additionally, in the event Broker acquires a broker dealer
clearing somewhere other than Pershing, Pershing will grant Broker a period of time not to exceed 24 months to transition the customer assets of the acquired broker dealer to Pershing. 
 13.2 Disciplinary Action, Suspension, or Restriction. If Broker or any of its affiliates, or any officer, director, or managing general securities principal or financial and operational principal of Broker,
becomes subject to disciplinary action, suspension, or restriction by a federal or state agency, stock exchange, or regulatory or self-regulatory organization having jurisdiction over Broker or Broker’s securities or commodities business,
Broker shall give notice to Pershing immediately, orally and in writing, and provide Pershing a copy of any decision relating to such action, suspension, or restriction. Pershing may take any action it reasonably deems to be necessary (i) to
assure that it will continue to comply with all applicable legal, regulatory, and self-regulatory requirements, notwithstanding such action, suspension, or restriction; and (ii) to comply with any requests, directives, or demands made upon
Pershing by any such federal or state agency, stock exchange, or regulatory or self-regulatory organization. 
 13.3 Provision of Financial
Information. Broker shall furnish Pershing copies of FOCUS Reports, financial statements for the current fiscal year, the executed Forms X-17a-5 (Parts I and IIA) filed with the SEC, any amendments to Broker’s Form BD, and any other
regulatory or financial reports Pershing may from time to time require. Broker shall provide such reports to Pershing at the time Broker files such reports with its primary examining authority. 
 13.4 Executing Brokers. If Broker wishes to act as an “Executing Broker” as such term is understood in that certain letter dated January 25, 1994,
from the Division of Market Regulation of the SEC, as the same may be amended, modified or supplemented from time to time (the “No-Action Letter”), then all terms herein shall have the same meaning as ascribed thereto either in the
Agreement or in the No-Action Letter as the sense thereof shall require. Broker may, from time to time, execute trades (either directly or through Pershing) for Prime Brokerage Accounts in compliance with the requirements of the No-Action Letter.
(The No-Action Letter requires, inter alia, that a contract be executed between Pershing and Prime Broker, and between Broker and Prime Brokerage Customer prior to the transaction of any business hereunder.) Broker shall promptly notify Pershing,
but in no event later than 5:00 p.m. New York time, of trade date in a mutually acceptable fashion, of such trades in sufficient detail for Pershing to be able to report and transfer any trade executed by Broker on behalf of a Prime Brokerage
Account to the relevant Prime Broker. Broker understands and agrees that if Prime Broker shall disaffirm or “dk” any trade executed by Broker on behalf of a Prime Brokerage Account, Broker shall open an account for such Prime Brokerage
Account in its range of accounts and shall transfer or deliver the trade to such account at the risk and expense of Broker to the same extent as for any account introduced by Broker pursuant to this Agreement. 

  

 Pg. 13 

 
Broker understands and agrees that all Prime Brokerage Accounts shall be conducted in accordance with the requirements of the No-Action Letter and any
relevant agreement between Broker and a Prime Brokerage Customer or between Pershing and relevant Prime Broker. Broker further agrees to supply Pershing with such documents, papers and things, which from time to time are reasonably required by
Pershing to carry out the intention of this Paragraph. Broker agrees that it shall know its customer, obtain appropriate documentation, including new account form, conduct its own credit check and determine the availability of shares as required for
processing of any short sales. Broker shall maintain facilities to clear any disaffirmed trades. 
 13.5 Protection of Intellectual Property. Broker
shall use all reasonable efforts to preserve and protect Pershing’s and its affiliates’ patent, trade secret, copyright and other proprietary rights in Pershing’s or its affiliates’ products, services, trademarks and tradenames,
at least to the same extent used by Broker to preserve and protect its own proprietary data or information and to notify Pershing of any action by any third party known by Broker to constitute an infringement of Pershing’s or any of its
affiliates’ proprietary rights and to cooperate with Pershing in protecting such rights. Without limiting the foregoing, and subject to the permission required by Paragraph 22 hereof, Broker shall note Pershing’s or its affiliates’
patent, trade secret, copyrights, trademarks and trade names when Broker makes reference to or distributes products or services provided by Pershing or its affiliates, as applicable. 
 13.6 Currency Fluctuation. If Broker directs Pershing to enter into any transaction to be effected on any securities exchange or in any market on which transactions are settled in a foreign currency,
(i) any profit or loss arising as a result of a fluctuation in the rate of exchange between such currency and the United States Dollar shall be entirely for Broker’s account and risk, (ii) all initial and maintenance margin deposits
required or requested by Pershing shall be in the currency required by the applicable marketplace or clearing agency in such amounts as Pershing in its sole discretion may require, and (iii) Pershing is authorized to convert funds in the
Account into and from such foreign currency at rates of exchange prevailing at the banking or other institutions (including affiliated financial institutions including The Bank of New York with which Pershing normally does business.) 
 13.7 Execution Away from Pershing. Subject to the written approval of Pershing, Broker may place for execution with firms other than Pershing orders for its
customers’ accounts to the extent Broker determines that such action is necessary to meet Broker’s duty to obtain best execution for customer orders. Pershing will have no responsibility for the transmission or execution of any such
orders, and Broker agrees to assume full responsibility for resolving any disputes and for bearing any losses resulting from transactions with firms with which Broker executes, giving up Pershing for clearance. Broker also agrees that, with respect
to any such orders, it will report executions promptly to Pershing for clearance in accordance with Pershing’s procedures. Broker may direct a minority (less than 10%) of its trades for execution through NITE without further written approval of
Pershing. 
 13.8 Mutual Fund Shares. Broker shall be responsible for obtaining and executing dealer agreements with any principal underwriter for
mutual funds from which Broker seeks to purchase mutual fund shares for its Customers’ accounts. Broker shall provide copies of such agreements to Pershing upon Pershing’s request. 
  

	14.0	OTHER OBLIGATIONS AND RESPONSIBILITIES OF PERSHING 

 14.1 Use of
Third-Party Services. Subject to Paragraph 17 hereof, Pershing may, at its reasonable option, and consistent with common industry practice, retain one or more independent data processing or other service bureaus to perform functions (including,
but not limited to, pricing services or proxy mailing services) assigned to Pershing under this Agreement. 
  

 Pg. 14 

 14.2 Tax Withholding. Broker hereby agrees to take necessary measures to comply with the income tax withholding
requirements of Section 3406 and Sections 1441 through 1446 (the nonresident alien withholding requirements) of the Internal Revenue Code of 1986, as amended (“IRC”) with respect to its customer accounts. Broker agrees to furnish to
Pershing any tax information, e.g., taxpayer identification numbers and certifications provided by the customer on IRS Forms W-8, W-8BEN, W-8IMY, W-8EXP, W-8ECI, W-9, or any acceptable substitute in its possession relating to each customer account
transferred to Pershing and to each future customer account opened. Broker acknowledges that Pershing will rely on such information for purposes of determining Pershing’s obligation to withhold federal income tax pursuant to Sections 1441
through 1446 and 3406 of the Internal Revenue code. Broker hereby authorizes Pershing to employ any procedures permitted under applicable law or regulation to achieve compliance with its withholding obligations under federal income tax law.

 14.3 Retirement Account Distributions. For retirement accounts for which Pershing makes designated distributions pursuant to Section 3405 of
the IRC or any successor provision thereto, Broker shall (1) obtain customer authorization to execute Form W-4P (or an acceptable substitute) on behalf of such customer, and (2) electronically provide such Form W-4P or a copy thereof to
Pershing. 
  

	15.0	ORDER AUDIT TRAIL SYSTEM (OATS) 

 Pursuant to FINRA Rules
6950 through 6957 (Order Audit Trail System (“OATS”) Rules) and the OATS Reporting Technical Specifications, it is hereby agreed between Broker and Pershing that Pershing shall synchronize Pershing system clocks in accordance with the
National Institute of Standards and Technology clock and periodically monitor such clocks for performance within any deviation time frame tolerance level permitted by the OATS Rules. 
 Unless otherwise directed in writing by Broker, Pershing will record and transmit to FINRA, on
Broker’s behalf, all order information that is required to be recorded pursuant to the OATS Rules and the OATS Technical Specifications (including any modifications thereto) (the “Order Information”) for orders entered on or linked to
Pershing’s proprietary electronic order entry systems (including Trade Order Processing System, BrokerView Order Entry, BrokerView Direct Order, NetExchange ProTM, NetExchange ClientTM, Telexchange ProTM, and Telexchange ClientTM and any other electronic order entry system as Pershing may develop and implement from
time to time) (collectively “the Front-End Products”) and routed to a market using Pershing’s routing routine. Pershing will also record and transmit to FINRA information that is received via the Front-End Products by Pershing in
connection with modification or cancellation of any Order Information previously entered into the system. 
 Unless specifically agreed to in
writing, Pershing will not capture information or transmit Order Information for orders that are not entered on the Front-End Products or called in for execution or where Pershing does not determine the order routing routine. 
 For trades not entered on Front-End Products, Broker is responsible for providing information necessary for Pershing to report on Broker’s behalf.
Broker agrees that Pershing may pass any out-of-pocket costs associated with development and/or maintenance of this system on to Broker. 
 Broker acknowledges and agrees that Pershing shall not be responsible for any Order Information that is not received by Pershing. 
 Pershing shall be responsible for repairing any rejections of OATS data it receives or is made aware of for data Pershing previously reported to the OATS reporting authorities. Broker agrees to notify Pershing of any rejection of OATS data
that it receives or is made aware of for data previously reported to the OATS reporting authorities by Pershing. 
  

 Pg. 15 

 Notwithstanding the foregoing, nothing contained herein shall relieve Broker of its reporting obligations
under paragraph (c)(3) of OATS Rule 6955. 
  

	16.0	TRANSMISSION OF ORDERS TO PERSHING AS PRIME BROKER 

 16.1 General Broker
Functions. Broker may, from time to time, collect and transmit to Pershing orders and other instructions to Pershing from Broker’s prime brokerage customers (“Prime Brokerage Orders”) and provide Pershing with such reports, data
and services as Pershing requires in order to act as prime broker with respect to such Prime Brokerage Orders, consistent with the SEC No-Action Letter dated January 25, 1994 (“No-Action Letter”) and applicable rules and regulations.

 16.2 Trading Activity Functions. Broker shall perform the following functions as introducing firm for its prime brokerage customers: 
  

	 	a.	Report all trading activity for the accounts of Broker’s prime brokerage customers (whether executing with Pershing or away) to Pershing via iPartner, NetExchange Advisor (or
other agreed upon method) on trade date by a time to be determined by Pershing and Broker from time to time. 

  

	 	b.	Assure that access to iPartner is limited to authorized persons only. 

  

	 	c.	Accept, via electronic mail (or telephone) on T+1, information regarding all trade breaks and respond to the Investment Management Services (“PIMS”) group of Pershing
regarding resolution of such trade breaks by 12:00 noon (NYC time) on T+1. 

  

	 	d.	Obtain pre-approval from Pershing for any short sales directed by Broker’s prime brokerage customers. 

  

	 	e.	Provide all information to Pershing related to the eligibility of any of Broker’s customers to receive or to continue to receive prime brokerage services.

 16.3 Other Prime Brokerage Functions. Broker shall perform the following additional functions as introducing firm for its prime
brokerage customers: 
  

	 	a.	Obtain and deliver to Pershing an executed Prime Brokerage Client Agreement in substantially the form provided by Pershing to Broker, for each prime brokerage customer of Broker.

  

	 	b.	Obtain and deliver to Pershing an executed Prime Brokerage Investment Advisor Agreement in substantially the form provided by Pershing to Broker, for any investment advisor with
discretion over an account of a prime brokerage customer of Broker (the “Investment Advisor”). 

  

	 	c.	Deliver to Pershing for acceptance or rejection the name of, and any information requested by Pershing regarding, each Executing Broker that Broker proposes to utilize to execute
prime brokerage trades. Broker acknowledges that Pershing does not select any Executing Broker, and makes no representation regarding the financial condition or ability of any Executing Broker. 

  

	 	d.	Obtain and deliver to PIMS an executed Schedule A for each prime brokerage agreement between Pershing (as Prime Broker) and each Executing Broker accepted by Pershing, showing each
prime brokerage customer of Broker for whose Account Prime Brokerage Orders will be placed and, thereafter, deliver to PIMS executed Forms 1 to Schedule A to reflect additions and deletions of prime brokerage customers as appropriate.

  

	 	e.	Perform any other functions reasonably requested by Pershing to facilitate Pershing’s performance of the prime brokerage services hereunder and as contemplated by the No-Action
Letter. 

  

 Pg. 16 

 16.4 Broker Acknowledgements Regarding Prime Brokerage. Broker acknowledges that Pershing may disaffirm or DK
transactions of any prime brokerage customers of Broker. Broker will be responsible for resolving all unmatched items, and advising PIMS of their status in a timely manner. Broker acknowledges that PIMS shall monitor the net equity of accounts of
Broker’s prime brokerage customers carried by Pershing, and shall notify Broker who in turn shall notify the relevant prime brokerage customers on Broker’s letterhead whenever such customers’ net equity falls below the minimum
required by Pershing. If an account falls below the minimum net equity set by Pershing, the account will not be permitted to place any further Prime Brokerage Orders until the net equity is increased to the level required by Pershing. Broker agrees
to provide access to its personnel and records, and submits to the supervision of Pershing for the purpose of complying with Pershing’s obligations as Prime Broker under the No-Action Letter and applicable laws, rules and regulations in
relation to the provision of the prime brokerage services. 
 16.5 Compensation. In consideration of Pershing acting as Prime Broker, Broker agrees to
pay the amounts set forth in Schedule A hereto. 
 16.6 Limitation of Liability. In addition to the provisions of Section 18 in this Agreement
and not in limitation thereof, Broker acknowledges and agrees that: 
  

	 	a.	Pershing accepts no responsibility for the Prime Brokerage Orders received from the Broker via iPartner (or other agreed upon method) except in the event of gross negligence or
willful misconduct by Pershing or its employees. 

  

	 	b.	Pershing accepts no responsibility and disclaims all liability for any communication linkage failure associated with the transmittal of Prime Brokerage Orders except in the event of
gross negligence or willful misconduct by Pershing or its employees. 

  

	 	c.	Pershing is not responsible for fraudulent or unauthorized access to iPartner that may cause any loss, damage or liability to Broker, Pershing, Broker’s prime brokerage
customers, or a third party. 

  

	 	d.	Any notice by Pershing hereunder or as required to perform prime brokerage services to prime brokerage customers of Broker shall be made to Broker, whether on Broker’s behalf
or on behalf of such customers. Any notice made to Broker shall be deemed to be made to, or done for, Broker’s prime brokerage customers, as applicable. Broker shall be responsible for all communication with Broker’s prime brokerage
customers regarding all services to be performed hereunder. Pershing is not responsible for communication failure between Broker and Broker’s prime brokerage customers. 

  

	 	e.	In connection with this Paragraph 16.6, Pershing disclaims liability not only for direct damages to the Broker, Pershing, Broker’s prime brokerage customers or a third party,
but in addition disclaims any and all liability for special, indirect or consequential or incidental damages whether in tort or in contract even if Pershing has been advised of the possibility of such damage except in the event of gross negligence
or willful misconduct by Pershing or its employees. 

 16.7 No Joint Venture. Nothing contained in the Agreement (i) shall
constitute Pershing and Broker as members of any partnership, joint venture, association, syndicate, unincorporated business or other separate entity, (ii) shall be construed to impose any liability as such on any of them or (iii) shall be
deemed to confer on any of them any express, implied or apparent authority to incur any obligation or liability on behalf of the others. 
 16.8
Representations and Warranties. In addition to, and no way in limitation of, Broker’s representations and warranties as contained elsewhere in this Agreement, Broker represents and warrants that: 
  

	 	a.	Broker has been duly appointed and authorized by Broker’s prime brokerage customers to transmit Prime Brokerage Orders to Pershing. 

  

 Pg. 17 

	 	b.	All Broker’s customers whose accounts will participate in prime brokerage activities have been advised, via client agreements or otherwise, that their accounts will engage in
prime brokerage activities, Pershing will act as Prime Broker for their accounts, and said customers or the Investment Advisor thereof may place orders for the execution of trades for their accounts at Executing Brokers, all in conformity with
applicable provisions of the No-Action Letter. 

  

	17.0	DAMAGES 

 As between the parties, neither party shall be
liable for special, indirect, incidental, consequential or punitive damages, whether such damages are incurred or experienced as a result of entering into or relying on this Agreement or otherwise, even if the parties have been advised of the
possibility of such damages. Broker and Pershing each agree not to assert any claim for punitive damages against the other. 
 17.1 Allocation of
Risks. Broker acknowledges and agrees that the fees charged by Pershing reflect the allocation of risks including, but not limited to, any limitation of liability set forth in this Agreement. A modification of the allocation of risks set forth
in this Agreement would affect the fees charged by Pershing, and in consideration of such fees, Broker agrees to such allocation of risks. 
  

	18.0	LIABILITY 

 18.1 Liability of Pershing 
 18.1.1 Disclaimer of Warranties. Broker expressly agrees that Broker’s use of Pershing’s Services, including the Systems as defined by
Paragraph 30.1 and software products as defined herein, is at Broker’s sole risk. Neither Pershing nor any of its directors, officers, employees, agents, contractors, affiliates, information providers, licensors, or other suppliers providing
data, information, services or software, including but not limited to FINRA, warrants that the services will be uninterrupted or error free; nor do any of them make any warranty as to the results that may be obtained from the use of the services or
as to the timeliness, sequence, accuracy, completeness, reliability or content of any data, information, services, or transactions provided and Pershing shall not be responsible for any losses liabilities or damages caused by the acts or omissions
of those third party agents, contractors, information providers or other suppliers beyond any amount which Pershing is able to recover pursuant to its agreement with such entity. Except as specifically set forth in this Paragraph 18.1,
Pershing’s services are provided on an “as is,” “as available” basis, without warranties of any kind, either express or implied, including, without limitation, those of merchantability, fitness for a particular purpose, and
non-infringement, other than those warranties which are implied by and incapable of exclusion, restriction or modification under the laws applicable to this Agreement. 
 18.1.2 Pershing Indemnification. In addition to any other obligations it may possess under other provisions of this Agreement, Pershing shall indemnify, defend, and hold harmless Broker from and against all
claims, demands, proceedings, suits, actions, liabilities, expenses, and reasonable attorney’s fees, and costs in connection therewith arising out of any negligent, reckless, dishonest, fraudulent, or criminal act or omission on the part of any
of Pershing’s officers or employees with respect to the services provided by Pershing under this Agreement. 
 18.1.3 Pershing Right to Compete.
Nothing in this Agreement shall be deemed to restrict in any way the right of Pershing or any affiliate of Pershing to compete with Broker in any or all aspects of Broker’s business. 
  

 Pg. 18 

 18.2 Liability of Broker 
 18.2.1 Broker Indemnification. In addition to any other obligations it may possess under other provisions of this Agreement, Broker shall indemnify, and hold harmless Pershing, and any controlling person of Pershing, from and against
all allegations, claims, demands, proceedings, suits, and actions (“Claims”) and all liabilities, expenses, attorney’s fees (including fees and costs incurred in enforcing Pershing’s right to indemnification), and costs in
connection therewith arising out of one or more of Broker’s or any of its agent’s or employee’s negligent, dishonest, fraudulent, or criminal act, or omission or any of the following: 
 18.2.1.1 Failure to Make Payment or Deliver Securities. A check received by Pershing from a customer shall not constitute payment until it has been paid and the
proceeds are actually received and finally credited to Pershing (without any subsequent charge back) by its bank. 
 18.2.1.2 Margin Calls. Failure of
a customer to meet any initial margin call or any maintenance call, except that Pershing shall be responsible for the portion of any such loss or damage that Broker establishes was directly attributable to Pershing’s failure to give
notification to Broker as required in Paragraph 7.3.2 of this Agreement. 
 18.2.1.3 Broker’s Failure to Perform. Failure of Broker to perform
any duty, obligation, or responsibility with respect to customer accounts as set forth in this Agreement. Broker’s indemnification obligation under this Paragraph shall not be affected by the participation of Pershing or any person controlling
it or controlled by it within the meaning of the Securities Exchange Act of l934, as amended, in any transaction giving rise to such an obligation, unless such participation constitutes recklessness, fraud, or criminal conduct. 
 18.2.1.4 Improper Conduct by Agents. Any negligent, dishonest, fraudulent, or criminal act or omission on the part of any of Broker’s officers, directors,
employees, or agents. 
 18.2.1.5 Failure of a Customer to Perform Obligations. Any failure by any of Broker’s customers to perform any
commitment or obligation with respect to a transaction carried by Pershing under this Agreement, whether or not such failure was under the control of Broker. 
 18.2.1.6 Customer Claims and Disputes. Any claim or dispute between Broker and a customer with respect to services provided under this Agreement, including, but not limited to, any claim or dispute concerning the validity of a
customer order in the form the order was transmitted to Pershing by Broker and any claim arising in connection with Pershing’s guarantee of any signature of any customer of Broker or at the request of Broker. 
 18.2.1.7 Warranties. Any adverse claim with respect to any security delivered or cleared by Pershing, including a claim of a defect in title with respect to
securities that are alleged to have been forged, counterfeited, raised or otherwise altered, or if they are alleged to have been lost or stolen. The parties agree that Pershing shall be deemed to be an intermediary between Broker and customer and
shall be deemed to make no warranties other than as provided in Section 8-306(3) of the Uniform Commercial Code. 
 18.2.1.8 Default of Third-Party
Broker. Any default by a third-party broker with whom the Broker deals on a principal or agency basis in a transaction either not executed by Pershing or not cleared by Pershing even if permitted by Pershing as provided herein. 
 18.2.1.9 Check Signing. Any negligence, fraud, malfeasance, or error of any employee of Broker with respect to the use of the check-signing authority granted
under Paragraph 9.1.6 of this Agreement. 
  

 Pg. 19 

 18.2.1.10 Prior Self-Clearing Arrangements. Any guarantee, indemnification, or hold harmless agreement in
connection with Broker’s business or customers that Pershing may provide to the National Securities Clearing Corporation, the Depository Trust Company, or any other clearing, depository, or self-regulatory organization with respect to
transactions self-cleared by Broker prior to transfer of such functions to Pershing. 
 18.2.1.11 Breach of Warranty by Broker. Any breach by Broker
of any representation or warranty made by it under this Agreement. 
 18.2.1.12 Deposit of Checks to Customer Accounts. Any failure to exercise due
diligence in reviewing checks received from customers to ensure that same are in proper form, or in the issuance of instructions to Pershing regarding the accounts into which checks are to be deposited. 
 18.2.1.13 Infringement of Intellectual Property Rights. Any act or omission of Broker, its agents, employees or customers which infringes on any patent, trade
secret, copyright, trademark, or other intellectual property right of Pershing or any violation of the terms set forth in Paragraph 30 hereof. 
 18.2.1.14
Misuse of Passwords and Unauthorized Access. The misuse, loss or unauthorized access to the Systems and Software Products using the Identification Devices (as that term is defined in Paragraph 30.1 of this Agreement) provided to Broker or its
customers. 
 18.2.2 Defense of Claims. Broker will institute defense against any Claims at the sole expense of Broker and using counsel reasonably
acceptable to Pershing. Broker will keep Pershing informed of the status of the defense of such Claims, and Broker will not agree to any settlement without consent of Pershing, which consent will not be unreasonably withheld. Notwithstanding the
foregoing, Pershing will have the right to assume the defense of such Claims at the sole expense of Broker. 
  

	19.0	FEES AND SETTLEMENTS FOR SECURITIES TRANSACTIONS 

 19.1 Commissions.
Pershing shall charge each of Broker’s customers the commission, markup, and any other charge or expense that Broker instructs it to charge for each transaction. If instructions are not received with respect to a transaction in the time period
required by Pershing to implement those instructions, Pershing shall charge the customer the commission, markup, or other charge or expense prescribed in the basic commission schedule delivered to Pershing by Broker. This basic schedule may be
amended from time to time by Broker by written instructions delivered to Pershing. Pershing shall only be required to implement such amendments to the basic schedule to the extent such amendments are within the usual capabilities of Pershing’s
data processing and operations systems and only within such reasonable time limitations as Pershing may deem necessary to avoid disruption of its normal operating capabilities. 
 19.2 Miscellaneous Charges. Broker agrees to pay Pershing the fees and charges described in Schedule A hereto. Notwithstanding the foregoing, Broker may instruct Pershing to pass through such fees to
Broker’s customers. 
 19.3 Fees for Clearing Services. As compensation for services provided pursuant to this Agreement, Pershing shall deduct
from the commissions, mark-up, mark-down, or fees charged Broker’s customers the amounts set forth in the fully-disclosed pricing schedule attached hereto as Schedule A. 
  

 Pg. 20 

	20.0	DEPOSIT ACCOUNT 

 20.1 Establishment of Deposit Account. To further
assure Broker’s performance of its obligations under this Agreement, including but not limited to its indemnification obligations under Paragraph 18, Broker shall, on or before the execution of this Agreement, establish an account at Pershing
to be designated as the Broker’s Deposit Account (the “Deposit Account”). The Deposit Account shall not represent an ownership interest by Broker in Pershing. The Deposit Account shall at all times contain cash, securities, or a
combination of both, having a market value of at least the amount set forth in Schedule A. The securities placed in the Deposit Account shall consist only of direct obligations issued by or guaranteed as to principal and interest by the United
States Government. In the event of a substantial change in the nature and extent of Broker’s business operations, Pershing may require that an additional amount be deposited promptly in the Deposit Account. If such a deposit is not made in the
amount specified, whether or not Broker agrees that the amount is justified under this Paragraph, Pershing may terminate this Agreement forthwith. 
 20.2
Pershing’s Right to Offset. If (i) Pershing shall have any claim against Broker or a customer of Broker which has not been resolved within five business days after Pershing presents such claim to Broker; or (ii) if Pershing
shall suffer any loss or incur any expense for which it is entitled to be indemnified pursuant to this Agreement, and Broker shall fail to make such indemnification within five business days after being requested to do so, Pershing may deduct the
amount of such claim, loss, or expense from any account of Broker. Pershing may withdraw cash or securities (or both) having a market value equal to the amount of such claimed deficiency. If those funds are withdrawn from the Deposit Account, then
Broker shall be obligated to make an immediate deposit in the Deposit Account of cash or securities sufficient to bring the Deposit Account back to a value of at least the amount required by Schedule A. 
 20.3 Termination of Deposit Account. Within thirty (30) days of termination of this Agreement, Pershing shall pay and deliver to Broker, the funds and
securities in the Deposit Account, less any amounts to which it is entitled under the preceding Paragraph; provided, however, that Pershing may: (i) retain the Deposit Account for such period of time until transfer of all customer and
proprietary accounts of Broker has been completed and (ii) retain in the Deposit Account such amount for such period as it deems appropriate for its protection from any claim or proceeding of any type, then pending or threatened, until the
final determination of such claim or proceeding is made. If a threatened claim or proceeding is not resolved or if a legal action or proceeding is not instituted within a reasonable time after the termination of this Agreement, any amount retained
with respect to such claim, proceeding, or action shall be paid or delivered to Broker. 
  

	21.0	PROPRIETARY ACCOUNTS OF INTRODUCING BROKERS AND DEALERS (PAIB) 

 Pershing shall establish a separate reserve account for proprietary assets held by Broker so that Broker can treat these assets as allowable assets under SEC Rule 15c3-1. Pershing agrees to perform the required computation on behalf of
Broker in accordance with the following provisions, procedures, and interpretations set forth in the SEC’s No-Action Letter regarding Proprietary Accounts of Introducing Brokers and Dealers (PAIB) dated November 3, 1998: 
 21.1 Pershing will perform a separate computation for PAIB assets (PAIB reserve computation) of Broker in accordance with the customer reserve computation set forth in
SEC Rule 15c3-3 (customer reserve formula) with the following modifications: 
 a. Any credit (including a credit applied to reduce a debit) that is included
in the customer reserve formula will not be included as a credit in the PAIB reserve computation; 
  

 Pg. 21 

 b. Note E(3) to Rule 15c3-3a, which reduces debit balances by one percent under the basic method and subparagraph
(a)(1)(ii)(A) of Rule 15c3-1, which reduces debit balances by three percent under the alternative method, will not apply; and 
 c. Neither Note E(I) to Rule
15c3-3a nor FINRA Interpretation /04 to Item 10 of Rule 15c3-3a regarding securities concentration charges is applicable to the PAIB reserve computation. 
 21.2 PAIB reserve computation will include all the proprietary accounts of Broker. All PAIB assets will be kept separate and distinct from customer assets under the customer reserve computation set forth in SEC Rule 15c3-3. 
 21.3 PAIB reserve computation will be prepared within the same time frames as those prescribed by Rule 15c3-3 for the customer reserve formula. 
 21.4 Pershing will establish and maintain a separate “Special Reserve Account for the Exclusive Benefit of PAIB Customers” with a bank in conformity with the
standards of Rule 15c3-3(f) (PAIB Reserve Account). Cash and/or qualified securities as defined in the Rule will be maintained in the PAIB Reserve Account in an amount equal to the PAIB reserve requirement. 
 21.5 If the PAIB reserve computation results in a deposit requirement, the requirement can be satisfied to the extent of any excess debit in the customer reserve formula
of the same date. However, a deposit requirement resulting from the customer reserve formula cannot be satisfied with excess debits from the PAIB reserve computation. 
 21.6 Within two business days of entering into this Agreement, Broker shall notify its designated examining authority (“DEA”) in writing that it has entered into a PAIB agreement with its clearing
broker-dealer. 
 21.7 Upon discovery that any deposit made to the PAIB Reserve Account did not satisfy its deposit requirement, Pershing will immediately
notify its DEA and the SEC. Unless a corrective plan is found to be acceptable by the SEC and the DEA, Pershing will provide written notification within five business days of the date of discovery to Broker that PAIB assets held by Pershing will not
be deemed allowable assets for net capital purposes. 
 21.8 To the extent applicable, commissions receivable and other receivables of Broker from Pershing
(excluding clearing deposits) that are otherwise allowable assets under the net capital rule are not to be included in the PAIB reserve computation, provided the amounts have been clearly identified as receivables on the books and records of the
Broker and as payables on the books of Pershing. 
  

	22.0	COMMUNICATION 

 22.1 Notice to Customers. Pershing shall, upon the
opening of an account pursuant to Paragraph 5 of this Agreement, mail to each customer a copy of the notice to customers required by FINRA Rule 382(c). 
 22.2 Customer Complaint Reporting and Customer Notification. Broker authorizes and instructs Pershing to forward promptly any written customer complaint received by Pershing regarding Broker and/or its associated persons relating to
functions and responsibilities allocated to Broker under this Agreement to a) Broker and b) Broker’s DEA designated under Section 17 of the Securities and Exchange Act of 1934, as amended, or, if none, to Broker’s appropriate
regulatory agency or authority. Further, Broker authorizes Pershing to notify the customer, in writing, that Pershing has received the complaint, and the complaint has been forwarded to the Broker and the Broker’s DEA (or, if none, to the
appropriate regulatory agency). 
  

 Pg. 22 

 22.3 Restriction on Advertising. Neither Pershing nor Broker shall utilize the name of the other in any way
without the other’s prior written consent except to disclose the relationship between the parties. Neither party shall employ the other’s name in such a manner as to create the impression that the relationship between them is anything
other than that of clearing broker and introducing broker. Broker shall not hold itself out as an agent of Pershing or as a subsidiary or company controlled directly or indirectly by or affiliated with Pershing except as provided in this Paragraph.

 22.4 Linking Between Sites. Without express written authorization, neither party may provide or allow an electronic hyperlink directly from its
service or site on the Internet or another site over which that party has control to the service or site on the Internet of the other party. 
  

	23.0	TERMINATION OF AGREEMENT 

 This Agreement shall continue
until terminated as hereinafter provided: 
 23.1 Termination upon 90-Day Notice. This Agreement may be terminated by either party without cause upon
ninety days prior notice. If either party terminates the Agreement pursuant to this Paragraph, Pershing shall have the right to impose reasonable limitations upon Broker’s activities during the period between the giving of Notice and the
transfer of Broker’s accounts. 
 23.2 Termination by Pershing upon 30-Day Notice. Pershing may terminate this Agreement upon thirty days prior
written notice to Broker in the event that: (i) Broker materially fails to strictly comply with any provision of this Agreement; (ii) any representation, warranty or covenant of Broker in this Agreement is false or misleading;
(iii) any director, executive officer, managing general securities principal or financial and operations principal of Broker is enjoined, prohibited, disciplined or suspended as a result of administrative or judicial proceedings, or proceedings
of a self-regulatory organization of which Broker is a member, from engaging in securities business activities constituting all or portions of Broker’s securities business. 
 23.3 Immediate Termination. This Agreement may be terminated by Pershing or Broker immediately in the event that (a) the other party is enjoined, disabled, suspended, prohibited, or otherwise becomes
unable to engage in the securities business or any part of it by operation of law or as a result of any administrative or judicial proceeding or action by the SEC, any state securities law administrator, or any regulatory or self-regulatory
organization having jurisdiction over such party or (b) the other party (i) becomes or is declared insolvent; (ii) voluntarily files or is the subject of, a petition commencing a case under any chapter of Title 11 of the United States
Code; (iii) makes a general assignment for the benefit of its creditors; (iv) admits in writing its inability to pay its debts as they mature; (v) sells or enters into negotiations to sell all or substantially all of its assets;
(vi) files an application or consents to the appointment of, or there is appointed, any receiver, or a permanent or interim trustee of that party or any of its subsidiaries, as the case may be, or all or any portion of its property, including,
without limitation, the appointment or authorization of a trustee, receiver or agent under applicable law or under a contract to take charge of its property for the purpose of enforcing a lien against such property or for the purpose of general
administration of such property for the benefit of its creditors; (vii) files a petition seeking a reorganization of its financial affairs or to take advantage of any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or
liquidation law or statute or files an answer admitting the material allegations of a petition filed against it in any proceeding under any such law or statute; or (viii) takes any corporate action for the purpose of effecting any of the
foregoing. 
 23.4 Conversion of Accounts. In the event that this Agreement is terminated for any reason, Broker shall arrange for the conversion of
Broker’s and its customer accounts to another clearing broker or to Broker if it becomes self-clearing. Broker shall give Pershing Notice (the “Conversion Notice”) of: (i) the name of the broker that will assume responsibility
for clearing services for Customers and 

  

 Pg. 23 

 
Broker; (ii) the date on which such broker will commence providing such services; (iii) Broker’s undertaking, in form and substance
satisfactory to Pershing, that Broker’s agreement with such clearing broker provides that such clearing broker will accept on conversion all Broker and customer accounts then maintained by Pershing; and (iv) the name of an individual or
individuals within new clearing broker’s organization whom Pershing may contact to coordinate the conversion. The Conversion Notice shall accompany Broker’s notice of termination given pursuant to this Paragraph. If Broker fails to give
Conversion Notice to Pershing, Pershing may notify Broker’s customers as Pershing deems appropriate of the termination of this Agreement and may make such arrangements as Pershing deems appropriate for transfer or delivery of customer and
Broker accounts. The expense of notifying those customers and making such arrangements shall be charged to Broker. 
 23.5 Survival. Termination of
this Agreement in any manner shall not release Broker or Pershing from any liability or responsibility with respect to any representation or warranty or transaction effected on the books of Pershing. 
 23.6 Termination Fee. If Broker terminates this Agreement pursuant to Paragraph 23.1 above, or Pershing terminates this Agreement pursuant to Paragraph 23.2 or
23.3 within the period specified in Schedule A, Broker shall pay to Pershing a termination fee and will reimburse Pershing for Deconversion Expenses as stated in Schedule A. 
 23.7 Termination Under S.I.P.A. In the event that Broker is the subject of the issuance of a protective decree pursuant to the Securities Investor Protection Act of 1970 (15 U.S.C. § 78aaa-111),
Pershing’s claim for payment of a termination fee under this Agreement shall be subordinate to claims of Broker’s customers that have been approved by the Trustee appointed by the Securities Investor Protection Corporation pursuant to the
issuance of such protective decree. 
 23.8 Failure to Convert. Broker shall be solely and exclusively responsible for any cost expense (including,
but not limited to, fees and expenses of legal counsel) or damages sustained or incurred by Pershing arising out of Broker’s failure to promptly convert all of Broker’s and its customer accounts for clearing by Pershing unless otherwise
agreed in writing. 
 23.9 Continuation of Business. The overall pricing schedule and each of its components set forth in Schedule A hereto have been
determined and agreed to on the basis of Broker’s agreement to clear its business through Pershing, the type and level of business currently being done by Broker, and Broker’s representation as to the type and level of business it expects
to conduct during the term of this agreement. Broker agrees that during the term of this agreement it will not directly or indirectly take steps to move or transfer (or cause its customers to transfer) the business cleared through Pershing in whole
or substantial part (20% or more) to another firm. 
  

	24.0	CONFIDENTIALITY 

 24.1 “Confidential Information” of a party
shall mean all data and information submitted to the other party or obtained by the other party in connection with the services, including information relating to a party’s customers (which includes, without limitation, Non-Public Personal
Information as that term is defined in Securities and Exchange Commission Regulation S-P), technology, operations, facilities, consumer markets, products, capacities, systems, procedures, security practices, research, development, business affairs,
ideas, concepts, innovations, inventions, designs, business methodologies, improvements, trade secrets, copyrightable subject matter and other proprietary information. 
 24.2 All Confidential Information relating to a party shall be held in confidence by the other party to the same extent and in at least the same manner as such party protects its own confidential or proprietary
information. Neither party shall disclose, publish, release, 

  

 Pg. 24 

 
transfer or otherwise make available Confidential Information of the other party in any form to, or for the use or benefit of, any person or entity without
the other party’s consent. Each party shall, however, be permitted to disclose relevant aspects of the other party’s Confidential Information to its officers, agents, subcontractors and employees to the extent such disclosure is reasonably
necessary for the performance of its duties and obligations under this Agreement and such disclosure is not prohibited by Gramm-Leach-Bliley Act of 1999 (“GLBA”), which amends the Securities and Exchange Act of 1934, as it may be amended
from time to time, the regulations promulgated by the Securities and Exchange Commission thereunder or other applicable law; provided, however, that such party shall take all reasonable measures to ensure that Confidential Information of the other
party is not disclosed or duplicated in contravention of the provisions of this Agreement by such officers, agents, subcontractors and employees. The obligations in this Paragraph shall not restrict any disclosure by either party pursuant to any
applicable law, or by order of any court or government agency (provided that the disclosing party shall give prompt notice to the non-disclosing party of such order) and shall not apply with respect to information which (i) is developed by the
other party without violating the disclosing party’s proprietary rights; (ii) is or becomes publicly known (other than through unauthorized disclosure); (iii) is disclosed by the owner of such information to a third party free of any
obligation of confidentiality; (iv) is already known by such party without an obligation of confidentiality other than pursuant to this Agreement or any confidentiality agreements entered into between the parties before the effective date of
this Agreement; or (v) is rightfully received by a party free of any obligation of confidentiality. If the GLBA, the regulations promulgated by the Securities and Exchange Commission thereunder or other applicable law now or hereafter in effect
imposes a higher standard of confidentiality to the Confidential Information, such standard shall prevail over the provisions of this Paragraph. 
 24.3
Broker acknowledges that the services Pershing provides hereunder involve Broker access to proprietary technology, trading and other systems, and that techniques, algorithms and processes contained in such systems constitute trade secrets and shall
be safeguarded by Broker, and that Broker shall exercise reasonable care to protect Pershing’s interest in such trade secrets. Broker agrees to make the proprietary nature of such systems known to those of its consultants, staff, agents or
clients who may reasonably be expected to come into contact with such systems. Broker agrees that any breach of this confidentiality provision may result in its being liable for damages as provided by law. 
 24.4 Paragraphs 24.1 through 24.3 shall survive the termination of this Agreement. 
  

	25.0	ACTION AGAINST CUSTOMERS BY PERSHING 

 Pershing may, in its
sole discretion and at its own expense and, upon written notice to Broker, institute and prosecute in its name any action or proceeding against any of Broker’s customers in relation to any controversy or claim arising out of Pershing’s
transactions with Broker or with Broker’s customers. Nothing contained in this Agreement shall be deemed either (i) to require Pershing to institute or prosecute such an action or proceeding; or (ii) to impair or prejudice its right
to do so, should it so elect, nor shall the institution or prosecution of any such action or proceeding relieve Broker of any liability or responsibility which Broker would otherwise have had under this Agreement. Broker assigns to Pershing its
rights against its customer as necessary to effectuate the provisions of this Paragraph. 
  

	26.0	NOTICES 

 Any Notice required or permitted to be given
under this Agreement shall be sufficient only if it is in writing and sent by hand or by certified mail, return receipt requested, to the parties at the following address: 
  

	 	Broker:	Summit Brokerage Services, Inc. 

 980 North
Federal Highway, Suite 310 
 Boca Raton, FL 33432 
 Attn: Marshall Leeds, Chief Executive Officer 
  

 Pg. 25 

 Pershing: 
 Pershing LLC 
 One Pershing Plaza 
 Jersey City, NJ 07399 

	 	Attn:	Mr. James Crowley, Managing Director 

	 	cc:	Legal Department 

  

	27.0	ARBITRATION 

 27.1 Arbitration Requirement. Any dispute between
Broker and Pershing that cannot be settled shall be taken to arbitration as set forth in Paragraph 27.3 below. 
 27.2 ARBITRATION DISCLOSURE.

  

	 	¡	 	 ARBITRATION IS FINAL AND BINDING ON THE PARTIES. 

  

	 	¡	 	 THE PARTIES ARE WAIVING THEIR RIGHT TO SEEK REMEDIES IN COURT, INCLUDING THE RIGHT TO JURY TRIAL. 

  

	 	¡	 	 PRE-ARBITRATION DISCOVERY IS GENERALLY MORE LIMITED THAN AND DIFFERENT FROM COURT PROCEEDINGS. 

  

	 	¡	 	 THE ARBITRATORS’ AWARD IS NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL REASONING AND ANY PARTY’S RIGHT TO APPEAL OR TO SEEK MODIFICATION OF RULINGS
BY THE ARBITRATORS IS STRICTLY LIMITED. 

  

	 	¡	 	 THE PANEL OF ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR ARE AFFILIATED WITH THE SECURITIES INDUSTRY. 

 27.3 ARBITRATION AGREEMENT. 
 ANY CONTROVERSY BETWEEN
US ARISING OUT OF YOUR BUSINESS OR THIS AGREEMENT SHALL BE SUBMITTED TO ARBITRATION CONDUCTED BEFORE THE NEW YORK STOCK EXCHANGE, INC., OR FINRA DISPUTE RESOLUTION, INC. (OR THEIR SUCCESSOR FIRMS), AND IN ACCORDANCE WITH THE RULES THEN OBTAINING OF
THE SELECTED ORGANIZATION AND SHALL BE CONDUCTED AS A BROKER TO BROKER OR MEMBER VS MEMBER DISPUTE. ARBITRATION MUST BE COMMENCED BY SERVICE UPON THE OTHER PARTY OF A WRITTEN DEMAND FOR ARBITRATION OR A WRITTEN NOTICE OF INTENTION TO ARBITRATE,
THEREIN ELECTING THE ARBITRATION TRIBUNAL. 
 NO PERSON SHALL BRING A PUTATIVE OR CERTIFIED CLASS ACTION TO ARBITRATION, NOR SEEK TO ENFORCE
ANY PRE-DISPUTE ARBITRATION AGREEMENT AGAINST ANY PERSON WHO HAS 

  

 Pg. 26 

 
INITIATED IN COURT A PUTATIVE CLASS ACTION AND WHO IS A MEMBER OF A PUTATIVE CLASS AND WHO HAS NOT OPTED OUT OF THE CLASS WITH RESPECT TO ANY CLAIMS
ENCOMPASSED BY THE PUTATIVE CLASS ACTION UNTIL: (i) THE CLASS CERTIFICATION IS DENIED; (ii) THE CLASS IS DECERTIFIED; OR (iii) THE CUSTOMER IS EXCLUDED FROM THE CLASS BY THE COURT. SUCH FORBEARANCE TO ENFORCE AN AGREEMENT TO ARBITRATE
SHALL NOT CONSTITUTE A WAIVER OF ANY RIGHTS UNDER THIS AGREEMENT EXCEPT TO THE EXTENT STATED HEREIN. 
  

	28.0	INJUNCTIVE RELIEF 

 In the event of a breach or threatened
breach of any of the provisions of this Agreement by Broker or any employee or representative of Broker, Broker acknowledges that Pershing shall be entitled to seek preliminary and permanent injunctive relief to enforce the provisions hereof. In
addition, Broker acknowledges that a breach of the terms regarding confidentiality of information and ownership of Pershing’s intellectual property would cause irreparable and incalculable damage to Pershing. Nothing herein shall preclude the
parties from pursuing any action or other remedy for any breach or threatened breach of this Agreement, all of which shall be cumulative. 
  

	29.0	GENERAL PROVISIONS 

 29.1 Successors and Assigns. This Agreement
shall be binding upon and shall inure to the benefit of the respective successors and assigns of Broker and Pershing. No assignment of this Agreement or any rights, including those to indemnification hereunder by Broker shall be effective unless
Pershing’s written consent shall be first obtained. 
 29.2 Severability. If any provision of this Agreement shall be held to be invalid or
unenforceable, the validity or enforceability of the remaining provisions and conditions shall not be affected thereby. 
 29.3 Counterparts. This
Agreement may be executed in one or more counterparts, all of which taken together shall constitute a single agreement. 
 29.4 Entire Agreement
Amendments and Duties Not Specifically Enumerated Herein. This Agreement represents the entire agreement between the parties with respect to the subject matter contained herein and all prior discussions, agreements, and promises, written or
oral, are merged herein. This Agreement may not be changed orally, but only by an agreement in writing signed by the parties. Pershing shall not be responsible or liable for failure to perform any duties not specifically enumerated herein.

  

	29.5	Captions. Captions herein are for convenience only and are not of substantive effect. 

 29.6 Choice of Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without giving effect to the conflicts of laws or principles thereof. This
Agreement shall not be governed by the United Nations Convention on the International Sale of Goods. 
 29.7 Citations. Any reference to the rules or
regulations of the SEC, FINRA, or any other regulatory or self-regulatory organization are current citations. Any changes in the citations (whether or not there are any changes in the text of such rules or regulations) shall be automatically
incorporated herein. 
  

 Pg. 27 

 29.8 Construction of Agreement. Neither this Agreement nor the performance of the services hereunder shall be
considered to create a joint venture or partnership between Pershing and Broker or between Broker and other brokers for whom Pershing may perform the same or similar services. 
 29.9 Third-Parties. This Agreement is between the parties hereto and is not intended to confer any benefits on third-parties including, but not limited to, customers of Broker. 
 29.10 Non-Exclusivity of Remedies. The enumeration herein of specific remedies shall not be exclusive of any other remedies. Any delay or failure by a party to
this Agreement to exercise any right, power, remedy, or privilege herein contained, or now or hereafter existing under any applicable statute or law, shall not be construed to be a waiver of such right, power, remedy, or privilege. No single,
partial, or other exercise of any such right, power, remedy, or privilege shall preclude the further exercise thereof or the exercise of any other right, power, remedy, or privilege. 
 29.11 SIPA; Rule 15c3-3. All introduced customers are the customers of Broker except as provided under the Securities Investor Protection Act (“SIPA”) and SEC financial responsibility rules where the
customers shall be considered customers of Pershing. Nothing in this Paragraph will otherwise change or affect the provisions of this Agreement which provide that the customer account remains Broker’s customer account for all other purposes,
including but not limited to, supervision, suitability and indemnification. 
 29.12 United States Postal Service Documents. Broker hereby appoints
Pershing as its attorney-in-fact for the purpose of executing such documents as are necessary to allow Broker and its customers to participate in the FASTforward program of the United States Postal Service. This may include, but not be limited to
Pershing’s execution, on an annual basis, on Broker’s behalf, of the FASTforward Processing Acknowledgment Form. 
 29.13 Provision of Reports
and Exception Reports. Beginning on or before the effective date of this Agreement and before July 31 of each calendar year thereafter, Pershing shall provide to Broker, pursuant to FINRA Rule 382(e), a list of all reports (e.g.
exception-type reports) it offers to Broker. Broker shall promptly advise Pershing, in writing, of those specific reports it elects to receive. Pershing and Broker each represent that their obligations relative to exception reports, pursuant to
FINRA Rule 382(e) have been completed. 
 29.14 Force Majeure. Pershing shall not be liable for any loss caused, directly or indirectly, resulting
from any circumstances beyond its reasonable control, including without limitation, labor disputes, riots, sabotage, insurrection, fires, flood, storm, explosions, earthquakes, electrical power failures, telecommunications system failures, Internet
failure, outbreaks of computer viruses, worms, parasites and the like, acts of God or nature, war, both declared or undeclared, or acts of terrorism (each a “Force Majeure Event”; collectively, “Force Majeure Events”). In
addition, Pershing shall not be liable for any loss caused, directly or indirectly, resulting from the acts or omissions of third parties over which it has no control. 
 29.15 Audio Taping of Telephone Conversations. Each party understands that for quality control, dispute resolution or other business purposes, the parties may record some or all telephone conversations between
them. Each party hereby consents to such recording and will inform its employees, representatives and agents of this practice. It is further understood that all such conversations are deemed to be solely for business purposes. 
  

 Pg. 28 

	30.0	OWNERSHIP AND LICENSES 

 30.1 Definitions. For purposes of this
Paragraph 30, the following terms have the meanings ascribed to them. 
 “Access Device” means any type of computer, personal
digital assistant (PDA), beeper, television, telephone or any other communications device, including, without limitation, any software Broker uses on such device whether Pershing provided such software to Broker or otherwise, that enables Broker to
access and use the Pershing Services via a wired or wireless connection to any wireless network, the Internet, the World Wide Web or any other computer or telecommunications network. 
 “Authorized User” means each customer, employee and/or agent of Broker designated as authorized by Broker to access the Software, Systems and
Services. 
 “Identification Devices” means any passwords, codes, certificates, and other identification devices and security
processes or measures necessary to access and use the Systems and Software. 
 “Intellectual Property Rights” with respect to any
intellectual property means all applicable copyrights (including without limitation, the exclusive right to reproduce, distribute copies of, display and perform the copyrighted work and to prepare derivative works), rights in trademarks, rights in
patents and patent applications, tradenames, mask-work rights, trade secrets, moral rights, authors’ rights, domain names and universal resource locators (“URLs”), TCP/IP addresses, metatags, all renewal and extensions thereof, and
the like, regardless of whether any such rights arise under the laws of the United States, or any other state, country or jurisdiction. 
 “Services” or “Pershing Services” means the services to be provided by Pershing and/or its Third Party Providers to Broker under this Agreement, including Internet-based services, through the Software and Systems,
including, without limitation, (a) communication and content services, (b) access to account and financial information, (c) securities trading, and other services to be provided by Pershing to Broker under this Agreement. 

“Software” means the software, including, without limitation, any and all documentation, home page design(s), methodologies, techniques,
know-how and software libraries, and the code comprising the same, as such may be revised from to time to include any upgrades, updates, new versions and other modifications, improvements and enhancements made by or for Pershing in accordance with
this Agreement. 
 “Systems” means the data access, account information, trading and order entry, and report generation systems, and
related know-how, as such may be revised from to time to include any upgrades, updates, new versions and other modifications, improvements and enhancements made by or for Pershing in accordance with this Agreement. 
 “Third Party Providers” means Pershing’s suppliers, vendors or providers that have entered into third-party agreements with Pershing.

 30.2 License to Use Systems and Software. Pershing hereby grants to Broker a non-exclusive, non-transferable, non-assignable license for the term
of this Agreement to access and use the Software and Systems for the limited purpose of enabling Broker to obtain the Services. Pershing shall have the right to terminate or suspend such license and the provision of the Systems and Software to
Broker in the event of breach of this Agreement that is not cured within thirty (30) days of Brokers’ receipt of Pershing’s notice of such breach. 
  

 Pg. 29 

 30.3 No Reverse Engineering. Broker shall not, directly or indirectly, modify the features or functionality of,
copy or create derivative works using all or any portion of, analyze or remove semiconductor components from, decompile, or otherwise reverse engineer or attempt to reverse engineer or derive source code, techniques, algorithms or processes from the
Systems or Software or permit or encourage any third-party to do so. 
 30.4 Ownership. Except for the license granted in Paragraph 30.2 herein,
nothing herein shall be construed to transfer to Broker any rights, title and/or interest in and to the Software, Systems and Services, including, without limitation, the Intellectual Property Rights therein. Except to the extent that any
Intellectual Property Rights in the Software, Systems and Services are published or otherwise matters of public record, the Systems and Software Products are trade secrets of Pershing and its affiliates. As between Broker and Pershing, Pershing
shall at all times be and remain the sole and exclusive owner of the Systems, Software and Services. 
 30.5 Web-based Communications. The Services
shall be provided through various means, including, without limitation, a site or pages of a site on the World Wide Web that are accessible through an Internet address unique to Broker, but which shall not be required to be a domain name unique to
Broker. 
 30.6 Revisions and Modifications. From time to time during the term of this Agreement Pershing may in its sole and absolute discretion
revise or modify any Software, Systems or Services to include any patches, upgrades, updates, new versions and other modifications, improvements and enhancements made by or for Pershing (any of which patches, upgrades, updates, new versions and
other modifications, improvements and enhancements are collectively referred to in this Agreement as “revisions and modifications” or “revisions or modifications”, as the context requires). To the extent that any such revisions
or modifications are made, Schedule A shall be deemed to be revised to include such revision or modification and any associated fees. 
 30.7 Business
Continuity. Pershing agrees to maintain a written business continuity plan identifying procedures relating to an emergency or significant business disruption in accordance with applicable industry regulations. 
 30.7.1 Pershing shall, from time to time, provide Broker with Identification Devices for accessing and using the Software, Systems and Services. 
 30.7.2 Broker shall be responsible for designating Authorized Users. [Broker shall provide Pershing with a list of Authorized Users so designated by Broker and shall
provide Pershing with changes to this list.] 
 30.7.3 Broker shall be solely responsible for the assignment and distribution to Authorized Users, and the
maintenance of all Identification Devices. Broker agrees not to assign and/or distribute any Identification Devices to individuals who are not Authorized Users. 
 30.7.4 Each party shall be responsible for and shall provide the same level of security as it applies to its own proprietary and confidential property in the protection, maintenance, and distribution of those Identification Devices and
codes within its organization and to its agents and customers, but in no case less than the security that a reasonably prudent person would use to protect their own proprietary and confidential property. 
 30.7.5 Broker shall report to Pershing any loss, theft, or discovery of any Identification Devices immediately and Broker shall be responsible for any unauthorized use,
and for any loss resulting from unauthorized use, of any Identification Device attributable to Broker prior to the time the loss, theft, or discovery of the Identification Device is reported to Pershing. 
  

 Pg. 30 

 30.8 Restrictions on Access, Viewing and Distribution. 
 30.8.1 Quotes, news and research data, including market information (collectively, “Market Data”) displayed on the Pershing Service may be based on or derived
from different Third Party Providers and may be updated at different time intervals, and accordingly, the various trade status reports, including intraday updates of balances and positions information, available via any Access Devices, which
incorporate such Market Data information, may differ due to the different Market Data and sources and their update intervals. Similarly, different Access Devices may incorporate different Market Data and sources, and they may differ for the same
reasons. 
 30.8.2 The Software, Systems, and design of the Pershing Service are the property of Pershing. The content, including both its form and
substance, included in the Pershing Service is the property of either Pershing or one or more of its Third Party Providers (“Third Party Provider Services”). Broker shall have no rights in or to the Software, Systems, or Pershing Service
or Third Party Provider Services, except as expressly provided herein, and Broker agrees not to take any action inconsistent with Pershing’s rights in the Software, Systems, or Pershing Service or the Third Party Providers’ rights in their
Third Party Provider Services. 
 30.8.3 All of the materials in the Pershing Service are protected by United States and international copyright, trademark
and other intellectual property laws. Broker’s right to use the Pershing Service, including the Third Party Provider Services, is limited to use in connection with Broker’s account(s) and for Broker’s personal benefit only
(“Internal Use”). Broker may not modify, rent, lease, loan, sell, assign, distribute, display, perform, publish or create derivative works based on any of the content, materials or the like contained in the Pershing Service, in whole or in
part. Broker may not copy, modify, create derivative works from, reverse engineer, reverse assemble or otherwise attempt to discover the source code of any software or techniques, algorithms or processes that are part of the Pershing Service. Broker
may print out a reasonable number of copies of the materials on the Pershing Service as is necessary for Broker’s Internal Use, provided that Broker does not delete any copyright, trademark or other intellectual property notices contained in
such materials. Broker may prepare hard copy reports incorporating Third Party Provider Services and download Third Party Provider Services into commercially available spreadsheet software programs or delimited text files; Broker may not, however,
disseminate in electronic form or use Third Party Provider Services for the construction of other products or services. 
 30.8.4 Broker acknowledges and
agrees that the license to use the Software, Systems and Services granted by Paragraph 30.2 does not diminish Broker’s responsibility for compliance with all applicable rules as set forth in Paragraph 6 of this Agreement. 
  

	30.9	Indemnification; Disclaimers. 

 30.9.1 Pershing shall indemnify,
defend, and hold Broker harmless from and against all claims, demands, proceedings, suits, actions, liabilities, expenses, and reasonable attorney’s fees, and costs in connection therewith (collectively, “Losses”) arising out of a
claim that the Software and/or Systems, or Broker’s authorized use thereof, as set forth in this Agreement, infringes upon any Intellectual Property Rights of any third party. This Paragraph 30.9.1 shall survive any termination of this
Agreement; provided, however, that any indemnity provided under this Paragraph 30.9.1 shall only be in respect of events occurring during the term of this Agreement. 
 30.9.2 Broker shall not be entitled to any indemnification under Paragraph 30.9.1 hereof to the extent that the Losses in respect of which such indemnification is sought is attributable to Broker’s negligent
activities and/or misuse of Pershing Services, as set forth in this Agreement (“Unauthorized Use”) or to the extent of such Losses due to a delay in providing notice of the circumstances giving 

  

 Pg. 31 

 
rise to such Losses. Broker shall indemnify, defend, and hold Pershing harmless from and against all claims, demands, proceedings, suits, actions,
liabilities, expenses, and reasonable attorney’s fees, and costs in connection therewith (collectively, “Losses”) arising out of such negligent activities by Broker, Broker’s Unauthorized Use of Pershing Services or such delay by
Broker in providing such notice. This Paragraph 30.9.2 shall survive any termination of this Agreement. 
 30.9.3 DISCLAIMER OF WARRANTIES. 

 THE PERSHING SERVICE IS PROVIDED ON AN “AS IS”, “AS AVAILABLE” BASIS, WITHOUT WARRANTY OF ANY KIND, TO THE MAXIMUM
EXTENT PERMITTED BY APPLICABLE LAW. PERSHING DISCLAIMS ALL WARRANTIES, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT. THERE IS NO WARRANTY THAT ANY INFORMATION
PROVIDED THROUGH PERSHING, THE PERSHING SERVICE OR THE SYSTEM WILL FULFILL ANY PARTICULAR PURPOSES OR NEEDS. 
 30.9.4 LIMITATION OF LIABILITY;
DATA NOT GUARANTEED. 
 TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL PERSHING, ANY OF ITS AGENTS,
AFFILIATES, THIRD PARTY PROVIDERS OR ANYONE ELSE INVOLVED IN CREATING, PRODUCING, DELIVERING OR MANAGING THE DELIVERY OF THE PERSHING SERVICE BE LIABLE TO BROKER OR ANYONE ELSE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, PUNITIVE
OR ANY OTHER DAMAGES WHATSOEVER (INCLUDING WITHOUT LIMITATION DAMAGES FOR LOST PROFITS, TRADING LOSSES, DAMAGES RESULTING FROM INCONVENIENCE OR LOSS OF USE OF THE WEB SITE), EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, ARISING
OUT OF THE USE OF OR INABILITY TO USE THE PERSHING SERVICE OR FOR ANY BREACH OF ANY WARRANTY. 
 Quotes, news and research data,
including market information displayed on any Access Device (collectively, “Market Data”) are obtained from sources Pershing believes to be reliable. HOWEVER, ALL MARKET DATA IS PROVIDED “AS IS” AND “AS AVAILABLE”,
AND THERE MAY BE DELAYS, OMISSIONS AND INACCURACIES IN SUCH DATA. NEITHER PERSHING NOR ITS AGENTS, AFFILIATES, OR THIRD PARTY PROVIDERS OR ANYONE ELSE INVOLVED IN CREATING, PRODUCING, DELIVERING OR MANAGING THE DELIVERY OF SUCH DATA, INFORMATION OR
SERVICES (COLLECTIVELY, THE (“Disseminating Parties”) CAN GUARANTEE, NOR DO PERSHING OR THEY GUARANTEE, THE CORRECTNESS, QUALITY, ACCURACY, SEQUENCE, TIMELINESS, CURRENTNESS, RELIABILITY, PERFORMANCE, COMPLETENESS, CONTINUED AVAILABILITY,
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE OR NON-INFRINGEMENT OR OTHERWISE OF ANY MARKET DATA OR THIRD PARTY PROVIDER SERVICES, AND PERSHING AND THEY HEREBY DISCLAIM ANY SUCH EXPRESS OR IMPLIED WARRANTIES. Pershing also reserves
the right to filter the Market Data provided to Broker through the Pershing Service. The Disseminating Parties shall not be liable to Broker or to anyone else for any loss or injury, whether or not caused in whole or in part by their negligence or
omission, in procuring, compiling, editing, writing, reporting or delivering any Market Data or Third Party Provider Services through Pershing or by any Force Majeure Event or other cause beyond their control. The Disseminating Parties will not be
liable to Broker or anyone else for any decision made or action taken by Broker in reliance on such Market Data or for direct, indirect, incidental, special, consequential, punitive or any other damages whatsoever (including without limitation
damages for lost profits, trading losses, damages resulting from inconvenience or loss of use of the Pershing Service) even if Pershing or its Third Party Providers have been advised of the possibility of such damages. 
  

 Pg. 32 

 Broker agrees that neither Pershing, nor its Third Party Providers shall be liable in any way for, any
liability, costs, damages or loss caused directly or indirectly by government restrictions, exchange or market rulings, suspension or delay of trading, equipment failure, communication line failure, system failure, security failure, unauthorized
access, theft, Force Majeure Event or any problem, technological or otherwise, that might prevent Broker from accessing or utilizing the Services. 
 IN WITNESS WHEREOF the parties have hereto affixed their signatures by their duly authorized officers on the day and date first above written. 
 This Agreement contains a pre-dispute arbitration clause in Paragraph 27. Broker acknowledges receiving a copy of this Agreement. 
  

	
	SUMMIT BROKERAGE SERVICES, INC .
	
	By:  /s/  Steven C. Jacobs
	Title:  Executive Vice President
	
	PERSHING LLC
	
	By:  /s/John Quigley
	Title:  Director

  

 Pg. 33Form of Third Amended and Restated Securityholders' Agreement

 Exhibit 10.5a 
 FORM OF THIRD AMENDED AND RESTATED 
 SECURITYHOLDERS’ AGREEMENT 
 dated as of 
 [                    ], 2008 
 by and among 
 MAGNACHIP SEMICONDUCTOR CORPORATION 
 MAGNACHIP SEMICONDUCTOR LLC, 
 CVC
CAPITAL PARTNERS ASIA PACIFIC L.P., 
 ASIA INVESTORS LLC, 
 CVC CAPITAL PARTNERS ASIA PACIFIC II L.P., 
 CVC CAPITAL PARTNERS ASIA PACIFIC
II PARALLEL FUND - A, L.P., 
 CITIGROUP VENTURE CAPITAL EQUITY PARTNERS, L.P., 
 CVC EXECUTIVE FUND LLC, 
 CVC/SSB
EMPLOYEE FUND, L.P., 
 CVC CO-INVESTORS (as defined herein), 
 FRANCISCO PARTNERS, L.P., 
 FRANCISCO PARTNERS FUND A, L.P., 

FP ANNUAL FUND INVESTORS, LLC 
 FP-MAGNACHIP CO-INVEST, LLC 
 PENINSULA INVESTMENT PTE. LTD., 
 MANAGEMENT INVESTORS (as defined herein), 
 and 
 CERTAIN OTHER PERSONS NAMED HEREIN 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page
	ARTICLE 1 DEFINITIONS	  	2
				
		 	Section 1.01.	  	Definitions	  	2
		
	ARTICLE 2 CORPORATE GOVERNANCE	  	11
				
		 	Section 2.01.	  	Composition of the Board	  	11
				
		 	Section 2.02.	  	Removal	  	13
				
		 	Section 2.03.	  	Vacancies	  	13
				
		 	Section 2.04.	  	Meetings	  	13
				
		 	Section 2.05.	  	Action by the Board	  	14
				
		 	Section 2.06.	  	Observer Right	  	17
				
		 	Section 2.07.	  	Conflicting Organizational Document Provisions	  	17
				
		 	Section 2.08.	  	Notice of Meeting	  	17
				
		 	Section 2.09.	  	Subsidiary Governance	  	17
		
	ARTICLE 3 RESTRICTIONS ON TRANSFER	  	18
				
		 	Section 3.01.	  	General	  	18
				
		 	Section 3.02.	  	Legends	  	18
				
		 	Section 3.03.	  	Permitted Transferees	  	18
				
		 	Section 3.04.	  	Restrictions on Transfers by the Institutional Securityholders	  	19
				
		 	Section 3.05.	  	Restrictions on Transfers by the Other Securityholders	  	20
				
		 	Section 3.06.	  	Restrictions on Transfer under a Credit Agreement, Indenture or Other Agreement for Indebtedness	  	21
		
	ARTICLE 4 TAG-ALONG RIGHTS; DRAG-ALONG RIGHTS	  	21
				
		 	Section 4.01.	  	Rights to Participate in Transfer	  	21
				
		 	Section 4.02.	  	Right to Compel Participation in Certain Transfers	  	24
		
	ARTICLE 5 REGISTRATION RIGHTS	  	27
				
		 	Section 5.01.	  	Demand Registration	  	27
				
		 	Section 5.02.	  	Incidental Registration	  	30
				
		 	Section 5.03.	  	Holdback Agreement	  	31
				
		 	Section 5.04.	  	Registration Procedures	  	31
				
		 	Section 5.05.	  	Indemnification by the Company	  	35
				
		 	Section 5.06.	  	Indemnification by Participating Securityholders	  	35

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	  	 	  	Page
		 	Section 5.07.	  	Conduct of Indemnification Proceedings	  	36
				
		 	Section 5.08.	  	Contribution	  	37
				
		 	Section 5.09.	  	Participation in Public Offering	  	38
				
		 	Section 5.10.	  	Other Indemnification	  	38
				
		 	Section 5.11.	  	Cooperation by the Company	  	38
				
		 	Section 5.12.	  	No Transfer of Registration Rights	  	38
		
	ARTICLE 6 CERTAIN COVENANTS AND AGREEMENTS	  	38
				
		 	Section 6.01.	  	Confidentiality	  	38
				
		 	Section 6.02.	  	Information	  	40
				
		 	Section 6.03.	  	Reports	  	41
				
		 	Section 6.04.	  	Appointment of Securityholder Representative	  	41
		
	ARTICLE 7 MISCELLANEOUS	  	43
				
		 	Section 7.01.	  	Entire Agreement	  	43
				
		 	Section 7.02.	  	Binding Effect; Benefit	  	43
				
		 	Section 7.03.	  	Assignability	  	43
				
		 	Section 7.04.	  	Waiver; Amendment; Termination	  	43
				
		 	Section 7.05.	  	Notices	  	44
				
		 	Section 7.06.	  	Fees and Expenses	  	49
				
		 	Section 7.07.	  	Headings	  	49
				
		 	Section 7.08.	  	Counterparts	  	49
				
		 	Section 7.09.	  	Applicable Law	  	49
				
		 	Section 7.10.	  	Waiver of Jury Trial	  	50
				
		 	Section 7.11.	  	Specific Enforcement	  	50
				
		 	Section 7.12.	  	Consent to Jurisdiction	  	50
				
		 	Section 7.13.	  	Severability	  	50
				
		 	Section 7.14.	  	Recapitalization	  	50
				
		 	Section 7.15.	  	No Inconsistent Agreements	  	51

  

 -ii- 

 THIRD AMENDED AND RESTATED SECURITYHOLDERS’ AGREEMENT 
 THIS IS A THIRD AMENDED AND RESTATED SECURITYHOLDERS’ AGREEMENT dated as of
[                    ], 2008 among (i) MagnaChip Semiconductor Corporation, a Delaware corporation (the “Company”),
(ii) MagnaChip Semiconductor LLC, a Delaware limited liability company (“MSLLC”), (iii) CVC Capital Partners Asia Pacific L.P., a Cayman Islands limited partnership (“CVC Asia LP”), Asia Investors LLC, a
Delaware limited liability company (“Asia Investors”), CVC Capital Partners Asia Pacific II L.P., a Cayman Islands limited partnership (“CVC Asia II LP”) and CVC Capital Partners Asia Pacific II Parallel
Fund—A, L.P., a Cayman Islands limited partnership (“CVC Asia II Parallel LP” and, collectively with CVC Asia LP, Asia Investors and CVC Asia II LP, “CVC Asia Pacific Investors”), (iv) Citigroup Venture
Capital Equity Partners, L.P., a Delaware limited partnership (“CVC Equity Fund”), CVC Executive Fund LLC, a Delaware limited liability company (“CVC Executive Fund”), CVC/SSB Employee Fund, L.P., a Delaware limited
partnership (“CVC Employee Fund”), the persons named on Schedule I hereto (collectively, the “CVC Co-Investors” and, collectively with CVC Equity Fund, CVC Executive Fund and CVC Employee Fund, “CVC
US”), (v) Francisco Partners, L.P., a Delaware limited partnership (“FP LP”), Francisco Partners Fund A, L.P., a Delaware limited partnership (“FP Fund A”), FP Annual Fund Investors, LLC, a Delaware
limited liability company (“FP Annual Fund”) and FP-MagnaChip Co-Invest, LLC, a Delaware limited liability company (“FP Co-Invest” and, collectively, with FP LP, FP Fund A, FP Annual Fund and FP Co-Invest,
“FP”), (vi) Peninsula Investment Pte. Ltd., a Singapore private company (“Peninsula”), (vii) the persons named on Schedule II hereto (collectively, “Management Investors”) and
(viii) such persons that shall sign joinder agreements to this Agreement in accordance with the terms hereof. Each of CVC US and FP are sometimes referred to herein individually as an “Institutional Securityholder” and
collectively as the “Institutional Securityholders.” 
 WITNESSETH: 
 WHEREAS, MSLLC and certain parties hereto previously entered into a Second Amended and Restated Securityholders’ Agreement dated as of
October 6, 2004 (the “Original Agreement”) in connection with such parties’ ownership or acquisition of securities of MSLLC; 
 WHEREAS, concurrently herewith the Company is consummating its First Public Offering (as defined below); 
 WHEREAS, concurrently with the consummation of the First Public Offering, the holders of the limited liability company interests of MSLLC have exchanged such interests for Common Shares (as defined below) and holders of options, warrants or
other rights to acquire limited liability company interests of MSLLC have exchanged such options, warrants and other rights for options, warrants or other rights to acquire Common Shares and all of the limited liability company interests of MSLLC
will be owned by the Company; and 
 WHEREAS, the parties hereto desire to enter into this Agreement to amend and restate the Original
Agreement and supersede and replace the Original Agreement in its entirety and to enter into this Agreement to govern certain of their rights, duties and obligations with respect to the Company Securities (as defined below); 

 NOW, THEREFORE, in consideration of the covenants and agreements contained herein and for other good and
valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE 1

 DEFINITIONS 
 Section 1.01. Definitions. 
 (a) The following terms, as used herein, have the following meanings: 
 “Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common
control with such Person, provided that no securityholder of the Company shall be deemed an Affiliate of any other securityholder solely by reason of any investment in the Company. For the purpose of this definition, the term
“control” (including with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 
 “Aggregate Ownership” means, with respect to any holder or group of holders of Company Securities, and with respect to any class of
Company Securities, the total number of shares (or other unit of measurement into which such securities are designated) of such class of Company Securities “beneficially owned” (as such term is defined in Rule 13d-3 of the Exchange Act)
(without duplication) by such holder or group of holders as of the date of such calculation, calculated as if all shares issuable in respect of securities convertible into or exchangeable for such shares, have been issued and all options, warrants
and other rights to purchase or subscribe for shares of such class of Company Securities have been exercised (regardless of any vesting provisions contained therein). 
 “Board” means the board of directors of the Company. 
 “Business Day”
means any day except a Saturday, Sunday or other day on which commercial banks in New York City are authorized by law to close. 
 “Company Securities” means (i) the Common Shares, (ii) securities convertible into or exchangeable for Common Shares and (iii) options, warrants or other rights to acquire Common Shares or any other equity or
equity-linked security issued by the Company. 
  

 - 2 - 

 “Common Shares” means the Common Stock, par value $0.01 per share, of the Company and
any securities into which such Common Shares may hereafter be converted or changed. 
 “Core Shareholders” means CVC US
(other than the CVC Co-Investors), FP, the CVC Asia Pacific Investors, Peninsula and the Permitted Transferees of any Core Shareholder to whom such Core Shareholder transfers Company Securities after the date hereof. 
 “Dollars” or “$” means the lawful currency of the United States of America. 
 “Drag-Along Portion” means, with respect to any Other Securityholder and any series or class of Company Securities, (i) the
Aggregate Ownership of such series or class of Company Securities by such Other Securityholder multiplied by (ii) a fraction, the numerator of which is the number of units or shares of such series or class of Company Securities proposed to be
purchased by a Third Party in the applicable Compelled Sale under Section 4.02 and the denominator of which is the Fully-Diluted number of units or shares of such series or class of Company Securities. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “First Public Offering” means the Public Offering consummated on the date hereof. 
 “Five Percent Securityholder” means a Securityholder whose Aggregate Ownership of Common Shares, when aggregated with the Aggregate
Ownership of Common Shares of all of its Permitted Transferees, divided by the Aggregate Ownership of such Common Shares by all Securityholders, is 5% or more. 
 “Fully Diluted” means, with respect to any series or class of Company Securities, all outstanding shares of such series or class of Company Securities and all shares issuable in respect of securities
convertible into or exchangeable for such shares, all options, warrants and other rights to purchase or subscribe for shares of such series or class of Company Securities or securities convertible into or exchangeable for shares of such series or
class of Company Securities, provided that, to the extent any of the foregoing options, warrants or other rights to purchase or subscribe for such Company Securities are subject to vesting, the Company Securities subject to vesting shall be
included in the definition of “Fully Diluted” only upon and to the extent of such vesting. 
 “Hynix” means
Hynix Semiconductor Inc. 
 “Initial Ownership” means, with respect to any Securityholder and any series or class of Company
Securities, the Aggregate Ownership of such series or class by such Securityholder as of the date hereof, or, in the case of any Person who shall become a party to this Agreement on a later date, as of such later date, in each case taking into
account any stock split, stock dividend, reverse stock split or similar event. 
  

 - 3 - 

 “Organizational Documents” means the certificate of incorporation and bylaws of the
Company, as the same may be amended from time to time. 
 “Other Securityholders” means all Securityholders other than the
Institutional Securityholders. 
 “Permitted Transferee” means 
 (i) in the case of CVC Asia LP, CVC Asia II LP, CVC Asia II Parallel LP, Asia Investors and each of their respective Permitted
Transferees, each of (A) Asia Enterprise II Domestic LLC, Asia Enterprise II Offshore, L.P., Citigroup, Inc. or any of its Affiliates in their capacity as co-investors with such Persons and any other fund, co-investment partnership or similar
investment vehicle formed for the purpose of investing with CVC Asia LP, CVC Asia II Parallel LP or CVC Asia II LP (each a “CVC Asia Pacific Fund”), (B) any general or limited partner of any CVC Asia Pacific Fund or
co-investment partnership (each, a “CVC Asia Pacific Partner,” and, collectively, the “CVC Asia Pacific Partners”), and any corporation, partnership or other entity that is an Affiliate of any CVC Asia Pacific
Partner (collectively “CVC Asia Pacific Affiliates”), (C) any managing director, general partner, director, limited partner, officer or employee of any CVC Asia Pacific Fund, any CVC Asia Pacific Partner or any CVC Asia Pacific
Affiliate, or any spouse, lineal descendant, sibling, parent, heir, executor, administrator, testamentary trustee, legatee or beneficiary of any of the foregoing persons described in this clause (C) (collectively, “CVC Asia Pacific
Associates”) and (D) any trust, the beneficiaries of which, any charitable trust, the grantor of which, or any corporation, limited liability company or partnership, the stockholders, members or general or limited partners of which
include only one or more CVC Asia Pacific Funds, CVC Asia Pacific Partners, CVC Asia Pacific Affiliates, CVC Asia Pacific Associates, their spouses or their lineal descendants (the Persons described in clauses (A) through (D), the “CVC
Asia Pacific Permitted Transferees”); provided, that each of CVC Employee Fund, CVC Equity Fund and CVC Executive Fund shall not be a “Permitted Transferee” of any CVC Asia Pacific Investors; provided further that to
the extent a Person is a Permitted Transferee under both subparagraphs (i) and (ii) of this definition of “Permitted Transferee” such Person may transfer any Company Securities it receives as a Permitted Transferee pursuant to
this subparagraph (i) only to a CVC Asia Pacific Permitted Transferee and, for purposes of any provision of this Agreement pursuant to which the Company Securities of CVC Asia Pacific Investors and its Permitted Transferees are aggregated
hereunder, such Person shall be deemed a Permitted Transferee pursuant to this subparagraph (i) only to the extent of the Company Securities held by such Person as a Permitted Transferee pursuant to this subparagraph (i); 
  

 - 4 - 

 (ii) in the case of CVC Employee Fund, CVC Equity Fund, CVC Executive Fund, CVC
Co-Investors and each of their respective Permitted Transferees, (A) any CVC US fund or co-investment partnership or similar investment vehicle, (B) (1) any general or limited partner of any CVC US fund or co-investment partnership
(collectively, a “CVC US Partner”), and (2) Citigroup and any corporation, partnership or other entity that is an Affiliate of Citigroup or any CVC US Partner (collectively “CVC US Affiliates”), (C) any
CVC Co-Investor, Diana K. Mayer or any managing director, general partner, director, limited partner, officer or employee of any CVC US fund, any CVC US Partner or any CVC US Affiliate, or any spouse, lineal descendant, sibling, parent, heir,
executor, administrator, testamentary trustee, legatee or beneficiary of any of the foregoing persons described in this clause (C) (collectively, “CVC US Associates”), (D) any trust, the beneficiaries of which, any
charitable trust, the grantor of which, or any corporation, limited liability company or partnership, the stockholders, members or general or limited partners of which include only CVC US, CVC US Partners, CVC US Affiliates, CVC Associates, their
spouses or their lineal descendants (the Persons described in clauses (A) through (D), the “CVC US Permitted Transferees”); provided, that each of CVC Asia LP, CVC Asia II LP, CVC Asia II Parallel LP and Asia Investors
shall not be a “Permitted Transferee” of CVC US; provided further that to the extent a Person is a Permitted Transferee under both subparagraphs (i) and (ii) of this definition of “Permitted Transferee” such
Person may transfer any Company Securities it receives as a Permitted Transferee pursuant to this subparagraph (ii) only to a CVC US Permitted Transferee and, for purposes of any provision of this Agreement pursuant to which the Company
Securities of CVC US and its Permitted Transferees are aggregated hereunder, such Person shall be deemed a Permitted Transferee pursuant to this subparagraph (ii) only to the extent of the Company Securities held by such Person as a Permitted
Transferee pursuant to this subparagraph (ii); 
 (iii) in the case of FP LP, FP Fund A, FP Annual Fund, FP Co-Invest, and
each of their Permitted Transferees, (A) any FP fund or co-investment partnership or limited liability company, (B) (1) any general or limited partner of any FP fund or co-investment partnership (collectively, an “FP
Partner”), and (2) any corporation, partnership or other entity that is an Affiliate of any FP Partner (collectively “FP Affiliates”) or (3) any manager or member of any FP co-investment limited liability company
(collectively, “FP Member”), (C) any managing director, general partner, director, limited partner, officer or employee of any FP fund, any FP Partner, any FP Affiliate or any FP Member, or any spouse, lineal descendant,
sibling, parent, heir, executor, administrator, testamentary trustee, legatee or beneficiary of any of the foregoing persons described in this clause (C) (collectively, “FP Associates”), (D) any trust, the beneficiaries of
which, any charitable trust, the grantor of which, or any corporation, limited liability company or partnership, the stockholders, members or general or limited partners of which include only FP, FP Partners, FP Affiliates, FP Associates, FP
Members, their spouses or their lineal descendants; 
  

 - 5 - 

 (iv) in the case of Peninsula and its Permitted Transferees, any Affiliate of Peninsula;
provided, that the consent of both the CVC US Securityholder Representative and the FP Securityholder Representative, which consent shall not be unreasonably withheld shall be obtained prior to such Transfer; and 
 (v) in the case of any Other Securityholder (other than Peninsula) that is or becomes a party to this Agreement and its Permitted
Transferees, (A) a Person to whom Common Shares are Transferred from such Other Securityholder (1) by will or the laws of descent and distribution or (2) by gift without consideration of any kind, provided that, in the case of
clause (2), such transferee is (x) the spouse or the lineal descendant, sibling or parent of such Securityholder, or (y) if such Securityholder is a trust, or family corporation, limited liability company or partnership of the type
described in the following clause (B), a beneficiary of, or a stockholder, member or partner of, such Securityholder or (B) any trust, the beneficiaries of which, any charitable trust, the grantor of which, or any corporation, limited liability
company or partnership, the stockholders, members or general or limited partners of which include only such Other Securityholder or its Permitted Transferees. 
 “Person” means an individual, corporation, limited liability company, partnership, association, trust or other entity or organization, including a government or political subdivision or an agency or
instrumentality thereof. 
 “Public Offering” means a public offering of the Common Shares of the Company (or any successor
to the Company) pursuant to an effective registration statement under the Securities Act other than pursuant to a registration statement on Form S-4 or Form S-8 or any similar or successor form. 
 “Registrable Securities” means, at any time, any Common Shares and any securities issued or issuable in respect of such Common Shares by
way of conversion, exchange, dividend, split or combination, recapitalization, merger, consolidation, other reorganization or otherwise until, with respect to any such Common Shares or other Company Securities (i) a registration statement
covering such Common Shares has been declared effective by the SEC and such Common Shares have been disposed of pursuant to such effective registration statement, (ii) such Common Shares are sold under circumstances in which all of the
applicable conditions of Rule 144 (or any similar provisions then in force) under the Securities Act are met or (iii) such Common Shares are otherwise transferred, the Company has delivered a new certificate or other evidence of ownership for
such Common Shares not bearing the legend required pursuant to this Agreement and such Common Shares may be resold without subsequent registration under the Securities Act. 
  

 - 6 - 

 “Registration Expenses” means (i) all registration and filing fees, (ii) fees
and expenses of compliance with any securities or blue sky laws (including reasonable fees and disbursements of counsel in connection with blue sky qualifications of the securities registered), (iii) printing expenses, (iv) internal
expenses of the Company (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), (v) reasonable fees and disbursements of counsel for the Company and customary fees and
expenses for independent certified public accountants retained by the Company (including the expenses relating to any comfort letters or costs associated with the delivery by independent certified public accountants of a comfort letter or comfort
letters requested pursuant to Section 5.04(h) hereof), (vi) reasonable fees and expenses of any special experts retained by the Company in connection with such registration, (vii) reasonable fees and expenses of (A) one counsel
for all of the Securityholders participating in the offering selected (x) by the Institutional Securityholders, in the case of any offering in which such entities participate, or (y) in any other case, by the Securityholders holding the
majority of Company Securities to be sold for the account of all Securityholders in the offering and (B) such additional counsel as may be approved by the Institutional Securityholders to address any issues specific to a particular
Securityholder or group of Securityholders, (viii) fees and expenses in connection with any review of underwriting arrangements by the National Association of Securities Dealers, Inc. (the “NASD”) including fees and expenses of
any “qualified independent underwriter” and (ix) fees and disbursements of underwriters customarily paid by issuers or sellers of securities, but shall not include any underwriting fees, discounts or commissions attributable to the
sale of Registrable Securities, or any out-of-pocket expenses (except as set forth in clause (vii) above) of the Securityholders (or the agents who manage their accounts) or any fees and expenses of underwriter’s counsel. 
 “Rule 144” means Rule 144 under the Securities Act. 
 “SEC” means the United States Securities and Exchange Commission. 
 “Securities” means the Common Shares. 
 “Securities Act” means the United States Securities Act
of 1933, as amended. 
 “Securityholder” means each Person (other than the Company) who shall be a party to or bound by this
Agreement, whether in connection with the execution and delivery hereof as of the date hereof, pursuant to Sections 3.03 or 7.03 or otherwise, so long as such Person shall “beneficially own” (as such term is defined in Rule 13d-3 of the
Exchange Act) any Company Securities. 
 “Subsidiary” means, with respect to any Person, any entity of which securities or
other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person. 
 “Tag-Along Portion” means the product of (X) the Aggregate Ownership of Common Shares by the Tag-Along Seller or the Tagging
Person, as applicable, immediately prior to such 

  

 - 7 - 

 
Transfer and (Y) a fraction, the numerator of which is the maximum number of Common Shares that the buyer in the Tag-Along Sale is willing to purchase,
and the denominator of which is the Aggregate Ownership of Common Shares by the Tag-Along Seller and all Tagging Persons. 
 “Third
Party” means a prospective purchaser(s) of (i) Company Securities from a Securityholder or (ii) all or substantially all of the assets of the Company, in an arm’s-length transaction where such purchaser is not a Permitted
Transferee or other Affiliate of any Securityholder. 
 “Transfer” means, with respect to any Company Security,
(i) when used as a verb, to sell, assign, dispose of, exchange, pledge, encumber, hypothecate or otherwise transfer such security or any participation or interest therein, whether directly or indirectly, or agree or commit to do any of the
foregoing and (ii) when used as a noun, a direct or indirect sale, assignment, disposition, exchange, pledge, encumbrance, hypothecation or other transfer of such security or any participation or interest therein or any agreement or commitment
to do any of the foregoing. 
 (b) The term “Institutional Securityholder”, to the extent such entity shall have transferred any of
its Company Securities to any of its Permitted Transferees, shall mean the Institutional Securityholder and such Permitted Transferees, taken together. 
 (c) The term “Other Securityholders”, to the extent any such Other Securityholders shall have transferred any of their Company Securities to any of their Permitted Transferees, shall mean the Other
Securityholders and such Permitted Transferees, taken together. 
 (d) Each of the following terms is defined in the Section set forth
opposite such term: 
  

			
	 Term
	  	 Section

	 $
	  	1.01(a)
	 Additional Directors
	  	2.01
	 Affiliate
	  	1.01(a)
	 Aggregate Ownership
	  	1.01(a)
	 Applicable Holdback Period
	  	5.03
	 Asia Investors
	  	Preamble
	 Board
	  	1.01(a)
	 Business Day
	  	1.01(a)
	 Cause
	  	2.02
	 Common Shares
	  	1.01(a)
	 Company
	  	Preamble
	 Company Personnel
	  	3.05(e)
	 Company Securities
	  	1.01(a)
	 Compelled Sale
	  	4.02(a)
	 Compelled Sale Notice
	  	4.02(a)
	 Compelled Sale Notice Period
	  	4.02(a)
	 Compelled Sale Price
	  	4.02(a)

  

 - 8 - 

			
	 Confidential Information
	  	6.01(b)
	 control
	  	1.01(a)
	 controlled by
	  	1.01(a)
	 controlling
	  	1.01(a)
	 Core Directors
	  	2.01
	 Core Shareholders
	  	1.01(a)
	 CVC AP Designator
	  	2.01
	 CVC Asia II Limited
	  	6.04(a)
	 CVC Asia II LP
	  	Preamble
	 CVC Asia II Parallel LP
	  	Preamble
	 CVC Asia LP
	  	Preamble
	 CVC Asia Pacific Affiliates
	  	1.01(a)
	 CVC Asia Pacific Associates
	  	1.01(a)
	 CVC Asia Pacific Fund
	  	1.01(a)
	 CVC Asia Pacific Investors
	  	Preamble
	 CVC Asia Pacific Partner
	  	1.01(a)
	 CVC Asia Pacific Partners
	  	1.01(a)
	 CVC Asia Pacific Permitted Transferees
	  	1.01(a)
	 CVC Asia Pacific Securityholder Representative
	  	6.04(a)
	 CVC Co-Investors
	  	Preamble
	 CVC Core Directors
	  	2.01
	 CVC Employee Fund
	  	Preamble
	 CVC Equity Fund
	  	Preamble
	 CVC Executive Fund
	  	Preamble
	 CVC US
	  	Preamble
	 CVC US Affiliates
	  	1.01(a)
	 CVC US Associates
	  	1.01(a)
	 CVC US Designator
	  	2.01
	 CVC US Partner
	  	1.01(a)
	 CVC US Permitted Transferees
	  	1.01(a)
	 CVC US Securityholder Representative
	  	6.04(b)
	 Demand Registration
	  	5.01(a)
	 Dissolution Transferees
	  	3.03(b)
	 Dollars
	  	1.01(a)
	 Drag-Along Portion
	  	1.01(a)
	 Drag-Along Rights
	  	4.02(a)
	 Eligible Securityholder
	  	4.01(a)
	 Exchange Act
	  	1.01(a)
	 First Public Offering
	  	1.01(a)
	 Five Percent Securityholder
	  	1.01(a)
	 FP
	  	Preamble
	 FP Affiliates
	  	1.01(a)
	 FP Annual Fund
	  	Preamble
	 FP Associates
	  	1.01(a)

  

 - 9 - 

			
	 FP Co-Invest
	  	Preamble
	 FP Core Directors
	  	2.01
	 FP Designator
	  	2.01
	 FP Fund A
	  	Preamble
	 FP LP
	  	Preamble
	 FP Member
	  	1.01(a)
	 FP Partner
	  	1.01(a)
	 FP Securityholder Representative
	  	6.04(c)
	 Fully Diluted
	  	1.01(a)
	 Holders
	  	5.01(a)(ii)
	 Hynix
	  	1.01(a)
	 Incidental Registration
	  	5.02(a)
	 Indemnified Party
	  	5.07
	 Indemnifying Party
	  	5.07
	 Initial Ownership
	  	1.01(a)
	 Inspectors
	  	5.04(g)
	 Institutional Securityholder
	  	Preamble
	 Institutional Securityholders
	  	Preamble
	 Joinder
	  	3.03(a)
	 Management Investors
	  	Preamble
	 MSLLC
	  	Preamble
	 NASD
	  	1.01(a)
	 Non-Requesting Securityholder
	  	5.01(a)
	 Observer Right
	  	2.06
	 Organizational Documents
	  	1.01(a)
	 Original Agreement
	  	Recitals
	 Other Securityholders
	  	1.01(a)
	 Peninsula
	  	Preamble
	 Peninsula Securityholder Representative
	  	6.04(d)
	 Permitted Transferee
	  	1.01(a)
	 Person
	  	1.01(a)
	 Potential Conflict Matter
	  	2.06
	 Public Offering
	  	1.01(a)
	 Records
	  	5.04(g)
	 Registrable Securities
	  	1.01(a)
	 Registration Expenses
	  	1.01(a)
	 Replacement Nominee
	  	2.03(a)
	 Representatives
	  	6.01(b)
	 Requesting Securityholder
	  	5.01(a)
	 Rule 144
	  	1.01(a)
	 SEC
	  	1.01(a)
	 Securities
	  	1.01(a)
	 Securities Act
	  	1.01(a)
	 Securityholder
	  	1.01(a)
	 Shortform Registration
	  	5.01(a)

  

 - 10 - 

			
	 Subsidiary
	  	1.01(a)
	 Tag-Along Escrow Amount
	  	4.01(f)
	 Tag-Along Escrow Notice
	  	4.01(f)
	 Tag-Along Notice
	  	4.01(a)
	 Tag-Along Notice Period
	  	4.01(a)
	 Tag-Along Offer
	  	4.01(a)
	 Tag-Along Portion
	  	1.01(a)
	 Tag-Along Response Notice
	  	4.01(a)
	 Tag-Along Right
	  	4.01(a)
	 Tag-Along Sale
	  	4.01(a)
	 Tag-Along Seller
	  	4.01(a)
	 Tagging Person
	  	4.01(a)
	 Third Party
	  	1.01(a)
	 Transfer
	  	1.01(a)
	 under common control with
	  	1.01(a)

 ARTICLE 2 
 CORPORATE GOVERNANCE 
 Section 2.01. Composition of the Board. (a) The Core Shareholders
and the Company agree that the Company’s nominees for the Board shall consist of ten directors as follows: 
 (i) three
directors will be designated by either (A) CVC Equity Fund, at any time it holds Common Shares or (B) the CVC US Securityholder Representative, at any time when the CVC Equity Fund does not hold Common Shares (such designating party, the
“CVC US Designator”) (two such directors, as designated by the CVC US Designator, the “CVC Core Directors”), which such directors are currently: David F. Thomas (CVC Core Director), Paul C. Schorr IV (CVC Core
Director) and Jerry M. Baker; 
 (ii) three directors will be designated by either (A) FP LP, at any time it holds Common
Shares or (B) the FP Securityholder Representative, at any time when FP LP does not hold Common Shares (such designating party, the “FP Designator”) (two such directors, as designated by the FP Designator, the “FP Core
Directors” and, together with the CVC Core Directors, the “Core Directors”), which such directors are currently: Dipanjan Deb (FP Core Director), Phokion Potamianos (FP Core Director) and Armando Geday; 
 (iii) one director will be designated by either (A) CVC Asia II LP, at any time it holds any Common Shares or (B) the CVC Asia
Pacific Securityholder Representative, at any time when CVC Asia II LP does not hold Common Shares (such designating party, the “CVC AP Designator”), which such director is currently Roy Kuan; 
  

 - 11 - 

 (iv) one director will be the chief executive officer of the Company for so long as he or
she is employed by the Company, which officer is currently Sang Park; 
 (v) one director will be the chief financial officer
of the Company for so long as he or she is employed by the Company, which officer is currently Robert J. Krakauer; and 
 (vi)
the remaining director will be an independent director designated by unanimous approval of the CVC US Designator, the FP Designator and the chief executive officer of the Company at the time, which such director is currently R. Douglas Norby.

 If the number of directors that comprise the entire Board is increased in accordance with Section 2.05, the nominees for directors to be added to the
Board (the “Additional Directors”) must be “independent directors” within the meaning of the rules or regulations of the SEC and the principal securities exchange or quotation system on which the Common Shares are traded
or quoted (to the extent required to meet such applicable rules or regulations) and the nominees for directors to be Additional Directors must be designated by unanimous approval of the CVC US Designator, the FP Designator and the chief executive
officer of the Company at the time. 
 (b) Each Core Shareholder entitled to vote for the election of directors to the Board agrees that it
will vote its Company Securities or execute written consents, as the case may be, and take all other necessary action (including causing the Company to call a special meeting of Securityholders) in order to ensure that the composition of the Board
is as set forth in this Section 2.01 and that the nominees designated as set forth in this Section 2.01 are elected to the Board. 
 (c) The Core Shareholders and the Company agree that: The right of each of the CVC US Designator and the FP Designator to designate at least three directors of the Board pursuant to this Article 2 shall be reduced to the right to designate
only one director of the Board at such time as the Aggregate Ownership of Common Shares by CVC US and its Permitted Transferees (for purposes of determining the number of directors appointed by the CVC US Designator) or FP and its Permitted
Transferees (for purposes of determining the number of directors appointed by the FP Designator) divided by the ownership of Common Shares by all holders of outstanding Common Shares is less than 10% and the right to designate any director of the
Board pursuant to this Article 2 shall terminate at such time as the Aggregate Ownership of Common Shares by CVC US and its Permitted Transferees (for purposes of determining the number of directors appointed by the CVC US Designator) or FP and its
Permitted Transferees (for purposes of determining the number of directors appointed by the FP Designator), divided by the ownership of Common Shares by all holders of outstanding Common Shares is less than 5%. The right of the CVC AP Designator, to
designate one director of the Board shall terminate at such time as the Aggregate Ownership of Common Shares by the CVC Asia Pacific Investors and their Permitted Transferees, divided by the ownership of Common Shares by all holders of outstanding
Common Shares is less than 5%. The obligations imposed on the Core Shareholders to give effect to the rights to designate 

  

 - 12 - 

 
directors set forth in Section 2.01 shall terminate as to any Person when such Person’s right to designate a director is terminated. Upon the
termination of the rights of the CVC US Designator, the FP Designator and the CVC AP Designator to designate at least one director of the Board pursuant to this Section 2.01, Article 2 shall terminate in full. 
 (d) The Company agrees to cause each individual designated pursuant to Section 2.01(a) or 2.03 to be nominated to serve as a director on the Board,
and to take all other necessary actions (including calling a special meeting of the Board and/or securityholders) to ensure that the composition of the Board is as set forth in this Section 2.01 and each Securityholder receives the benefits to
which each such Securityholder is entitled under this Agreement. 
 Section 2.02. Removal. Each Core Shareholder agrees that if,
at any time, it is then entitled to vote for the removal of directors of the Company, it will not vote any of its Company Securities in favor of the removal of any director who shall have been designated or nominated in accordance with
Section 2.01 or Section 2.03, unless such removal shall be for Cause or the Person or Persons entitled to designate or nominate such director shall have consented to such removal in writing, provided that if the Person or Persons
entitled to designate or nominate any director pursuant to Section 2.01 shall request in writing the removal, with or without Cause, of such director, such Core Shareholder shall vote its Company Securities in favor of such removal. Removal for
“Cause” shall mean removal of a director because of such director’s (a) willful and continued failure substantially to perform his or her statutory or fiduciary duties to the Company in his or her established position,
(b) participation in a fraud, act of dishonesty or other misconduct that is injurious, monetarily or otherwise, to the Company or any of its Subsidiaries, (c) being charged with or pleading guilty to a felony or a crime involving fraud or
dishonesty, (d) violation of any state or federal law that has an adverse effect on the Company or (e) abuse of illegal drugs or other controlled substances or habitual intoxication. 
 Section 2.03. Vacancies. If, as a result of death, disability, retirement, resignation, removal (with or without Cause) or otherwise, there
shall exist or occur any vacancy on the Board, the Core Shareholders and the Company agree that: 
 (a) the Person or Persons entitled under
Section 2.01 to designate or nominate such director whose death, disability, retirement, resignation or removal (with or without Cause) resulted in such vacancy may, subject to the provisions of Section 2.01, designate another individual
(the “Replacement Nominee”) to fill such vacancy and serve as a director of the Company; and 
 (b) subject to
Section 2.01, each Core Shareholder then entitled to vote for the election of the Replacement Nominee as a director of the Company agrees that it will vote its Company Securities, or execute a proxy or written consent, as the case may be, in
order to ensure that the Replacement Nominee be elected to the Board. 
 Section 2.04. Meetings. The Core Shareholders and the
Company agree that the Board shall hold a regularly scheduled meeting at least once every calendar quarter. 
  

 - 13 - 

 Section 2.05. Action by the Board. The Core Shareholders and the Company agree that:

 (a) A quorum of the Board shall consist of a majority of the total number of directors, which such majority shall include a majority of
the designees of the CVC US Designator and a majority of the designees of the FP Designator; provided that in the event that either of the CVC US Designator or the FP Designator, has the right to designate fewer than three directors pursuant
to Section 2.01 hereof, a quorum shall exist if at least one Core Director designated by such Person is present. 
 (b) All actions of
the Board shall require (i) the affirmative vote of at least a majority of the directors present at a duly convened meeting of the Board at which a quorum is present or (ii) the unanimous written consent of the Board, provided that,
in the event that there is a vacancy on the Board and an individual has been nominated to fill such vacancy, the first order of business shall be to fill such vacancy. 
 (c) The Board may create executive, compensation, audit and such other committees as it may determine. Except with respect to the audit committee, the (i) Institutional Securityholders together shall be entitled
to majority representation on any committee created by the Board, half of which such majority representation shall consist of a Core Director or Directors designated by the CVC US Designator and half of which such majority representation shall
consist of a Core Director or Directors designated by the FP Designator, (ii) CVC Asia Pacific Investors or their Permitted Transferees shall be entitled to minority representation on each committee created by the Board, and (iii) Company
and each Core Shareholder entitled to vote for the election of the chairman of any committee (in its capacity as a Securityholder, director of the Board, member of a committee, or otherwise) created by the Board will take all necessary action to
ensure that the chairman of such committee is a director designated by the CVC US Designator or the FP Designator in accordance with Section 2.01, in each case until such time as the committee members designated by such Core Shareholders are
required to be removed as a result of the Company no longer qualifying as a “controlled company” (within the meaning of the principal securities exchange or quotation system on which the Common Shares are traded or quoted and solely in
connection with the ownership of Common Shares by the Core Shareholders). 
 (d) Until such time as the Company no longer qualifies as a
“controlled company” (within the meaning of the principal securities exchange or quotation system on which the Common Shares are traded or quoted and solely in connection with the ownership of Common Shares by the Core Shareholders), no
action by the Company (including but not limited to any action by the Board or any committee thereof) shall be taken after the date hereof with respect to any of the following matters without the affirmative approval of the Board and either the CVC
US Securityholder Representative or the FP Securityholder Representative, in each case, in its capacity as agent for Persons comprising CVC US and FP, in each case, in its capacity as a Securityholder; provided that the vote of a Core
Director designated by the CVC US Designator or the FP Designator in favor of any action for which approval is required pursuant to this Section 2.05(d) shall constitute the consent of the CVC US Securityholder Representative (in the case of a
vote of a director designated by the CVC US Designator) and the FP Securityholder 

  

 - 14 - 

 
Representative (in the case of a vote of a director designated by the FP Designator) in its capacity as agent for Persons comprising CVC US and FP, in each
case, in its capacity as a Securityholder: 
 (i) (1) any merger or consolidation of the Company with or into any Person,
other than a wholly owned Subsidiary, or of any Subsidiary with or into any Person other than the Company or any other wholly owned Subsidiary, or (2) any sale of the Company or any Subsidiary or any significant operations of the Company or any
Subsidiary or any joint venture transaction, acquisition or disposition of assets, business, operations or securities by the Company or any Subsidiary (in a single transaction or a series of related transactions) having a value in each case in this
clause (2) in excess of $3,000,000, 
 (ii) the declaration of any dividend on or the making of any distribution with
respect to, or the recapitalization, reclassification, redemption, repurchase or other acquisition of, any securities of the Company or any Subsidiary, except as expressly permitted by this Agreement, 
 (iii) any liquidation, dissolution, commencement of bankruptcy, liquidation or similar proceedings with respect to the Company or any
Subsidiary, 
 (iv) any incurrence, refinancing, alteration of material terms or prepayment by the Company or any Subsidiary
of indebtedness for borrowed money in excess of $2,000,000 in the aggregate (or the guaranty by the Company or any Subsidiary of any such indebtedness), or the issuance of any security by the Company or any Subsidiary (not including issuances of
such securities in connection with employee or stock option plans previously approved by the Board pursuant to clause (vii) below), in each case other than as specifically contemplated by this Agreement, 
 (v) any capital expenditure or capital lease in excess of $1,000,000 which is not specifically contemplated by the annual business plan of
the Company or any Subsidiary, 
 (vi) any entering into, amending or modifying in any material respect of any agreements of
the Company or any Subsidiary providing for payments by or to the Company or such Subsidiary in excess of $2,000,000 per annum or $5,000,000 in the aggregate, 
 (vii) any determination of compensation, benefits, perquisites and other incentives for (a) senior management or (b) any other
employee whose annual compensation is or will be as a result of such determination in excess of $100,000 per year, of the Company or its Subsidiaries and the approval or amendment of any plans or contracts in connection therewith, and any approval
or amendment to any equity or other compensation or benefit plans for employees of the Company or its Subsidiaries, 
  

 - 15 - 

 (viii) any appointment or dismissal of any of the Chairman of the Board, Chief Executive
Officer, President, Chief Financial Officer or Chief Operating Officer or any other executive officer in any similar capacity of the Company or any Subsidiary, 
 (ix) any change in accounting or tax principles, policies with respect to the financial statements, records or affairs of the Company or
any Subsidiary, except as required by generally accepted accounting principles or by law or any other matters that could affect any regulatory status or tax liability of the Company or any Subsidiary, or any Securityholder with respect to the
investment by such Securityholder in the Company, 
 (x) any appointment or removal of the auditors, regular legal counsel,
financial advisors, underwriters (except underwriters selected as provided in the first sentence of Section 5.04(f), unless such Demand Registration constitutes a First Public Offering), investment bankers or company-wide insurance providers of
the Company or any Subsidiary, 
 (xi) any amendment to this Agreement, any exercise or waiver of the Company’s rights
under this Agreement, any amendment to an Organizational Document or similar organizational documents of any Subsidiary, 
 (xii) any approval of the annual business plan, budget and long-term strategic plan of the Company or any Subsidiary, 
 (xiii) any modification of the long-term business strategy or scope of the business of the Company or any Subsidiary or any material customer relationships thereof, 
 (xiv) any increase or decrease to the number of directors that comprise the entire Board of the Company or board of directors of any
Subsidiary, 
 (xv) any entry into or modification of any contract with a labor union (including any collective bargaining
agreement), 
 (xvi) any entry into or modification of any contract with, obligation to or transaction or series of
transactions between (1) the Company or any Subsidiary and (2) Hynix or any controlled Affiliate of Hynix, or 
 (xvii) any contract with, obligation to or transaction or series of transactions between, the Company or any Subsidiary and one or more of its securityholders or their Affiliates. 
  

 - 16 - 

 Section 2.06. Observer Right. Each Core Shareholder shall have the right (an “Observer
Right”) to designate one representative to attend, at the Company’s expense (including reasonable travel expenses), all meetings of the Board and any committee thereof and, at reasonable times upon reasonable advance notice to the
Company, to consult with management of the Company and inspect the books and records of the Company, so long as such Core Shareholder shall own Common Shares and the Institutional Securityholders have determined in their discretion that such right
is necessary or advisable in order for such Core Shareholder to maintain its qualification as a venture capital operating company within the meaning of regulations promulgated by the United States Department of Labor. In addition, the Company will
provide to such Core Shareholder with an Observer Right copies of any materials or written information provided to directors of the Company at the times such materials or information are provided to directors of the Company, whether or not such Core
Shareholder’s representative attends such meetings. The Company will provide such Core Shareholder with an Observer Right with notice of all meetings of the Board on the same basis as notice is provided to directors on the Board.
Notwithstanding the foregoing (but subject to any right the Core Shareholder may have independent from this Section 2.06), (a) the Company shall not be obligated to provide any such materials or information to such Core Shareholders unless such
Core Shareholder shall have executed a confidentiality agreement in form and substance satisfactory to the Company; (b) the Company shall have the right to exclude such Core Shareholder’s representative from any meetings if (i) the
presence of such representative at such meeting would waive any attorney-client privilege or (ii) the matters to be discussed at such meeting include any transaction or potential transaction with such Core Shareholder, its Affiliates or the
terms of any agreements or contracts between the Company and the Core Shareholder or its Affiliates (a “Potential Conflict Matter”); and (c) the Company shall have the right to withhold from the Core Shareholder any such
materials or information provided to directors of the Company if (i) the providing of such materials or information would waive any attorney-client privilege or (ii) the matters addressed in such materials or information include a
Potential Conflict Matter. 
 Section 2.07. Conflicting Organizational Document Provisions. Each Core Shareholder shall vote its
Company Securities or execute proxies or written consents, as the case may be, and shall take all other actions necessary, to ensure that the Company’s Organizational Documents (i) facilitate, and do not at any time conflict with, any
provision of this Agreement and (ii) permit each Securityholder to receive the benefits to which each such Securityholder is entitled under this Agreement. 
 Section 2.08. Notice of Meeting. The Core Shareholders and the Company agree that each director designated by the Core Shareholders shall receive notice and the agenda of each annual and regularly
scheduled meeting of the Board or any committee thereof at least three days prior to such meeting and of each special meeting at least seventy-two (72) hours in advance of a special meeting to take place in person and at least forty-eight (48) hours
in advance of a special meeting to take place telephonically. 
 Section 2.09. Subsidiary Governance. The Company and each Core
Shareholder agrees that (i) the board of directors of each Subsidiary of the Company shall be comprised of those individuals selected by each director who is then serving on the Board in accordance with Section 2.01, with each director
entitled to select one director for each Subsidiary (it being understood that more than one director may select the same Subsidiary director) and (ii) the board of directors of any Subsidiary shall be subject to all the provisions of this
Article 2. Each Core Shareholder agrees to vote its Company Securities and to cause its representatives on the Board, subject to their fiduciary duties, to vote and take other appropriate action to effectuate the agreements in this Section 2.09
in respect of any Subsidiary of the Company. 
  

 - 17 - 

 ARTICLE 3 
 RESTRICTIONS ON TRANSFER 
 Section 3.01. General. (a) Each Securityholder understands and
agrees that its acquisition of the Company Securities have not been registered under the Securities Act and the Company Securities are restricted securities under the Securities Act and the rules and regulations promulgated thereunder. Each
Securityholder agrees that it will not Transfer any Company Securities (or solicit any offers in respect of any Transfer of any Company Securities), except in compliance with, or pursuant to, an applicable exemption from the Securities Act, any
applicable foreign or state securities or “blue sky” laws, and the terms and conditions of this Agreement. 
 (b) Any attempt to
Transfer any Company Securities not in compliance with this Agreement shall be null and void and the Company shall not, and shall cause any transfer agent not to, give any effect in the Company’s stock records to such attempted Transfer.

 Section 3.02. Legends. (a) In addition to any other legend that may be required, each certificate for Company Securities
that is issued to any Securityholder shall bear a legend in substantially the following form: 
 “THIS SECURITY HAS NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY FOREIGN OR STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD EXCEPT IN COMPLIANCE THEREWITH. THIS SECURITY IS ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER AS SET FORTH IN THE THIRD
AMENDED AND RESTATED SECURITYHOLDERS’ AGREEMENT DATED AS OF [                    ], 2008, COPIES OF WHICH MAY BE OBTAINED UPON REQUEST
FROM THE COMPANY OR ANY SUCCESSOR THERETO.” 
 (b) If any Company Securities shall cease to be Registrable Securities under clause
(i) or clause (ii) of the definition thereof, the Company, upon the written request of the holder thereof, shall issue to such holder a new certificate evidencing such shares without the first sentence of the legend required by
Section 3.02(a) endorsed thereon. If any Company Securities cease to be subject to any and all restrictions on Transfer set forth in this Agreement, the Company, upon the written request of the holder thereof, shall issue to such holder a new
certificate evidencing such Company Securities without the second sentence of the legend required by Section 3.02(a) endorsed thereon. 
 Section 3.03. Permitted Transferees. (a) Notwithstanding anything in this Agreement to the contrary, any Securityholder may at any time Transfer any or all of its Company Securities to one or more of its Permitted
Transferees without the consent of the Board or any other Securityholder or group of Securityholders and without compliance with Sections 3.04, 3.05, 4.01 and 4.02 (but, with respect to the Management Investors, in compliance with any additional
restrictions imposed on the transfer of such Company Securities under any other agreement with, 

  

 - 18 - 

 
or grant from, the Company and with respect to Peninsula and its Permitted Transferees, in compliance with the restrictions set forth in the definition of
“Permitted Transferee”) so long as (i) such Permitted Transferee shall have agreed in writing to be bound by the terms of this Agreement in the form of Exhibit A attached hereto (the “Joinder”) and
(ii) the Transfer to such Permitted Transferee is not in violation of applicable federal or state securities laws. 
 (b)
Notwithstanding anything in this Agreement to the contrary, any Securityholder which is formed as a limited partnership or similar pooled investment vehicle may at any time Transfer any or all of its Company Securities to its limited partners (or
other investors, as applicable) upon the dissolution or termination of such Securityholder (such Persons the “Dissolution Transferees”); provided (i) that such Dissolution Transferee shall have agreed in writing to be
bound by the terms of this Agreement in the form of the Joinder and (ii) the Transfer to such Dissolution Transferee is not violation of applicable federal or state securities laws; provided, further, that any Dissolution
Transferee shall not be considered a Permitted Transferee for purposes of any provision of this Agreement whereby the ownership of a Securityholder is determined by aggregating the ownership of such Company Securities by such Securityholder with the
Company Securities owned by his or its Permitted Transferees. 
 (c) If any Permitted Transferee of any Securityholder to which Company
Securities have been transferred ceases to be a Permitted Transferee of such Securityholder, such Permitted Transferee shall, and such Securityholder shall cause such Permitted Transferee to, transfer back to such Securityholder (or to another
Permitted Transferee of such Securityholder) any Company Securities it owns on or prior to the date that such Permitted Transferee ceases to be a Permitted Transferee of such Securityholder. 
 Section 3.04. Restrictions on Transfers by the Institutional Securityholders. Except as provided in Section 3.03, each Institutional
Securityholder may transfer its Company Securities only as follows: 
 (a) in a Transfer made in compliance with Section 4.02,

 (b) in a Transfer made in compliance with Section 4.01, 
 (c) in connection with the First Public Offering or in a Public Offering in connection with the exercise of its rights under Article 5 hereof, or

 (d) in a Transfer made at the conclusion of the Applicable Holdback Period following the First Public Offering, in compliance with Rule
144, provided, that for purposes of this Section 3.04(d) only, (i) the amount of Company Securities Transferred by an Institutional Securityholder shall be aggregated with the amount of Securities sold by its Permitted Transferees
during any relevant time period, whether or not such aggregation is required by subparagraph (e) of Rule 144 and (ii) any Transfers made in accordance with the provisions of subparagraph (k) of Rule 144 shall nonetheless be made in
accordance with the volume limitations set forth in subparagraph (e) of Rule 144, as modified by clause (i), as if such subparagraph as so modified were applicable thereto. 
  

 - 19 - 

 Section 3.05. Restrictions on Transfers by the Other Securityholders. Except as provided in
Section 3.03, each Other Securityholder may transfer its Company Securities only as follows: 
 (a) as a Tagging Person in a Transfer
made in compliance with Section 4.01, 
 (b) in a Transfer made in compliance with Section 4.02, 
 (c) in a Public Offering in connection with the exercise of its rights under Article 5 hereof, provided that no Other Securityholder shall be
permitted to Transfer any number of any class of Company Securities if such Transfer would cause such Other Securityholder to hold a smaller percentage of its Initial Ownership of such class immediately following such Transfer than the percentage of
the Institutional Securityholders’ Initial Ownership that the Institutional Securityholders own at the time of such Transfer, 
 (d) in
a Transfer made at the conclusion of the Applicable Holdback Period following the First Public Offering, in compliance with Rule 144, provided, that for purposes of this Section 3.05(d) only, (i) the amount of Company Securities
Transferred by an Other Securityholder shall be aggregated with the amount of Securities sold by its Permitted Transferees during any relevant time period, whether or not such aggregation is required by subparagraph (e) of Rule 144 and
(ii) any Transfers made in accordance with the provisions of subparagraph (k) of Rule 144 shall nonetheless be made in accordance with the volume limitations set forth in subparagraph (e) of Rule 144, as modified by clause (i), as if
such subparagraph as so modified were applicable thereto; provided further that no Other Securityholder shall be permitted to Transfer any number of shares or units of any class of Company Securities if such Transfer would cause such Other
Securityholder to hold a smaller percentage of its Initial Ownership of such class immediately following such Transfer than the percentage of the Institutional Securityholders’ Initial Ownership that the Institutional Securityholders own at the
time of such Transfer, 
 (e) in the case of any Company Personnel, in a Transfer approved by a majority of the members of the compensation
committee of the Board (where “Company Personnel” means current and former directors, officers, and employees of the Company or any of its Subsidiaries excluding Affiliates of the Core Shareholders), 
  

 - 20 - 

 or 
 (g) in a Transfer made with the prior written consent of the CVC US Securityholder Representative and the FP Securityholder Representative. 
 Section 3.06. Restrictions on Transfer under a Credit Agreement, Indenture or Other Agreement for Indebtedness. Notwithstanding the foregoing provisions of this Article 3, if a Transfer otherwise permitted
hereunder (other than a Compelled Sale) would trigger, under the terms of any outstanding credit agreement, indenture or any other agreement for indebtedness to which the Company is a party, (i) a change of control requiring repayment or
(ii) other adverse consequence to the Company, then such Transfer shall be prohibited without the approval of the Board. 
 ARTICLE 4

 TAG-ALONG RIGHTS; DRAG-ALONG RIGHTS 
 Section 4.01. Rights to Participate in Transfer. (a) Subject to Sections 3.04, 3.05, 3.06 and 4.01(h), if any Institutional Securityholder proposes to Transfer any number of any class or series of Company Securities other
than to its Permitted Transferees (any such sale shall be referred to herein as, the “Tag-Along Sale,” and any Securityholder proposing to Transfer Company Securities pursuant to a Tag-Along Sale shall be referred to herein as, the
“Tag-Along Seller”), each Securityholder other than the Tag-Along Seller (each, an “Eligible Securityholder”) may elect, at its option, to exercise its rights under this Section 4.01. 
 In the event of such a proposed Transfer, the Tag-Along Seller shall provide each Eligible Securityholder written notice of the terms and conditions of
such proposed transfer (“Tag-Along Notice”) and offer each Eligible Securityholder the opportunity to participate in such sale. The Tag-Along Notice shall identify the number and type of Company Securities subject to the offer
(“Tag-Along Offer”), the cash price at which the Transfer is proposed to be made, and all other material terms and conditions of the Tag-Along Offer, including the form of the proposed agreement, if any. 
 From the date of the receipt of the Tag-Along Notice, each Eligible Securityholder shall have the right (a “Tag-Along Right”),
exercisable by written notice (“Tag-Along Response Notice”) given to the Tag-Along Seller within 15 Business Days of such Eligible Securityholder’s receipt of the Tag-Along Notice (the “Tag-Along Notice
Period”), to request that the Tag-Along Seller include in the proposed Transfer (any such Securityholder so requesting, a “Tagging Person”) the number and type of Company Securities held by such Tagging Person as is
specified in such notice, provided that, if the aggregate number of Company Securities proposed to be sold by the Tag-Along Seller and all Tagging Persons in such transaction exceeds the number of that series or class of Company Securities
that can be sold on the terms and conditions set forth in the Tag-Along Notice, then the Tag-Along Seller and each Tagging Person shall be entitled to include in the Tag-Along Sale only its Tag-Along 

  

 - 21 - 

 
Portion of such series or class of Company Securities and such additional Company Securities as permitted by Section 4.01(d). Each Tagging Person that
exercises its Tag-Along Rights hereunder shall deliver to the Tag-Along Seller, together with its Tag-Along Response Notice, a limited power-of-attorney authorizing the Tag-Along Seller to Transfer such Company Securities on the terms set forth in
the Tag-Along Notice and, if the Company Securities are certificated, the certificate or certificates representing the Company Securities of such Tagging Person to be included in the Transfer. Any such securities so delivered shall be held in trust
by the Tag-Along Seller for the benefit of the Tagging Person and shall not be commingled with the assets of the Tag-Along Seller. Delivery of the limited power-of-attorney authorizing the Tag-Along Seller to Transfer such Company Securities and, if
the Company Securities are certificated, such certificate or certificates representing the Company Securities to be Transferred, shall constitute an irrevocable acceptance of the Tag-Along Offer by such Tagging Persons. Each Tag-Along Response
Notice shall include wire transfer instructions for payment of the purchase price for each class or series of Company Securities to be sold in such Tag-Along Sale. The Tagging Persons shall (a) be required (i) to bear their proportionate
share of any escrows, holdbacks or adjustments in purchase price and any transaction expenses and (ii) to make such customary representations, warranties and covenants and enter into such agreements as are customary for transactions of the
nature of the Tag-Along Offer, in each case on terms no less favorable to the Tagging Persons than those disclosed in the Tag-Along Notice and (b) benefit from all of the same provisions of the definitive agreements as the Tag-Along Seller, it
being understood that any liability of any Tagging Person for indemnification or similar post-closing obligations shall not exceed a proportional share of any such liability based on such Tagging Person’s share of the aggregate consideration in
the Tag-Along Sale. 
 If at the end of the 90-day period after delivery of the Tag-Along Notice (which 90-day period shall be extended if
any of the transactions contemplated by the Tag-Along Offer are subject to regulatory approval until the expiration of five Business Days after all such approvals have been received, but in no event later than 180 days following receipt of the
Tag-Along Response Notice by the Tag-Along Seller), the Tag-Along Seller has not completed the Transfer of all such Company Securities on substantially the same terms and conditions set forth in the Tag-Along Notice, the Tag-Along Seller shall
(i) return to each Tagging Person the limited power-of-attorney (and all copies thereof) together with all certificates representing the Company Securities that such Tagging Person delivered for Transfer pursuant to this Section 4.01(a)
and (ii) not conduct any Transfer of Company Securities without again complying with this Section. 
 (b) Concurrently with the
consummation of the Tag-Along Sale, the Tag-Along Seller shall notify the Tagging Persons thereof, shall remit to the Tagging Persons the total consideration (by wire transfer of immediately available funds or, if so requested by the Tagging Person,
bank or certified check) then payable for the Company Securities of the Tagging Persons transferred pursuant thereto, less such Tagging Person’s proportionate share of any escrows, holdbacks or adjustments in purchase price, and any transaction
expenses, and shall, promptly after the consummation of such Tag-Along Sale, furnish such other evidence of the completion and time of completion of such transfer and the terms thereof as may be reasonably requested by 

  

 - 22 - 

 
any Tagging Person. The Tag-Along Seller shall promptly remit to all Tagging Persons any additional consideration payable upon the release of any escrows or
holdbacks or the payment of any adjustments. 
 (c) If at the termination of the Tag-Along Notice Period any Eligible Securityholder shall
not have elected to participate in the Tag-Along Sale, such Eligible Securityholder will be deemed to have waived its rights under Section 4.01(a) with respect to the Transfer of its securities pursuant to such Tag-Along Sale. 
 (d) If any Tagging Person elects to exercise its Tag-Along Rights with respect to less than such Tagging Person’s Tag-Along Portion, the Tag-Along
Seller and each other Tagging Person shall be entitled to Transfer, pursuant to the Tag-Along Offer, a number of Company Securities held by it equal to its Tag-Along Portion of such Tagging Person’s Tag-Along Portion with respect to which
Tag-Along Rights were not exercised. 
 (e) The Tag-Along Seller may Transfer, on behalf of itself and any Tagging Person who exercises the
Tag-Along Rights pursuant to this Section 4.01(a), the Company Securities subject to the Tag-Along Offer and elected to be Transferred on the terms and conditions set forth in the Tag-Along Notice within 90 days after delivery of the Tag-Along
Notice (or such longer period as extended under Section 4.01(a)) of the date on which all Tag-Along Rights shall have been waived, exercised or expire provided that, if such Tag-Along Sale is subject to regulatory approval, such 90-day period
shall be extended until the expiration of five Business Days after all such approvals have been received, but in no event later than 180 days following receipt of the Tag-Along Response Notice by the Tag-Along Seller. 
 (f) Notwithstanding the requirements of this Section 4.01, a Tag-Along Seller may Transfer Company Securities at any time without complying with the
requirements of paragraphs (a) and (b) of Section 4.01 so long as such Transfer is solely for cash and the Tag-Along Seller deposits into escrow with an independent third party at the time of Transfer that amount of the consideration
received in the sale equal to the “Tag-Along Escrow Amount.” The “Tag-Along Escrow Amount” shall equal that amount of consideration that all the Eligible Securityholders would have been entitled to receive if each of the
Eligible Securityholders had the opportunity to participate in the Transfer as a Tagging Person to the extent of its Tag-Along Portion, determined as if each such Eligible Securityholder (i) delivered a Tag-Along Response Notice to the
Tag-Along Seller in the time period set forth in Section 4.01(a) and (ii) proposed to include all of its Company Securities which it would have been entitled to include in the Transfer. 
 No later than the date of the Transfer, the Tag-Along Seller shall notify the Company in writing of the proposed Transfer. Such notice (the
“Tag-Along Escrow Notice”) shall set forth the information required in the Tag-Along Notice, and in addition, such notice shall state the name of the escrow agent and the account number of the escrow account. The Company shall
promptly, and in any event within ten days of the date the Company delivered or caused to be delivered, the Tag-Along Escrow Notice, deliver or cause to be delivered the Tag-Along Escrow Notice to each Eligible Securityholder. 
  

 - 23 - 

 An Eligible Securityholder may exercise the tag-along right described in this clause (f) by delivery
to the Tag-Along Seller, within 15 days of the date the Company delivered or caused to be delivered the Tag-Along Escrow Notice, of (i) a written notice specifying the number of Company Securities it proposes to sell (which such number shall
not exceed such Eligible Securityholder’s Tag-Along Portion determined as provided in the first paragraph of this Section 4.01(f)), and (ii) the certificates representing such securities, with transfer powers duly endorsed in blank.

 Promptly after the expiration of the 15th day after the Company has delivered or caused to be delivered the Tag-Along Escrow Notice,
(i) the Tag-Along Seller shall purchase that number of Company Securities as the Tag-Along Seller would have been required to include in the sale had the Tag-Along Seller complied with the provisions of Section 4.01(a), (ii) the
Company shall cause to be released from the escrow to the Eligible Securityholder from whom the Tag-Along Seller purchases Company Securities pursuant to clause (i) of this paragraph the applicable amount of consideration due to such Eligible
Securityholder together with any interest thereon, and (iii) all remaining funds and other consideration held in escrow shall be released to the Tag-Along Seller. 
 (g) Notwithstanding anything contained in this Section 4.01, there shall be no liability on the part of the Tag-Along Seller to the Tagging Persons (other than the obligation to return any limited
powers-of-attorney (and all copies thereof) together with all certificates (if any) evidencing Company Securities, as the case may be, received by the Tag-Along Seller) if the Transfer of Company Securities pursuant to Section 4.01 is not
consummated for whatever reason. Whether to effect a Transfer of Company Securities pursuant to this Section 4.01 by the Tag-Along Seller is in the sole and absolute discretion of the Tag-Along Seller. 
 (h) The provisions of this Section 4.01 shall not apply to any proposed Transfer of any class of Company Securities by the Tag-Along Seller
(A) in a Public Offering or pursuant to Rule 144 or (B) pursuant to Section 4.02. 
 (i) With regard to each class and series
of Company Securities, this Section 4.01 shall terminate as to each class and series of Company Securities immediately following the date on which the Aggregate Ownership of the Institutional Securityholders falls below 35% of the aggregate
Initial Ownership of such Institutional Securityholders for such class or series of Company Securities; provided, that any transactions or series of transactions that would cause any Institutional Securityholder to hold less than 35% of its
Initial Ownership for such class or series of Company Securities shall be subject to this Section 4.01. 
 Section 4.02. Right
to Compel Participation in Certain Transfers. (a) If the Institutional Securityholders together propose (i) to Transfer not less than 50% of each of their respective Initial Ownership of any class or series of Company Securities to a
Third Party in a bona fide sale or (ii) a Transfer in which the Company Securities to be Transferred by the Institutional Securityholders, plus the Company Securities to be Transferred by the Other Securityholders pursuant to this
Section 4.02(a), constitute more than 50% of the outstanding Company Securities in a particular class or series to a Third Party pursuant to a bona fide sale, or 

  

 - 24 - 

 
(iii) a sale of all or substantially all of the assets of the Company to a Third Party pursuant to a bona fide sale (any of (i), (ii) or (iii), a
“Compelled Sale”), the Institutional Securityholders together may at their option require all Other Securityholders to vote all securities of the Company then held by such Other Securityholders in favor of such Compelled Sale and to
Transfer the Drag-Along Portion of such class or series of Company Securities (“Drag-Along Rights”) then held by every Other Securityholder, and in the case of a Compelled Sale involving Common Shares (but subject to and at the
closing of the Compelled Sale) to exercise such number of options or warrants for Common Shares held by every Other Securityholder as is required in order that a sufficient number of Common Shares are available to Transfer the relevant Drag-Along
Portion of each such Other Securityholder, for the same consideration per unit of the relevant class of Company Security and otherwise on the same terms and conditions as the Institutional Securityholders, provided that any Other Securityholder who
holds options or warrants the exercise price per share of which is greater than the per share price at which the Common Shares are to be Transferred to the Third Party may, if required by the Institutional Securityholders to exercise such options or
warrants, in place of such exercise, submit to irrevocable cancellation thereof without any liability for payment of any exercise price with respect thereto. If the Compelled Sale is not consummated with respect to any Common Shares acquired upon
exercise of such options or warrants, or the Compelled Sale is not consummated, such options or warrants shall be deemed not to have been exercised or canceled, as applicable. The CVC US Securityholder Representative and the FP Securityholder
Representative, on behalf of the Institutional Securityholders, shall provide written notice of such Compelled Sale to the Other Securityholders (a “Compelled Sale Notice”) not later than the 15th day prior to the proposed Compelled
Sale. The Compelled Sale Notice shall identify the transferee, in the case of a Compelled Sale pursuant to clauses (i) or (ii) of this Section 4.02(a), the number of Company Securities subject to the Compelled Sale, the consideration
for which either a Transfer or a sale of all or substantially all of the assets of the Company, as appropriate, is proposed to be made (the “Compelled Sale Price”) and all other material terms and conditions of the Compelled Sale.
The number of Company Securities to be sold by each Other Securityholder will be the Drag-Along Portion of the class of Company Securities that such Other Securityholder owns. Each Other Securityholder shall be required to participate in the
Compelled Sale on the terms and conditions set forth in the Compelled Sale Notice and to tender all its Company Securities as set forth below. The price payable in such Transfer shall be the Compelled Sale Price. Not later than the tenth day
following the date of the Compelled Sale Notice (the “Compelled Sale Notice Period”), each of the Other Securityholders shall deliver to a representative of the Institutional Securityholders designated in the Compelled Sale Notice
certificates (to the extent the Company Securities are certificated), and in the case of options or warrants, the applicable instrument, representing all Company Securities comprising the Drag-Along Portion held by such Other Securityholder, duly
endorsed, together with all other documents required to be executed in connection with such Compelled Sale or, if such delivery is not permitted by applicable law, an unconditional agreement to deliver such Company Securities pursuant to this
Section 4.02(a) at the closing for such Compelled Sale against delivery to such Other Securityholder of the consideration therefor. If an Other Securityholder should fail to deliver such certificates to the Institutional Securityholders, the
Company (subject to reversal under Section 4.02(b)) shall cause the books and records of the Company to show that 
  

 - 25 - 

 
such Company Securities are bound by the provisions of this Section 4.02(a) and that such Company Securities shall be Transferred to the Third Party
immediately upon surrender for Transfer by the holder thereof. The Other Securityholders shall (a) be required (i) to bear their proportionate share of any escrows, holdbacks or adjustments in purchase price and any transaction expenses,
(ii) to make such representations, warranties and covenants and enter into such agreements as are customary for transactions of the nature of the Compelled Sale, in each case under the terms of any definitive agreements relating to such
Compelled Sale, (b) benefit from all of the same provisions of the definitive agreements as the Institutional Securityholders, (c) with respect to each class of Company Securities to be Transferred in such Compelled Sale, have the right to
receive the same form of consideration and same amount of consideration as each other holder of such class, and (d) if any holders of a class of Company Securities are given an option as to the form and amount of consideration received, each
holder of such class of Company Securities shall be given the same option, it being understood that any liability of any Other Securityholder for indemnification or similar post-closing obligations shall not exceed the consideration such Other
Securityholder receives in the Compelled Sale and shall be a proportional share of any such liability based on such Other Securityholder’s share of the aggregate consideration in the Compelled Sale. 
 (b) The Institutional Securityholders shall have a period of 90 days from the date of receipt of the Compelled Sale Notice to consummate the Compelled
Sale on the terms and conditions set forth in such Compelled Sale Notice, provided that, if such Compelled Sale is subject to regulatory approval, such 90-day period shall be extended until the expiration of five Business Days after all such
approvals have been received, but in no event later than 180 days following the receipt of the Compelled Sale Notice by the Other Securityholders. If the Compelled Sale shall not have been consummated during such period, the Institutional
Securityholders shall return to each of the Other Securityholders all certificates or other applicable instruments representing Company Securities that such Other Securityholders delivered for Transfer pursuant hereto, together with any documents in
the possession of the Institutional Securityholders executed by the Other Securityholders in connection with such proposed Transfer, and all the restrictions on Transfer contained in this Agreement or otherwise applicable at such time with respect
to such Company Securities owned by the Other Securityholders shall again be in effect. 
 (c) Concurrently with the consummation of the
Transfer of Company Securities pursuant to this Section 4.02, the CVC US Securityholder Representative and the FP Securityholder Representative, on behalf of the Institutional Securityholders, shall give notice thereof to the Other
Securityholders, shall remit to each of the Other Securityholders who have surrendered their certificates or other applicable instruments the total consideration (the cash portion of which is to be paid by wire transfer of immediately available
funds, or if requested by the Other Securityholders, bank or certified check) for the Company Securities Transferred pursuant hereto, less such Other Securityholder’s proportionate share of any escrows, holdbacks or adjustments in purchase
price, and any transaction expenses and shall furnish such other evidence of the completion and time of completion of such Transfer and the terms thereof as may be reasonably requested by such Other Securityholders. The Institutional Securityholders
shall promptly remit any additional consideration payable upon the release of any escrows or holdbacks or the payment of any adjustments. 
  

 - 26 - 

 (d) Notwithstanding anything contained in this Section 4.02, there shall be no liability on the part
of the Institutional Securityholders to the Other Securityholders (other than the obligation to return any certificates or other applicable instruments representing Company Securities received by the Institutional Securityholders) if the Transfer of
Company Securities pursuant to this Section 4.02 is not consummated for whatever reason, regardless of whether the Institutional Securityholders have delivered a Compelled Sale Notice. Whether to effect a Transfer of Company Securities pursuant
to this Section 4.02 by the Institutional Securityholders is in the sole and absolute discretion of the Institutional Securityholders. 
 (e) This Section 4.02 shall terminate upon the third anniversary of the date hereof. 
 ARTICLE 5 
 REGISTRATION RIGHTS 
 Section 5.01.
Demand Registration. (a) If, at any time after the conclusion of the Applicable Holdback Period with respect to the First Public Offering, the Company shall receive a written request from (1) both the CVC US Securityholder
Representative (on behalf of one or more of the entities comprising CVC US or their Permitted Transferees) and the FP Securityholder Representative (on behalf of one or more of the entities comprising FP or their Permitted Transferees) or
(2) after the first anniversary of the date hereof, (A) either the CVC US Securityholder Representative (on behalf of one or more of the entities comprising CVC US or their Permitted Transferees) or the FP Securityholder Representative (on
behalf of one or more of the entities comprising FP or their Permitted Transferees) or (B) the CVC Asia Pacific Securityholder Representative (on behalf of one or more of the CVC Asia Pacific Investors or their Permitted Transferees) (either of
the foregoing, a “Demand Registration”) that the Company effect the registration under the Securities Act of all or a portion of such Requesting Securityholder’s Registrable Securities, and specifying the intended method of
disposition thereof, then the Company shall promptly give written notice of such requested registration at least 15 days prior to the anticipated filing date of the registration statement relating to such Demand Registration to each Non-Requesting
Securityholder. Upon the Company’s giving notice of a requested registration, the Company will use its best efforts to effect, as expeditiously as possible, the registration under the Securities Act of: 
 (i) the Registrable Securities that the Company has been so requested to register by the Requesting Securityholders and, if they are not
Requesting Securityholders, any Institutional Securityholder, CVC Asia Pacific Investors, Peninsula, and each of their respective Permitted Transferees participating in such registration, then held by the Requesting Securityholders and such
participating Institutional Securityholder, and 
  

 - 27 - 

 (ii) subject to the restrictions set forth in Section 5.02, all other Registrable
Securities of the same class or series as that requested to be registered by the Requesting Securityholders that are held by a Securityholder not covered by Section 5.01(a)(i) entitled to request the Company to effect an Incidental Registration
pursuant to Section 5.02 (all such Securityholders, together with the Requesting Securityholders, the “Holders”) have requested the Company to register by written request received by the Company within 15 days after the receipt
by such Holders of such written notice given by the Company, 
 all to the extent necessary to permit the disposition (in accordance with the
intended methods thereof as aforesaid) of the Registrable Securities so to be registered, provided that the Company shall not be obligated to effect a Demand Registration unless the gross aggregate proceeds expected to be received from the
sale of the Common Shares requested to be included in such Demand Registration equal or exceed $25,000,000 or, in the case of a Shortform Registration, $5,000,000. In no event will the Company be required to effect more than one Demand Registration
hereunder within any four-month period and the CVC Asia Pacific Securityholder Representative shall not be entitled to make more than two requests for Demand Registrations. 
 “Requesting Securityholder” means the Securityholder or Securityholders exercising such Demand or on whose behalf such Demand is being
exercised. “Non-Requesting Securityholder” means each Securityholder with respect to a Demand Registration that is not a Requesting Securityholder. 
 “Shortform Registration” means a registration with the SEC on Form S-3 or any successor form then in effect. 
 (b) Promptly after the expiration of the 15-day period referred to in Section 5.01(a)(ii) hereof, the Company will notify all the Holders to be included in the Demand Registration of the other Holders and the
number of shares of Registrable Securities requested to be included therein. At any time prior to the effective date of the registration statement relating to such registration, the Requesting Securityholder(s) may revoke such request, without
liability to any of the other Holders, by providing a written notice from the party authorized to initiate the Demand Registration on behalf of such Requesting Securityholder(s) pursuant to Section 5.01(a) to the Company revoking such request.
A request, so revoked, shall be considered to be a Demand Registration unless (i) such revocation arose out of the fault of the Company (in which case the Company shall be obligated to pay all Registration Expenses in connection with such
revoked request), or (ii) the Requesting Securityholders reimburse the Company for all Registration Expenses of such revoked request. 
 (c) The Company will be liable for and pay all Registration Expenses in connection with any Demand Registration, regardless of whether it is effected, except as provided in (b)(ii) above. 
  

 - 28 - 

 (d) A Demand Registration shall not be deemed to have occurred: 
 (i) unless the registration statement relating thereto (A) has become effective under the Securities Act and (B) has remained
effective for a period of at least 120 days (or such shorter period in which all Registrable Securities of the Holders included in such registration have actually been sold thereunder), provided that such registration statement shall not be
considered a Demand Registration if, after any registration statement requested pursuant to this Section 5.01 becomes effective, (x) such registration statement is interfered with by any stop order, injunction or other order or requirement
of the SEC or other governmental agency or court and (y) less than 75% of the Registrable Securities included in such registration statement have been sold thereunder, or 
 (ii) if the Maximum Offering Size (as defined below) is reduced in accordance with Section 5.01(e) such that less than 75% of the
Registrable Securities of the Requesting Securityholders sought to be included in such registration are included. 
 (e) If a Demand
Registration involves an underwritten Public Offering and the managing underwriter shall advise the Company and the Requesting Securityholders that, in its view, the number of shares of Registrable Securities requested to be included in such
registration (including any securities that the Company proposes to be included that are not Registrable Securities) exceeds the largest number of shares that can be sold without having an adverse effect on such offering, including the price at
which such shares can be sold (the “Maximum Offering Size”), the Company will include in such registration, in the priority listed below, up to the Maximum Offering Size: 
 (A) first, all Registrable Securities requested to be registered by the Requesting Securityholders and, if they are not Requesting
Securityholders, the Institutional Securityholders, the CVC Asia Pacific Investors, Peninsula, and each of their respective Permitted Transferees (allocated, if necessary for the offering not to exceed the Maximum Offering Size, pro rata among such
entities on the basis of the relative number of shares of Registrable Securities so requested to be registered), and 
 (B)
second, any securities proposed to be registered for the account of any other Persons (including the Company), with such priorities among them as the Company shall determine. 
 (f) Upon written notice to each Requesting Securityholder, the Company may postpone effecting a registration pursuant to this Section 5.01 on one
occasion during any period of 12 consecutive months for a reasonable time specified in the notice but not exceeding 90 days (which period may not be extended or renewed), if (1) an investment banking firm of recognized national standing shall
advise the Company and the Requesting Securityholders in writing that 

  

 - 29 - 

 
effecting the registration would materially and adversely effect an offering of securities of such Company the preparation of which had then been commenced,
(2) the Company is in possession of material non-public information the disclosure of which during the period specified in such notice the Company believes would not be in the best interests of the Company or (3) when the Requesting
Securityholder is the CVC Asia Pacific Securityholder Representative, the Board determines that effecting such Demand Request would be inadvisable due to a pending or contemplated issuance of debt or equity securities by the Company;
provided, that the Company may not defer a Demand Registration pursuant to clause (3) of Section 5.01(f) more than one time. 
 Section 5.02. Incidental Registration. (a) If, at any time after the First Public Offering, the Company proposes to register any Company Securities under the Securities Act (other than a registration on Form S-8 or S-4, or
any successor or similar forms, relating to Common Shares issuable upon exercise of employee stock options or in connection with any employee benefit or similar plan of the Company or in connection with a direct or indirect acquisition by the
Company of another Person), whether or not for sale for its own account, it will each such time, subject to the provisions of Section 5.02(b), give prompt written notice at least 15 days prior to the anticipated effective date of the
registration statement relating to such registration to each Securityholder, which notice shall set forth such Securityholder’s rights under this Section 5.02 and shall offer such Securityholder the opportunity to include in such
registration statement the number of Registrable Securities of the same class or series as those proposed to be registered as each such Securityholder may request (an “Incidental Registration”), subject to the provisions of 5.02(b).
Upon the written request of any such Securityholder made within five days after the receipt of notice from the Company (which request shall specify the number of Registrable Securities intended to be disposed of by such Securityholder), the Company
will use all reasonable efforts (subject to Section 5.02(b)) to effect the registration under the Securities Act of all Registrable Securities that the Company has been so requested to register by all such Securityholders, to the extent
required to permit the disposition of the Registrable Securities so to be registered, provided that (i) if such registration involves an underwritten Public Offering, all such Securityholders requesting to be included in the Company’s
registration must sell their Registrable Securities to the underwriters selected as provided in Section 5.04(f) on the same economic terms and conditions as apply to the Company or the Requesting Securityholder, as applicable, and (ii) if,
at any time after giving written notice pursuant to this Section 5.02(a) of its intention to register any securities for its own account but not in connection with any Demand Registration (except as set forth in Section 5.01) and prior to
the effective date of the registration statement filed in connection with such registration, the Company shall determine for any reason not to register such securities, the Company shall give written notice to all such Securityholders and,
thereupon, shall be relieved of its obligation to register any Registrable Securities in connection with such registration. No registration effected under this Section 5.02 shall relieve the Company of its obligations to effect a Demand
Registration to the extent required by Section 5.01. The Company shall pay all Registration Expenses in connection with each registration of Registrable Securities requested pursuant to this Section 5.02. 
  

 - 30 - 

 (b) If a registration pursuant to this Section 5.02 involves an underwritten Public Offering (other
than any Demand Registration, in which case the provisions with respect to priority of inclusion in such offering set forth in Section 5.01(e) shall apply) and the managing underwriter advises the Company that, in its view, the number of
Registrable Securities that the Company and such Securityholders intend to include in such registration exceeds the Maximum Offering Size, the Company will include in such registration, in the following priority, up to the Maximum Offering Size:

 (i) first, so much of the securities proposed to be registered for the account of the Company as would not cause the
offering to exceed the Maximum Offering Size, 
 (ii) second, all Registrable Securities requested to be included in such
registration by the Institutional Securityholders, CVC Asia Pacific Investors, Peninsula, and each of their Permitted Transferees (allocated, if necessary for the offering not to exceed the Maximum Offering Size, pro rata among such entities or
persons on the basis of the relative number of shares of Registrable Securities so requested to be included in such registration), 
 (iii) third, any securities proposed to be registered for the account of any other Persons with such priorities among them as the Company shall determine. 
 Section 5.03. Holdback Agreement. If any registration of Registrable Securities shall be in connection with a Public Offering (and, in the case of any Public Offering commencing after the First Public
Offering, the lead managing underwriter shall so request), each Securityholder and the Company agree not to effect any public sale or distribution, including any sale pursuant to Rule 144 or Rule 144A under the Securities Act, or any successor
provisions, of any Registrable Securities, and not to effect any such public sale or distribution of any other security of the Company or of any stock convertible into or exchangeable or exercisable for any Common Shares (in each case, other than as
part of such Public Offering) during the 14 days prior to the effective date of the applicable registration statement (except as part of such registration) or during the period after such effective date equal to the lesser of (i) such period of
time as the Company and the lead managing underwriter shall agree, which period of time shall be the holdback period applicable to all Securityholders, and (ii) 180 days (such lesser period, the “Applicable Holdback Period”).

 Section 5.04. Registration Procedures. Whenever Securityholders request that any Registrable Securities be registered pursuant
to Section 5.01 or 5.02 hereof, subject to the provisions of such Sections, the Company will use its best efforts to effect the registration and the sale of such Registrable Securities in accordance with the intended method of disposition
thereof as quickly as practicable, and in connection with any such request: 
 (a) The Company will as expeditiously as possible prepare and
file with the SEC a registration statement on any form reasonably acceptable to the Requesting Securityholders for 

  

 - 31 - 

 
which the Company then qualifies or that counsel for the Company shall deem appropriate and which form shall be available for the sale of the Registrable
Securities to be registered thereunder in accordance with the intended method of distribution thereof, and use its best efforts to cause such filed registration statement to become and remain effective for a period of not less than 180 days, or in
the case of a shelf registration statement, one year (or such shorter period in which all of the Registrable Securities of the Holders included in such registration statement shall have actually been sold thereunder). 
 (b) Prior to filing a registration statement or prospectus or any amendment or supplement thereto, the Company will, if requested, furnish to each
participating Securityholder and each underwriter, if any, of the Registrable Securities covered by such registration statement copies of such registration statement as proposed to be filed, and thereafter the Company will furnish to such
Securityholder and underwriter, if any, such number of copies of such registration statement, each amendment and supplement thereto (in each case including all exhibits thereto and documents incorporated by reference therein), the prospectus
included in such registration statement (including each preliminary prospectus and any summary prospectus) and any other prospectus filed under Rule 424 or Rule 430A under the Securities Act and such other documents as such Securityholder or
underwriter may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such Securityholder. Each of the CVC US Securityholder Representative, the FP Securityholder Representative and the CVC Asia Pacific
Securityholder Representative shall have the right to request that the Company modify any information contained in such registration statement, amendment and supplement thereto pertaining to such Institutional Securityholder or any of the CVC Asia
Pacific Investors or their Permitted Transferees, as the case may be, and the Company shall use all reasonable efforts to comply with such request, provided, however, that the Company shall not have any obligation so to modify any information if so
doing would cause the prospectus to contain an 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. 
 (c) After the filing of the registration statement, the Company will (i) cause the related prospectus to be supplemented by any required prospectus
supplement, and, as so supplemented, to be filed pursuant to Rule 424 under the Securities Act, (ii) to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such registration
statement during the applicable period in accordance with the intended methods of disposition by the sellers thereof set forth in such registration statement or supplement to such prospectus and (iii) promptly notify each Securityholder holding
Registrable Securities covered by such registration statement of any stop order issued or threatened by the SEC or any state securities commission under state blue sky laws and take all reasonable actions required to prevent the entry of such stop
order or to remove it if entered. 
 (d) The Company will use all reasonable efforts to (i) register or qualify the Registrable
Securities covered by such registration statement under such other securities or blue sky laws of such jurisdictions in the United States as any Securityholder holding such Registrable Securities reasonably (in light of such Securityholder’s
intended plan of distribution) 

  

 - 32 - 

 
requests and (ii) cause such Registrable Securities to be registered with or approved by such other governmental agencies or authorities as may be
necessary by virtue of the business and operations of the Company and do any and all other acts and things that may be reasonably necessary or advisable to enable such Securityholder to consummate the disposition of the Registrable Securities owned
by such Securityholder, provided that the Company will not be required to (A) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this paragraph (d), (B) subject itself to
taxation in any such jurisdiction or (C) consent to general service of process in any such jurisdiction. 
 (e) The Company will
immediately notify each Securityholder holding such Registrable Securities covered by such registration statement, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the occurrence of an event
requiring the preparation of a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus will not contain an 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 promptly prepare and make available to each such Securityholder and file with the SEC any such supplement or amendment. 
 (f) (i) (A) The CVC US Securityholder Representative and the FP Securityholder Representative, together, in the case of a Demand Registration made
pursuant to clause (1) of Section 5.01(a), or (B) either the CVC US Securityholder Representative, the FP Securityholder Representative or CVC Asia Pacific Securityholder Representative, in the case of a Demand Registration made
pursuant to clause (2) of Section 5.01(a) by such Institutional Securityholder or the CVC Asia Pacific Securityholder Representative, as applicable, will have the right, in their sole discretion, to select an underwriter or underwriters in
connection with any Public Offering resulting from the exercise of a Demand Registration by such Securityholders, which underwriter or underwriters may include any Affiliate of any Institutional Securityholder, and (ii) the Company will select
an underwriter or underwriters in connection with any other Public Offering. In connection with any Public Offering, the Company will enter into customary agreements (including an underwriting agreement in customary form) and take such other actions
as are reasonably required in order to expedite or facilitate the disposition of such Registrable Securities in any such Public Offering, including the engagement of a “qualified independent underwriter” in connection with the
qualification of the underwriting arrangements with the NASD. 
 (g) Upon execution of confidentiality agreements in form and substance
reasonably satisfactory to the Company, the Company will make available for inspection by any Securityholder and any underwriter participating in any disposition pursuant to a registration statement being filed by the Company pursuant to this
Section 5.04 and any attorney, accountant or other professional retained by any such Securityholder or underwriter (collectively, the “Inspectors”), all financial and other records, pertinent corporate documents and properties
of the Company (collectively, the “Records”) as shall be reasonably necessary or desirable to enable them to exercise their due diligence responsibility, and cause the Company’s officers, directors and employees to supply all
information reasonably requested by any Inspectors in 

  

 - 33 - 

 
connection with such registration statement. Records that the Company determines, in good faith, to be confidential and that it notifies the Inspectors are
confidential shall not be disclosed by the Inspectors unless (i) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in such registration statement or (ii) the release of such Records is ordered
pursuant to a subpoena or other order from a court of competent jurisdiction. Each Securityholder agrees that information obtained by it as a result of such inspections shall be deemed confidential and shall not be used by it or its Affiliates as
the basis for any market transactions in the Company Securities unless and until such is made generally available to the public. Each Securityholder further agrees that, upon learning that disclosure of such Records is sought in a court of competent
jurisdiction, it will give notice to the Company and allow the Company, at its own expense, to undertake appropriate action to prevent disclosure of the Records deemed confidential. 
 (h) The Company will furnish to each such Securityholder and to each such underwriter, if any, a signed counterpart, addressed to such Securityholder or
underwriter, of (i) an opinion or opinions of counsel to the Company and (ii) a comfort letter or comfort letters from the Company’s independent public accountants, each in customary form and covering such matters of the kind
customarily covered by opinions or comfort letters, as the case may be, as a majority of such Securityholders (determined by Aggregate Ownership of Common Shares) or the managing underwriter therefor reasonably requests. 
 (i) The Company will otherwise use its best efforts to comply with all applicable rules and regulations of the SEC, and make available to its
securityholders, as soon as reasonably practicable, an earnings statement or such other document covering a period of 12 months, beginning within three months after the effective date of the registration statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder. 
 (j) The Company may require each such
Securityholder promptly to furnish in writing to the Company such information regarding the distribution of the Registrable Securities as the Company may from time to time reasonably request and such other information as may be legally required in
connection with such registration. 
 (k) Each such Securityholder agrees that, upon receipt of any notice from the Company of the happening
of any event of the kind described in Section 5.04(e) hereof, such Securityholder will forthwith discontinue disposition of Registrable Securities pursuant to the registration statement covering such Registrable Securities until such
Securityholder’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 5.04(e) hereof, and, if so directed by the Company, such Securityholder will deliver to the Company all copies, other than any
permanent file copies then in such Securityholder’s possession, of the most recent prospectus covering such Registrable Securities at the time of receipt of such notice. In the event that the Company shall give such notice, the Company shall
extend the period during which such registration statement shall be maintained effective (including the period referred to in Section 5.04(a) hereof) by the number of days during the period from and including the date of the giving 

  

 - 34 - 

 
of notice pursuant to Section 5.04(e) hereof to the date when the Company shall make available to such Securityholder a prospectus supplemented or
amended to conform with the requirements of Section 5.04(e) hereof. 
 (l) The Company will use its best efforts to list all Registrable
Securities covered by such registration statement on any securities exchange or quotation system on which any of the Registrable Securities are then listed or traded. 
 (m) The Company will provide and cause to be maintained a transfer agent and registrar for all Registrable Securities covered by such registration statement from and after a date not later than the effective date of
such registration statement. 
 Section 5.05. Indemnification by the Company. The Company agrees to indemnify and hold harmless
each Securityholder holding Registrable Securities covered by a registration statement, its officers, directors, employees, partners and agents, and each Person, if any, who controls such Securityholder within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages and liabilities caused by any untrue statement or alleged untrue statement of a material fact contained in any registration statement or
prospectus relating to the Registrable Securities (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or any preliminary prospectus, or caused by any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages or liabilities are caused by any such untrue statement or omission or alleged untrue statement or
omission so made based upon information furnished in writing to the Company by such Securityholder or on such Securityholder’s behalf expressly for use therein. The Company also agrees to indemnify any underwriters of the Registrable
Securities, their officers and directors and each person who controls such underwriters on substantially the same basis as that of the indemnification of the Securityholders provided in this Section 5.05. 
 Section 5.06. Indemnification by Participating Securityholders. Each Securityholder holding Registrable Securities included in any
registration statement agrees, severally but not 

  

 - 35 - 

 
jointly, to indemnify and hold harmless the Company, its officers, directors and agents and each Person, if any, who controls the Company within the meaning
of either Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the foregoing indemnity from the Company to such Securityholder, but only with respect to information furnished in writing by such
Securityholder or on such Securityholder’s behalf expressly for use in any registration statement or prospectus relating to the Registrable Securities, or any amendment or supplement thereto, or any preliminary prospectus. Each such
Securityholder also agrees to indemnify and hold harmless underwriters of the Registrable Securities, their officers and directors and each Person who controls such underwriters on substantially the same basis as that of the indemnification of the
Company provided in this Section 5.06. As a condition to including Registrable Securities in any registration statement filed in accordance with Article 5 hereof, the Company may require that it shall have received an undertaking reasonably
satisfactory to it from any underwriter to indemnify and hold it harmless to the extent customarily provided by underwriters with respect to similar securities. No Securityholder shall be liable under this Section 5.06 for any loss, claim,
damage, liability or expense in excess of the net proceeds realized by such Securityholder in the sale of Registrable Securities of such Securityholder to which such loss, claim, damage, liability or expense relates. 
 Section 5.07. Conduct of Indemnification Proceedings. In case any proceeding (including any governmental investigation) shall be instituted
involving any Person in respect of which indemnity may be sought pursuant to this Article 5, such Person (an “Indemnified Party”) shall promptly notify the Person against whom such indemnity may be sought (the “Indemnifying
Party”) in writing and the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Party, and shall assume the payment of all fees and expenses, provided
that the failure of any Indemnified Party so to notify the Indemnifying Party shall not relieve the Indemnifying Party of its obligations hereunder except to the extent that the Indemnifying Party is materially prejudiced by such failure to notify.
In any such proceeding, any Indemnified Party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless (i) the Indemnifying Party and the Indemnified
Party shall have mutually agreed to the retention of such counsel or (ii) in the reasonable judgment of such Indemnified Party representation of both parties by the same counsel would be inappropriate due to actual or potential differing
interests between them. It is understood that, in connection with any proceeding or related proceedings in the same jurisdiction, the Indemnifying Party shall not be liable for the reasonable fees and expenses of more than one separate firm of
attorneys (in 

  

 - 36 - 

 
addition to any local counsel) at any time for all such Indemnified Parties, and that all such fees and expenses shall be reimbursed as they are incurred. In
the case of any such separate firm for the Indemnified Parties, such firm shall be designated in writing by the Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent, or if there be a final judgment for the plaintiff the Indemnifying Party shall indemnify and hold harmless such Indemnified Parties from and against any loss or liability (to the extent stated above) by
reason of such settlement or judgment. Without the prior written consent of the Indemnified Party, no Indemnifying Party shall effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Party is or could have
been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability arising out of such proceeding. 
 Section 5.08. Contribution. If the indemnification provided for in this Article 5 is unavailable to the Indemnified Parties in respect of any
losses, claims, damages or liabilities referred to herein, then each such Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such losses,
claims, damages or liabilities (i) as between the Company and the Securityholders holding Registrable Securities covered by a registration statement, in such proportion as is appropriate to reflect the relative benefits received by the Company
and such Securityholders from the offering of the Registrable Securities, or if such allocation is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits but also the relative fault of the
Company and such Securityholders in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations and (ii) as between the Company on the one hand
and each such Securityholder on the other, in such proportion as is appropriate to reflect the relative fault of the Company and of each such Securityholder in connection with such statements or omissions, as well as any other relevant equitable
considerations. The relative benefits received by the Company and such Securityholders shall be deemed to be in the same proportion as the relative proceeds from the offering (net of underwriting discounts and commissions and expenses) received by
the Company and such Securityholders. The relative fault of the Company on the one hand and of each such Securityholder on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact relates to information supplied by such party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission. 
 The Company and the Securityholders agree that it would not be just and equitable if contribution pursuant to this
Section 5.08 were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by an Indemnified
Party as a result of the losses, claims, damages or liabilities referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such
Indemnified Party in connection with investigating or 

  

 - 37 - 

 
defending any such action or claim. Notwithstanding the provisions of this Section 5.08, no Securityholder shall be required to contribute any amount in
excess of the amount by which the total price at which the Registrable Securities of such Securityholder were offered to the public exceeds the amount of any damages that such Securityholder has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation. Each Securityholder’s obligation to contribute pursuant to this Section 5.08 is several in the proportion that the proceeds of the offering received by such Securityholder bears to the total
proceeds of the offering received by all such Securityholders and not joint. 
 Section 5.09. Participation in Public Offering.
No Person may participate in any Public Offering hereunder unless such Person (a) agrees to sell such Person’s securities on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such
arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements and the provisions of this
Agreement in respect of registration rights. 
 Section 5.10. Other Indemnification. Indemnification similar to that specified
herein (with appropriate modifications) shall be given by the Company and each Securityholder participating therein with respect to any required registration or other qualification of securities under any federal or state law or regulation or
governmental authority other than the Securities Act. 
 Section 5.11. Cooperation by the Company. If any Securityholder shall
transfer any Registrable Securities pursuant to Rule 144 or Rule 144A under the Securities Act, the Company shall cooperate, to the extent commercially reasonable, with such Securityholder and shall provide to such Securityholder such information as
such Securityholder shall reasonably request. 
 Section 5.12. No Transfer of Registration Rights. None of the rights of
Securityholders under this Article 5 shall be assignable by any Securityholder to any Person acquiring Securities in any Public Offering or pursuant to Rule 144 or Rule 144A of the Securities Act. 
 ARTICLE 6 
 CERTAIN COVENANTS AND AGREEMENTS

 Section 6.01. Confidentiality. (a) Each Securityholder agrees that Confidential Information (as defined below) furnished
and to be furnished to it was and will be made available in connection with such Securityholder’s investment in the Company. Each Securityholder agrees that it will use, and that it will cause any Person to whom Confidential Information is
disclosed pursuant to clause (i) below to use, the Confidential Information only in connection with its investment in the Company and not for any other purpose (including, without limitation, to disadvantage competitively the Company or any
other Securityholder). Each 

  

 - 38 - 

 
Securityholder further acknowledges and agrees that it will not disclose any Confidential Information to any Person, provided that Confidential
Information may be disclosed (i) to such Securityholder’s Representatives (as defined below) in the normal course of the performance of their duties or to any financial institution providing credit to such Securityholder, (ii) to the
extent required by applicable law, rule or regulation (including complying with any oral or written questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process to which a Securityholder
is subject, provided that such Securityholder gives the Company prompt notice of such request(s), to the extent practicable, so that the Company may seek, at its expense, an appropriate protective order or similar relief (and the Securityholder
shall cooperate with such efforts by the Company, and shall in any event make only the minimum disclosure required by such law, rule or regulation)), (iii) to any Person to whom such Securityholder is contemplating a Transfer of its Company
Securities (provided that such Transfer would not be in violation of the provisions of this Agreement and as long as such potential transferee is advised of the confidential nature of such information and agrees to be bound by a confidentiality
agreement in form and substance satisfactory to the Company and consistent with the provisions hereof), (iv) to any regulatory authority or rating agency to which the Securityholder or any of its affiliates is subject or with which it has
regular dealings, as long as such authority or agency is advised of the confidential nature of such information or (v) if the prior written consent of the Board shall have been obtained. Nothing contained herein shall prevent the use (subject,
to the extent possible, to a protective order) of Confidential Information in connection with the assertion or defense of any claim by or against the Company or any Securityholder. 
 (b) “Confidential Information” means any information concerning the Company and Persons that are or become its Subsidiaries or the
financial condition, business, operations or prospects of the Company and Persons that are or become its Subsidiaries in the possession of or furnished to any Securityholder (including, without limitation by virtue of its present or former right to
designate a director of the Company), provided that the term “Confidential Information” does not include information that (i) is or becomes generally available to the public other than as a result of a disclosure by a Securityholder
or its partners, directors, officers, employees, agents, counsel, investment advisers or representatives (all such persons being collectively referred to as “Representatives”) in violation of this Agreement, (ii) is or was
available to such Securityholder on a non-confidential basis prior to its disclosure to such Securityholder or its Representatives by the Company or (iii) was or becomes available to such Securityholder on a non-confidential basis from a source
other than the Company, provided that such source is or was (at the time of receipt of the relevant information) not, to the best of such Securityholder’s knowledge, bound by a confidentiality agreement with (or other confidentiality obligation
to) the Company or another Person. 
  

 - 39 - 

 Section 6.02. Information. So long as any Company Securities remain outstanding, the Company
shall deliver to (i) each Five Percent Securityholder, (ii) each of the entities comprising the CVC Asia Pacific Investors, so long as such entity shall own any Securities, (iii) Peninsula, so long as such entity shall own any
Securities, (iv) CVC Equity Fund, so long as such entity shall own any Securities and (v) FP LP, so long as such entity shall own any Securities: 
 (a) As soon as practicable and in any event within 30 days after the end of the first three fiscal quarters, consolidated balance sheets of the Company and its Subsidiaries as at the end of such period and the related
consolidated statements of income, stockholders’ equity and cash flow of the Company and its Subsidiaries for such fiscal quarter, setting forth in each case in comparative form the consolidated figures for the corresponding periods of the
previous fiscal year, all in reasonable detail and certified by the Company’s Chief Financial Officer that they fairly present the financial condition of the Company and its Subsidiaries as at the dates indicated and the results of their
operations and changes in their financial position for the periods indicated, subject to normal year-end adjustments; 
 (b) As soon as
practicable and in any event within 90 days after the end of each fiscal year of the Company commencing with the fiscal year ending December 31, 2004, consolidated balance sheets of the Company and its Subsidiaries as at the end of such year
and the related consolidated statements of income, stockholders’ equity and cash flow of the Company and its Subsidiaries for such fiscal year, setting forth in each case, in comparative form, the consolidated figures for the previous year, all
in reasonable detail and accompanied by a report thereon of independent certified public accountants of recognized national standing selected by the Company, which report shall state that such consolidated financial statements present fairly the
financial position of the Company and its Subsidiaries as at the dates indicated and the results of their operations and changes in their financial position for the periods indicated in conformity with generally accepted accounting principles
applied on a basis consistent with prior years (except as otherwise stated therein) and that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with generally accepted auditing
standards; 
 (c) Promptly upon their becoming available, copies of all financial statements, reports, notices and proxy statements sent or
made available generally by the Company to its securityholders or by any Subsidiary of the Company to its securityholders other than the Company or another Subsidiary, of all regular and periodic reports and all registration statements and
prospectuses, if any, filed by the Company or any of its Subsidiaries with any securities exchange or with the SEC or any governmental authority succeeding to any of its functions, and of all press releases and other written statements made
available generally by the Company or any Subsidiary to the public concerning material developments in the business of the Company and its Subsidiaries; and 
  

 - 40 - 

 (d) From time to time such additional information regarding the financial position or business of the
Company and its Subsidiaries as a Securityholder may reasonably request. 
 Section 6.03. Reports. In lieu of the information
provided in Section 6.02 (a) and (b), the Company may furnish the Securityholders with the quarterly and annual financial reports that the Company is required to file with the SEC pursuant to Section 13 or Section 15(d) of the
Exchange Act. 
 Section 6.04. Appointment of Securityholder Representative. (a) Each of CVC Asia LP, CVC Asia II LP, CVC
Asia II Parallel LP and Asia Investors and, to the extent that any Permitted Transferee of CVC Asia LP, CVC Asia II LP, CVC Asia II Parallel LP or Asia Investors shall have become a Securityholder, such Securityholder irrevocably appoints the CVC
Asia Pacific Securityholder Representative its agent and true and lawful attorney-in-fact, with full power of substitution, to take the actions, receive notices and exercise the powers delegated to the CVC Asia Pacific Securityholder Representative
under this Agreement in the name of each such Securityholder, together with such actions and powers as are reasonably incidental thereto. Notwithstanding the foregoing, the CVC Asia Pacific Securityholder Representative shall not take any action or
exercise any power to the extent that the holders of the majority of the Company Securities held by CVC Asia LP, CVC Asia II LP, CVC Asia II Parallel LP and Asia Investors and their Permitted Transferees shall have voted to prevent the CVC Asia
Pacific Securityholder Representative from taking such action or exercising such power. “CVC Asia Pacific Securityholder Representative” means CVC Capital Partners Asia II Limited, a Jersey company (“CVC Asia II
Limited”), as agent for CVC Asia LP, CVC Asia II LP, CVC Asia II Parallel LP, Asia Investors and their Permitted Transferees that are Securityholders. The entity appointed as the CVC Asia Pacific Securityholder Representative may be
replaced at any time and from time to time by the vote of a majority of the Company Securities held by CVC Asia LP, CVC Asia II LP, CVC Asia II Parallel LP and Asia Investors and their Permitted Transferees. Either of CVC Asia II Limited or the new
CVC Asia Pacific Securityholder Representative shall notify the Company of such appointment as promptly as practicable after such appointment. 
 (b) Each of CVC Employee Fund, CVC Equity Fund and CVC Executive Fund, each CVC Co-Investor and, to the extent that any Permitted Transferee of CVC Employee Fund, CVC Equity Fund, CVC Executive Fund and any CVC Co-Investor shall have become
a Securityholder, such Securityholder irrevocably appoints the CVC US Securityholder Representative its agent and true and lawful attorney-in-fact, with full power of substitution, to take the actions, receive notices and exercise the powers
delegated to the CVC US Securityholder Representative under this Agreement in the name of each such Securityholder, together with such actions and powers as are reasonably incidental thereto. Notwithstanding the foregoing, the CVC US Securityholder
Representative shall not take any action or exercise any power to the extent that the holders of the majority of the Company Securities held by CVC Employee Fund, CVC Equity Fund, CVC Executive Fund, the CVC Co-Investors, and their Permitted
Transferees shall have voted to prevent the CVC US Securityholder Representative from taking such action or exercising such power. “CVC US Securityholder Representative” means CVC Equity Fund as agent for CVC Employee Fund, CVC
Equity Fund, CVC Executive 

  

 - 41 - 

 
Fund, CVC Co-Investors, and their Permitted Transferees that are Securityholders. The entity appointed as the CVC US Securityholder Representative may be
replaced at any time and from time to time by the vote of a majority of the Company Securities held by CVC Employee Fund, CVC Equity Fund and CVC Executive Fund, CVC Co-Investors, and their Permitted Transferees. Either of CVC Equity Fund or the new
CVC US Securityholder Representative shall notify the Company of such appointment as promptly as practicable after such appointment. 
 (c)
Each of FP LP, FP Fund A, FP Annual Fund, FP Co-Invest and, to the extent that any Permitted Transferee of FP LP, FP Fund A, FP Annual Fund or FP Co-Invest shall have become a Securityholder, such Securityholder irrevocably appoints the FP
Securityholder Representative its agent and true and lawful attorney-in-fact, with full power of substitution, to take the actions, receive notices and exercise the powers delegated to the FP Securityholder Representative under this Agreement in the
name of each such Securityholder, together with such actions and powers as are reasonably incidental thereto. Notwithstanding the foregoing, the FP Securityholder Representative shall not take any action or exercise any power to the extent that the
holders of the majority of the Company Securities held by FP LP, FP Fund A, FP Annual Fund and FP Co-Invest and their Permitted Transferees shall have voted to prevent the FP Securityholder Representative from taking such action or exercising such
power. “FP Securityholder Representative” means FP LP as agent for FP LP, FP Fund A, FP Annual Fund and FP Co-Invest and their Permitted Transferees that are Securityholders. The entity appointed as the FP Securityholder
Representative may be replaced at any time and from time to time by the vote of a majority of the Company Securities held by FP LP, FP Fund A, FP Annual Fund and FP Co-Invest and their Permitted Transferees. Either of FP LP or the new FP
Securityholder Representative shall notify the Company of such appointment as promptly as practicable after such appointment. 
 (d) Each of
Peninsula and, to the extent that any Permitted Transferee of Peninsula shall have become a Securityholder, such Securityholder irrevocably appoints the Peninsula Securityholder Representative its agent and true and lawful attorney-in-fact, with
full power of substitution, to take the actions, receive notices and exercise the powers delegated to the Peninsula Securityholder Representative under this Agreement in the name of each such Securityholder, together with such actions and powers as
are reasonably incidental thereto. Notwithstanding the foregoing, the Peninsula Securityholder Representative shall not take any action or exercise any power to the extent that the holders of the majority of the Company Securities held by Peninsula
and its Permitted Transferees shall have voted to prevent the Peninsula Securityholder Representative from taking such action or exercising such power. “Peninsula Securityholder Representative” means Peninsula as agent for Peninsula
and its Permitted Transferees that are Securityholders. The entity appointed as the Peninsula Securityholder Representative may be replaced at any time and from time to time by the vote of a majority of the Company Securities held by Peninsula and
its Permitted Transferees. Either of Peninsula or the new Peninsula Securityholder Representative shall notify the Company of such appointment as promptly as practicable after such appointment. 
  

 - 42 - 

 ARTICLE 7 
 MISCELLANEOUS 
 Section 7.01. Entire Agreement. This Agreement constitutes the entire agreement
among the parties hereto and supersedes all prior and contemporaneous agreements and understandings, both oral and written, among the parties hereto with respect to the subject matter hereof and thereof. 
 Section 7.02. Binding Effect; Benefit. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their
respective heirs, successors, legal representatives and permitted assigns. Nothing in this Agreement, expressed or implied, is intended to confer on any Person other than the parties hereto, and their respective heirs, successors, legal
representatives and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement. 
 Section 7.03. Assignability. Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable by any party hereto pursuant to any Transfer of Company Securities or
otherwise, except that any Permitted Transferee acquiring Company Securities and any Person acquiring Company Securities who is required by the terms of this Agreement or any employment agreement or stock purchase, option, stock option or other
compensation plan of the Company or any Subsidiary to become a party hereto shall (unless already bound hereby) execute and deliver to the Company an agreement to be bound by this Agreement in the form of the Joinder and shall thenceforth be a
“Securityholder.” Any Securityholder who ceases to own beneficially any Company Securities shall cease to be bound by the terms hereof (other than (i) the provisions of Sections 5.05, 5.06, 5.07, 5.08 and 5.10 applicable to such
Securityholder with respect to any offering of Registrable Securities completed before the date such Securityholder ceased to own any Company Securities and (ii) Section 6.01 and Article VII). 
 Section 7.04. Waiver; Amendment; Termination. No provision of this Agreement may be waived except by an instrument in writing executed by the
party against whom the waiver is to be effective. No provision of this Agreement may be amended or otherwise modified except by an instrument in writing executed by the Company with approval of the Board and Securityholders (including both
Institutional Securityholders) holding at least 50% of the outstanding Common Shares held by the parties hereto at the time of such proposed amendment or modification, provided that no such amendment shall disproportionately adversely affect any
Securityholder without such Securityholder’s express consent; provided, that any such modification or amendment or waiver that affects one Securityholder in a way that is materially adverse to such Securityholder relative to all other
similarly situated Securityholders cannot be effected without the written consent of such Securityholder. 
  

 - 43 - 

 Section 7.05. Notices. All notices, requests and other communications to any party shall be
in writing (including facsimile transmissions) and shall be given, 
 if to the Company to: 
 MagnaChip Semiconductor Corporation 
 c/o MagnaChip Semiconductor Ltd. 
 891 Daechi-dong, Gangnam-gu 
 Seoul 135-738 Korea 
 Attn: John McFarland, General Counsel 
 Fax: +82-2-3459-3898 
 with copies (which shall not constitute notice) to: 
 Citigroup Venture
Capital Equity Partners, L.P. 
 c/o Court Square Advisor, LLC 
 Park Avenue Plaza 
 55 East 52nd Street, 34th Floor 
 New York, NY 10055 
 USA 
 Attn: David F. Thomas

 Fax: (212) 752-5766 
 Francisco Partners 
 2882 Sand Hill Road 
 Suite 280 
 Menlo Park, CA 94025 
 Attn: Dipanjan Deb 
 Fax: (650) 233-2999 
 and 
 Dechert LLP 
 30 Rockefeller Plaza 
 New York, NY 10112 
 USA 
 Attn: Sang H. Park 
 Fax: (212) 698-3599 
  

 - 44 - 

 if to CVC Asia II Limited, as Asia Pacific Securityholder Representative for CVC Asia Pacific Investors: 
 CVC Capital Partners Asia II Ltd. 
 22 Grenville Street, 
 St. Helier, Jersey JE4 8PX, 
 Channel Islands 
 Attn: Brian Scholfield 
 Fax: +44 1534-609-333 
 with copies (which shall not constitute notice) to: 
 CVC Asia Pacific
Limited 17th Floor, Hungkuk Life Insurance 
 Building 226, Shinmoonro 1-ga, 
 Chongro-Ku, Seoul 
 Korea 110-061 Attn: Mr. Roy Kuan 
 Fax: (813) 5462 5150 
 and 
 Kirkland & Ellis 
 Citigroup Center 
 153 E. 53rd Street,
38th Floor 
 New York, New York 10022 

USA 
 Attn: Geoffrey W. Levin 
 Fax: (212) 446-6460 
 if to CVC Asia LP: 
 CVC Capital Partners Asia Pacific L.P. 
 P.O. Box 87 
 18 Grenville Street, 
 St.Helier, Jersey JE4 8PX, 
 Channel Islands 
 Attn: Liz Barlow 
 Fax: ++44 1534 609333 
  

 - 45 - 

 with copies (which shall not constitute notice) to: 
 CVC Asia Pacific Limited 
 17th Floor, Hungkuk Life Insurance 
 Building 226, Shinmoonro 1-ga, 
 Chongro-Ku, Seoul 
 Korea 110-061 
 Attn: Mr. Roy Kuan 
 Fax: (813) 5462 5150 
 and 
 Kirkland &
Ellis 
 Citigroup Center 
 153 E. 53rd Street, 38th
Floor 
 New York, New York 10022 
 USA 

Attn: Geoffrey W. Levin 
 Fax: (212) 446-6460 
 if to CVC Asia II LP or CVC Asia II Parallel LP: 
 CVC Capital Partners Asia
Pacific II L.P. or CVC Capital Partners Asia Pacific II Parallel Fund - A, L.P. 
 P.O. Box 87 
 22 Grenville Street, 
 St. Helier, Jersey JE4 8PX, 
 Channel Islands 
 Attn: Liz Barlow 
 Fax: +44 1534 609333 
 with copies (which shall not constitute notice) to: 
 CVC Asia Pacific Limited 
 17th Floor, Hungkuk Life Insurance 
 Building 226, Shinmoonro 1-ga, 
 Chongro-Ku, Seoul 
 Korea 110-061 
 Attn: Mr. Roy Kuan 
 Fax: (813) 5462 5150 
  

 - 46 - 

 and 
 Kirkland &
Ellis 
 Citigroup Center 
 153 E. 53rd Street, 38th
Floor 
 New York, New York 10022 
 USA 

Attn: Geoffrey W. Levin 
 Fax: (212) 446-6460 
 if to Asia Investors: 
 Asia Investors LLC 
 c/o CVC Asia Pacific Limited 
 Suite 901-3 
 ICBC Tower 
 Citibank Plaza 
 3 Garden Road 
 Central, Hong Kong 
 Attn: Mark Ku/Kelvin Yuen 
 Fax: +85 23518 6380 
 with copies (which shall not constitute notice) to: 
 CVC Asia Pacific
Limited 
 17th Floor, Hungkuk Life Insurance 
 Building 226,
Shinmoonro 1-ga, 
 Chongro-Ku, Seoul 
 Korea 110-061 

Attn: Mr. Roy Kuan 
 Fax: (813) 5462 5150 
 and 
 Kirkland & Ellis 
 Citigroup Center 
 153
E. 53rd Street, 38th Floor 
 New York, New York 10022 
 USA 
 Attn: Geoffrey W. Levin 
 Fax: (212) 446-6460 
  

 - 47 - 

 if to CVC Equity Fund, as CVC US Securityholder Representative for CVC US to: 
 Citigroup Venture Capital Equity Partners, L.P. 
 c/o Court Square Advisor,
LLC 
 Park Avenue Plaza 
 55 East 52nd Street, 34th
Floor 
 New York, NY 10055 
 USA 
 Attn: David F. Thomas 
 Fax: (212) 752-5766 
 with a copy (which shall not constitute notice) to: 
 Dechert LLP

 Cira Centre 
 2929 Arch Street 
 Philadelphia, PA 19104 
 USA 
 Attn: Geraldine A. Sinatra 
 Fax: (215) 994-2222 
 if to FP, to: 
 Francisco Partners 
 2882 Sand Hill Road 
 Suite 280 
 Menlo Park, CA 94025 
 Attn: Dipanjan Deb 
 Fax: (650) 233-2999 
 with a copy (which shall not constitute notice)
to: 
 Davis Polk & Wardwell 
 1600 El Camino Real

 Menlo Park, CA 94025 
 Attn: William M. Kelly 
           Sarah K. Solum 
 Fax: (650) 752-2111 
         (650) 752-3611 
 if to Peninsula, to: 
 Peninsula Investment Pte Ltd 
 c/o Government of Singapore Investment Corporation 
 255 Shoreline Dr.

 Suite 600 
 Redwood City, CA 94065 
 USA 
 Attn: Andrew Kwee 
 Fax: (650) 802-1212 
  

 - 48 - 

 with a copy to: 
 Heller
Ehrman LLP 
 333 Bush Street 
 San Francisco, CA 94104-2878

 USA 
 Attn: Sheryl L. R. Miller 
 Fax: (415) 772-6268 
 if to any Management Investor or CVC Co-Investor,
at the address for such Management Investors or CVC Co-Investors as appears in the books and records of the Company. 
 All notices, requests
and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a Business Day in the place of receipt. Otherwise, any such notice, request or
communication shall be deemed not to have been received until the next succeeding Business Day in the place of receipt. 
 Any Person who
becomes a Securityholder shall provide its address and fax number to the Company, which shall promptly provide such information to each other Securityholder. 
 Section 7.06. Fees and Expenses. The Company shall pay all out-of-pocket costs and expenses of the Institutional Securityholders, the CVC Asia Pacific Investors and Peninsula in connection with filing
obligations under applicable securities law incident to their ownership of Company Securities and otherwise related to transferring ownership of Company Securities (including in connection with a negotiated sale of Company Securities), including the
fees and expenses of counsel; provided, that in the case of Peninsula and the CVC Asia Pacific Investors, such expenses shall be paid only following delivery to the Company of reasonable documentation therefor and shall not exceed $50,000 in
the aggregate (for each of Peninsula, on the one hand, and the CVC Asia Pacific Investors, on the other). 
 Section 7.07.
Headings. The headings contained in this Agreement are for convenience only and shall not affect the meaning or interpretation of this Agreement. 
 Section 7.08. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same
instrument. 
 Section 7.09. Applicable Law. This Agreement shall be governed by, and construed in accordance with, the laws of
the State of Delaware, without regard to the conflicts of laws rules of such state. 
  

 - 49 - 

 Section 7.10. Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 Section 7.11. Specific Enforcement. Each party hereto acknowledges that the remedies at law of the other parties for a breach or threatened breach of this Agreement would be inadequate and, in recognition of this fact, any party
to this Agreement, without posting any bond, and in addition to all other remedies that may be available, shall be entitled to obtain equitable relief in the form of specific performance, a temporary restraining order, a temporary or permanent
injunction or any other equitable remedy that may then be available. 
 Section 7.12. Consent to Jurisdiction. The parties hereby
agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in the United States District Court
for the District of Delaware or any Delaware State court sitting in Delaware, so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding, and that any cause of action arising out of this Agreement shall
be deemed to have arisen from a transaction of business in the State of Delaware, and each of the parties hereby irrevocably consents to the exclusive jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit,
action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or
proceeding which is brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.
Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 7.05 shall be deemed effective service of process on such party. 
 Section 7.13. Severability. If one or more provisions of this Agreement are held to be unenforceable to any extent under applicable law, such
provision shall be interpreted as if it were written so as to be enforceable to the maximum possible extent so as to effectuate the parties’ intent to the maximum possible extent, and the balance of the Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its terms to the maximum extent permitted by law. 
 Section 7.14. Recapitalization. If any capital stock or other securities are issued in respect of, in exchange for, or in substitution of, any Company Securities by reason of any reorganization, recapitalization,
reclassification, merger, consolidation, spin-off, partial or complete liquidation, stock dividend, split-up, sale of assets, distribution to stockholders or combination of the Company Securities or any other change in capital structure of the
Company, appropriate adjustments shall be made with respect to the relevant provisions of this Agreement so as fairly and equitably to preserve, as far as practicable, the original rights and obligations of the parties hereto under this Agreement.

  

 - 50 - 

 Section 7.15. No Inconsistent Agreements. The Company will not hereafter enter into any
agreement with respect to its securities that is inconsistent with, or grants rights superior to the rights granted to the Securityholders pursuant to, this Agreement. The Company represents and warrants to each Securityholder that it has not
previously entered into any agreement with respect to any of its securities granting any registration rights to any Person. 
  

 - 51 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective
authorized officers as of the day and year first above written. 
  

			
	MAGNACHIP SEMICONDUCTOR CORPORATION
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
	
	 MAGNACHIP SEMICONDUCTOR LLC

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 Third Amended and Restated Securityholders’ Agreement 
 Signature Page 

					
	CVC CAPITAL PARTNERS ASIA PACIFIC L.P.
		 	By:	 	CVC Capital Partners Asia Limited, its general partner
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	ASIA INVESTORS LLC
		 	By:	 	Citicorp Securities Asia Pacific Limited, its managing member
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	CVC CAPITAL PARTNERS ASIA PACIFIC II L.P.
		 	By:	 	CVC Capital Partners Asia II Limited, its general partner
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	CVC CAPITAL PARTNERS ASIA PACIFIC II PARALLEL FUND – A, L.P.
		 	By:	 	CVC Capital Partners Asia II Limited, its general partner
		
	By:	 	  

	Name:	 	
	Title:	 	

 Third Amended and Restated Securityholders’ Agreement 
 Signature Page 

							
	CITIGROUP VENTURE CAPITAL EQUITY PARTNERS, L.P.
		 	By:	 	CVC Partners LLC, as general partner
		 		 	By:	 	Citigroup Venture Capital GP Holdings, Ltd., as managing member
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	CVC EXECUTIVE FUND LLC
		 	By:	 	Citigroup Venture Capital GP Holdings, Ltd., as managing member
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	CVC/SSB EMPLOYEE FUND, L.P.
		 	By:	 	CVC Partners LLC, as general partner
		 		 	By:	 	Citigroup Venture Capital GP Holdings, Ltd., as managing member
		
	By:	 	  

	Name:	 	
	Title:	 	

 Third Amended and Restated Securityholders’ Agreement 
 Signature Page 

					
	FRANCISCO PARTNERS, L.P.
		 	By:	 	Francisco Partners GP, LLC
		 		 	Its General Partner
	By:	 	  

	Name:	 	
	Title:	 	Managing Member
	
	FRANCISCO PARTNERS FUND A, L.P.
		 	By:	 	Francisco Partners GP, LLC
		 		 	Its General Partner
	By:	 	  

	Name:	 	
	Title:	 	Managing Member
	
	FP ANNUAL FUND INVESTORS, LLC
		 	By:	 	Francisco Partners Management, LLC
		 		 	Its Manager
		
	By:	 	  

	Name:	 	
	Title:	 	Managing Member
	
	FP-MAGNACHIP CO-INVEST, LLC
		 	By:	 	Francisco Partners GP, LLC
		 		 	Its Manager
		
	By:	 	  

	Name:	 	
	Title:	 	Managing Member

 Third Amended and Restated Securityholders’ Agreement 
 Signature Page 

			
	 PENINSULA INVESTMENT PTE. LTD.

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 Third Amended and Restated Securityholders’ Agreement 
 Signature Page 

			
	 CVC CO-INVESTORS:

	
	  

	 Clayton M. Albertson

	
	  

	 Christopher Bloise

	
	  

	 John Civantos

	
	FLATBUSH AVENUE INVESTMENT PARTNERS, LLC
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
	
	  

	 Michael A. Delaney

	
	  

	 Markus Ehrler

	
	  

	 Scott Elkins

	
	  

	 Michael S. Gollner

	
	  

	 Ian D. Highet

 Third Amended and Restated Securityholders’ Agreement 
 Signature Page 

			
	  

	Richard E. Mayberry, Jr.
	
	ALCHEMY, L.P.
		
	By:	 	  

	Name:	 	Thomas McWilliams
	Title:	 	General Partner
	
	  

	Harris Newman
	
	BG PARTNERS LP
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	BG/CVC-1
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	  

	Joseph M. Silvestri
	
	SILVESTRI 2002 TRUST
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	  

	David F. Thomas

 Third Amended and Restated Securityholders’ Agreement 
 Signature Page 

			
	THE NATASHA FOUNDATION
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	  

	Jeffrey F. Vogel
	
	ABG INVESTMENT MANAGEMENT, LLC
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	  

	Maxim Kushner
	
	  

	Andrew S. Gesell
	
	  

	Diana K. Mayer

 Third Amended and Restated Securityholders’ Agreement 
 Signature Page 

	
	MANAGEMENT INVESTORS:
	
	  

	Jerry Baker
	
	  

	Dr. Youm Huh
	
	  

	Robert Krakauer
	
	  

	Victoria Nam

 Third Amended and Restated Securityholders’ Agreement 
 Signature Page 

 EXHIBIT A 
 JOINDER TO SECURITYHOLDERS’ AGREEMENT 
 This Joinder Agreement (this “Joinder
Agreement”) is made as of the date written below by the undersigned (the “Joining Party”) in accordance with the Third Amended and Restated Securityholders’ Agreement dated as of
[            ], 2008 by and among, MagnaChip Semiconductor Corporation, MagnaChip Semiconductor LLC, CVC Capital Partners Asia Pacific L.P., Asia Investors LLC, CVC Capital Partners
Asia Pacific II L.P., CVC Capital Partners Asia Pacific II Parallel Fund - A, L.P., Citigroup Venture Capital Equity Partners, L.P., CVC Executive Fund LLC, CVC/SSB Employee Fund, L.P., CVC Co-Investors (as defined therein), Francisco Partners,
L.P., Francisco Partners Fund A, L.P., FP Annual Fund Investors, LLC, FP-MagnaChip Co-Invest, LLC, Peninsula Investment Pte. Ltd., Management Investors (as defined therein) and certain other persons named therein (the “Securityholders’
Agreement”), as the same may be amended from time to time. Capitalized terms used, but not defined, herein shall have the meaning ascribed to such terms in the Securityholders’ Agreement. 
 The Joining Party hereby acknowledges, agrees and confirms that, by its execution of this Joinder Agreement, the Joining Party shall be deemed to be a
party to the Securityholders’ Agreement as of the date hereof and shall have all of the rights and obligations of a “Securityholder” thereunder as if it had executed the Securityholders’ Agreement. The Joining Party hereby
ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the Securityholders’ Agreement. 
 IN WITNESS WHEREOF, the undersigned has executed this Joinder Agreement as of the date written below. 
 Date:
                 ,      
  

			
	 [NAME OF JOINING PARTY]

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
	
	 Address for Notices:

 Third Amended and Restated Securityholders’ Agreement 
 Signature Page 

 Schedule I 
 CVC Co-Investors 
 Clayton M. Albertson 
 Christopher Bloise 
 John Civantos 
 Flatbush Avenue Investment Partners, LLC 
 Michael A. Delaney 
 Markus Ehrler 
 Scott Elkins 
 Michael S. Gollner 
 Ian D. Highet 
 Richard E. Mayberry, Jr. 
 Alchemy, L.P. 
 Harris Newman 
 BG Partners LP 
 BG/CVC-1 
 Joseph M. Silvestri 
 Silvestri 2002 Trust 
 David F. Thomas 
 The Natasha Foundation

 Jeffrey F. Vogel 
 ABG Investment
Management, LLC 
 Maxim Kushner 
 Andrew S. Gesell 
 Diana K. Mayer 
 Third Amended and Restated Securityholders’ Agreement 
 Signature Page 

 Schedule II 
 Management Investors 
 Jerry Baker 
 Dr. Youm Huh 
 Robert Krakauer 
 Victoria Nam 
 Third Amended and Restated
Securityholders’ Agreement 
 Signature Page

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]