Document:

EX-10.03

 Exhibit 10.03 

ISDA® 

International Swaps and Derivatives Association, Inc 

2002 MASTER AGREEMENT 

dated as of July 12, 2017 
  

					
	JPMORGAN CHASE BANK, N.A.,	  	and	  	CAMBRIDGE MASTER FUND LP.,
	 a national banking association

organized under the laws of
 the
United States of America
 (“Party A”)
	  		  	 a limited partnership formed

in the United States
 (“Party
B”)

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

Accordingly, the parties agree as follows:— 
  

	1.	 Interpretation 

(a) Definitions. The terms defined in Section 14 and elsewhere in this Master Agreement will have the meanings therein specified
for the purpose of this Master Agreement. 
 (b) Inconsistency. In the event of any inconsistency between the provisions of the
Schedule and the other provisions of this Master Agreement, the Schedule will prevail. In the event of any inconsistency between the provisions of any Confirmation and this Master Agreement, such Confirmation will prevail for the purpose of the
relevant Transaction. 
 (c) Single Agreement. All Transactions are entered into in reliance on the fact that this Master Agreement
and all Confirmations form a single agreement between the parties (collectively referred to as this “Agreement”), and the parties would not otherwise enter into any Transactions. 

 

	2.	 Obligations 

  

	(a)	 General Conditions. 

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

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

  
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 (iii) Each obligation of each party under Section 2(a)(i) is subject to
(1) the condition precedent that no Event of Default or Potential Event of Default with respect to the other party has occurred and is continuing, (2) the condition precedent that no Early Termination Date in respect of the relevant
Transaction has occurred or been effectively designated and (3) each other condition specified in this Agreement to be a condition precedent for the purpose of this Section 2(a)(iii). 

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

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

 

	 	(i)	 in the same currency; and 

 

	 	(ii)	 in respect of the same Transaction, 

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

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

(d) Deduction or Withholding for Tax. 

(i) Gross-Up. All payments under this Agreement will be made without any
deduction or withholding for or on account of any Tax unless such deduction or withholding is required by any applicable law, as modified by the practice of any relevant governmental revenue authority, then in effect. If a party is so required to
deduct or withhold, then that party (“X”) will:— 
 (1) promptly notify the other party
(“Y”) of such requirement; 
 (2) pay to the relevant authorities the full amount required to be deducted or
withheld (including the full amount required to be deducted or withheld from any additional amount paid by X to Y under this Section 2(d)) promptly upon the earlier of determining that such deduction or withholding is required or receiving
notice that such amount has been assessed against Y; 
 (3) promptly forward to Y an official receipt (or a certified copy),
or other documentation reasonably acceptable to Y, evidencing such payment to such authorities; and 

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

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

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

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

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

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

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

 

	3.	 Representations 

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

	(a)	 Basic Representations. 

(i) Status. It is duly organised and validly existing under the laws of the jurisdiction of its
organisation or incorporation and, if relevant under such laws, in good standing; 
 (ii) Powers.
It has the power to execute this Agreement and any other documentation relating to this Agreement to which it is a party, to deliver this Agreement and any other documentation relating to this Agreement that it is required by this Agreement
to deliver and to perform its obligations under this Agreement and any obligations it has under any Credit Support Document to which it is a party and has taken all necessary action to authorise such execution, delivery and performance; 

  
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 (iii) No Violation or Conflict. Such execution,
delivery and performance do not violate or conflict with any law applicable to it, any provision of its constitutional documents, any order or judgment of any court or other agency of government applicable to it or any of its assets or any
contractual restriction binding on or affecting it or any of its assets; 
 (iv) Consents. All
governmental and other consents that are required to have been obtained by it with respect to this Agreement or any Credit Support Document to which it is a party have been obtained and are in full force and effect and all conditions of any such
consents have been complied with; and 
 (v) Obligations Binding. Its obligations under this
Agreement and any Credit Support Document to which it is a party constitute its legal, valid and binding obligations, enforceable in accordance with their respective terms (subject to applicable bankruptcy, reorganisation, insolvency, moratorium or
similar laws affecting creditors’ rights generally and subject, as to enforceability, to equitable principles of general application (regardless of whether enforcement is sought in a proceeding in equity or at law)). 

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

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

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

(e) Payer Tax Representation. Each representation specified in the Schedule as being made by it for the purpose of
this Section 3(e) is accurate and true. 
 (f) Payee Tax Representations. Each representation specified in
the Schedule as being made by it for the purpose of this Section 3(f) is accurate and true. 
 (g) No Agency.
It is entering into this Agreement, including each Transaction, as principal and not as agent of any person or entity. 
  

	4.	 Agreements 

Each party agrees with the other that, so long as either party has or may have any obligation under this Agreement or under any Credit Support
Document to which it is a party:— 
 (a) Furnish Specified Information. It will deliver to the other party or, in certain
cases under clause (iii) below, to such government or taxing authority as the other party reasonably directs:— 

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

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

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

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

(b) Maintain Authorisations. It will use all reasonable efforts to maintain in full force and effect all consents
of any governmental or other authority that are required to be obtained by it with respect to this Agreement or any Credit Support Document to which it is a party and will use all reasonable efforts to obtain any that may become necessary in
the future. 
 (c) Comply With Laws. It will comply in all material respects with all applicable laws and orders
to which it may be subject if failure so to comply would materially impair its ability to perform its obligations under this Agreement or any Credit Support Document to which it is a party. 

(d) Tax Agreement. It will give notice of any failure of a representation made by it under Section 3(f) to be
accurate and true promptly upon learning of such failure. 
 (e) Payment of Stamp Tax. Subject to
Section 11, it will pay any Stamp Tax levied or imposed upon it or in respect of its execution or performance of this Agreement by a jurisdiction in which it is incorporated, organised, managed and controlled or considered to have its seat,
or where an Office through which it is acting for the purpose of this Agreement is located (“Stamp Tax Jurisdiction”), and will indemnify the other party against any Stamp Tax levied or imposed upon the other party or in respect of the
other party’s execution or performance of this Agreement by any such Stamp Tax Jurisdiction which is not also a Stamp Tax Jurisdiction with respect to the other party. 
  

	5.	 Events of Default and Termination Events 

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

(i) Failure to Pay or Deliver. Failure by the party to make, when due, any payment under
this Agreement or delivery under Section 2(a)(i) or 9(h)(i)(2) or (4) required to be made by it if such failure is not remedied on or before the first Local Business Day in the case of any such payment or the first Local Delivery Day in
the case of any such delivery after, in each case, notice of such failure is given to the party; 
 (ii) Breach of
Agreement; Repudiation of Agreement.. 
 (1) Failure by the party to comply with or perform any agreement or
obligation (other than an obligation to make any payment under this Agreement or delivery under Section 2(a)(i) or 9(h)(i)(2) or (4) or to give notice of a Termination Event or any agreement or obligation under
Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the party in accordance with this Agreement if such failure is not remedied within 30 days after notice of such failure is given to the party; or 

(2) the party disaffirms, disclaims, repudiates or rejects, in whole or in part, or challenges the validity of, this
Master Agreement, any Confirmation executed and delivered by that party or any 

  
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Transaction evidenced by such a Confirmation (or such action is taken by any person or entity appointed or empowered to operate it or act on its behalf); 

(iii) Credit Support Default. 

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

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

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

(iv) Misrepresentation. A representation (other than a representation under Section 3(e) or
3(f)) made or repeated or deemed to have been made or repeated by the party or any Credit Support Provider of such party in this Agreement or any Credit Support Document proves to have been incorrect or misleading in any material respect when made
or repeated or deemed to have been made or repeated; 
 (v) Default Under Specified Transaction.
The party, any Credit Support Provider of such party or any applicable Specified Entity of such party:— 
 (1)
defaults (other than by failing to make a delivery) under a Specified Transaction or any credit support arrangement relating to a Specified Transaction and, after giving effect to any applicable notice requirement or grace period, such default
results in a liquidation of, an acceleration of obligations under, or an early termination of, that Specified Transaction; 

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

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

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

  
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 (vi) Cross Default. If “Cross Default” is specified in
the Schedule as applying to the party, the occurrence or existence of:— 
 (1) a default, event of default or other
similar condition or event (however described) in respect of such party, any Credit Support Provider of such party or any applicable Specified Entity of such party under one or more agreements or instruments relating to Specified Indebtedness of any
of them (individually or collectively) where the aggregate principal amount of such agreements or instruments, either alone or together with the amount, if any, referred to in clause (2) below, is not less than the applicable Threshold Amount
(as specified in the Schedule) which has resulted in such Specified Indebtedness becoming, or becoming capable at such time of being declared, due and payable under such agreements or instruments before it would otherwise have been due and payable;
or 
 (2) a default by such party, such Credit Support Provider or such Specified Entity (individually or collectively) in
making one or more payments under such agreements or instruments on the due date for payment (after giving effect to any applicable notice requirement or grace period) in an aggregate amount, either alone or together with the amount, if any,
referred to in clause (1) above, of not less than the applicable Threshold Amount; 
 (vii) Bankruptcy. The
party, any Credit Support Provider of such party or any applicable Specified Entity of such party:— 
 (1) is dissolved
(other than pursuant to a consolidation, amalgamation or merger); (2) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due; (3) makes a general assignment,
arrangement or composition with or for the benefit of its creditors; (4)(A) institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the
jurisdiction of its incorporation or organisation or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting
creditors’ rights, or a petition is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official, or (B) has instituted against it a proceeding seeking a
judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or
liquidation, and such proceeding or petition is instituted or presented by a person or entity not described in clause (A) above and either (I) results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the
making of an order for its winding-up or liquidation or (II) is not dismissed, discharged, stayed or restrained in each case within 15 days of the institution or presentation thereof; (5) has a
resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation amalgamation or merger); (6) seeks or becomes subject to the appointment of an administrator,
provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets; (7) has a secured party take possession of all or substantially all its assets or has a distress,
execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or
restrained, in each case within 15 days thereafter; (8) causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in clauses (1) to (7)
above (inclusive); or (9) takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts; or 

  
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 (viii) Merger Without Assumption. The party or any Credit Support Provider
of such party consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its assets to, or reorganises, reincorporates or reconstitutes into or as, another entity and, at the time of such consolidation,
amalgamation, merger, transfer, reorganisation, reincorporation or reconstitution:— 
 (1) the resulting, surviving or
transferee entity fails to assume all the obligations of such party or such Credit Support Provider under this Agreement or any Credit Support Document to which it or its predecessor was a party; or 

(2) the benefits of any Credit Support Document fail to extend (without the consent of the other party) to the performance by
such resulting, surviving or transferee entity of its obligations under this Agreement. 
 (b) Termination Events. The occurrence at
any time with respect to a party or, if applicable, any Credit 
 Support Provider of such party or any Specified Entity of such party of any
event specified below constitutes (subject to Section 5(c)) an Illegality if the event is specified in clause (i) below, a Force Majeure Event if the event is specified in clause (ii) below, a Tax Event if the event is specified in
clause (iii) below, a Tax Event Upon Merger if the event is specified in clause (iv) below, and, if specified to be applicable, a Credit Event Upon Merger if the event is specified pursuant to clause (v) below or an Additional
Termination Event if the event is specified pursuant to clause (vi) below:— 
 (i) Illegality. After
giving effect to any applicable provision, disruption fallback or remedy specified in, or pursuant to, the relevant Confirmation or elsewhere in this Agreement, due to an event or circumstance (other than any action taken by a party or, if
applicable, any Credit Support Provider of such party) occurring after a Transaction is entered into, it becomes unlawful under any applicable law (including without limitation the laws of any country in which payment, delivery or compliance is
required by either party or any Credit Support Provider, as the case may be), on any day, or it would be unlawful if the relevant payment, delivery or compliance were required on that day (in each case, other than as a result of a breach by the
party of Section 4(b)):— 
 (1) for the Office through which such party (which will be the Affected Party) makes
and receives payments or deliveries with respect to such Transaction to perform any absolute or contingent obligation to make a payment or delivery in respect of such Transaction, to receive a payment or delivery in respect of such Transaction or to
comply with any other material provision of this Agreement relating to such Transaction; or 
 (2) for such party or any
Credit Support Provider of such party (which will be the Affected Party) to perform any absolute or contingent obligation to make a payment or delivery which such party or Credit Support Provider has under any Credit Support Document relating to
such Transaction, to receive a payment or delivery under such Credit Support Document or to comply with any other material provision of such Credit Support Document; 

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

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

  
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impracticable for such Office so to perform, receive or comply (or it would be impossible or impracticable for such Office so to perform, receive or comply if such payment, delivery or compliance
were required on that day); or 
 (2) such party or any Credit Support Provider of such party (which will be the Affected
Party) is prevented from performing any absolute or contingent obligation to make a payment or delivery which such party or Credit Support Provider has under any Credit Support Document relating to such Transaction, from receiving a payment or
delivery under such Credit Support Document or from complying with any other material provision of such Credit Support Document (or would be so prevented if such payment, delivery or compliance were required on that day), or it becomes impossible or
impracticable for such party or Credit Support Provider so to perform, receive or comply (or it would be impossible or impracticable for such party or Credit Support Provider so to perform, receive or comply if such payment, delivery or compliance
were required on that day), 
 so long as the force majeure or act of state is beyond the control of such Office, such party
or such Credit Support Provider, as appropriate, and such Office, party or Credit Support Provider could not, after using all reasonable efforts (which will not require such party or Credit Support Provider to incur a loss, other than immaterial,
incidental expenses), overcome such prevention, impossibility or impracticability; 
 (iii) Tax Event. Due to
(1) any action taken by a taxing authority, or brought in a court of competent jurisdiction, after a Transaction is entered into (regardless of whether such action is taken or brought with respect to a party to this Agreement) or (2) a
Change in Tax Law, the party (which will be the Affected Party) will, or there is a substantial likelihood that it will, on the next succeeding Scheduled Settlement Date (A) be required to pay to the other party an additional amount in respect
of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section 9(h)) or (B) receive a payment from which an amount is required to be deducted or withheld for or on account of a Tax (except in respect of
interest under Section 9(h)) and no additional amount is required to be paid in respect of such Tax under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or (B)); 

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

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

  
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date of this Master Agreement) to, or reorganises, reincorporates or reconstitutes into or as, another entity; 

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

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

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

 

	(c)	 Hierarchy of Events. 

(i) An event or circumstance that constitutes or gives rise to an Illegality or a Force Majeure Event will not, for so long as
that is the case, also constitute or give rise to an Event of Default under Section 5(a)(i), 5(a)(ii)(1) or 5(a)(iii)(1) insofar as such event or circumstance relates to the failure to make any payment or delivery or a failure to comply with
any other material provision of this Agreement or a Credit Support Document, as the case may be. 
 (ii) Except in
circumstances contemplated by clause (i) above, if an event or circumstance which would otherwise constitute or give rise to an Illegality or a Force Majeure Event also constitutes an Event of Default or any other Termination Event, it will be
treated as an Event of Default or such other Termination Event, as the case may be, and will not constitute or give rise to an Illegality or a Force Majeure Event. 

(iii) If an event or circumstance which would otherwise constitute or give rise to a Force Majeure Event also constitutes an
Illegality, it will be treated as an Illegality, except as described in clause (ii) above, and not a Force Majeure Event. 
 (d)
Deferral of Payments and Deliveries During Waiting Period. If an Illegality or a Force Majeure Event has occurred and is continuing with respect to a Transaction, each payment or delivery which would otherwise be required to be made
under that Transaction will be deferred to, and will not be due until:— 
 (i) the first Local Business Day or, in the
case of a delivery, the first Local Delivery Day (or the first day that would have been a Local Business Day or Local Delivery Day, as appropriate, but for the occurrence of the event or circumstance constituting or giving rise to that Illegality or
Force Majeure Event) following the end of any applicable Waiting Period in respect of that Illegality or Force Majeure Event, as the case may be; or 

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

(e) Inability of Head or Home Office to Perform Obligations of Branch. If (i) an Illegality or a Force Majeure Event occurs
under Section 5(b)(i)(1) or 5(b)(ii)(l) and the relevant Office is not the Affected Party’s head or home office, (ii) Section 10(a) applies, (iii) the other party seeks performance of the relevant obligation or

  
 10 

 
compliance with the relevant provision by the Affected Party’s head or home office and (iv) the Affected Party’s head or home office fails so to perform or comply due to the
occurrence of an event or circumstance which would, if that head or home office were the Office through which the Affected Party makes and receives payments and deliveries with respect to the relevant Transaction, constitute or give rise to an
Illegality or a Force Majeure Event, and such failure would otherwise constitute an Event of Default under Section 5(a)(i) or 5(a)(iii)(1) with respect to such party, then, for so long as the relevant event or circumstance continues to exist
with respect to both the Office referred to in Section 5(b)(i)(1) or 5(b)(ii)(1), as the case may be, and the Affected Party’s head or home office, such failure will not constitute an Event of Default under Section 5(a)(i) or
5(a)(iii)(1). 
  

	6.	 Early Termination; Close-Out Netting 

(a) Right to Terminate Following Event of Default. If at any time an Event of Default with respect to a party (the
“Defaulting Party”) has occurred and is then continuing, the other party (the “Non-defaulting Party”) may, by not more than 20 days notice to the Defaulting Party specifying the relevant
Event of Default, designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of all outstanding Transactions. If, however, “Automatic Early Termination” is specified in the Schedule as
applying to a party, then an Early Termination Date in respect of all outstanding Transactions will occur immediately upon the occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(1), (3), (5), (6) or, to
the extent analogous thereto, (8), and as of the time immediately preceding the institution of the relevant proceeding or the presentation of the relevant petition upon the occurrence with respect to such party of an Event of Default specified in
Section 5(a)(vii)(4) or, to the extent analogous thereto, (8). 
 (b) Right to Terminate Following Termination Event. 

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

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

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

(iii) Two Affected Parties. If a Tax Event occurs and there are two Affected Parties, each party will use all
reasonable efforts to reach agreement within 30 days after notice of such occurrence is given under Section 6(b)(i) to avoid that Termination Event. 

  
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 (iv) Right to Terminate. 

 

	 	(1)	 If:— 

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

(B) a Credit Event Upon Merger or an Additional Termination Event occurs, or a Tax Event Upon Merger occurs and the Burdened
Party is not the Affected Party, 
 the Burdened Party in the case of a Tax Event Upon Merger, any Affected Party in the case
of a Tax Event or an Additional Termination Event if there are two Affected Parties, or the Non-affected Party in the case of a Credit Event Upon Merger or an Additional Termination Event if there is
only one Affected Party may, if the relevant Termination Event is then continuing, by not more than 20 days notice to the other party, designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of all
Affected Transactions. 
 (2) If, at any time an Illegality or a
Force Majeure Event has occurred and is then continuing and any applicable Waiting Period has expired:— 
 (A) Subject
to clause (B) below, either party may, by not more than 20 days notice to the other party, designate (I) a day not earlier than the day on which such notice becomes effective as an Early Termination Date in respect of all Affected
Transactions or (II) by specifying in that notice the Affected Transactions in respect of which it is designating the relevant day as an Early Termination Date, a day not earlier than two Local Business Days following the day on which such
notice becomes effective as an Early Termination Date in respect of less than all Affected Transactions. Upon receipt of a notice designating an Early Termination Date in respect of less than all Affected Transactions, the other party may, by notice
to the designating party, if such notice is effective on or before the day so designated, designate that same day as an Early Termination Date in respect of any or all other Affected Transactions. 

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

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

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

  
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 (d) Calculations; Payment Date. 

(i) Statement. On or as soon as reasonably practicable following the occurrence of an Early Termination Date, each party
will make the calculations on its part, if any, contemplated by Section 6(e) and will provide to the other party a statement (1) showing, in reasonable detail, such calculations (including any quotations, market data or information from
internal sources used in making such calculations), (2) specifying (except where there are two Affected Parties) any Early Termination Amount payable and (3) giving details of the relevant account to which any amount payable to it is to be
paid. In the absence of written confirmation from the source of a quotation or market data obtained in determining a Close-out Amount, the records of the party obtaining such quotation or market data will be
conclusive evidence of the existence and accuracy of such quotation or market data. 
 (ii) Payment Date. An Early
Termination Amount due in respect of any Early Termination Date will, together with any amount of interest payable pursuant to Section 9(h)(ii)(2), be payable (1) on the day on which notice of the amount payable is effective in the case of
an Early Termination Date which is designated or occurs as a result of an Event of Default and (2) on the day which is two Local Business Days after the day on which notice of the amount payable is effective (or, if there are two Affected
Parties, after the day on which the statement provided pursuant to clause (i) above by the second party to provide such a statement is effective) in the case of an Early Termination Date which is designated as a result of a Termination Event.

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

(i) Events of Default. If the Early Termination Date results from an Event of Default, the Early Termination
Amount will be an amount equal to (1) the sum of (A) the Termination Currency Equivalent of the Close-out Amount or Close-out Amounts (whether positive or
negative) determined by the Non-defaulting Party for each Terminated Transaction or group of Terminated Transactions, as the case may be, and (B) the Termination Currency Equivalent of the Unpaid Amounts
owing to the Non-defaulting Party less (2) the Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party. If the Early Termination Amount is a positive number, the Defaulting
Party will pay it to the Non-defaulting Party; if it is a negative number, the Non-defaulting Party will pay the absolute value of the Early Termination Amount to the
Defaulting Party. 
 (ii) Termination Events. If the Early Termination Date results from a Termination
Event:— 
 (1) One Affected Party. Subject to clause (3) below, if there is one Affected Party, the
Early Termination Amount will be determined in accordance with Section 6(e)(i), except that references to the Defaulting Party and to the Non-defaulting Party will be deemed to be references to the
Affected Party and to the Non-affected Party, respectively. 
 (2) Two
Affected Parties. Subject to clause (3) below, if there are two Affected Parties, each party will determine an amount equal to the Termination Currency Equivalent of the sum of the Close-out Amount or
Close-out Amounts (whether positive or negative) for each Terminated Transaction or group of Terminated Transactions, as the case may be, and the Early Termination Amount will be an amount equal to
(A) the sum of (I) one-half of the difference between the higher amount so determined (by party “X”) and the lower amount so determined (by party “Y”) and (II) the
Termination Currency Equivalent of the Unpaid Amounts owing to X less (B) the Termination Currency Equivalent of the Unpaid Amounts owing to Y. If the Early Termination Amount is a positive number, Y will pay it to X; if it is a negative
number, X will pay the absolute value of the Early Termination Amount to Y. 

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

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

(B) in any other case, use mid-market values without regard to the creditworthiness of
the Determining Party. 
 (iii) Adjustment for Bankruptcy. In circumstances where an Early Termination Date
occurs because “Automatic Early Termination” applies in respect of a party, the Early Termination Amount will be subject to such adjustments as are appropriate and permitted by applicable law to reflect any payments or deliveries made by
one party to the other under this Agreement (and retained by such other party) during the period from the relevant Early Termination Date to the date for payment determined under Section 6(d)(ii). 

(iv) Adjustment for Illegality or Force Majeure Event. The failure by a party or any Credit Support Provider of
such party to pay, when due, any Early Termination Amount will not constitute an Event of Default under Section 5(a)(i) or 5(a)(iii)(1) if such failure is due to the occurrence of an event or circumstance which would, if it occurred with
respect to payment, delivery or compliance related to a Transaction, constitute or give rise to an Illegality or a Force Majeure Event. Such amount will (1) accrue interest and otherwise be treated as an Unpaid Amount owing to the other party
if subsequently an Early Termination Date results from an Event of Default, a Credit Event Upon Merger or an Additional Termination Event in respect of which all outstanding Transactions are Affected Transactions and (2) otherwise accrue
interest in accordance with Section 9(h)(ii)(2). 
 (v) Pre-Estimate.
The parties agree that an amount recoverable under this Section 6(e) is a reasonable pre-estimate of loss and not a penalty. Such amount is payable for the loss of bargain and the loss of protection
against future risks, and, except as otherwise provided in this Agreement, neither party will be entitled to recover any additional damages as a consequence of the termination of the Terminated Transactions. 

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

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

  
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 If an obligation is unascertained, X may in good faith estimate that obligation and set off in
respect of the estimate, subject to the relevant party accounting to the other when the obligation is ascertained. 
 Nothing in this
Section 6(f) will be effective to create a charge or other security interest. This Section 6(f) will be without prejudice and in addition to any right of set-off, offset, combination of accounts,
lien, right of retention or withholding or similar right or requirement to which any party is at any time otherwise entitled or subject (whether by operation of law, contract or otherwise). 

 

	7.	 Transfer 

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

(a) a party may make such a transfer of this Agreement pursuant to a consolidation or amalgamation with, or merger with or into, or transfer of
all or substantially all its assets to, another entity (but without prejudice to any other right or remedy under this Agreement); and 
 (b)
a party may make such a transfer of all or any part of its interest in any Early Termination Amount payable to it by a Defaulting Party, together with any amounts payable on or with respect to that interest and any other rights associated with that
interest pursuant to Sections 8, 9(h) and 11. 
 Any purported transfer that is not in compliance with this Section 7 will be void. 

 

	8.	 Contractual Currency 

(a) Payment in the Contractual Currency. Each payment under this Agreement will be made in the relevant currency
specified in this Agreement for that payment (the “Contractual Currency”). To the extent permitted by applicable law, any obligation to make payments under this Agreement in the Contractual Currency will not be discharged or satisfied by
any tender in any currency other than the Contractual Currency, except to the extent such tender results in the actual receipt by the party to which payment is owed, acting in good faith and using commercially reasonable procedures in converting the
currency so tendered into the Contractual Currency, of the full amount in the Contractual Currency of all amounts payable in respect of this Agreement. If for any reason the amount in the Contractual Currency so received falls short of the amount in
the Contractual Currency payable in respect of this Agreement, the party required to make the payment will, to the extent permitted by applicable law, immediately pay such additional amount in the Contractual Currency as may be necessary to
compensate for the shortfall. If for any reason the amount in the Contractual Currency so received exceeds the amount in the Contractual Currency payable in respect of this Agreement, the party receiving the payment will refund promptly the amount
of such excess. 
 (b) Judgments. To the extent permitted by applicable law, if any judgment or order expressed
in a currency other than the Contractual Currency is rendered (i) for the payment of any amount owing in respect of this Agreement, (ii) for the payment of any amount relating to any early termination in respect of this Agreement or
(iii) in respect of a judgment or order of another court for the payment of any amount described in clause (i) or (ii) above, the party seeking recovery, after recovery in full of the aggregate amount to which such party is entitled
pursuant to the judgment or order, will be entitled to receive immediately from the other party the amount of any shortfall of the Contractual Currency received by such party as a consequence of sums paid in such other currency and will refund
promptly to the other party any excess of the Contractual Currency received by such party as a consequence of sums paid in such other currency if such shortfall or such excess arises or results from any variation between the rate of exchange at
which the Contractual Currency is converted into the currency of the judgment or order for the purpose of such judgment or order and the rate of exchange at which such party is able, acting in good faith and using

  
 15 

 
commercially reasonable procedures in converting the currency received into the Contractual Currency, to purchase the Contractual Currency with the amount of the currency of the judgment or order
actually received by such party. 
 (c) Separate Indemnities. To the extent permitted by applicable law, the indemnities in
this Section 8 constitute separate and independent obligations from the other obligations in this Agreement, will be enforceable as separate and independent causes of action, will apply notwithstanding any indulgence granted by the party to
which any payment is owed and will not be affected by judgment being obtained or claim or proof being made for any other sums payable in respect of this Agreement. 

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

	9.	 Miscellaneous 

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

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

(c) Survival of Obligations. Without prejudice to Sections 2(a)(iii) and 6(c)(ii), the obligations of the parties under this
Agreement will survive the termination of any Transaction. 
 (d) Remedies Cumulative. Except as provided in this Agreement,
the rights, powers, remedies and privileges provided in this Agreement are cumulative and not exclusive of any rights, powers, remedies and privileges provided by law. 

(e) Counterparts and Confirmations. 

(i) This Agreement (and each amendment, modification and waiver in respect of it) may be executed and delivered in counterparts
(including by facsimile transmission and by electronic messaging system), each of which will be deemed an original. 
 (ii)
The parties intend that they are legally bound by the terms of each Transaction from the moment they agree to those terms (whether orally or otherwise). A Confirmation will be entered into as soon as practicable and may be executed and delivered in
counterparts (including by facsimile transmission) or be created by an exchange of telexes, by an exchange of electronic messages on an electronic messaging system or by an exchange of e-mails, which in each
case will be sufficient for all purposes to evidence a binding supplement to this Agreement. The parties will specify therein or through another effective means that any such counterpart, telex, electronic message or
e-mail constitutes a Confirmation. 
 (f) No Waiver of Rights. A failure or delay in
exercising any right, power or privilege in respect of this Agreement will not be presumed to operate as a waiver, and a single or partial exercise of any right, power or privilege will not be presumed to preclude any subsequent or further exercise,
of that right, power or privilege or the exercise of any other right, power or privilege. 
 (g) Headings. The headings used in this
Agreement are for convenience of reference only and are not to affect the construction of or to be taken into consideration in interpreting this Agreement. 

  
 16 

	(h)	 Interest and Compensation. 

(i) Prior to Early Termination. Prior to the occurrence or effective designation of an Early Termination Date in
respect of the relevant Transaction:— 
 (1) Interest on Defaulted Payments. If a party defaults in the
performance of any payment obligation, it will, to the extent permitted by applicable law and subject to Section 6(c), pay interest (before as well as after judgment) on the overdue amount to the other party on demand in the same currency as
the overdue amount, for the period from (and including) the original due date for payment to (but excluding) the date of actual payment (and excluding any period in respect of which interest or compensation in respect of the overdue amount is due
pursuant to clause (3)(B) or (C) below), at the Default Rate. 
 (2) Compensation for Defaulted Deliveries.
If a party defaults in the performance of any obligation required to be settled by delivery, it will on demand (A) compensate the other party to the extent provided for in the relevant Confirmation or elsewhere in this Agreement and
(B) unless otherwise provided in the relevant Confirmation or elsewhere in this Agreement, to the extent permitted by applicable law and subject to Section 6(c), pay to the other party interest (before as well as after judgment) on an
amount equal to the fair market value of that which was required to be delivered in the same currency as that amount, for the period from (and including) the originally scheduled date for delivery to (but excluding) the date of actual delivery (and
excluding any period in respect of which interest or compensation in respect of that amount is due pursuant to clause (4) below), at the Default Rate. The fair market value of any obligation referred to above will be determined as of the
originally scheduled date for delivery, in good faith and using commercially reasonable procedures, by the party that was entitled to take delivery. 

(3) Interest on Deferred Payments. If:— 

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

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

  
 17 

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

(A) a party does not perform any obligation that, but for Section 2(a)(iii), would have been required to be settled by
delivery; 
 (B) a delivery is deferred pursuant to Section 5(d); or 

(C) a party fails to make a delivery due to the occurrence of an Illegality or a Force Majeure Event at a time when any
applicable Waiting Period has expired, 
 the party required (or that would otherwise have been required) to make the
delivery will, to the extent permitted by applicable law and subject to Section 6(c), compensate and pay interest to the other party on demand (after, in the case of clauses (A) and (B) above, such delivery is required) if and to the
extent provided for in the relevant Confirmation or elsewhere in this Agreement. 
 (ii) Early Termination. Upon the
occurrence or effective designation of an Early Termination Date in respect of a Transaction:— 
 (1) Unpaid
Amounts. For the purpose of determining an Unpaid Amount in respect of the relevant Transaction, and to the extent permitted by applicable law, interest will accrue on the amount of any payment obligation or the amount equal to the fair market
value of any obligation required to be settled by delivery included in such determination in the same currency as that amount, for the period from (and including) the date the relevant obligation was (or would have been but for
Section 2(a)(iii) or 5(d)) required to have been performed to (but excluding) the relevant Early Termination Date, at the Applicable Close-out Rate. 

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

(iii) Interest Calculation. Any interest pursuant to this Section 9(h) will be calculated on the basis of daily
compounding and the actual number of days elapsed. 

  
 18 

	10.	 Offices; Multibranch Parties 

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

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

  

	11.	 Expenses 

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

	12.	 Notices 

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

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

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

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

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

  
 19 

 (vi) if sent by e-mail, on the date it is
delivered, 
 unless the date of that delivery (or attempted delivery) or that receipt, as applicable, is not a Local Business Day or
that communication is delivered (or attempted) or received, as applicable, after the close of business on a Local Business Day, in which case that communication will be deemed given and effective on the first following day that is a Local Business
Day. 
 (b) Change of Details. Either party may by notice to the other change the address, telex or facsimile number or
electronic messaging system or e-mail details at which notices or other communications are to be given to it. 
  

	13.	 Governing Law and Jurisdiction 

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

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

(1) if this Agreement is expressed to be governed by English law, to (A) the
non-exclusive jurisdiction of the English courts if the Proceedings do not involve a Convention Court and (B) the exclusive jurisdiction of the English courts if the Proceedings do involve a Convention
Court; or 
 (2) if this Agreement is expressed to be governed by the laws of the State of New York, to the non-exclusive jurisdiction of the courts of the State of New York and the United States District Court located in the Borough of Manhattan in New York City; 

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

(iii) agrees, to the extent permitted by applicable law, that the bringing of Proceedings in any one or more jurisdictions will
not preclude the bringing of Proceedings in any other jurisdiction. 
 (c) Service of Process, Each party irrevocably appoints
the Process Agent, if any, specified opposite its name in the Schedule to receive, for it and on its behalf, service of process in any Proceedings. If for any reason any party’s Process Agent is unable to act as such, such party will promptly
notify the other party and within 30 days appoint a substitute process agent acceptable to the other party. The parties irrevocably consent to service of process given in the manner provided for notices in Section 12(a)(i), 12(a)(iii) or
12(a)(iv). Nothing in this Agreement will affect the right of either party to serve process in any other manner permitted by applicable law. 

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

  
 20 

	14.	 Definitions 

As used in this Agreement:— 

“Additional Representation” has the meaning specified in Section 3. “Additional Termination
Event” has the meaning specified in Section 5(b). “Affected Party” has the meaning specified in Section 5(b). 

“Affected Transactions” means (a) with respect to any Termination Event consisting of an Illegality, Force
Majeure Event, Tax Event or Tax Event Upon Merger, all Transactions affected by the occurrence of such Termination Event (which, in the case of an Illegality under Section 5(b)(i)(2) or a Force Majeure Event under Section 5(b)(ii)(2),
means all Transactions unless the relevant Credit Support Document references only certain Transactions, in which case those Transactions and, if the relevant Credit Support Document constitutes a Confirmation for a Transaction, that Transaction)
and (b) with respect to any other Termination Event, all Transactions. 
 “Affiliate” means, subject to the
Schedule, in relation to any person, any entity controlled, directly or indirectly, by the person, any entity that controls, directly or indirectly, the person or any entity directly or indirectly under common control with the person. For this
purpose, “control” of any entity or person means ownership of a majority of the voting power of the entity or person. 

“Agreement” has the meaning specified in Section 1(c). “Applicable
Close-out Rate” means:— 
  

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

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

(iii) in respect of obligations deferred pursuant to Section 5(d), if there is no Defaulting Party and for so long as the
deferral period continues, the Applicable Deferral Rate; and 
 (iv) in all other cases following the occurrence of a
Termination Event (except where interest accrues pursuant to clause (iii) above), the Applicable Deferral Rate; and 
  

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

(i) for the period from (and including) the relevant Early Termination Date to (but excluding) the date (determined in
accordance with Section 6(d)(ii)) on which that amount is payable:— 
 (1) if the Early Termination Amount is
payable by a Defaulting Party, the Default Rate; 
 (2) if the Early Termination Amount is payable by a Non-defaulting Party, the Non-default Rate; and 

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

  
 21 

 (ii) for the period from (and including) the date (determined in accordance with
Section 6(d)(ii) on which that amount is payable to (but excluding) the date of actual payment:— 
 (1) if a party
fails to pay the Early Termination Amount due to the occurrence of an event or circumstance which would, if it occurred with respect to a payment or delivery under a Transaction, constitute or give rise to an Illegality or a Force Majeure Event, and
for so long as the Early Termination Amount remains unpaid due to the continuing existence of such event or circumstance, the Applicable Deferral Rate; 

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

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

“Applicable Deferral Rate” means:— 

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

(c) for purposes of Section 9(h)(i)(3)(C) and clauses (a)(iv), (b)(i)(3) and (b)(ii)(1) of the definition of Applicable Close-out Rate, a rate equal to the arithmetic mean of the rate determined pursuant to clause (a) above and a rate per annum equal to the cost (without proof or evidence of any actual cost) to the relevant
payee (as certified by it) if it were to fund or of funding the relevant amount. 
 “Automatic Early Termination”
has the meaning specified in Section 6(a). “Burdened Party” has the meaning specified in Section 5(b)(iv). 

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

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

  
 22 

 Section 2(a)(iii)) and (b) the option rights of the parties in respect of that
Terminated Transaction or group of Terminated Transactions. 
 Any Close-out Amount will be
determined by the Determining Party (or its agent), which will act in good faith and use commercially reasonable procedures in order to produce a commercially reasonable result. The Determining Party may determine a
Close-out Amount for any group of Terminated Transactions or any individual Terminated Transaction but, in the aggregate, for not less than all Terminated Transactions. Each
Close-out Amount will be determined as of the Early Termination Date or, if that would not be commercially reasonable, as of the date or dates following the Early Termination Date as would be commercially
reasonable. 
 Unpaid Amounts in respect of a Terminated Transaction or group of Terminated Transactions and legal fees and out-of-pocket expenses referred to in Section 11 are to be excluded in all determinations of Close-out Amounts. 

In determining a Close-out Amount, the Determining Party may consider any relevant information,
including, without limitation, one or more of the following types of information:— 
 (i) quotations (either firm or indicative) for
replacement transactions supplied by one or more third parties that may take into account the creditworthiness of the Determining Party at the time the quotation is provided and the terms of any relevant documentation, including credit support
documentation, between the Determining Party and the third party providing the quotation; 
 (ii) information consisting of relevant market
data in the relevant market supplied by one or more third parties including, without limitation, relevant rates, prices, yields, yield curves, volatilities, spreads, correlations or other relevant market data in the relevant market; or 

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

The Determining Party will consider, taking into account the standards and procedures described in this definition, quotations pursuant to
clause (i) above or relevant market data pursuant to clause (ii) above unless the Determining Party reasonably believes in good faith that such quotations or relevant market data are not readily available or would produce a result that
would not satisfy those standards. When considering information described in clause (i), (ii) or (iii) above, the Determining Party may include costs of funding, to the extent costs of funding are not and would not be a component of the other
information being utilised. Third parties supplying quotations pursuant to clause (i) above or market data pursuant to clause (ii) above may include, without limitation, dealers in the relevant markets,
end-users of the relevant product, information vendors, brokers and other sources of market information. 

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

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

  
 23 

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

“Confirmation” has the meaning specified in the preamble. 

“consent” includes a consent, approval, action, authorisation, exemption, notice, filing, registration or exchange
control consent. 
 “Contractual Currency” has the meaning specified in Section 8(a). 

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

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

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

“Credit Support Provider” has the meaning specified in the Schedule. “Cross-Default” means the
event specified in Section 5(a)(vi). 
 “Default Rate” means a rate per annum equal to the cost (without proof
or evidence of any actual cost) to the relevant payee (as certified by it) if it were to fund or of funding the relevant amount plus 1% per annum. 

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

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

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

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

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

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

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

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

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

“General Business Day” means a day on which commercial banks are open for general business (including dealings in
foreign exchange and foreign currency deposits). 
 “Illegality” has the meaning specified in Section 5(b).

  
 24 

 “Indemnifiabk Tax” means any Tax other than a Tax that would not be
imposed in respect of a payment under this Agreement but for a present or former connection between the jurisdiction of the government or taxation authority imposing such Tax and the recipient of such payment or a person related to such recipient
(including, without limitation, a connection arising from such recipient or related person being or having been a citizen or resident of such jurisdiction, or being or having been organised, present or engaged in a trade or business in such
jurisdiction, or having or having had a permanent establishment or fixed place of business in such jurisdiction, but excluding a connection arising solely from such recipient or related person having executed, delivered, performed its obligations or
received a payment under, or enforced, this Agreement or a Credit Support Document). 
 “law” includes any treaty,
law, rule or regulation (as modified, in the case of tax matters, by the practice of any relevant governmental revenue authority), and “unlawful” will be construed accordingly. 

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

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

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

“Multiple Transaction Payment Netting” has the meaning specified in Section 2(c). “Non-affected Party” means, so long as there is only one Affected Party, the other party. 

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

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

“Office” means a branch or office of a party, which may be such party’s head or home office. 

  
 25 

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

  
 26 

 “Payee” has the meaning specified in Section 6(f). “Payer”
has the meaning specified in Section 6(f). 
 “Potential Event of Default” means any event which, with the giving
of notice or the lapse of time or both, would constitute an Event of Default. 
 “Proceedings” has the meaning specified in
Section 13(b). “Process Agent” has the meaning specified in the Schedule. 
 “rate of exchange”
includes, without limitation, any premiums and costs of exchange payable in connection with the purchase of or conversion into the Contractual Currency. 

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

“Scheduled Settlement Date” means a date on which a payment or delivery is to be made under Section 2(a)(i) with respect
to a Transaction. 
 “Specified Entity” has the meaning specified in the Schedule. 

“Specified Indebtedness” means, subject to the Schedule, any obligation (whether present or future, contingent or otherwise,
as principal or surety or otherwise) in respect of borrowed money. 
 “Specified Transaction” means, subject to the
Schedule, (a) any transaction (including an agreement with respect to any such transaction) now existing or hereafter entered into between one party to this Agreement (or any Credit Support Provider of such party or any applicable Specified
Entity of such party) and the other party to this Agreement (or any Credit Support Provider of such other party or any applicable Specified Entity of such other party) which is not a Transaction under this Agreement but (i) which is a rate swap
transaction, swap option, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option, credit protection transaction, credit swap, credit default swap, credit default option, total return swap, credit spread transaction,
repurchase transaction, reverse repurchase transaction, buy/sell-back transaction, securities lending transaction, weather index transaction or forward purchase or sale of a security, commodity or other financial instrument or interest (including
any option with respect to any of these transactions) or (ii) which is a type of transaction that is similar to any transaction referred to in clause (i) above that is currently, or in the future becomes, recurrently entered into in the
financial markets (including terms and conditions incorporated by reference in such agreement) and which is a forward, swap, future, option or other derivative on one or more rates, currencies, commodities, equity securities or other equity
instruments, debt securities or other debt instruments, economic indices or measures of economic risk or value, or other benchmarks against which payments or deliveries are to be made, (b) any combination of these transactions and (c) any
other transaction identified as a Specified Transaction in this Agreement or the relevant confirmation. 
 “Stamp Tax”
means any stamp, registration, documentation or similar tax. 
 “Stamp Tax Jurisdiction” has the meaning specified in
Section 4(e). 

  
 27 

 “Tax” means any present or future tax, levy, impost, duty, charge,
assessment or fee of any nature (including interest, penalties and additions thereto) that is imposed by any government or other taxing authority in respect of any payment under this Agreement other than a stamp, registration, documentation or
similar tax. 
 “Tax Event” has the meaning specified in Section 5(b). 

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

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

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

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

“Termination Event” means an Illegality, a Force Majeure Event, a Tax Event, a Tax Event Upon Merger or, if specified
to be applicable, a Credit Event Upon Merger or an Additional Termination Event. 
 “Termination Rate” means a rate
per annum equal to the arithmetic mean of the cost (without proof or evidence of any actual cost) to each party (as certified by such party) if it were to fund or of funding such amounts. 

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

“Transaction” has the meaning specified in the preamble. 

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

  
 28 

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

“Waiting Period” means:— 

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

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

									
	JPMORGAN CHASE BANK, N.A.	 		 	CAMBRIDGE MASTER FUND L.P.
					
		 		 		 	By:	 	Ceres Managed Futures LLC
					
	By:	 	 /s/ Leila Safai
	 		 	By:	 	 /s/ Patrick T. Egan

	Name: Leila Safai	 		 	Name: Patrick T. Egan
	Title: Vice President,	 		 	Title: President & Director
	JPMorgan Chase Bank, N.A.	 		 	Ceres Managed Futures LLC
	Date: July 12, 2017	 		 	Date: July 12, 2017

 SCHEDULE 

to the 
 2002 ISDA Master
Agreement 
 dated as of July 12, 2017 

between 
  

					
	JPMorgan Chase Bank, N.A.,	  	and	  	Cambridge Master Fund L.P.,
	 a national banking association

organized under the laws of
 the
United States of America
 (“Party A”)
	  		  	 a limited partnership formed

in the United States
 (“Party
B”)

 Part 1 

Termination Provisions 

In this Agreement: 
  

	(1)	 “Specified Entity” shall mean: 

(a) in relation to Party A: any Affiliate for purposes of Section 5(a)(v) other than J.P. Morgan Ventures Energy
Corporation and shall not apply for purposes of any other provision; and 
 (b) in relation to Party B: not applicable. 

 

	(2)	 “Specified Transaction” will have the meaning specified in Section 14 of
this Agreement; provided that (x) the definition of “Specified Transaction shall be amended by inserting “, margin loan,” after “securities lending transaction,” in the tenth line thereof and (y) any agreement
relating to the clearing of derivative transactions or futures contracts shall be a “Specified Transaction”. 

  

	(3)	 The “Cross-Default” provisions of Section 5(a)(vi) will apply, and for
such purpose: 

  

	 	(a)	 “Specified Indebtedness” shall have the meaning set forth in Section 14; provided,
however, that Specified Indebtedness shall exclude, in relation to Party A, any deposits received in the ordinary course of business; and 

  

	 	(b)	 “Threshold Amount” means (i) in relation to Party A, an amount equal to 3 % of its
total shareholders’ equity, and (ii) in relation to Party B, an amount equal to 3% of its Net Asset Value (as defined in this Part 1). 

  

	 	(c)	 The phrase “, or becoming capable at such time of being declared,” shall be deleted and the
following language shall be added to the end thereof: 

 “provided, however, that notwithstanding the
foregoing, the default referred to in subsection (2) hereof shall not constitute an Event of Default if (i) the default is a failure to pay caused solely by an error or omission of an administrative or operational nature; (ii) the
party can demonstrate to the reasonable satisfaction of a third party that funds were 

 
available to such party to enable it to make the relevant payment when due; and (iii) such payment is made within one Local Business Day after such failure to pay;” 

 

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

 

	(5)	 The “Credit Event Upon Merger” provisions of Section 5(b)(v) will not
apply. 

  

	(6)	 The “Automatic Early Termination” provisions of Section 6(a) will not
apply. 

  

	(7)	 Additional Termination Events. Each of the following shall constitute an Additional
Termination Event for purposes of Section 5(b)(vi) of this Agreement, in respect of which Party B will be the Affected Party and all Transactions will be Affected Transactions: 

 

	 	(a)	 Investment Manager. Ceres Managed Futures LLC (“CMF”) or The Cambridge Strategy (Asset
Management) Limited (the “Investment Manager”) ceases to have authority over the trading and investment activities of Party B (including, without limitation, the authority to enter into Transactions, execute Confirmations, exercise all
rights of Party B in respect of Transactions, and make payments under this Agreement on behalf of Party B) and if Party A reasonably determines that such action has had, or will have, a material adverse effect on the ability of Party B to perform
its obligations under this Agreement; provided, that the termination of the authority of the Investment Manager shall not constitute an Additional Termination Event if (i) the Investment Manager is replaced with another investment manager
(“Replacement Investment Manager”) selected by CMF in its reasonable discretion; provided, further, that (x) any such Replacement Investment Manager shall be selected by CMF with reasonable care and diligence and (y) Party A must
consent to such Replacement Investment Manager, which consent shall not be unreasonably withheld by Party A or (ii) CMF itself is the sole Investment Manager with sole authority over the trading and investment activities of Party B. Any
reference to “Investment Manager” herein, in the event the Investment Manager is replaced with a Replacement Investment Manager, shall be deemed to refer to any such Replacement Investment Manager. 

 

	 	(b)	 No Plan Assets. The assets of Party B constitute “plan assets” under the Employee Retirement
Income Security Act of 1974, as amended, the Department of Labor Regulations promulgated thereunder or similar law. 

  

	 	(c)	 Minimum Net Asset Value. (i) Party B’s, Net Asset Value (exclusive of shareholder
redemptions, withdrawals, subscriptions, contributions and similar items (however described)) as of the last business day of any calendar month declines 20% or more from Party B’s Net Asset Value (exclusive of shareholder
redemptions, withdrawals, subscriptions, contributions and similar items (however described)) as of the last business day of the immediately preceding calendar month; (ii) Party B’s Net Asset Value (exclusive of shareholder redemptions,
Withdrawals, subscriptions, contributions and similar items (however described)) as of the last business day of any calendar month declines 30% or more from Party B’s Net Asset Value (exclusive of shareholder redemptions,
withdrawals, subscriptions, contributions and similar items (however described)) as of the last business day of the third calendar month immediately preceding such day; (iii) Party B’s Net Asset Value declines by 40% or more from Party
B’s Net Asset Value as of the last business day of the same month in the immediately preceding calendar year; or (iv) if less than 12 months have elapsed from 

	 	 
the date of this Agreement, Party B’s Net Asset Value declines by 40% or more from Party B’s highest Net Asset Value at any month end during such 12 month period.

 As used in this Agreement, “Net Asset Value” means, as of the relevant date, the Total Assets
of Party B minus the Total Liabilities of Party B (each valued at the market price therefor as of such date). “Total Assets” means, as of the relevant date, all assets of Party B which, in accordance with generally accepted accounting
principles in the United States of America would be generally classified as assets on the balance sheet of Party B as of such date, and “Total Liabilities” means, as of the relevant date, all liabilities of Party B which, in accordance
with generally accepted accounting principles in the United States of America would generally be classified as liabilities on the balance of Party B as of such date. 
  

	(8)	 Limitation on Right to Withhold Performance Under
Section 2(a)(iii). Without otherwise limiting the rights of a Non-defaulting Party or Non-affected Party (“X”), in the
event that X suspends payments or deliveries pursuant to Section 2(a)(iii)(1) of this Agreement following the occurrence of an Event of Default, Potential Event of Default or Additional Termination Event (an “Occurrence”), X
agrees that its right to withhold such payments or deliveries with respect to such Occurrence shall be limited to a period which is 45 calendar days after the first date of such suspension of payments or deliveries by X. 

 

	(9)	 Additional Condition Precedent. For the purposes of Section 2(a)(iii) of the
Agreement, it shall be an additional condition precedent that no Additional Termination Event with respect to the other party shall have occurred and be continuing. 

Part 2 
 Tax
Representations 
  

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

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

 

	(2)	 Payee Tax Representations. For the purpose of Section 3(f) of this Agreement, Party A and Party B
each hereby make the following representations: 

 (i) Party A represents that it is a U.S. person for U.S.
federal income tax purposes. 

 (ii) Party B represents that it is a U.S. person for U.S. federal income tax
purposes and its U.S. tax identification number is 46-0710272. 
  

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

  

	(4)	 Party A and Party B agree that the amendments set out in the Attachment (the “Attachment”)
to, and the provisions in Section 3(g) of, the ISDA 2015 Section 871(m) Protocol published by the International Swaps and Derivatives Association, Inc. (“ISDA”) on November 2, 2015 and available on the ISDA website
(www.isda.org) (the “Protocol”) are incorporated into and shall apply to this Agreement as if set forth herein. For this purpose, capitalized terms used but not defined in the Attachment shall have the meanings given to them
in the Protocol, except that references to “each Covered Master Agreement” in the Attachment will be deemed to be references to this Agreement and the “Implementation Date” referred to in the Attachment will be deemed to be the
date of this Agreement. 

 Part 3 

Agreement to Deliver Documents 

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

	 	(1)	 Documents to be delivered are: 

 

	 	(a)	 Each of Party A and Party B will, upon execution of this Agreement, deliver to the other party copies of all
corporate or partnership, as the case may be, authorizations and any other documents with respect to the execution, delivery and performance of this Agreement and each Credit Support Document on its behalf. 

 

	 	(b)	 Each of Party A and Party B will, upon execution of this Agreement and thereafter upon request of the other
party, deliver to the other party a certificate of authority and specimen signatures of individuals executing this Agreement, any Confirmations and each Credit Support Document. 

 

	 	(c)	 Each of Party A and Party B will, upon execution of this Agreement, deliver to the other party a duly executed
original of the Credit Support Document specified in Part 4. 

  

	 	(d)	 Party B will, upon execution of this Agreement, deliver to Party A a copy of its certificate of incorporation
or registration, as applicable, limited partnership agreement or articles and memorandum of association, as applicable, prospectus or offering memorandum (and any relevant supplements thereto) from the applicable feeder fund, if produced, investment
management agreement, and will thereafter promptly deliver copies of any amendments, supplements, or successors to any of the foregoing. 

  

	 	(e)	 Party B will deliver to Party A: 

 

	 	(i)	 as soon as available and in any event within 120 days after the end of each fiscal year of Party B, the
annual audited financial statements of Party B prepared in accordance with generally accepted accounting principles in the United States of America, together with an audit report thereon issued by independent certified public accountants certified
in the United States of America and of recognized national standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit); 

 

	 	(ii)	 within 20 days after the end of each calendar month, a monthly statement setting forth Party B’s total
net assets and percentage change in total net assets (exclusive of shareholder subscriptions and redemptions); and 

  

	 	(iii)	 promptly upon request, such additional information regarding the financial position or business of Party B as
Party A may reasonably request, which information concerning Party B shall pertain to (a) 

	 	 
leverage data; (b) generic portfolio composition, and (c) portfolio liquidity. 

  

	 	(f)	 Party B will deliver to Party A: 

a valid and complete U.S. Internal Revenue Service Form W-9, Form W-8EXP, Form W-8BEN, Form W-8BEN-E and/or Form W-8ECI
or applicable successor form (or, where Party B is not the beneficial owner for U.S. federal income tax purposes, from each beneficial owner of Party B together with a valid and complete Form W-8IMY (or
applicable successor form), with the allocation statement required to be delivered in connection therewith, from Party B, as relevant.), (I) prior to execution of this Agreement; (II) promptly upon reasonable demand by the other party; and
(III) promptly upon learning that any form or other document previously provided by Party B has become obsolete or incorrect. 
  

	 	(g)	 Party A shall deliver to Party B: 

 

	 	(i)	 After the end of each of its fiscal years, as soon as practicable after becoming publicly available and
requested by Party B if such financial statement is not available on “EDGAR” or the party’s home page on the World Wide Web, the annual report of JPMorgan Chase & Co. containing audited consolidated financial statements
prepared in accordance with accounting principles that are generally accepted in such party’s country of organization and certified by independent certified public accountants for each fiscal year; 

 

	 	(ii)	 After the end of each of its first three fiscal quarters as soon as practicable after becoming publicly
available and requested by Party B if such financial statement is not available on “EDGAR” or the party’s home page on the World Wide Web, the unaudited consolidated financial statements of JPMorgan Chase & Co. and the
consolidated balance sheet and related statements of income of JPMorgan Chase & Co. for each fiscal quarter prepared in accordance with accounting principles that are generally accepted in JPMorgan Chase & Co.’s country of
organization. 

 The documents provided by a party pursuant to Part 3 (1)(a), (b), (d), (e), (f) and
(g) shall be subject to the representation set forth in Section 3(d) of the Agreement. 
 Part 4 

Miscellaneous 
  

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

  

	 	(a)	 In connection with Section 12(a), all notices to Party A shall, with respect to any particular
Transaction, be sent to the address or facsimile number specified in the relevant Confirmation and any notice for purposes of Sections 5 or 6 shall be sent to the address specified below: 

JPMorgan Chase Bank, N.A. 

 Attention: Legal Department - Derivatives Practice Group 

270 Park Avenue 

New York, New York 10017-2070 

Facsimile No.: (646) 534-6393 

Net Asset Value statements shall be sent by facsimile or e-mail directly to: 

JPMorgan Chase Bank, N.A. 

383 Madison Avenue 

New York, New York 10179 

Attention: Managing Director, Credit Portfolio Risk Management — Hedge Funds 

Facsimile: 212-270-5222 

e-mail: jpm_nav_data@jpmorgan.com  

 

	 	(b)	 In connection with Section 12(a), all notices to Party B (and the Investment Manager on behalf of Party
B) for purposes of Sections 5 and 6, and all Confirmations with respect to each Transaction, shall be sent to the following: 

Cambridge Master Fund L.P. 

c/o Ceres Managed Futures LLC 

522 Fifth Avenue 

New York, New York 10036 

Attention: Patrick Egan 

Email: Patrick.egan@morganstanley.com 
  

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

Party A appoints as its Process Agent: Not applicable. 

Party B appoints as its Process Agent: Not applicable. 

 

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

 

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

 Party A is a Multibranch Party and may act through any Office specified in a Confirmation. 

Party B is not a Multibranch Party. 
  

	(5)	 Credit Support Document. 

The ISDA Credit Support Annex (New York Law, Security Interest Form) and supplementary “Paragraph 13 —
Elections & Variables” executed by the parties shall constitute a “Credit Support Document” in relation to each party, respectively, for all purposes of this Agreement. 

 

	(6)	 Credit Support Provider. 

Credit Support Provider means, in relation to Party A: Not applicable. 

 Credit Support Provider means, in relation to Party B: Not applicable. 

 

	(7)	 Governing Law; Jurisdiction. This Agreement will be governed by and construed in accordance with
the laws of the State of New York (without reference to choice of law doctrine). 

 Section 13(b) is
amended by (i) deleting the word “non-exclusive” in subsection (i)(2) thereof and replacing it with the word “exclusive” and (ii) deleting subsection (iii) thereof in its
entirety. 
  

	(8)	 Netting of Payments. “Multiple Transaction Payment Netting” will apply for the purpose
of Section 2(c) of this Agreement to all Transactions starting from the date of this Agreement. 

  

	(9)	 “Affiliate” will have the meaning specified in Section 14 of this Agreement;
provided, however, that with respect to Party B, Affiliate shall exclude The Cambridge Strategy (Asset Management) Limited. 

  

	(10)	 Absence of Litigation. For the purpose of Section 3(c) of this Agreement:

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

“Specified Entity” means, in relation to Party B:none. 

 

	(11)	 No Agency. The provisions of Section 3(g) of this Agreement will apply to this Agreement.

  

	(12)	 Additional Representation will apply, and for the purpose of Section 3 of this Agreement,
the following will constitute an Additional Representation: 

 “(h) Relationship
Between Parties. Each party will be deemed to represent to the other party on the date on which it enters into a Transaction that (absent a written agreement between the parties that expressly imposes affirmative obligations to the contrary for
that Transaction): 
 (i) Non-Reliance. It is acting
for its own account, and it has made its own independent decisions to enter into that Transaction and as to whether that Transaction is appropriate or proper for it based upon its own judgment and upon advice from such advisers as it has deemed
necessary. It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into that Transaction, it being understood that information and explanations related to the terms and
conditions of a Transaction will not be considered investment advice or a recommendation to enter into that Transaction. No communication (written or oral) received from the other party will be deemed to be an assurance or guarantee as to the
expected results of that Transaction. 
 (ii) Assessment and Understanding. It is capable of
assessing the merits of and evaluating and understanding (on its own behalf or through independent professional advice), and understands and accepts, the terms, conditions and risks of that Transaction. It is also capable of assuming, and assumes,
the financial and other risks of that Transaction. 
 (iii) Status of Parties. The other party
is not acting as a fiduciary for or an adviser to it in respect of that Transaction. 
 (iv) Other
Transactions. It understands and acknowledges that the other party may, either in connection with entering into a Transaction or from time to time thereafter, engage in open market transactions that are designed to hedge or reduce the risks
incurred 

 
by it in connection with such Transaction and that the effect of such open market transactions may be to affect or reduce the value of such Transaction. 

(v) Eligible Contract Participant. It is an ‘eligible contract participant’, as defined in Section la(18) of
the Commodity Exchange Act, as amended.” 
 (13) Party B Additional Representations. Party B represents to Party A at all
times until the termination of this Agreement that: 
  

	 	(i)	 Authorization of Investment Manager. The Investment Manager is duly authorized to conduct the trading
and investment activities of Party B (including, without limitation, the authority to enter into Transactions, execute Confirmations, exercise all rights of Party B in respect of Transactions, and make payments under this Agreement on behalf of
Party B). 

  

	 	(ii)	 Generally Accepted Accounting Principles. The financial information delivered by it pursuant to Part
3(1)(e) of this Schedule, including the related schedules and notes thereto, has been prepared in accordance with accounting principles that are generally accepted in the United States of America, applied consistently throughout the periods involved
(except as disclosed therein). 

  

	 	(iii)	 No Material Contingent Obligation(s). Neither Party B nor any of its subsidiaries has any material
contingent obligation, contingent liability or liability for taxes, long-term lease or unusual forward or long-term commitment, which is not reflected in the financial statements delivered to Party A pursuant to this Schedule or in the notes
thereto. 

 Each of the foregoing representations shall constitute an “Additional
Representation” for purposes of Section 3 of the Agreement. 
 (14) Telephonic Recording. Each party
(i) consents to the recording of the telephone conversations of trading, marketing and other relevant personnel of the parties and their Affiliates in connection with this Agreement or any potential Transaction, (ii) agrees to obtain any
necessary consent of, and give any necessary notice of such recording to, its relevant personnel and (iii) agrees, to the extent permitted by applicable law, that recordings may be submitted in evidence in any Proceedings. 

 Part 5 

Other Provisions 
  

	(1)	 Waiver of Right to Trial by Jury. Each party waives, to the fullest extent permitted by
applicable law, any right it may have to a trial by jury in respect of any suit, action or proceeding relating to this Agreement or any Credit Support Document. Each party (i) certifies that no representative, agent or attorney of
the other party or any Credit Support Provider has represented, expressly or otherwise, that such other party would not, in the event of such a suit, action or proceeding, seek to enforce the foregoing waiver and (ii) acknowledges
that it and the other party have been induced to enter into this Agreement and provide for any Credit Support Document, as applicable, by, among other things, the mutual waivers and certifications in this provision. 

 

	(2)	 ISDA Definitions. Reference is hereby made to the 2006 ISDA Definitions (the “2006
Definitions”) and the 1998 FX and Currency Option Definitions (the “FX Definitions”) (collectively the “ISDA Definitions”) each as published by the International Swaps and Derivatives Association, Inc., which are hereby
incorporated by reference herein. Any term used and not otherwise defined herein which are contained in the ISDA Definitions shall have the meaning set forth therein. 

 

	(3)	 Scope of Agreement. Notwithstanding anything contained in this Agreement to the contrary, any
transaction (other than a repurchase transaction, reverse repurchase transaction, buy/sell-back transaction, securities lending transaction, margin loan, forward purchase or sale of a security, or any transaction that is a futures, option or similar
exchange-traded transaction) which may otherwise constitute a “Specified Transaction” (without regard to the phrase “which is not a Transaction under this Agreement but” in the definition of “Specified Transaction”) for
purposes of this Agreement which has been or will be entered into between the parties shall constitute a “Transaction” which is subject to, governed by, and construed in accordance with the terms of this Agreement, unless any Confirmation
with respect to a Transaction entered into after the execution of this Agreement expressly provides otherwise. 

  

	(4)	 Inconsistency. In the event of any inconsistency between any of the following documents, the
relevant document first listed below shall govern: (i) a Confirmation; (ii) this Schedule and or Paragraph 13 of an ISDA Credit Support Annex (as applicable); (iii) the ISDA Definitions; and (iv) the printed form of ISDA Master
Agreement and ISDA Credit Support Annex (as applicable). In the event of any inconsistency between provisions contained in the 2006 Definitions and the FX Definitions, the FX Definitions shall prevail. 

 

	(5)	 Financial Statements. Section 3(d) is hereby amended by adding the following in the third
line thereof after the word “respect” and before the period: 

 “or, in the case of
financial statements, a fair presentation in all material respects, of the financial condition of the relevant party”. 
  

	(6)	 Calculation Agent. 

(i) Subject to the provisions of this Part 5(6) and except as otherwise provided in the applicable Confirmation or Master
Confirmation, the Calculation Agent will be Party A; provided, however, that if an Event of Default occurs and is continuing in respect of Party A, the Calculation Agent will be Party B or an Independent Dealer (as defined below) reasonably
selected by Party B. 

 (ii) The procedure set forth in this subpart (ii) is applicable to all
Transactions except Credit Derivative Transactions (as defined in the 2003 ISDA Credit Derivatives Definitions) (or any successor ISDA publication to such definitions) and Non-Disputable Equity Derivatives
Transactions). Unless otherwise agreed in a global master confirmation agreement between the parties, a “Non-Disputable Equity Derivatives Transaction” means any Transaction in respect of which
(y) the relevant Confirmation incorporates the 2002 ISDA Equity Derivatives Definitions (or any successor ISDA publication to such definitions) and (z) one or more of the Exchanges is located (A) in any of Bahrain, Czech Republic,
Egypt, Greece, Hungary, Iceland, Jordan, Kuwait, Morocco, Oman, Poland, Qatar, Russia, Saudi Arabia, South Africa, Turkey or the United Arab Emirates, (B) anywhere in Asia other than Japan, Australia, Hong Kong, New Zealand or Singapore or
(C) anywhere in Latin America other than Brazil. 
 A party (the “Objecting Party”) has the right to
dispute in good faith and on commercially reasonable grounds a particular Determination made by the Calculation Agent, provided that the Objecting Party notifies the other party and the Calculation Agent (if the other party is not the Calculation
Agent) of such dispute promptly (but in no event later than one Reference Day) after the Calculation Agent has provided the Objecting Party and the other party (if the other party is not the Calculation Agent) with notice of such Determination. In
any such instance, the parties shall, within three Reference Days after such notice, jointly select three Independent Dealers (or, if the parties cannot jointly agree on three, each party shall select an Independent Dealer, which two Independent
Dealers shall jointly select a third Independent Dealer). Each such Independent Dealer shall be requested by the Calculation Agent to make a Determination as to the disputed matter within three Reference Days after its appointment. 

In the event that two or three Independent Dealers provide a Determination as to the disputed matter within three Reference
Days after their respective appointments: 
  

	 	(y)	 if those Determinations are susceptible to the calculation of an arithmetic mean, the arithmetic mean of such
Determinations shall be binding on the parties for the disputed matter, absent manifest error; or 

  

	 	(z)	 if those Determinations are not susceptible to the calculation of an arithmetic mean (e.g., Determinations as
to whether or not an event has occurred or terms of a Transaction are to be adjusted), then (A) if a majority of the responding Independent Dealers provided the same Determination, such Determination shall be binding on the parties for the
disputed matter, absent manifest error, or (B) if a majority of the Independent Dealers did not provide the same Determination, the responding Independent Dealers will jointly appoint a fourth Independent Dealer (the “Resolver”). The
Resolver will select, within two Reference Days after its appointment, from the Determinations originally provided by the responding Independent Dealers, 

	 	 
with the selected Determination being binding on the parties for the disputed matter, absent manifest error. 

The costs of any Independent Dealers or Resolver shall be borne by (x) the Objecting Party if the Determination made
pursuant to this subpart (ii) substantially comports with the relevant Determination made by the Calculation Agent or if the relevant Determination made by the Calculation Agent otherwise applies, (y) Party B if Party B disputes a
Determination made by a Calculation Agent selected by Party B, or (z) Party A, if Party A is the Calculation Agent and the Determination made pursuant to this subpart (ii) does not substantially comport with the relevant Determination made
by the Calculation Agent. 
 The following terms used in this Part 5(6) have the following meanings: 

“Determination” means any determination, calculation, or adjustment, as the case may be. 

“Independent Dealer” means a leading dealer in the relevant market that is not an Affiliate of either of the parties
or any other appointed Independent Dealer. 
 “Reference Day” means, in respect of any Transaction, a Business Day
as defined as set forth in the Confirmation evidencing such Transaction or, absent such definition, a day that is a Banking Day (as defined in the 2006 ISDA Definitions) in New York and in the location of the office of Party A where such Transaction
is booked. 
 (iii) A party’s right to dispute a Determination under subpart (ii) immediately above shall
(1) cease to be applicable at any time that a Potential Event of Default or Event of Default in respect of such party or an Additional Termination Event in respect of which such party is the sole Affected Party has occurred and is continuing,
(2) be inapplicable in respect of any Transaction for which the relevant Confirmation or Master Confirmation sets forth procedures for disputing a Determination by the Calculation Agent, and (3) be inapplicable to any Determination made
pursuant to the terms of any Protocol sponsored by ISDA to which the parties adhere. Notwithstanding a party’s exercise of its right to dispute a Determination under subpart (ii) immediately above, any undisputed amounts or deliveries in
respect of any Transaction shall be made by the relevant party as if no dispute existed. 
 Part 6 

Foreign Exchange & Currency Option Transactions 

(1) Section 2.2(a) of the FX Definitions is hereby amended by substituting the following therefor in its entirety: 

(a) Deliverable FX Transaction. 

 (i) Unless the parties expressly agree in a Confirmation of a
Deliverable FX Transaction that this subsection (i) shall be inapplicable to such Deliverable FX Transaction, the obligation of Party A to make a payment in respect of any Deliverable FX Transaction on a Settlement Date is subject to the
condition precedent that Party B shall have first satisfied its obligation to make each payment under such Deliverable FX Transaction, subject to any applicable condition precedent and any applicable provisions of Article 5. 

(ii) If the parties expressly agree in a Confirmation of a Deliverable FX Transaction that subsection
(i) immediately above shall be inapplicable to such Deliverable FX Transaction, each party will pay, on the Settlement Date in respect of such Deliverable FX Transaction, the amount specified as payable by it in the related Confirmation,
subject to any applicable condition precedent and any applicable provisions of Article 5. 
 (2) Section 3.4 of the FX Definitions is
amended by adding the following: 
 (c) Discharge and Termination. Unless otherwise agreed, any Call or any Put
written by a party will automatically be terminated and discharged, in whole or in part, as applicable, against a Call or a Put, respectively, written by the other party, such termination and discharge to occur automatically upon the payment in full
of the last Premium payable in respect of such Currency Option Transactions; provided that such termination and discharge may only occur in respect of Currency Option Transactions: 

(i) each being with respect to the same Put Currency and the same Call Currency; 

(ii) each having the same Expiration Date and Expiration Time; 

(iii) each being of the same style, i.e. either both being American style Currency Option Transactions or both
being European style Currency Option Transactions; 
 (iv) each having the same Strike Price and other
material terms; 
 (v) neither of which shall have been exercised by delivery of a Notice of Exercise; and

 (vi) each having been transacted by the same pair of Offices of the Buyer and Seller. 

and, upon the occurrence of such termination and discharge, neither party shall have any further obligation to the other party
in respect of the relevant Currency Option Transactions or, as the case may be, parts thereof so terminated and discharged. In the case of a partial termination and discharge (i.e., where the relevant Currency Option Transactions are for different
amounts of the Currency Pair), the remaining portion of the Currency Option Transaction which is partially discharged and terminated shall continue to be a Currency Option Transaction for all purposes of this Agreement, including this
Section 3.4(c). 
 (3) Section 3.7(a) of the FX Definitions is hereby amended by substituting the following therefor in its entirety:

 (a) Deliverable Currency Option Transaction. In respect of an Exercise Date under a Deliverable Currency Option
Transaction, on the Settlement Date, except as otherwise set forth in this Section 3.7(a), Buyer will pay to Seller the Put Currency Amount and Seller will pay to Buyer the Call Currency Amount, subject to the provisions of Section 3.6(c),
any other applicable condition precedent and any applicable provisions of Article 5. Unless 

 
the parties expressly agree in a Confirmation of a Deliverable Currency Option Transaction that this sentence shall be inapplicable to such Deliverable Currency Option Transaction, Party A may,
by notice to Party B before the Settlement Date of any Deliverable Currency Option Transaction, require that each party pay the USD Equivalent of the amount payable by under such Deliverable Currency Option Transaction. “USD Equivalent”
means (i) if the relevant currency is U.S. dollars, the amount of U.S. dollars and (ii) if the relevant currency is not U.S. dollars, the equivalent in U.S. dollars of the amount of such currency as determined by Party A in a commercially
reasonable manner based on market rates available to Party A at such time in the New York foreign exchange market (or, at the option of Party A, in the foreign exchange market of any other financial center which is then open for business). 

(4) Confirmations. 

(a) Notwithstanding anything to the contrary in this Agreement, Party A and Party B hereby agree that
Deliverable FX Transactions, Non-Deliverable FX Transactions (“NDF Transactions”) that are subject to the Master Confirmation for Non-Deliverable Forward FX
Transactions between the parties, European style Deliverable Currency Option Transactions without any special features, Non-Deliverable Currency Option Transactions (“NDO Transactions”) that are
subject to the Master Confirmation for Non-Deliverable Currency Option FX Transactions (European Style) between the parties, Bullion Trades, and European Style Bullion Options without any special features
(collectively, “Relevant Transactions”), may be confirmed electronically as set forth below through the use of an internet website provided by Party A (a “JPM Website”), a file transfer over an internet server provided by Party A
(a “JPM Internet Server”), or an electronic trading system (an “ET System”) provided by Party A or a third party approved by Party A by notice to Party B (an “Approved Provider”). Party A will provide a user ID and/or
password to Party B to enable Party B to access a JPM Website, a JPM Internet Server, or an ET System provided by Party A. Access to an ET System provided by an Approved Provider will be subject to such rules and/or agreement as required by the
Approved Provider. Party A and Party B hereby agree that Party B may: 
 (i) input (each such input, a
“Transaction Message”) onto a JPM Website the material economic terms of one or more Relevant Transactions that (x) Party B has entered into directly with Party A or (y) Party B has entered into with an executing dealer (as
identified in accordance with subsection (c) immediately below) pursuant to a Foreign Exchange and Bullion Authorization Agreement (the “Authorization Agreement”) dated as of July 12, 2017 among Party A, The Cambridge Strategy
(Asset Management) Limited, and Party B under, and subject to the terms and conditions of, which Party B has been authorized to enter into such a transaction on behalf of Party A; or 

(ii) send to Party A a file (each such file, an “Electronic File”) by means of transfer over a JPM
Internet Server, setting forth the material economic terms of one or more Relevant Transactions that (x) Party B has entered into directly with Party A or (y) Party B has entered into with an executing dealer (as identified in accordance
with subsection (c) immediately below) on behalf of Party A pursuant to the Authorization Agreement; or 

(iii) enter into a Relevant Transaction through an ET System which ET System will provide an electronic message
to Party A setting forth the details of the Relevant Transaction (an “ET System Message”) and will indicate whether such Relevant Transaction has been entered into by (x) Party B directly with Party A or (y) Party B with an
executing dealer on behalf of Party A pursuant to the Authorization Agreement. 

 (b) Party A and Party B hereby agree that any Transaction Message, Electronic
File, or ET System Message will have the same force, effect, and validity as a paper copy of a Confirmation that has been manually signed by an authorized officer on behalf of Party B of (1) in the case of (a)(i)(x), (a)(ii)(x), or (a)(iii)(x)
immediately above, the Transaction between Party A and Party B and (2) in the case of (a)(i)(y), (a)(ii)(y), or (a)(iii)(y) immediately above, the Offsetting Transaction (as defined in the Authorization Agreement) corresponding to the relevant
Transaction entered into with the relevant executing dealer. Party B will be bound by and responsible for all messages entered or transmitted under the user ID or password or by an ET System. 

(c) Party B agrees that any Transaction Message or Electronic File provided to Party A pursuant to subsection
(a) immediately above: 
 (i) in respect of a Deliverable FX Transaction will contain the following
information: Trade Date, the other party to the FX Transaction (if an entity other than Party A is listed, the FX Transaction will be deemed to have been entered into by the Party B on behalf of Party A pursuant to the Authorization Agreement), the
amount and currency payable by the Party B, the amount and currency payable by Party A and/or the exchange rate, and the Settlement Date; 

(ii) in respect of a NDF Transaction will contain the following information: Trade Date, the other party to the
NDF Transaction (if an entity other than Party A is listed, the NDF Transaction will be deemed to have been entered into by the Party B on behalf of Party A pursuant to the Authorization Agreement), Reference Currency, whether the Reference Currency
for the NDF Transaction is being bought or sold from Party B’s perspective, the Reference Currency Notional Amount, the Notional Amount, the Forward Rate, Settlement, Settlement Date, Valuation Date and Settlement Currency. 

(iii) in respect of a European style Deliverable Currency Option Transaction will contain the following
information: Trade Date, whether the Currency Option Transaction is being bought or sold from Party B’s perspective, the other party to the Currency Option Transaction (if an entity other than Party A is listed, the Currency Option Transaction
will be deemed to have been entered into by the Party B on behalf of Party A pursuant to the Authorization Agreement), Call Currency and Call Currency Amount, Put Currency and Put Currency Amount, Option Type, the Settlement Date, the Strike Price,
the Expiration Date, the Expiration Time, the city in which expiration occurs, Premium, and the Premium Payment Date. 

(iv) in respect of a NDO Transaction will contain the following information: Trade Date, whether the NDO
Transaction is being bought or sold from Party B’s perspective, the other party to the NDO Transaction (if an entity other than Party A is listed, the NDO Transaction will be deemed to have been entered into by the Party B on behalf of Party A
pursuant to the Authorization Agreement), Call Currency and Call Currency Amount, Put Currency and Put Currency Amount, Currency Option Type, Reference Currency, Settlement Currency, Strike Price, Settlement Date, Settlement, Valuation Date,
Premium, and the Premium Payment Date. 
 (v) in respect of a Bullion Trade will contain the following
information: Trade Date, the other party to the Bullion Trade (if an entity other than Party A is listed, the Bullion Trade will be deemed to have been entered into by the Party B on behalf of Party A pursuant to the Authorization Agreement),
whether the Bullion involved in the 

 
Bullion Trade is being bought or sold from Party B’s perspective, the Number of Ounces being bought or sold by Party B pursuant to the Bullion Trade, the type of Bullion involved in the
Bullion Trade, the Transaction Currency, the Bullion Transaction Settlement Date, and the Contract Price. 
 (vi) in respect
of a European Style Bullion Option will contain the following information: Trade Date, the other party to the Bullion Option (if an entity other than Party A is listed, the Bullion Option will be deemed to have been entered into by the Party B on
behalf of Party A pursuant to the Authorization Agreement), whether the European Style Bullion Option is being bought or sold from Party B’s perspective, the Number of Ounces being bought or sold by Party B pursuant to the Bullion Option, the
type of Bullion involved in the Bullion Option, the Transaction Currency, the Settlement Date, the Bullion Strike Price, the strike price quote, the Bullion Expiration Date, the Bullion Expiration Time, the city in which expiration occurs, Bullion
Premium, type of Bullion in which Bullion Premium is quoted, the Bullion Premium Payment Date, and the Bullion Option Type. 

(d) With respect to all Bullion Trades and Bullion Options confirmed pursuant to this provision, (i) Settlement by
Delivery, (ii) Bullion Business Days, (iii) a Delivery Location of London for Bullion Trades and Bullion Options, will be deemed to apply. 

Part 7 

Master Close-out and Set-off 

 

	(1)	 Definitions. For the purposes of this Part 7, the following terms have the following
definitions: 

 “JPM Affiliate” means each of Party A and any of its Affiliates
that executes this Agreement. 
 “JPM Affiliate Agreement” means any Specified Agreement to which
Party B and any JPM Affiliate are parties. 
 “Specified Agreement” means (i) an agreement governing any
Specified Transaction, (ii) any agreement in respect of credit support for obligations under any Specified Transaction or under an agreement governing any Specified Transaction, (iii) any futures agreement or clearing agreement or other
similar agreement and (iv) any Institutional Account Agreement with J.P. Morgan Securities LLC or J.P. Morgan Securities plc. 

For the purposes of the definition of “Specified Agreement”, the term “Specified Transaction” has the
meaning set forth in Section 14 but excluding the following words in subpart (a) of the definition of “Specified Transaction”: “between one party to this Agreement (or any Credit Support Provider of such party or any
applicable Specified Entity of such party) and the other party to this Agreement (or any Credit Support Provider of such other party or any applicable Specified Entity of such other party) which is not a Transaction under this Agreement but”.

  

	(2)	 Master Close-out. Without limiting any provision in any
JPM Affiliate Agreement, each JPM Affiliate and Party B agree that the occurrence of any event of default, default, termination event, or similar condition or event (however described) in respect of Party B or a JPM Affiliate

	 	 
(the entity in respect of which such occurrence takes place being the “Master Close-out Defaulting Party”) under a JPM Affiliate Agreement on the
basis of which the other party to such JPM Affiliate Agreement has the contractual right to terminate, close-out or liquidate all transactions governed by such JPM Affiliate Agreement or which causes the
automatic termination of all such transactions shall entitle the Master Close-out Non-Defaulting Party (as defined below) to terminate all transactions governed by any
other JPM Affiliate Agreement (each, an “Other JPM Affiliate Agreement”). “Master Close-out Non-Defaulting Party” means (i) Party B if the
Master Close-out Defaulting Party is a JPM Affiliate or (ii) the JPM Affiliate that is the party to such Other JPM Affiliate Agreement if the Master Close-out
Defaulting Party is Party B. The amount payable in respect of the termination of transactions governed by any such Other JPM Affiliate Agreement shall be determined in accordance with any applicable provisions thereof and, if there are no such
applicable provisions, in the same manner as set forth in Section 6 of this Agreement as if the transactions governed by such other JPM Affiliate Agreement were Transactions governed by this Agreement. 

 

	(3)	 Authorization to Transfer Funds. Notwithstanding anything to the contrary in this Agreement or
any other agreement, upon the occurrence and during the continuation of any event of default, default, termination event, or similar condition or event (however described) in respect of Party B under any JPM Affiliate Agreement, Party B authorizes
each JPM Affiliate, in its sole discretion and without prior notice to Party B, to transfer or cause to be transferred any funds, securities and/or other property to, between, or among any accounts maintained by Party B with or among any JPM
Affiliates. 

  

	(4)	 Assignment. Notwithstanding any provision to the contrary in any JPM Affiliate Agreement, upon
the occurrence and during the continuation of any event of default, default, termination event, or similar condition or event (however described) in respect of Party B under any JPM Affiliate Agreement, Party B hereby consents and agrees that the
rights and obligations of any JPM Affiliate in respect of any JPM Affiliate Agreement may be assigned to any other JPM Affiliate without the prior written consent of Party B. 

 

	(5)	 Additional JPM Set Off Rights. Any amount payable by a JPM Affiliate to Party B in respect of
the termination of all transactions governed by a JPM Affiliate Agreement as the result of the occurrence of any event of default, default, termination event, or similar condition or event (however described) in respect of Party B may, at the option
of such JPM Affiliate (and without prior notice to Party B), be reduced by its set-off against any Other Agreement Amount (as hereinafter defined). As used herein, “Other Agreement Amount” shall mean
any payment obligation of any description whatsoever (whether arising at such time or in the future or upon the occurrence of a contingency) by Party B to any JPM Affiliate (irrespective of the currency, place of payment or booking office of the
obligation or whether the relevant party is legally or beneficially the holder of the obligation) arising under any agreement between Party B and any JPM Affiliate or any instrument or undertaking issued or executed or guaranteed by Party B to, or
in favor of, any JPM Affiliate or any bond, note, or other debt instrument issued or guaranteed by Party B and owned or held beneficially by any JPM Affiliate as a result of the purchase thereof by or on behalf of any JPM Affiliate, whether directly
from the issuer or in the secondary market; and the Other Agreement Amount will be discharged promptly and in all respects to the extent it is so set-off. The JPM Affiliate effecting any set-off pursuant to this section will give notice to Party B of any such set-off. 

For this purpose, the Other Agreement Amount (or the relevant portion of such amounts) may be converted by the JPM Affiliate
effecting the set-off into the currency in which the obligation of such JPM Affiliate is denominated at the rate of exchange at which such JPM Affiliate would be able, acting in a reasonable manner and in good
faith, to purchase the relevant amount of 

 
such currency. If an obligation is unascertained, a JPM Affiliate may in good faith estimate that obligation and set-off in respect of the estimate,
subject to the relevant party accounting to the other when the obligation is ascertained. Nothing in this section shall be effective to create a charge or other security interest. This section shall be without prejudice and in addition to any right
of set-off, combination of accounts, lien or other right to which any entity is at any time otherwise entitled (whether by operation of law, contract or otherwise). 

									
	 CAMBRIDGE MASTER FUND L.P.
	 		 	 JPMORGAN CHASE BANK, N.A.

					
	 By:
	 	 Ceres Managed Futures LLC
	 		 		 	
					
	 By:
	 	 /s Patrick T. Egan
	 		 	 By:
	 	 /s/ Leila Safai

	 Name: Patrick T. Egan
	 		 	 Name: Leila Safai

	 Title: President & Director
	 		 	 Title: Vice President

		 	     Ceres Managed Futures LLC
	 		 	 JPMorgan Chase Bank, N.A.

			
		 		 	 J.P. MORGAN SECURITIES LLC

		 		 	 J.P. MORGAN SECURITIES plc

		 		 	 J.P. MORGAN MARKETS AUSTRALIA PTY LTD.

				
		 		 		 	 With respect to Part 7 of the Schedule

					
		 		 		 	 By:
	 	 /s/ Leila Safai

		 		 		 	 Title: Authorized Signatory

			
	 (Bilateral Form)
	  	(ISDA Agreements Subject to New York Law Only)

  

			
	ISDA	  	 Safe,

Efficient
 Markets

 International Swaps and Derivatives Association, Inc. 

2016 CREDIT SUPPORT ANNEX FOR 

VARIATION MARGIN (VM) 

dated as of July 12, 2017 

to the Schedule to the 
 2002
MASTER AGREEMENT 
 dated as of July 12, 2017 

between 
  

			
	JPMORGAN CHASE BANK, N.A.	  	and CAMBRIDGE MASTER FUND L.P.
	(“Party A”)	  	(“Party B”)

 This Annex supplements, forms part of, and is subject to, the above-referenced Agreement, is part of its
Schedule and is a Credit Support Document under this Agreement with respect to each party. 
 Accordingly, the parties agree as follows:-

 Paragraph 1. Interpretation 

(a) Definitions and Inconsistency. Capitalized terms not otherwise defined herein or elsewhere in this Agreement have the
meanings specified pursuant to Paragraph 12, and all references in this Annex to Paragraphs are to Paragraphs of this Annex. In the event of any inconsistency between this Annex and the other provisions of this Schedule, this Annex will prevail, and
in the event of any inconsistency between Paragraph 13 and the other provisions of this Annex, Paragraph 13 will prevail. 
 (b)
Secured Party and Pledgor. All references in this Annex to the “Secured Party” will be to either party when acting in that capacity and all corresponding references to the “Pledgor” will be to the other party when acting
in that capacity; provided, however, that if Other Posted Support (VM) is held by a party to this Annex, all references herein to that party as the Secured Party with respect to that Other Posted Support (VM) will be to that party as the
beneficiary thereof and will not subject that support or that party as the beneficiary thereof to provisions of law generally relating to security interests and secured parties. 

(c) Scope of this Annex and the Other CSA. The only Transactions which will be relevant for the purposes of determining
“Exposure” under this Annex will be the Covered Transactions specified in Paragraph 13. Each Other CSA, if any, is hereby amended such that the Transactions that will be relevant for purposes of determining “Exposure” thereunder,
if any, will exclude the Covered Transactions. Except as provided in Paragraphs 8(a), 8(b) and 11(j), nothing in this Annex will affect the rights and obligations, if any, of either party with respect to “independent amounts” or initial
margin under each Other CSA, if any, with respect to Transactions that are Covered Transactions. 
 Copyright © 2016 by International
Swaps and Derivatives Association, Inc. 

 Paragraph 2. Security Interest 

Each party, as the Pledgor, hereby pledges to the other party, as the Secured Party, as security for its Obligations, and grants to the Secured
Party a first priority continuing security interest in, lien on and right of Set-off against all Posted Collateral (VM) Transferred to or received by the Secured Party hereunder. Upon the Transfer by the
Secured Party to the Pledgor of Posted Collateral (VM), the security interest and lien granted hereunder on that Posted Collateral (VM) will be released immediately and, to the extent possible, without any further action by either party. 

Paragraph 3. Credit Support Obligations 

(a) Delivery Amount (VM). Subject to Paragraphs 4 and 5, upon a demand made by the Secured Party on or promptly following a
Valuation Date, if the Delivery Amount (VM) for that Valuation Date equals or exceeds the Pledgor’s Minimum Transfer Amount, then the Pledgor will Transfer to the Secured Party Eligible Credit Support (VM) having a Value as of the date of
Transfer at least equal to the applicable Delivery Amount (VM) (rounded pursuant to Paragraph 13). Unless otherwise specified in Paragraph 13, the “Delivery Amount (VM)” applicable to the Pledgor for any Valuation Date will equal
the amount by which: 
 (i) the Secured Party’s Exposure 

exceeds 

(ii) the Value as of that Valuation Date of all Posted Credit Support (VM) held by the Secured Party. 

(b) Return Amount (VM). Subject to Paragraphs 4 and 5, upon a demand made by the Pledgor on or promptly following a Valuation
Date, if the Return Amount (VM) for that Valuation Date equals or exceeds the Secured Party’s Minimum Transfer Amount, then the Secured Party will Transfer to the Pledgor Posted Credit Support (VM) specified by the Pledgor in that demand having
a Value as of the date of Transfer as close as practicable to the applicable Return Amount (VM) (rounded pursuant to Paragraph 13). Unless otherwise specified in Paragraph 13, the “Return Amount” applicable to the Secured Party for
any Valuation Date will equal the amount by which: 
 (i) the Value as of that Valuation Date of all Posted Credit Support
(VM) held by the Secured Party exceeds 
 (ii) the Secured Party’s Exposure. 

Paragraph 4. Conditions Precedent, Transfer Timing, Calculations and Substitutions 

(a) Conditions Precedent. Unless otherwise specified in Paragraph 13, each Transfer obligation of the Pledgor 

under Paragraphs 3, 5 and 6(d) and of the Secured Party under Paragraphs 3, 4(d)(ii), 5, 6(d) and 11(h) is subject to the conditions precedent
that: 
 (i) no Event of Default, Potential Event of Default or Specified Condition has occurred and is continuing with
respect to the other party; and 
 (ii) no Early Termination Date for which any unsatisfied payment obligations exist has
occurred or been designated as the result of an Event of Default or Specified Condition with respect to the other party. 
 (b) Transfer
Timing. Subject to Paragraphs 4(a) and 5 and unless otherwise specified in Paragraph 13, if a demand for the Transfer of Eligible Credit Support (VM) or Posted Credit Support (VM) is made by the Notification Time, then the relevant Transfer will
be made not later than the close of business on the Regular Settlement Day; if a demand is made after the Notification Time, then the relevant Transfer will be made not later than the close of business on the next Local Business Day following the
Regular Settlement Day. 
 (c) Calculations. All calculations of Value and Exposure for purposes of Paragraphs 3 and 6(d) will be
made by the Valuation Agent as of the Valuation Time; provided that the Valuation Agent may use, in the case of any calculation of (i) Value, Values most recently reasonably available for close of business in the relevant market for

  

					
		 	2	  	ISDA®2016

 
the relevant Eligible Credit Support (VM) as of the Valuation Time and (ii) Exposure, relevant information or data most recently reasonably available for close of business in the relevant
market(s) as of the Valuation Time. The Valuation Agent will notify each party (or the other party, if the Valuation Agent is a party) of its calculations not later than the Notification Time on the Local Business Day following the applicable
Valuation Date (or in the case of Paragraph 6(d), following the date of calculation). 
 (d) Substitutions. 

(i) Unless otherwise specified in Paragraph 13, upon notice to the Secured Party specifying the items of Posted Credit Support
(VM) to be exchanged, the Pledgor may, on any Local Business Day, Transfer to the Secured Party substitute Eligible Credit Support (VM) (the “Substitute Credit Support (VM)”); and 

(ii) subject to Paragraph 4(a), the Secured Party will Transfer to the Pledgor the items of Posted Credit Support (VM)
specified by the Pledgor in its notice not later than the Local Business Day following the date on which the Secured Party receives the Substitute Credit Support (VM), unless otherwise specified in Paragraph 13 (the “Substitution
Date”); provided that the Secured Party will only be obligated to Transfer Posted Credit Support (VM) with a Value as of the date of Transfer of that Posted Credit Support (VM) equal to the Value as of that date of the Substitute Credit
Support (VM). 
 Paragraph 5. Dispute Resolution 

If a party (a “Disputing Party”) disputes (I) the Valuation Agent’s calculation of a Delivery Amount (VM) or a
Return Amount (VM) or (II) the Value of any Transfer of Eligible Credit Support (VM) or Posted Credit Support (VM), then: 

(i) the Disputing Party will notify the other party and the Valuation Agent (if the Valuation Agent is not the other party) not
later than the close of business on (X) the date that the Transfer is due in respect of such Delivery Amount (VM) or Return Amount (VM) in the case of (I) above, or (Y) the Local Business Day following the date of Transfer in the case
of (II) above, 
 (ii) subject to Paragraph 4(a), the appropriate party will Transfer the undisputed amount to the other
party not later than the close of business on (X) the date that the Transfer is due in respect of such Delivery Amount (VM) or Return Amount (VM) in the case of (I) above, or (Y) the Local Business Day following the date of Transfer
in the case of (II) above, 
 (iii) the parties will consult with each other in an attempt to resolve the dispute, and

 (iv) if they fail to resolve the dispute by the Resolution Time, then: 

(A) In the case of a dispute involving a Delivery Amount (VM) or Return Amount (VM), unless otherwise specified in Paragraph
13, the Valuation Agent will recalculate the Exposure and the Value as of the Recalculation Date by: 
 (1) utilizing any
calculations of Exposure for the Covered Transactions that the parties have agreed are not in dispute; 
 (2) (I) if this
Agreement is a 1992 ISDA Master Agreement, calculating the Exposure for the Covered Transactions in dispute by seeking four actual quotations at mid-market from Reference Market-makers for purposes of
calculating Market Quotation, and taking the arithmetic average of those obtained, or (II) if this Agreement is an ISDA 2002 Master Agreement or a 1992 ISDA Master Agreement in which the definition of Loss and/or Market Quotation has been
amended (including where such amendment has occurred pursuant to the terms of a separate agreement or protocol) to reflect the definition of Close-out Amount from the
pre-printed form of the ISDA 2002 Master Agreement as published by ISDA, calculating the Exposure for the Covered Transactions in dispute by seeking four actual quotations at
mid-market from third parties for purposes of calculating the relevant Close-out Amount, and taking the arithmetic average of those obtained; provided that, in

  

					
		 	3	  	ISDA@2016

 
either case, if four quotations are not available for a particular Covered Transaction, then fewer than four quotations may be used for that Covered Transaction, and if no quotations are
available for a particular Covered Transaction, then the Valuation Agent’s original calculations will be used for that Covered Transaction; and 

(3) utilizing the procedures specified in Paragraph 13 for calculating the Value, if disputed, of Posted Credit Support (VM).

 (B) In the case of a dispute involving the Value of any Transfer of Eligible Credit Support (VM) or Posted Credit Support
(VM), the Valuation Agent will recalculate the Value as of the date of Transfer pursuant to Paragraph 13. 
 Following a recalculation
pursuant to this Paragraph, the Valuation Agent will notify each party (or the other party, if the Valuation Agent is a party) not later than the Notification Time on the Local Business Day following the Resolution Time. The appropriate party will,
upon demand following that notice by the Valuation Agent or a resolution pursuant to (iii) above and subject to Paragraphs 4(a) and 4(b), make the appropriate Transfer. 

Paragraph 6. Holding and Using Posted Collateral (VM) 

(a) Care of Posted Collateral (VM). Without limiting the Secured Party’s rights under Paragraph 6(c), the Secured Party will
exercise reasonable care to assure the safe custody of all Posted Collateral (VM) to the extent required by applicable law, and in any event the Secured Party will be deemed to have exercised reasonable care if it exercises at least the same degree
of care as it would exercise with respect to its own property. Except as specified in the preceding sentence, the Secured Party will have no duty with respect to Posted Collateral (VM), including, without limitation, any duty to collect any
Distributions, or enforce or preserve any rights pertaining thereto. 
 (b) Eligibility to Hold Posted Collateral (VM); Custodians
(VM). 
 (i) General. Subject to the satisfaction of any conditions specified in Paragraph 13 for holding
Posted Collateral (VM), the Secured Party will be entitled to hold Posted Collateral (VM) or to appoint an agent (a “Custodian (VM)”) to hold Posted Collateral (VM) for the Secured Party. Upon notice by the Secured Party to the
Pledgor of the appointment of a Custodian (VM), the Pledgor’s obligations to make any Transfer will be discharged by making the Transfer to that Custodian (VM). The holding of Posted Collateral (VM) by a Custodian (VM) will be deemed to be the
holding of that Posted Collateral (VM) by the Secured Party for which the Custodian (VM) is acting. 
 (ii) Failure
to Satisfy Conditions. If the Secured Party or its Custodian (VM) fails to satisfy any conditions for holding Posted Collateral (VM), then upon a demand made by the Pledgor, the Secured Party will, not later than five Local Business Days after
the demand, Transfer or cause its Custodian (VM) to Transfer all Posted Collateral (VM) held by it to a Custodian (VM) that satisfies those conditions or to the Secured Party if it satisfies those conditions. 

(iii) Liability. The Secured Party will be liable for the acts or omissions of its Custodian (VM) to the same
extent that the Secured Party would be liable hereunder for its own acts or omissions. 
 (c) Use of Posted Collateral (VM). Unless
otherwise specified in Paragraph 13 and without limiting the rights 
 and obligations of the parties under Paragraphs 3, 4(d)(ii), 5, 6(d)
and 8, if the Secured Party is not a Defaulting Party or an Affected Party with respect to a Specified Condition and no Early Termination Date has occurred or been designated as the result of an Event of Default or Specified Condition with respect
to the Secured Party, then the Secured Party will, notwithstanding Section 9-207 of the New York Uniform Commercial Code, have the right to: 

(i) sell, pledge, rehypothecate, assign, invest, use, commingle or otherwise dispose of, or otherwise use in its business any
Posted Collateral (VM) it holds, free from any claim or right of any nature whatsoever of the Pledgor, including any equity or right of redemption by the Pledgor; and 

 (ii) register any Posted Collateral (VM) in the name of the Secured Party, its
Custodian (VM) or a nominee for either. 
 For purposes of the obligation to Transfer Eligible Credit Support (VM) or Posted Credit Support
(VM) pursuant to Paragraphs 3 and 5 and any rights or remedies authorized under this Agreement, the Secured Party will be deemed to continue to hold all Posted Collateral (VM) and to receive Distributions made thereon, regardless of whether the
Secured Party has exercised any rights with respect to any Posted Collateral (VM) pursuant to (i) or (ii) above. 
 (d)
Distributions, Interest Amount (VM) and Interest Payment (VM). 
 (i) Distributions. Subject to
Paragraph 4(a), if the Secured Party receives or is deemed to receive Distributions on a Local Business Day, it will Transfer to the Pledgor not later than the following Local Business Day any Distributions it receives or is deemed to receive to the
extent that a Delivery Amount (VM) would not be created or increased by that Transfer, as calculated by the Valuation Agent (and the date of calculation will be deemed to be a Valuation Date for this purpose). 

(ii) Interest Amount (VM) and Interest Payment (VM). Unless otherwise specified in Paragraph 13 and subject to
Paragraph 4(a), in lieu of any interest, dividends or other amounts paid or deemed to have been paid with respect to Posted Collateral (VM) in the form of Cash (all of which may be retained by the Secured Party), 

(A) if “Interest Transfer” is specified as applicable in Paragraph 13, the Interest Payer (VM) will
Transfer to the Interest Payee (VM), at the times specified in Paragraph 13, the relevant Interest Payment (VM); provided that if “Interest Payment Netting” is specified as applicable in Paragraph 13: 

(1) if the Interest Payer (VM) is entitled to demand a Delivery Amount (VM) or Return Amount (VM), in respect of the date such
Interest Payment (VM) is required to be Transferred: 
  

	 	(a)	 such Delivery Amount (VM) or Return Amount (VM) will be reduced (but not below zero) by such Interest Payment
(VM); provided that, in case of such Return Amount (VM), if the amount of Posted Collateral (VM) which is comprised of Cash in the Base Currency is less than such Interest Payment (VM), such reduction will only be to the extent of the amount
of such Cash which is Posted Collateral (VM) (the “Eligible Return Amount (VM)”); and 

  

	 	(b)	 the Interest Payer (VM) will Transfer to the Interest Payee (VM) the amount of the excess, if any, of such
Interest Payment (VM) over such Delivery Amount (VM) or Eligible Return Amount (VM), as applicable; and 

(II) if under Paragraph 6(d)(ii)(A)(I)(a) a Delivery Amount (VM) is reduced (the amount of such reduction, the
“Delivery Amount Reduction (VM)”) or a Return Amount (VM) is reduced (the amount of such reduction, the “Return Amount Reduction (VM)”), then for purposes of determining Posted Collateral (VM), the Secured Party
(a) will be deemed to have received an amount in Cash in the Base Currency equal to any Delivery Amount Reduction (VM), and such amount will constitute Posted Collateral (VM) in such Cash and will be subject to the security interest granted
under Paragraph 2 or (b) will be deemed to have Transferred an amount in Cash in the Base Currency equal to any Return Amount Reduction (VM), as applicable, in each case on the day on which the relevant Interest Payment (VM) was due to be
Transferred, as applicable; and 
 (B) if “Interest Adjustment” is specified as applicable in Paragraph 13, the
Posted Collateral (VM) will be adjusted by the Secured Party, at the times specified in Paragraph 13, as follows: 
 (I) if
the Interest Amount (VM) for an Interest Period is a positive number, the Interest Amount (VM) will constitute Posted Collateral (VM) in the form of Cash in the Base Currency and will be subject to the security interest granted under Paragraph 2;
and 

 (II) if the Interest Amount (VM) for an Interest Period is a negative number and
any Posted Collateral (VM) is in the form of Cash in the Base Currency, the Interest Amount (VM) will constitute a reduction of Posted Collateral (VM) in the form of such Cash in an amount (such amount, the “Interest Adjustment Reduction
Amount (VM)”) equal to the absolute value of the Interest Amount (VM); provided that if the amount of Posted Collateral (VM) which is comprised of such Cash is less than the Interest Adjustment Reduction Amount (VM), such reduction
will only be to the extent of the amount of such Cash which is Posted Collateral (VM) and the Pledgor will be obligated to Transfer the remainder of the Interest Adjustment Reduction Amount (VM) to the Secured Party on the day that such reduction
occurred. 
 Paragraph 7. Events of Default 

For purposes of Section 5(a)(iii)(1) of this Agreement, an Event of Default will exist with respect to a party if: 

(i) that party fails (or fails to cause its Custodian (VM)) to make, when due, any Transfer of Eligible Collateral (VM), Posted
Collateral (VM) or the Interest Payment (VM), as applicable, required to be made by it and that failure continues for two Local Business Days after notice of that failure is given to that party; 

(ii) that party fails to comply with any restriction or prohibition specified in this Annex with respect to any of the rights
specified in Paragraph 6(c) and that failure continues for five Local Business Days after notice of that failure is given to that party; or 

(iii) that party fails to comply with or perform any agreement or obligation other than those specified in Paragraphs 7(i) and
7(ii) and that failure continues for 30 days after notice of that failure is given to that party. 
 Paragraph 8. Certain Rights and Remedies 

(a) Secured Party’s Rights and Remedies. If at any time (1) an Event of Default or Specified Condition with 

respect to the Pledgor has occurred and is continuing or (2) an Early Termination Date has occurred or been designated as the result of an
Event of Default or Specified Condition with respect to the Pledgor, then, unless the Pledgor has paid in full all of its Obligations that are then due, the Secured Party may exercise one or more of the following rights and remedies: 

(i) all rights and remedies available to a secured party under applicable law with respect to Posted Collateral (VM) held by
the Secured Party; 
 (ii) any other rights and remedies available to the Secured Party under the terms of Other Posted
Support (VM), if any; 
 (iii) the right to Set-off (A) any amounts payable by
the Pledgor with respect to any Obligations and (B) any Cash amounts and the Cash equivalent of any non-Cash items posted to the Pledgor by the Secured Party as margin under any Other CSA (other than any
Other CSA Excluded Credit Support) the return of which is due to the Secured Party against any Posted Collateral (VM) or the Cash equivalent of any Posted Collateral (VM) held by the Secured Party (or any obligation of the Secured Party to Transfer
that Posted Collateral (VM)); and 
 (iv) the right to liquidate any Posted Collateral (VM) held by the Secured Party through
one or more public or private sales or other dispositions with such notice, if any, as may be required under applicable law, free from any claim or right of any nature whatsoever of the Pledgor, including any equity or right of redemption by the
Pledgor (with the Secured Party having the right to purchase any or all of the Posted Collateral (VM) to be sold) and to apply the proceeds (or the Cash equivalent thereof) from the liquidation of the Posted Collateral (VM) to (A) any amounts
payable by the Pledgor with respect to any Obligations and (B) any Cash amounts and the Cash equivalent of any non-Cash items posted to the Pledgor by the Secured Party as margin under any Other CSA
(other than any Other CSA Excluded Credit Support) the return of which is due to the Secured Party in that order as the Secured Party may elect. 

 Each party acknowledges and agrees that Posted Collateral (VM) in the form of securities may
decline speedily in value and is of a type customarily sold on a recognized market, and, accordingly, the Pledgor is not entitled to prior notice of any sale of that Posted Collateral (VM) by the Secured Party, except any notice that is required
under applicable law and cannot be waived. 
 (b) Pledgor’s Rights and Remedies. If at any time an Early Termination Date
has occurred or been designated as the result of an Event of Default or Specified Condition with respect to the Secured Party, then (except in the case of an Early Termination Date relating to fewer than all Transactions where the Secured Party has
paid in full all of its obligations that are then due under Section 6(e) of this Agreement): 
 (i) the Pledgor may
exercise all rights and remedies available to a pledgor under applicable law with respect to Posted Collateral (VM) held by the Secured Party; 

(ii) the Pledgor may exercise any other rights and remedies available to the Pledgor under the terms of Other Posted Support
(VM), if any; 
 (iii) the Secured Party will be obligated immediately to Transfer all Posted Collateral (VM) and, if the
Secured Party is an Interest Payer (VM), the Interest Payment (VM) to the Pledgor; and 
 (iv) to the extent that Posted
Collateral (VM) or the Interest Payment (VM) is not so Transferred pursuant to (iii) above, the Pledgor may: 
 (A) Set-off any amounts payable by the Pledgor with respect to any Obligations against any Posted Collateral (VM) or the Cash equivalent of any Posted Collateral (VM) held by the Secured Party (or any obligation of the
Secured Party to Transfer that Posted Collateral (VM)); 
 (B) Set-off, net, or apply
credit support received under any Other CSA or the proceeds thereof against any Posted Collateral (VM) or the Cash equivalent of any Posted Collateral (VM) held by the Secured Party (or any obligation of the Secured Party to Transfer that Posted
Collateral (VM)); and 
 (C) to the extent that the Pledgor does not Set-off under
(iv)(A) or (iv)(B) above, withhold payment of any remaining amounts payable by the Pledgor with respect to any Obligations, up to the Value of any remaining Posted Collateral (VM) held by the Secured Party, until that Posted Collateral (VM) is
Transferred to the Pledgor. 
 (c) Deficiencies and Excess Proceeds. The Secured Party will Transfer to the Pledgor any
proceeds and Posted Credit Support (VM) remaining after liquidation, Set-off and/or application under Paragraphs 8(a) and 8(b) after satisfaction in full of all amounts payable by the Pledgor with respect to
any Obligations; and the Pledgor in all events will remain liable for any amounts remaining unpaid after any liquidation, Set-off and/or application under Paragraphs 8(a) and 8(b). 

(d) Final Returns. When no amounts are or thereafter may become payable by the Pledgor with respect to any Obligations (except
for any potential liability under Section 2(d) of this Agreement, any obligation to Transfer any Interest Payment (VM) under this Paragraph 8(d) or any obligation to transfer any interest payment under any Other CSA), (i) the Secured Party will
Transfer to the Pledgor all Posted Credit Support (VM), and (ii) the Interest Payer (VM) will Transfer to the Interest Payee (VM) any Interest Payment (VM). 

Paragraph 9. Representations 
 Each party
represents to the other party (which representations will be deemed to be repeated as of each date on which it, as the Pledgor, Transfers Eligible Collateral (VM)) that: 

(i) it has the power to grant a security interest in and lien on any Eligible Collateral (VM) it Transfers as the Pledgor and
has taken all necessary actions to authorize the granting of that security interest and lien; 

 (ii) it is the sole owner of or otherwise has the right to Transfer all Eligible
Collateral (VM) it Transfers to the Secured Party hereunder, free and clear of any security interest, lien, encumbrance or other restrictions other than the security interest and lien granted under Paragraph 2; 

(iii) upon the Transfer of any Eligible Collateral (VM) to the Secured Party under the terms of this Annex, the Secured Party
will have a valid and perfected first priority security interest therein (assuming that any central clearing corporation or any third-party financial intermediary or other entity not within the control of the Pledgor involved in the Transfer of that
Eligible Collateral (VM) gives the notices and takes the action required of it under applicable law for perfection of that interest); and 

(iv) the performance by it of its obligations under this Annex will not result in the creation of any security interest, lien
or other encumbrance on any Posted Collateral (VM) other than the security interest and lien granted under Paragraph 2. 
 Paragraph 10. Expenses

 (a) General. Except as otherwise provided in Paragraphs 10(b) and 10(c), each party will pay its own costs and expenses
in connection with performing its obligations under this Annex and neither party will be liable for any costs and expenses incurred by the other party in connection herewith. 

(b) Posted Credit Support (VM). The Pledgor will promptly pay when due all taxes, assessments or charges of any nature that are
imposed with respect to Posted Credit Support (VM) held by the Secured Party upon becoming aware of the same, regardless of whether any portion of that Posted Credit Support (VM) is subsequently disposed of under Paragraph 6(c), except for those
taxes, assessments and charges that result from the exercise of the Secured Party’s rights under Paragraph 6(c). 
 (c)
Liquidation/Application of Posted Credit Support (VM). All reasonable costs and expenses incurred by or on behalf of the Secured Party or the Pledgor in connection with the liquidation and/or application of any Posted Credit Support (VM)
under Paragraph 8 will be payable, on demand and pursuant to the Expenses Section of this Agreement, by the Defaulting Party or, if there is no Defaulting Party, equally by the parties. 

Paragraph 11. Miscellaneous 

(a) Default Interest. A Secured Party that fails to make, when due, any Transfer of Posted Collateral (VM) will be obligated to
pay the Pledgor (to the extent permitted under applicable law) an amount equal to interest at the Default Rate multiplied by the Value of the items of property that were required to be Transferred, from (and including) the date that Posted
Collateral (VM) was required to be Transferred to (but excluding) the date of Transfer of that Posted Collateral (VM). This interest will be calculated on the basis of daily compounding and the actual number of days elapsed. An Interest Payer (VM)
that fails to make, when due, any Transfer of an Interest Payment (VM) will be obligated to pay the Interest Payee (VM) (to the extent permitted under applicable law) an amount equal to interest at the Default Rate (and for such purposes, if the
Default Rate is less than zero, it will be deemed to be zero) multiplied by that Interest Payment (VM), from (and including) the date that Interest Payment (VM) was required to be Transferred to (but excluding) the date of Transfer of that Interest
Payment (VM). This interest will be calculated on the basis of daily compounding and the actual number of days elapsed. 
 (b)
Further Assurances. Promptly following a demand made by a party, the other party will execute, deliver, file and record any financing statement, specific assignment or other document and take any other action that may be necessary or
desirable and reasonably requested by that party to create, preserve, perfect or validate any security interest or lien granted under Paragraph 2, to enable that party to exercise or enforce its rights under this Annex with respect to Posted Credit
Support (VM) or an Interest Payment (VM) or to effect or document a release of a security interest on Posted Collateral (VM) or an Interest Payment (VM). 

(c) Further Protection. The Pledgor will promptly give notice to the Secured Party of, and defend against, any suit, action,
proceeding or lien that involves Posted Credit Support (VM) Transferred by the Pledgor or that could 

 
adversely affect the security interest and lien granted by it under Paragraph 2, unless that suit, action, proceeding or lien results from the exercise of the Secured Party’s rights under
Paragraph 6(c). 
 (d) Good Faith and Commercially Reasonable Manner. Performance of all obligations under this Annex,
including, but not limited to, all calculations, valuations and determinations made by either party, will be made in good faith and in a commercially reasonable manner. 

(e) Demands and Notices. All demands and notices made by a party under this Annex will be made as specified in the Notices
Section of this Agreement, except as otherwise provided in Paragraph 13. 
 (f) Specifications of Certain Matters. Anything
referred to in this Annex as being specified in Paragraph 13 also may be specified in one or more Confirmations or other documents and this Annex will be construed accordingly. 

(g) Legally Ineligible Credit Support (VM). Unless otherwise specified in Paragraph 13, upon delivery of a Legal Ineligibility
Notice by a party, each item of Eligible Credit Support (VM) (or a specified amount of such item) identified in such notice (i) will cease to be Eligible Credit Support (VM) for purposes of Transfers to such party as the Secured Party hereunder
as of the applicable Transfer Ineligibility Date, (ii) will cease to be Eligible Credit Support (VM) for the other party as the Pledgor for all purposes hereunder as of the Total Ineligibility Date and (iii) will have a Value of zero on
and from the Total Ineligibility Date. 
 “Legal Ineligibility Notice” means a written notice from the Secured Party to the
Pledgor in which the Secured Party (i) represents that the Secured Party has determined that one or more items of Eligible Credit Support (VM) (or a specified amount of any such item) either has ceased to satisfy, or as of a specified date will
cease to satisfy, collateral eligibility requirements under law applicable to the Secured Party requiring the collection of variation margin (the “Legal Eligibility Requirements”), (ii) lists the item(s) of Eligible Credit Support
(VM) (and, if applicable, the specified amount) that have ceased to satisfy, or as of a specified date will cease to satisfy, the Legal Eligibility Requirements, (iii) describes the reason(s) why such item(s) of Eligible Credit Support (VM) (or
the specified amount thereof) have ceased to satisfy, or will cease to satisfy, the Legal Eligibility Requirements and (iv) specifies the Total Ineligibility Date and, if different, the Transfer Ineligibility Date. 

“Total Ineligibility Date” means the date on which the relevant item of Eligible Credit Support (VM) (or a specified amount
of such item) has ceased to satisfy, or will cease to satisfy, the Legal Eligibility Requirements applicable to the Secured Party for all purposes hereunder; provided that, unless otherwise specified in Paragraph 13, if such date is earlier
than the fifth Local Business Day following the date on which the Legal Ineligibility Notice is delivered, the Total Ineligibility Date will be the fifth Local Business Day following the date of such delivery. 

“Transfer Ineligibility Date” means the date on which the relevant item of Eligible Credit Support (VM) (or a specified
amount of such item) has ceased to satisfy, or will cease to satisfy, the Legal Eligibility Requirements for purposes of Transfers to the Secured Party hereunder; provided that, unless otherwise specified in Paragraph 13, if such date is
earlier than the fifth Local Business Day following the date on which the Legal Ineligibility Notice is delivered, the Transfer Ineligibility Date will be the fifth Local Business Day following the date of such delivery. 

(h) Return of Posted Credit Support (VM) with a Value of Zero. Subject to Paragraph 4(a), the Secured Party will, promptly upon
demand (but in no event later than the time at which a Transfer would be due under Paragraph 4(b) with respect to a demand for the Transfer of Eligible Credit Support (VM) or Posted Credit Support (VM)), Transfer to the Pledgor any item of Posted
Credit Support (VM) (or the specified amount of such item) that as of the date of such demand has a Value of zero; provided that the Secured Party will only be obligated to Transfer any Posted Credit Support (VM) in accordance with this
Paragraph 11(h), if, as of the date of Transfer of such item, the Pledgor has satisfied all of its Transfer obligations under this Annex, if any. 

(i) Reinstatement of Credit Support Eligibility. Upon a reasonable request by the Pledgor, the Secured Party will determine
whether an item (or a specified amount of such item) of Eligible Credit Support (VM) that was 

 
the subject of a prior Legal Ineligibility Notice would currently satisfy the Legal Eligibility Requirements applicable to the Secured Party. If the Secured Party determines that as of such date
of determination such item (or specified amount of such item) satisfies the Legal Eligibility Requirements applicable to the Secured Party, the Secured Party 

 
will promptly following such determination rescind the relevant Legal Ineligibility Notice with respect to such item (or specified amount of such item) by written notice to the Pledgor. Upon the
delivery of such notice, the relevant item (or specified amount of such item) will constitute Eligible Credit Support (VM) hereunder. 
 (j)
Credit Support Offsets. If the parties specify that “Credit Support Offsets” is applicable in Paragraph 13, and 
 on any
date: 
 (i) a Transfer of Eligible Credit Support (VM) is due under this Annex to satisfy a Delivery Amount (VM) or a Return
Amount (VM) obligation, and a transfer of credit support (other than any Other CSA Excluded Credit Support) is also due under any Other CSA; 

(ii) the parties have notified each other of the credit support that they intend to Transfer under this Annex and transfer
under such Other CSA (other than any Other CSA Excluded Credit Support) to satisfy their respective obligations; and 
 (iii)
in respect of Paragraph 11(j)(ii), each party intends to transfer one or more types of credit support that is fully fungible with one or more types of credit support the other party intends to transfer (each such credit support, a “Fungible
Credit Support Type”), 
 then, on such date and in respect of each such Fungible Credit Support Type, each party’s obligation
to make a transfer of any such Fungible Credit Support Type hereunder or under such Other CSA will be automatically satisfied and discharged and, if the aggregate amount that would have otherwise been transferred by one party exceeds the aggregate
amount that would have otherwise been transferred by the other party, replaced by an obligation hereunder or under such Other CSA, as applicable, upon the party by which the larger aggregate amount would have been transferred to transfer to the
other party the excess of the larger aggregate amount over the smaller aggregate amount. If a party’s obligation to make a transfer of credit support under this Annex or an Other CSA is automatically satisfied and discharged pursuant to this
Paragraph 11(j), then, for purposes of this Annex or the Other CSA, as applicable, the other party will be deemed to have received credit support of the applicable Fungible Credit Support Type in the amount that would otherwise have been required to
be transferred, in each case on the day on which the relevant transfer was due. 
 Paragraph 12. Definitions 

As used in this Annex:— 

“Base Currency” means the currency specified as such in Paragraph 13. 

“Base Currency Equivalent” means, with respect to an amount on a Valuation Date, in the case of an amount denominated
in the Base Currency, such Base Currency amount and, in the case of an amount denominated in a currency other than the Base Currency (the “Other Currency”), the amount of Base Currency required to purchase such amount of the Other
Currency at the spot exchange rate on such Valuation Date as determined by the Valuation Agent. 
 “Cash” means,
respectively, the Base Currency and each other Eligible Currency. “Covered Transaction” has the meaning specified in Paragraph 13. 

“Credit Support Eligibility Condition (VM)” means, with respect to any item specified for a party as Eligible Collateral (VM)
in Paragraph 13, any condition specified for that item in Paragraph 13. 
 “Custodian (VM)” has the meaning specified in
Paragraphs 6(b)(i) and 13. 
 “Delivery Amount (VM)” has the meaning specified in Paragraph 3(a). 

“Delivery Amount Reduction (VM)” has the meaning specified in Paragraph 6(d)(ii)(A)(II).  

“Disputing Party” has the meaning specified in Paragraph 5. 

 “Distributions” means with respect to Posted Collateral (VM) other than Cash,
all principal, interest and other payments and distributions of cash or other property with respect thereto, regardless of whether the Secured Party has disposed of that Posted Collateral (VM) under Paragraph 6(c). Distributions will not include any
item of property acquired by the Secured Party upon any disposition or liquidation of Posted Collateral (VM) or, with respect to any Posted Collateral (VM) in the form of Cash, any distributions on that collateral, unless otherwise specified herein.

 “Eligible Collateral (VM)” has the meaning specified in Paragraph 13. 

“Eligible Credit Support (VM)” means Eligible Collateral (VM) and Other Eligible Support (VM). 

“Eligible Currency” means each currency specified as such in Paragraph 13, if such currency is freely available.  

“Eligible Return Amount (VM)” has the meaning specified in Paragraph 6(d)(ii)(A)(1)(a). 

“Exposure” means, unless otherwise specified in Paragraph 13, for any Valuation Date or other date for which Exposure is
calculated and subject to Paragraph 5 in the case of a dispute: 
 (i) if this Agreement is a 1992 ISDA Master Agreement, the
amount, if any, that would be payable to a party that is the Secured Party by the other party (expressed as a positive number) or by a party that is the Secured Party to the other party (expressed as a negative number) pursuant to
Section 6(e)(ii)(2)(A) of this Agreement as if all Covered Transactions were being terminated as of the relevant Valuation Time on the basis that the Base Currency is the Termination Currency; provided that Market Quotation will be
determined by the Valuation Agent on behalf of that party using its estimates at mid-market of the amounts that would be paid for Replacement Transactions (as that term is defined in the definition of
“Market Quotation”); and 
 (ii) if this Agreement is an ISDA 2002 Master Agreement or a 1992 ISDA Master Agreement
in which the definition of Loss and/or Market Quotation has been amended (including where such amendment has occurred pursuant to the terms of a separate agreement or protocol) to reflect the definition of
Close-out Amount from the pre-printed form of the ISDA 2002 Master Agreement as published by ISDA, the amount, if any, that would be payable to a party that is the
Secured Party by the other party (expressed as a positive number) or by a party that is the Secured Party to the other party (expressed as a negative number) pursuant to Section 6(e)(ii)(1) (but without reference to clause (3) of
Section 6(e)(ii)) of this Agreement as if all Covered Transactions were being terminated as of the relevant Valuation Time on the basis that the Base Currency is the Termination Currency; provided that the
Close-out Amount will be determined by the Valuation Agent on behalf of that party using its estimates at mid-market of the amounts that would be paid for transactions
providing the economic equivalent of (X) the material terms of the Covered Transactions, including the payments and deliveries by the parties under Section 2(a)(i) in respect of the Covered Transactions that would, but for the occurrence
of the relevant Early Termination Date, have been required after that date (assuming satisfaction of the conditions precedent in Section 2(a)(iii)), and (Y) the option rights of the parties in respect of the Covered Transactions. 

“Fungible Credit Support Type” has the meaning specified in Paragraph 11(j)(iii). 

“FX Haircut Percentage” means, for any item of Eligible Collateral (VM), the percentage specified as such in Paragraph 13.

 “Interest Adjustment Reduction Amount (VM)” has the meaning specified in Paragraph 6(d)(ii)(B)(11). 

 “Interest Amount (VM)” means, with respect to an Interest Period, the aggregate
sum of the Base Currency Equivalents of the amounts of interest determined for each relevant currency and calculated for each day in that Interest Period on any Posted Collateral (VM) in the form of Cash in such currency held by the Secured Party on
that day, determined by the Secured Party for each such day as follows: 
 (i) the amount of Cash in such currency on that
day plus, only if “Daily Interest Compounding” is specified as applicable in Paragraph 13, the aggregate of each Interest Amount (VM) in respect of such currency determined for each preceding day, if any, in that Interest Period;
multiplied by 
 (ii) the Interest Rate (VM) in effect for that day; divided by 

(iii) 360 (or, in the case of pounds sterling or any other currency specified as an “A1365 Currency” in Paragraph 13,
365); 
 provided that, unless “Negative Interest” is specified as applicable in Paragraph 13, if the Interest Amount (VM)
for an Interest Period would be a negative amount, it will be deemed to be zero. 
 “Interest Payee (VM)” means, in
relation to an Interest Payer (VM), the other party. 
 “Interest Payer (VM)” means the Secured Party; provided that
if “Negative Interest” is specified as applicable in Paragraph 13 and an Interest Payment (VM) is determined in respect of a negative Interest Amount (VM), the Interest Payer (VM) in respect of such Interest Payment (VM) will be the
Pledgor. 
 “Interest Payment (VM)” means, with respect to an Interest Period, the Interest Amount (VM) determined in
respect of such Interest Period; provided that in respect of any negative Interest Amount (VM), the Interest Payment (VM) will be the absolute value of such negative Interest Amount (VM). 

“Interest Period” means the period from (and including) the last day on which (i) a party became obligated to Transfer
an Interest Payment (VM) or (ii) an Interest Amount (VM) was included or otherwise became constituted as part of Posted Collateral (VM) (or, if no Interest Payment (VM) or Interest Amount (VM) has yet fallen due or been included or otherwise
became constituted as a part of Posted Collateral (VM), respectively, the day on which Eligible Credit Support (VM) in the form of Cash was Transferred to or received by the Secured Party) to (but excluding) the day on which (i) a party is
obligated to Transfer the current Interest Payment (VM) or (ii) the current Interest Amount (VM) is included or otherwise becomes constituted as a part of Posted Collateral (VM). 

“Interest Rate (VM)” means, with respect to an Eligible Currency, the rate specified in Paragraph 13 for that currency. 

“Legal Eligibility Requirements” has the meaning specified in Paragraph 11(g). “Legal Ineligibility Notice”
has the meaning specified in Paragraph 11(g). 
 “Local Business Day”, unless otherwise specified in Paragraph 13,
means: 
 (i) in relation to a Transfer of cash or other property (other than securities) under this Annex, a day on which
commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in the place where the relevant account is located and, if different, in the principal financial center, if any, of the currency of such
payment; 
 (ii) in relation to a Transfer of securities under this Annex, a day on which the clearance system agreed between
the parties for delivery of the securities is open for the acceptance and execution of settlement instructions or, if delivery of the securities is contemplated by other means, a day on which commercial banks are open for business (including
dealings in foreign exchange and foreign currency deposits) in the place(s) agreed between the parties for this purpose; 

(iii) in relation to the Resolution Time, a day on which commercial banks are open for business (including dealings in foreign
exchange and foreign currency deposits) in at least one Valuation Date Location for Party A and at least one Valuation Date Location for Party B; and 

(iv) in relation to any notice or other communication under this Annex, a day on which commercial banks are open for business
(including dealings in foreign exchange and foreign currency deposits) in the place specified in the address for notice most recently provided by the recipient. 

 “Minimum Transfer Amount” means, with respect to a party, the amount
specified as such for that party in Paragraph 13; if no amount is specified, zero. 
 “Notification Time” has the
meaning specified in Paragraph 13. 
 “Obligations” means, with respect to a party, all present and future
obligations of that party under this Agreement and any additional obligations specified for that party in Paragraph 13. 
 “Other
CSA” means, unless otherwise specified in Paragraph 13, any other credit support annex or credit support deed that is in relation to, or that is a Credit Support Document in relation to, this Agreement. 

“Other CSA Excluded Credit Support” means, with respect to an Other CSA, any amounts and items posted as margin under
such Other CSA, which, pursuant to the terms of such Other CSA, Party A and Party B have agreed must be segregated in an account maintained by a third-party custodian or for which offsets are prohibited. 

“Other Eligible Support (VM)” means, with respect to a party, the items, if any, specified as such for that party in
Paragraph 13. 
 “Other Posted Support (VM)” means all Other Eligible Support (VM) Transferred to the Secured Party
that remains in effect for the benefit of that Secured Party. 
 “Pledgor” means either party, when that party
(i) receives a demand for or is required to Transfer Eligible Credit Support (VM) under Paragraph 3(a) or (ii) has Transferred Eligible Credit Support (VM) under Paragraph 3(a). 

“Posted Collateral (VM)” means all Eligible Collateral (VM), other property, Distributions, and all proceeds thereof
that have been Transferred to or received by the Secured Party under this Annex and not Transferred to the Pledgor pursuant to Paragraph 3(b), 4(d)(ii), 6(d)(i) or 11(h) or released by the Secured Party under Paragraph 8. With respect to any
Interest Amount (VM) in respect of any Interest Payment (VM) or relevant part thereof not Transferred pursuant to Paragraph 6(d)(ii)(A) or Paragraph 6(d)(ii)(B), as applicable, if such Interest Amount (VM) is a positive number, such Interest Amount
(VM) will constitute Posted Collateral (VM) in the form of Cash in the Base Currency. 
 “Posted Credit Support (VM)”
means Posted Collateral (VM) and Other Posted Support (VM). 
 “Recalculation Date” means the Valuation Date
that gives rise to the dispute under Paragraph 5; provided, however, that if a subsequent Valuation Date occurs under Paragraph 3 prior to the resolution of the dispute, then the “Recalculation Date” means the most recent Valuation
Date under Paragraph 3. 
 “Regular Settlement Day,” means, unless otherwise specified in Paragraph 13, the same
Local Business Day on which a demand for the Transfer of Eligible Credit Support (VM) or Posted Credit Support (VM) is made. 

“Resolution Time” has the meaning specified in Paragraph 13. 

“Return Amount (VM)” has the meaning specified in Paragraph 3(b). 

“Return Amount Reduction (VM)” has the meaning specified in Paragraph 6(d)(ii)(A)(11). 

“Secured Party” means either party, when that party (i) makes a demand for or is entitled to receive Eligible
Credit Support (VM) under Paragraph 3(a) or (ii) holds or is deemed to hold Posted Credit Support (VM). 
 “Set-off” means set-off, offset, combination of accounts, right of retention or withholding or similar right or requirement (whether arising under this
Agreement, another contract, applicable law or otherwise) and, when used as a verb, the exercise of any such right or the imposition of any such requirement. 

“Specified Condition” means, with respect to a party, any event specified as such for that party in Paragraph 13.
 
 “Substitute Credit Support (VM)” has the meaning specified in Paragraph 4(d)(i). 

“Substitution Date” has the meaning specified in Paragraph 4(d)(ii). 

“Total Ineligibility Date” has the meaning specified in Paragraph 11(g) unless otherwise specified in Paragraph 13.

 “Transfer” means, with respect to any Eligible Credit Support (VM), Posted
Credit Support (VM) or Interest Payment (VM), and in accordance with the instructions of the Secured Party, Pledgor or Custodian (VM), as applicable: 

(i) in the case of Cash, payment or delivery by wire transfer into one or more bank accounts specified by the recipient; 

(ii) in the case of certificated securities that cannot be paid or delivered by book-entry, payment or delivery in appropriate
physical form to the recipient or its account accompanied by any duly executed instruments of transfer, assignments in blank, transfer tax stamps and any other documents necessary to constitute a legally valid transfer to the recipient; 

(iii) in the case of securities that can be paid or delivered by book-entry, causing the relevant depository institution(s) or
other securities intermediaries to make changes to their books and records sufficient to result in a legally effective transfer of the relevant interest to the recipient or its agent; and 

(iv) in the case of Other Eligible Support (VM) or Other Posted Support (VM), as specified in Paragraph 13. 

“Transfer Ineligibility Date” has the meaning specified in Paragraph 11(g) unless otherwise specified in Paragraph 13. 

“Valuation Agent” has the meaning specified in Paragraph 13. 

“Valuation Date” means, unless otherwise specified in Paragraph 13, each day from, and including, the date of this Annex,
that is a day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in at least one Valuation Date Location for Party A and at least one Valuation Date Location for Party B. 

“Valuation Date Location” has the meaning specified in Paragraph 13. 

“Valuation Percentage” means, for any item of Eligible Collateral (VM), the percentage specified as such in Paragraph 13.

 “Valuation Time” means, unless otherwise specified in Paragraph 13, the time as of which the Valuation Agent computes
its end of day valuations of derivatives transactions in the ordinary course of its business (or such other commercially reasonable convenient time on the relevant day as the Valuation Agent may determine). 

“Value” means for any Valuation Date or other date for which Value is calculated and subject to Paragraph 5 in the case of a
dispute, with respect to: 
 (i) Eligible Collateral (VM) or Posted Collateral (VM) that is: 

(A) an amount of Cash, the Base Currency Equivalent of such amount multiplied by (VP— HFx); and 
 (B) a security, the Base Currency Equivalent of the bid price
obtained by the Valuation Agent multiplied by (VP — HFx), where: 

VP equals the applicable Valuation Percentage; and 

HFx equals the applicable FX Haircut Percentage; 

(ii) Posted Collateral (VM) that consists of items that are not Eligible Collateral (VM) (including any item or any portion of
any item that fails to satisfy any (A) Credit Support Eligibility Condition (VM) applicable to it or (B) applicable Legal Eligibility Requirements), zero; and 

(iii) Other Eligible Support (VM) and Other Posted Support (VM), as specified in Paragraph 13. 

 2016 Credit Support Annex for Variation Margin (VM) 

to the Schedule to the 

ISDA Master Agreement dated July 12, 2017 

between 
  

					
	JPMORGAN CHASE BANK, N.A.	  	and	  	CAMBRIDGE MASTER FUND L.P.
			
	(“Party A”)	  		  	(“Party B”)

 This Annex supplements, forms part of, and is subject to, the above-referenced ISDA Master Agreement (the
“Agreement”), is part of its Schedule and is a Credit Support Document under this Agreement with respect to each party. 

Accordingly, the parties agree as follows: 

Paragraphs 1 — 12 of the ISDA 2016 Credit Support Annex for Variation Margin (VM) (ISDA Agreement Subject to New York Law) published by
the International Swaps and Derivatives Association, Inc. are hereby incorporated by reference and made a part hereof. 
 Paragraph 13. Elections and
Variables 
  

	(a)	 Base Currency and Eligible Currency. 

 

	 	(i)	 “Base Currency” means United States Dollars (U.S. $). 

 

	 	(ii)	 “Eligible Currency” means United States Dollars (U.S. $). 

 

	(b)	 Covered Transactions; Security Interest for Obligations; Exposure. 

 

	 	(i)	 The term “Covered Transactions” as used in this Annex includes all Transactions (other
than Spot FX Transactions). 

 “Spot FX Transaction” means any “FX Transaction” as
defined in the ISDA 1998 FX and Currency Option Definitions (the “FX Definitions”) with a Settlement Date (as defined in the FX Definitions which is on or before the second Local Business Day following the day on which the parties entered
into such FX Transaction and which is not subject to a requirement to collect or post variation margin under applicable law. 
  

	 	(ii)	 The term “Obligations” as used in this Annex includes the following additional
obligations: None specified 

  

	 	(iii)	 “Exposure” has the meaning specified in Paragraph 12. 

	(c)	 Credit Support Obligations. 

 

	 	(i)	 Delivery Amount (VM) and Return Amount (VM). 

 

	 	(A)	 “Delivery Amount (VM)” has the meaning specified in Paragraph 3(a).

  

	 	(B)	 “Return Amount (VM)” has the meaning specified in Paragraph 3(b).

  

	 	(ii)	 Eligible Collateral (VM). The following items will qualify as “Eligible Collateral”
provided that the non-cash items below (if any) shall only qualify as Eligible Collateral if they are, on the relevant Valuation Date, rated at least AA by Standard & Poor’s, a division of The
McGraw-Hill Companies, Inc. or at least Aa2 by Moody’s Investors Service, Inc. (such requirement, the “Ratings Condition”), but only to the extent that such Ratings Condition requires a higher minimum rating than any minimum
ratings requirement applicable to the Eligible Collateral identified below under applicable law. 

  

							
	 ISDA COLLATERAL ASSET DEFINITION (ICAD) CODE
	  	 REMAINING MATURITY
	  	VALUATION
PERCENTAGE	 
	 US-CASH
	  	 Not applicable
	  	 	100	% 
			
	 US-TBILL /
US-TNOTE /
	  	 Less than 1 year
	  	 	99.5	% 
	 US-TBOND /
US-TIPS
	  	 From 1 year, up to and including 5 years
	  	 	98	% 
		  	 More than 5 years, up to and including 10 years
	  	 	96	% 
		  	 More than 10 years, less than 30 years
	  	 	96	% 
			
	 US-STRIP
	  	 All
	  	 	92	% 

 The definitions used in this table are taken from the ISDA publication “Collateral Asset
Definitions” (First Edition —June 2003) and are hereby incorporated by reference. 
 Notwithstanding
anything contained herein to the contrary, in the event that no current market price from a generally recognized publicly available pricing source can be obtained for a security that otherwise constitutes Eligible Collateral, such security shall no
longer constitute Eligible Collateral hereunder. 
 If at any time the Valuation Percentage assigned to an item of Eligible
Collateral with respect to a party (as the Pledgor) under this Annex is greater than the maximum permitted valuation percentage for such item of collateral under any law requiring the collection of variation margin applicable to the other party (as
the Secured Party), then the Valuation Percentage with respect to such item of Eligible Collateral and such party will be such maximum permitted valuation percentage. Such maximum permitted valuation percentage will be the applicable Valuation
Percentage for the affected items with effect from the fifth Local Business Day following the date of delivery of a written notice by a party (a “VP Adjustment Notice”) which: (a) specifies the relevant law requiring such
maximum permitted valuation percentage; and (b) identifies the relevant affected items and, if applicable, describes the reason why such item falls within such law. To the extent relevant, such VP Adjustment Notice may break an item type into sub-categories and identify the related maximum permitted valuation percentages if lower than the assigned percentage. 

  
 2 

	 	(iii)	 Legally Ineligible Credit Support (VM). The provisions of Paragraph 11(g) will apply to both
parties: 

  

	 	(A)	 “Total Ineligibility Date” has the meaning specified in Paragraph 11(g) unless
otherwise specified here: Not specified. 

  

	 	(B)	 “Transfer Ineligibility Date” has the meaning specified in Paragraph 11(g) unless
otherwise specified here: Not specified. 

  

	 	(iv)	 Credit Support Eligibility Conditions (VM). None applicable. 

 

	 	(v)	 “Valuation Percentage”; “FX Haircut Percentage”

  

	 	(A)	 “Valuation Percentage”. The Valuation Percentage for either party (as the Pledgor) and
any item of Eligible Collateral (VM) will be the valuation percentage for such item as set forth in Paragraph 13(c)(ii), “Eligible Collateral (VM)”. 

 

	 	(B)	 “FX Haircut Percentage”. The FX Haircut Percentage for either party (as the Pledgor)
and any item of Eligible Collateral (VM) will be zero. 

  

	 	(vi)	 Other Eligible Support (VM). The following items will qualify as “Other Eligible
Support (VM)” for the party specified (as the Pledgor): None specified. 

  

	 	(vii)	 Minimum Transfer Amount. 

 

	 	(A)	 “Minimum Transfer Amount’ means with respect to Party A and Party B: US$250,000,
provided, however, that if an Event of Default has occurred and is continuing with respect to a party, the Minimum Transfer Amount for such party shall be zero. 

 

	 	(B)	 Rounding. 

 

	 	(1)	 the Delivery Amount (VM) will be rounded up to the nearest integral multiple of 10,000 units of the Base
Currency; and 

  

	 	(2)	 the Return Amount (VM) will be rounded down to the nearest integral multiple of 10,000 units of the Base
Currency. 

  

	 	(viii)	 Transfer Timing. “Regular Settlement Day” has the meaning specified in Paragraph 12,
unless otherwise specified here: Not specified. 

  

	(d)	 Valuation and Timing. 

(i) “Valuation Agent” means: 

(A) for purposes of Paragraphs 3 and 5, the party making the demand under Paragraph 3 in respect of the applicable Valuation
Date unless there has occurred and is continuing any Event of Default, Potential Event of Default or Additional Termination Event with respect to such party, in which case the other party shall be the Valuation Agent provided, however, that in the
event that 

  
 3 

 
both parties are making a demand under Paragraph 3 in respect of any Valuation Date (t): 
  

	 	(1)	 if on the immediately preceding Valuation Date (t-1) only one party
made a demand under Paragraph 3 the Valuation Agent in respect of that Valuation Date (t) shall be the party which was the Valuation Agent on the immediately preceding Valuation Date (t-1);

  

	 	(2)	 if on the immediately preceding Valuation Date (t-1) both parties made
a demand under Paragraph 3 the Valuation Agent in respect of that Valuation Date (t) shall be the party which was not the Valuation Agent on the immediately preceding Valuation Date (t-1); and

  

	 	(3)	 if there is no immediately preceding Valuation Date (t-1), the
Valuation Agent in respect of that Valuation Date (t) shall be Party A (or if none, the first named party in the Agreement). 

  

	 	(B)	 for purposes of Paragraph 6(d), the Secured Party as defined therein. 

 

	 	(ii)	 “Valuation Date” has the meaning specified in Paragraph 12. 

For purposes of determining the Valuation Date and clause (iii) of the definition of “Local Business Day” in
Paragraph 12, “Valuation Date Location” means, with respect to each party, each city, region, or country specified below: 

Party A: New York Party B: New York 

(iii) “Valuation Time” has the meaning specified in Paragraph 12. 

(iv) “Notification Time” means 10:00 a.m., New York time, on a Local Business Day. 

(v) Events of Default. 

Paragraph 7(i) of this Annex is hereby amended and restated in its entirety as follows: “(i) that party fails (or fails to
cause its Custodian (VM)) to make, when due, any Transfer of Eligible Collateral (VM), Posted Collateral (VM), or the Interest Payment (VM), as applicable, required to be made by it and that failure continues until the close of business on the Local
Business Day after the day upon which such Transfer was due.” Paragraph 7(ii) and (iii) of this Annex are hereby amended by replacing the words “five Local Business Days” and “30 days,” respectively, with the words
“3 Local Business Days” and “10 days,” respectively. 
  

	(e)	 Conditions Precedent and Secured Party’s Rights and Remedies. 

 

	 	(i)	 The provisions of Paragraph 4(a) will apply. 

 

	 	(ii)	 If the provisions of Paragraph 4(a) are applicable, the following Termination Event(s) will be a
“Specified Condition” for the party specified (that party being the Affected Party if the Termination Event occurs with respect to that party): With respect to Party A, any

  
 4 

	 	 
Additional Termination Event and with respect to Party B, any Additional Termination Event. 

  

	(f)	 Substitution. 

 

	 	(i)	 “Substitution Date” has the meaning specified in Paragraph 4(d)(ii).

  

	 	(ii)	 Consent. If specified here as applicable, then the Pledgor must obtain the Secured Party’s
consent for any substitution pursuant to Paragraph 4(d): Inapplicable 

  

	(g)	 Dispute Resolution. 

 

	 	(i)	 “Resolution Time” means 1:00 p.m., New York time, on the Local Business Day following
the date on which the notice is given that gives rise to a dispute under Paragraph 5. 

  

	 	(ii)	 Value. For the purpose of Paragraphs 5(iv)(A)(3) and 5(iv)(B), the Value of Posted Credit
Support (VM) will be calculated as follows: 

  

	 	(A)	 The Value of USD-CASH will be the face amount thereof; and

  

	 	(B)	 with respect to any Eligible Collateral other than US-CASH, the sum of
(I) (x) the mean of the high bid and low asked prices quoted on such date by two principal market makers for such Eligible Collateral chosen by the Disputing Party, or (y) if no quotations are available from two principal market makers for
such date, the mean of such high bid and low asked prices as of the first day prior to such date on which such quotations were available, plus (II) the accrued interest on such Eligible Collateral (except to the extent Transferred to a party
pursuant to any applicable provision of this Agreement or included in the applicable price referred to in (I) of this provision) as of such date. 

  

	 	(iii)	 Alternative. The provisions of Paragraph 5 will apply. 

 

	(h)	 Holding and Using Posted Collateral (VM). 

 

	 	(i)	 Eligibility to Hold Posted Collateral (VM). Party A will be entitled to hold Posted Collateral
(VM) itself or through its Custodian (VM) pursuant to Paragraph 6(b); provided that the following conditions applicable to it are satisfied: 

  

	 	(A)	 Party A is not a Defaulting Party. 

 

	 	(B)	 The Custodian is a Bank (as defined in the Federal Deposit Insurance Act) which is unaffiliated with Party A,
organized under the laws of the United States or any state thereof, having assets of at least USD10 billion and whose rating with respect to its long term unsecured, unsubordinated indebtedness is at least
A-by S&P or A3 by Moody’s. 

 Party B will be entitled to
hold Posted Collateral (VM) itself or through its Custodian (VM) pursuant to Paragraph 6(b); provided that the following conditions applicable to it are satisfied: 
  

	 	(A)	 Party B is not a Defaulting Party. 

  
 5 

 (B) The Custodian is a Bank (as defined in the Federal Deposit Insurance
Act) which is unaffiliated with Party B, organized under the laws of the United States or any state thereof, having assets of at least USD10 billion and whose rating with respect to its long term unsecured, unsubordinated indebtedness is at
least A-by S&P or A3 by Moody’s. 
 As used herein: 

“Moody’s” shall mean Moody’s Investors Service, Inc., or its successor. 

“S&P” shall mean S&P Global Ratings, acting through Standard & Poor’s Financial Services LLC,
or its successor. 
  

	 	(ii)	 Use of Posted Collateral (VM). The provisions of Paragraph 6(c) will apply to both parties.

  

	 	(i)	 Distributions and Interest Payment (VM). 

(i) Interest Rate (VM). The “Interest Rate (VM)” in relation to each Eligible Currency
specified below will be: 
  

					
	 Eligible Currency
	  	Interest Rate (VM)	  	A/365 Currency
	USD	  	Fed Funds	  	No

 For purposes of the foregoing: 

“Fed Funds” means for any day, an interest rate per annum equal to the rate published as the Federal Funds
Effective Rate that appears on Reuters Page FEDM or on Bloomberg Page FEDLO1 for such day, or as published in another source mutually agreed by the parties. 

(ii) Transfer of Interest Payment (VM) or Application of Interest Amount (VM).  

Interest Transfer: Applicable. 

For the purposes of Paragraph 6(d)(ii)(A), the Transfer of an Interest Payment (VM) by the Interest Payer (VM) will be made on
or prior to the third Local Business Day of each calendar month. 
 Interest Payment Netting: Not Applicable. Interest
Adjustment: Not Applicable. 
 The definition of “Interest Period” set out in Paragraph 12 of this Annex shall be
deleted in its entirety and replaced with the following: 
 “Interest Period” means each calendar
month, provided that (i) if this Annex is not entered into on the first day of a calendar month, the first interest period will be the period from (and including) the day on which this Annex is entered into to (and including) the last day of
such calendar month and (ii) if an Early Termination Date has been designated or deemed to occur in relation to a party, the Interest Period shall mean the period from (and including) the first 

  
 6 

 
day of the calendar month in which such Early Termination Date occurred to (but excluding) such Early Termination Date. 
  

	 	(iii)	 Other Interest Elections. 

Negative Interest: Applicable. 

Daily Interest Compounding: Not Applicable. 
  

	 	(iv)	 Alternative to Interest Amount (VM) and Interest Payment (VM). Not specified

  

	(j)	 Credit Support Offsets. Not Applicable. 

 

	(k)	 Additional Representation(s). None specified. 

 

	(l)	 Other Eligible Support (VM) and Other Posted Support (VM). 

 

	 	(I)	 “Value” with respect to Other Eligible Support (VM) and Other Posted Support (VM)
means: Not applicable. 

  

	 	(ii)	 “Transfer” with respect to Other Eligible Support (VM) and Other Posted Support (VM)
means: Not applicable. 

  

	(m)	 Demands and Notices. 

 

	 	(i)	 All demands, specifications and notices under this Annex will be made pursuant to the Notices Section of this
Agreement, unless otherwise specified here: 

 With respect to Party A: 

JPMorgan Chase Bank, N.A. 

JPM Collateral Services 

500 Stanton Christiana Road 

NCC5/FL1 DE3-4184 

Newark, Delaware 19713 

Group Telephone No.: (302) 634-4607 

Facsimile No.: (302) 552-6930 

Email: collateral services@ipmorgan.com 

Party B: 

Cambridge Master Fund L.P. 

c/o Ceres Managed Futures LLC 

522 Fifth Avenue 

New York, New York 10036 

Attention: Patrick Egan 

Email: Patrick.egan@morganstanley.com 

  
 7 

	(n)	 Addresses for Transfers. 

Party A: As advised from time to time. Party 

B: As advised from time to time. 
  

	(o)	 Other CSA. None. 

 

	(p)	 SFTR Information Statement. Party A provides to Party B the “Information Statement in accordance
with Article 15 of the Securities Financing Transactions Regulation” attached hereto as Exhibit A. 

  

	(q)	 Other Provisions. 

 

	 	(i)	 Initial Returned Posted Credit Support. Notwithstanding anything to the contrary in the Annex, the
Secured Party may satisfy its obligation to Transfer a Return Amount (VM) in accordance with Paragraph 3(b) by Transferring any Eligible Collateral (VM) or, if Eligible Collateral (VM) does not include Cash, any Eligible Collateral (VM) or Cash, to
the Pledgor (the “Initial Returned Posted Credit Support”); provided, that, no later than the relevant Return Date, (1) the Secured Party Transfers to the Pledgor the Posted Credit Support (VM) specified by the Pledgor in its
demand for a Return Amount (VM) (a “Return Request”) and (2) the Pledgor Transfers to the Secured Party the Initial Returned Posted Credit Support plus interest on the Cash included in the Initial Returned Posted Credit
Support, if any, at the Interest Rate (VM). For purposes hereof, “Return Date” means (x) if the relevant Return Request was received by the Secured Party by the Notification Time on a Local Business Day, the close of business
on the next Local Business Day and (y) if the relevant Return Request was received by the Secured Party after the Notification Time on a Local Business Day, the close of business on the second Local Business Day thereafter.

  

	 	(ii)	 Independent Amounts. The following amendments are made to this Annex in order to provide for the
inclusion of independent amount margin: 

 The phrase “and Independent Amounts (IA)” is added to
the title to the Annex such that the title of the Annex reads in its entirety: “2016 Credit Support Annex for Variation Margin (VM) and Independent Amounts (IA)”. 

Each instance of “(VM)” in the Annex is replaced with “(VM)/(IA)” 

Paragraph 1(c) of the Annex is hereby replaced with the following: 

“(c) Scope of this Annex and the Other CSA. The only Transactions which will be relevant for the purposes
of determining a “Credit Support Amount (VM/IA)” under this Annex will be the Covered Transactions specified in Paragraph 13. Each Other CSA, if any, is hereby amended such that the Transactions that will be relevant for purposes of
determining “Exposure” or, unless otherwise provided in Paragraph 13, any “Independent Amount” thereunder, if any, will exclude the Covered Transactions. Except as provided in Paragraphs 8(a), 8(b) and 11(j), nothing in this
Annex will affect the rights and obligations, if any, of either party with respect to initial margin not designated as an “Independent 

  
 8 

 
Amount” under each Other CSA, if any, with respect to Transactions that are Covered Transactions.” 

Paragraph 3(a)(i) is deleted and replaced with “the Credit Support Amount (VM)/(IA)” and Paragraph 3(b)(ii) is
deleted and replaced with “the Credit Support Amount (VM)/(IA)”. 
 Paragraph 12 of the Annex is hereby further
amended by adding the following defined terms thereto in alphabetical order: 
 “Credit Support Amount
(VM)/(IA)” means, unless otherwise specified in Paragraph 13, for any Valuation Date (i) the Secured Party’s Exposure for that Valuation Date plus (ii) the aggregate of all Independent Amounts applicable to the
Pledgor, if any, minus (iii) all Independent Amounts applicable to the Secured Party, if any; provided, however, that the Credit Support Amount (VM)/(IA) will be deemed to be zero whenever the calculation of Credit Support Amount
(VM)/(IA) yields a number less than zero. 
 “Independent Amount” means, with respect to a party, the
amount specified for that party in Paragraph 13, or if no amount is specified, zero. 
 (iii) (A) “Independent
Amount” shall not apply to Party A for purposes of this Annex. 
 “Independent Amount” means, with respect to
Party B in respect of any Valuation Date, an amount determined by Party A equal to the sum of the Transaction Independent Amounts. 

“Transaction Independent Amount” means, as of any Valuation Date, an amount determined by Party A as follows: 

(i) in respect of any Transaction outstanding as of such Valuation Date evidenced by a Confirmation that sets forth an
Independent Amount (an “IA Transaction”), such Independent Amount; 
 (ii) in respect of In Scope Transactions (as
defined below) outstanding as of such Valuation Date, an amount equal to the product of (a) the greater of (1) the product of the Risk Determination (as defined below) times the Risk Multiplier (as defined below) and (2) the
Stress-Based Independent Amount (as defined below) times (b) the Portfolio Multiplier (as defined below); and 
 (iii)
in respect of each Transaction that is neither an In Scope Transaction nor an IA Transaction (an “Out of Scope Transaction”), an amount equal to the product of the notional principal amount (as determined as set forth below) of such Out of
Scope Transaction multiplied by the percentage set forth below opposite the relevant type of Out of Scope Transaction in the following grid: 
  

					
	 Transaction Type
	  	Percentage	 
	 (1) Fixed income products (including swaps, swaptions, caps, floors, collars, and forward rate
agreements) and total return swaps on instruments other than high yield and convertible bonds, in each case Involving only Developed Market Currencies (as defined below)
	  	 	5	% 

  
 9 

					
	 (2) Mortgage-backed swaps involving only Developed Market Currencies
	  	 	30	% 
		
	 (3) Fixed income products (including swaps, swaptions, caps, floors, collars, and forward rate
agreements) and total return swaps on instruments other than high yield and convertible bonds, in each case involving an Emerging Market Currency (as defined below)
	  	 	30	% 
		
	 (4) Total return swaps on equities, equity indices, high yield and convertible bonds, and
equity options
	  	 	25	% 
		
	 (5) FX Transactions and Currency Option Transactions involving only Developed Market
Currencies
	  	 	5	% 
		
	 (6) FX Transactions and Currency Option Transactions involving an Emerging Market
Currency
	  	 	20	% 
		
	 (7) Commodity swaps, options, and forwards (other than Out of Scope Transactions involving an
energy Commodity)
	  	 	30	% 
		
	 (8) Credit derivatives, including credit default swaps and credit spread options
	  	 	20	% 
		
	 (9) Any other transactions not listed here
	  	 	As agreed	 

 In respect of the foregoing, if there is a Notional Amount set forth in the Confirmation evidencing an Out of
Scope Transaction, the notional principal amount will be such Notional Amount. If there is no Notional Amount set forth in the Confirmation evidencing an Out of Scope Transaction, Party A shall determine the notional principal amount of such Out of
Scope Transaction, subject to the following: 
 (i) if such Out of Scope Transaction is an FX Transaction or Currency Option
Transaction, the Transaction Independent Amount shall be based on the USD amount involved in such Out of Scope Transaction (provided, however, that if there is no USD amount involved in such Out of Scope Transaction, then on the USD equivalent, as
determined by Party A, of the amount payable to Party A under such Out of Scope Transaction at such time or thereafter; and provided, further, that, for this purpose, all such Out of Scope Transactions will be treated as Deliverable and the
amount payable to Party A in respect of each Currency Option Transaction will be determined on the basis that such Currency Option Transaction will be exercised), 

(ii) if such Out of Scope Transaction is an equity Option Transaction, the Transaction Independent Amount shall be based on the
product of the Strike Price times the Option Entitlement (if any) times the Number of Options of such Out of Scope Transaction, and 

(iii) if such Out of Scope Transaction involves a Commodity (other than an energy Commodity), the Transaction Independent
Amount shall be based on an amount equal to the product of the highest Notional Quantity for a Calculation Period (or if there is only one Calculation Period, the Total Notional Quantity) times the Specified Price on the Trade Date of such Out of
Scope Transaction (provided, however, that if such Out of Scope Transaction involves an energy Commodity, the Transaction Independent Amount shall be an amount equal to the product of (a) the total notional principal amount of such Out of Scope
Transaction (the Total Notional Quantity or other similar quantity definition denominating the entire quantity for the term of 

  
 10 

 
such Out of Scope Transaction) times (b) the fixed price (or contract price or other similar pricing definition for the price of the Commodity subject to such Out of Scope Transaction as of
the Trade Date) times (c) 15%). 
 If any Out of Scope Transaction involves more than one Notional Amount, the higher value
will apply for purposes of this calculation. If in any case the relevant amount is not expressed in USD, the USD equivalent thereof, as determined by Party A, shall be applicable for the purposes of determining the Transaction Independent Amount
with respect to Out of Scope Transactions. (Terms used in subsections (i), (ii), and (iii) immediately above without definition herein shall have the meanings set forth in the Confirmation of the relevant Out of Scope Transaction.) 

“Currency Stress Amount” means, as of the relevant Valuation Date, an amount determined by Party A representing the
greatest potential loss to Party B in respect of In Scope Transactions resulting from the application of one or more risk scenarios formulated by Party A that Party A determines to be appropriate as of such Valuation Date, which scenarios are based
on, among other things, changes to the valuations of certain currencies or groups of currencies. 
 “Developed Market
Country” means a country designated as such from time to time by Party A in its discretion (it being agreed that Party A may from time to time change any such designation of a country). 

“Developed Market Currencies” means any currencies (individually, a “Developed Market Currency”)
designated as such from time to time by Party A in its discretion (it being agreed that Party A may from time to time change any such designation of a currency and that the Transaction Independent Amount may change as a result thereof (including,
without limitation, as a result of a currency then falling within the application of one or more different risk scenarios)). 

“Emerging Market Country” means, as of the relevant Valuation Date, any country that is not a Developed Market
Country. 
 “Emerging Market Currency” means, as of the relevant Valuation Date, any currency that is not a
Developed Market Currency. 
 “In Scope Transaction” means, as of the relevant Valuation Date, (i) each Plain
Vanilla (as defined below) Transaction that is a forward FX Transaction, Currency Option Transaction relating (y) solely to a Developed Market Currency or floating rate of a Developed Market Country or (z) to an Emerging Market Currency or
floating rate of an Emerging Market Country that Party A includes as an In Scope Transaction in either case in its discretion, (ii) each Plain Vanilla (as defined below) Transaction that is a Bullion Trade or a Bullion Option (as defined in the
2005 ISDA Commodity Definitions) that Party A includes as an In Scope Transaction in its discretion, and (iii) each other Transaction that Party A determines in its discretion constitutes an In Scope Transaction; provided, however, that IA
Transactions entered into on or after the date of this Agreement will not be In Scope Transactions. “Plain Vanilla” means a Transaction whose material terms are those set forth in the applicable form of Confirmation for that type of
Transaction set forth in an exhibit to the definition booklet published by the International Swaps and Derivatives Association, Inc. that applies to that type of Transaction; provided that such Transaction may be confirmed using such form of
Confirmation without substantive change; and 

 
provided, further, that a Transaction that has material terms set forth in the exhibits to the 2005 Supplement to the 1998 FX and Currency Option Definitions will not be considered Plain Vanilla.

 “Interest Rate Stress Amount” means, as of the relevant Valuation Date, an amount determined by Party A
representing the greatest potential loss to Party B in respect of In Scope Transactions resulting from the application of one or more risk scenarios formulated by Party A that Party A determines to be appropriate as of such Valuation Date, which
scenarios are based on, among other things, changes in the interest rates of certain countries or groups of countries. 

“Liquidation Cost” means, as of the Valuation Date, an amount determined by Party A by applying one or more shock
factors to In Scope Transactions formulated by Party A that Party A determines to be appropriate as of such Valuation Date, which such shock factors are based on, among other things, changes in the liquidity of the relevant currency. 

“Pegged Currency” means a currency selected by Party A whose value Party A determines is pegged to another currency
or Party A determines is not otherwise freely floating (it being agreed that Party A may from time to time change any such designation of a currency). 

“Pegged Currency Add-on” means, as of the relevant Valuation Date, an amount
equal to the sum of the Greatest Negative Nets (as defined below) in respect of all Pegged Currencies determined by Party A resulting from positions of Party B in each Pegged Currency arising under In Scope Transactions (which positions have, in the
determination of Party A, currency sensitivity) being shocked in a manner determined by Party A, the resulting potential gains (expressed as a positive number) and losses (expressed as a negative number) to Party B in respect of each such Pegged
Currency within each shocking factor being netted against each other, and the negative net amount, if any, representing the highest potential loss to Party B in respect of the shocking factors applied to such Pegged Currency being determined by
Party A (in respect of any Pegged Currency, the “Greatest Negative Net”). 
 “Portfolio Multiplier”
means 1.5; provided, however, that Party A may amend the Portfolio Multiplier from time to time by notice to Party B. 

“Risk Determination” means, as of the relevant Valuation Date, an amount determined by Party A in respect of In
Scope Transactions using such methodology and factors as it determines in its discretion to be appropriate as of such day; provided, however, that such amount will be determined by Party A as follows until such time as Party A notifies Party B that
Party A will be using a different methodology and/or factors: an amount equal to Party A’s value at risk for a period of ten days in respect of all In Scope Transactions outstanding as of the relevant day, as determined by Party A as of such
day based on a statistical confidence level of 99% using two years of historical data. 
 “Risk Multiplier” means
1; provided, however, that Party A may amend the Risk Multiplier from time to time by notice to Party B. 

“Stress-Based Independent Amount” means, as of the relevant Valuation Date, an amount determined by Party A in
respect of In Scope Transactions equal to the sum of (i) the Pegged Currency Add-on plus (ii) the Currency Stress Amount plus (iii) the Interest Rate Stress Amount plus (iv) the Volatility
Stress Amount plus (v) the Tenor Based Liquidation Add-on. 

 “Tenor Based Liquidation
Add-on” means, as of the relevant Valuation Date for In Scope Transactions with a tenor greater than 12 months from the trade date, an amount calculated by Party A by: (I) determining the net
Liquidation Cost amount for each currency by summing the Liquidation Costs for all In Scope Transactions of such currency, and (ii) aggregating the absolute value of the amounts determined under (i). 

“Volatility Stress Amount” means, as of the relevant Valuation Date, an amount determined by Party A representing
the greatest potential, loss to Party B in respect of In Scope Transactions resulting from the application of one or more risk scenarios formulated by Party A that Party A determines to be appropriate as of such Valuation Date, which scenarios are
based on, among other things, changes in the volatilities of options related to certain currencies or groups of currencies. 

Party A has provided to Party B descriptions of the risk scenarios that Party A may use, in its discretion, to determine the
Currency Stress Amount, the Interest Rate Stress Amount, and the Volatility Stress Amount. Party A may modify or change such risk scenarios from time to time by notice to Party B. 

[Signature Page Follows] 

 Please confirm your agreement to the terms of the foregoing Paragraph 13 by
signing below. 
  

									
	JPMORGAN CHASE BANK, N.A.	 		 	CAMBRIDGE MASTER FUND L.P.
				
		 		 		 	By: Ceres Managed Futures LLC
					
	By:	 	 /s/ Leila Safai
	 		 	By:	 	 /s/ Patrick T. Egan

	Name: Leila Safai	 		 	Name: Patrick T. Egan
	Title: Vice President,	 		 	Title: President & Director
	JPMorgan Chase Bank, N.A.	 		 	Ceres Managed Futures LLC

 Exhibit A 

Information Statement in accordance with Article 15 of the 

Securities Financing Transactions Regulation 

This Information Statement is provided for information purposes only and does not amend or supersede the express terms of any Transaction, Collateral
Arrangement or any rights or obligations you may have under applicable law, create any rights or obligations, or otherwise affect your or our liabilities and obligations. 
  

	1.	 Introduction 

You have received this Information Statement because you have entered into or may hereafter enter into one or more title transfer collateral
arrangements or security collateral arrangements containing a right of use (together, “Collateral Arrangements”) with us. 

This Information Statement has been prepared to comply with Article 15 of the Securities Financing Transactions Regulation by informing you of
the general risks and consequences that may be involved in consenting to a right of use of collateral provided under a security collateral arrangement or of concluding a title transfer collateral arrangement
(“Re-use Risks and Consequences”). The information required to be provided to you pursuant to Article 15 of the Securities Financing Transactions Regulation relates only to Re-use Risks and Consequences, and so this Information Statement does not address any other risks or consequences that may arise as a result of your particular circumstances or as a result of the terms of particular
Transactions. 
 This Information Statement is not intended to be, and should not be relied upon as, legal, financial, tax, accounting or
other advice. Unless otherwise expressly agreed in writing, we are not providing you with any such legal, financial, tax, accounting or other advice and you should consult your own advisors for advice on consenting to a right of use of collateral
provided under a security collateral arrangement or on concluding a title transfer collateral arrangement, including the impact on your business and the requirements of, and results of, entering into any Transaction. 

Appendix 2 sets out an indicative (but not exhaustive) list of types of agreement that may constitute Collateral Arrangements. 

Appendix 3 sets out alternative disclosures that are applicable if we are (1) a U.S. broker-dealer or futures commission merchant or
(2) a U.S. bank or U.S. branch or agency office of a non-U.S. bank. 
 In this Information
Statement: 
  

	 	•	 	 “we”, “our”, “ours” and “us” refer to the provider of this Information
Statement that may conduct Transactions with you (or, where we are acting on behalf of another person, including 

where that person is an affiliate, that person); 
  

	 	•	 	 “you”, “your” and “yours” refer to each of the persons to which this Information
Statement is delivered or addressed in connection with entering into, continuing, executing or agreeing upon 

  
 Copyright © 2016 by
the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association, the International Securities Lending Association and
SIFMA. Neither the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association and the International Securities Lending
Association nor SIFMA, has reviewed or endorsed any modifications that may have been made to this document. 

	 	 
the terms of Transactions with us (or, where you are acting on behalf of other persons, each of those persons); 

 

	 	•	 	 “right of use” means any right we have to use, in our own name and on our own account or the account
of another counterparty, financial instruments received by us by way of collateral under a security collateral arrangement between you and us; 

  

	 	•	 	 “Securities Financing Transactions Regulation” means Regulation (EU) 2015/2365 of the European
Parliament and of the Council of 25 November 2015 on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012 (as amended from time to time); 

 

	 	•	 	 “Transaction” means a transaction entered into, executed or agreed between you and us under which
you agree to provide financial instruments as collateral, either under a security collateral arrangement or under a title transfer collateral arrangement; 

  

	 	•	 	 “financial instruments”, “security collateral arrangement” and “title transfer
collateral arrangement” have the meaning given to those terms in the Securities Financing Transactions Regulation. These are set out in Appendix 1 for reference. 

 

	2.	 Re-use Risks and Consequences 

 

	 	a)	 Where you provide financial instruments to us under a title transfer collateral arrangement or if we exercise
a right of use in relation to any financial instruments that you have provided to us by way of collateral under a security collateral arrangement containing a right of use, we draw your attention to the following
Re-use Risks and Consequences: 1 

  

	 	i.	 your rights, including any proprietary rights that you may have had, in those financial instruments will be
replaced by an unsecured contractual claim for delivery of equivalent financial instruments subject to the terms of the relevant Collateral Arrangement; 

  

	 	ii.	 those financial instruments will not be held by us in accordance with client asset rules, and, if they had
benefited from any client asset protection rights, those protection rights will not apply (for example, the financial instruments will not be segregated from our assets and will not be held subject to a trust); 

  
  

	1	 As noted above, Appendix 3 sets forth the risks and consequences that may arise in connection with re-use of financial instruments by a U.S. broker-dealer, U.S, futures commission merchant, or U.S. bank or U.S. branch or agency office of a non-U.S. bank.

 Copyright © 2016 by the International Swaps and Derivatives Association, Inc., the Association for Financial
Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association, the International Securities Lending Association and SIFMA. Neither the International Swaps and Derivatives Association, Inc., the Association
for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association and the International Securities Lending Association nor SIFMA, has reviewed or endorsed any modifications that may have been made
to this document. 

	 	iii.	 in the event of our insolvency or default under the relevant agreement your claim against us for delivery of
equivalent financial instruments will not be secured and will be subject to the terms of the relevant Collateral Arrangement and applicable law and, accordingly, you may not receive such equivalent financial instruments or recover the full value of
the financial instruments (although your exposure may be reduced to the extent that you have liabilities to us which can be set off or netted against or discharged by reference to our obligation to deliver equivalent financial instruments to you);

  

	 	iv.	 in the event that a resolution authority exercises its powers under any relevant resolution regime in relation
to us any rights you may have to take any action against us, such as to terminate our agreement, may be subject to a stay by the relevant resolution authority and: 

 

	 	a)	 your claim for delivery of equivalent financial instruments may be reduced (in part or in full) or converted
into equity; or 

  

	 	b)	 a transfer of assets or liabilities may result in your claim on us, or our claim on you, being transferred to
different entities 

  

	 	  	 although you may be protected to the extent that the exercise of resolution powers is restricted by the
availability of set-off or netting rights; 

  

	 	v.	 as a result of your ceasing to have a proprietary interest in those financial instruments you will not be
entitled to exercise any voting, consent or similar rights attached to the financial instruments, and even if we have agreed to exercise voting, consent or similar rights attached to any equivalent financial instruments in accordance with your
instructions or the relevant Collateral Arrangement entitles you to notify us that the equivalent financial instruments to be delivered by us to you should reflect your instructions with respect to the subject matter of such vote, consent or
exercise of rights, in the event that we do not hold and are not able to readily obtain equivalent financial instruments, we may not be able to comply (subject to any other solution that may have been agreed between the parties);

  

	 	vi.	 in the event that we are not able to readily obtain equivalent financial instruments to deliver to you at the
time required: you may be unable to fulfil your settlement obligations under a hedging or other transaction you have entered into in relation to those financial instruments; a counterparty, exchange or other person may exercise a right to buy-in the relevant financial instruments; and you may be unable to exercise rights or take other action in relation to those financial instruments; 

  
 Copyright © 2016 by
the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association, the International Securities Lending Association and
SIFMA. Neither the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association and the International Securities Lending
Association nor SIFMA, has reviewed or endorsed any modifications that may have been made to this document. 

	 	vii.	 subject to any express agreement between you and us, we will have no obligation to inform you of any corporate
events or actions in relation to those financial instruments; 

  

	 	viii.	 you will not be entitled to receive any dividends, coupon or other payments, interests or rights (including
securities or property accruing or offered at any time) payable in relation to those financial instruments, although the express written terms of the relevant Collateral Arrangement or Transaction may provide for you to receive or be credited with a
payment by reference to such dividend, coupon or other payment (a “manufactured payment”); 

  

	 	ix.	 the provision of title transfer collateral to us, our exercise of a right of use in respect of any financial
collateral provided to us by you and the delivery by us to you of equivalent financial instruments may give rise to tax consequences that differ from the tax consequences that would have otherwise applied in relation to the holding by you or by us
for your account of those financial instruments; 

  

	 	x.	 where you receive or are credited with a manufactured payment, your tax treatment may differ from your tax
treatment in respect of the original dividend, coupon or other payment in relation to those financial instruments. 

  

	 	b.	 Where we provide you with clearing services (whether directly as a clearing member or otherwise), we draw your
attention to the following additional Re-use Risks and Consequences: 

  

	 	i.	 if we are declared to be in default by an EU central counterparty (“EU CCP”) the EU CCP will
try to transfer (“port”) your transactions and assets to another clearing broker or, if this cannot be achieved, the EU CCP will terminate your transactions; 

 

	 	ii.	 in the event that other parties in the clearing structure default (e.g., a central counterparty, a custodian,
settlement agent or any clearing broker that we may instruct) you may not receive all of your assets back and your rights may differ depending on the law of the country in which the party is incorporated (which may not necessarily be English law)
and the specific protections that that party has put in place; 

  

	 	iii.	 in some cases a central counterparty may benefit from legislation which protects actions it may take under its
default rules in relation to a defaulting clearing member (e.g., to port transactions and related assets) from being challenged under relevant insolvency law. 

  
 Copyright © 2016 by
the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association, the International Securities Lending Association and
SIFMA. Neither the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association and the International Securities Lending
Association nor SIFMA, has reviewed or endorsed any modifications that may have been made to this document. 

 Appendix 1 

Defined terms for the purposes of the Securities Financing Transactions Regulation: 

“financial instrument” means the instruments set out in Section C of Annex I to Directive 2014/65/EU on markets in financial
instruments, and includes without limitation: 
  

	 	1)	 Transferable securities; 

 

	 	2)	 Money-market instruments; 

 

	 	3)	 Units in collective investment undertakings. 

“title transfer collateral arrangement” means an arrangement, including repurchase agreements, under which a collateral
provider transfers full ownership of financial collateral to a collateral taker for the purpose of securing or otherwise covering the performance of relevant financial obligations. 

“security collateral arrangement” means an arrangement under which a collateral provider provides financial collateral by way
of security in favour of, or to, a collateral taker, and where the full ownership of the financial collateral remains with the collateral provider when the security right is established. 

  
 Copyright C 2016 by the
International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association, the International Securities Lending Association and SIFMA.
Neither the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association and the International Securities Lending
Association nor SIFMA, has reviewed or endorsed any modifications that may have been made to this document. 

 Appendix 2 

We have set out below examples of the types of agreements to which this Information Statement applies. These examples are for illustrative
purposes only and should not be relied upon as a legal determination of the characterisation of each agreement. The fact that an agreement is grouped with Title Transfer Collateral Agreements below does not preclude its characterisation as a
Security Collateral Arrangement with a right of use and vice versa. Moreover, the characterization of an agreement may be different under U.S. and European law. 

Title Transfer Collateral Arrangement 

Such arrangements may include without limitation: 
  

	 	•	 	 Overseas Securities Lender’s Agreement 

 

	 	•	 	 Global Master Securities Lending Agreement 

 

	 	•	 	 Global Master Repurchase Agreement 

 

	 	•	 	 SIFMA Master Repurchase Agreement 

 

	 	•	 	 An ISDA Master Agreement incorporating an English Law ISDA Credit Support Annex 

 

	 	•	 	 An ISDA/FIA Client Cleared OTC Derivatives Addendum which provides for title transfer collateral arrangements
and in particular where entered into in connection with an English law governed ISDA Master Agreement which includes the English law CSA Collateral Terms as set out in Appendix 1 thereto, or when entered into in connection with a relevant FIA client
clearing agreement 

  

	 	•	 	 Master Gilt Edged Stock Lending Agreement 

 

	 	•	 	 Master Equity and Fixed Interest Stock Lending Agreement 

 

	 	•	 	 Prime brokerage agreements which provide for title transfer collateral arrangements 

 

	 	•	 	 FIA client clearing agreements for exchange traded and other cleared derivatives which provide for title
transfer collateral arrangements 

  

	 	•	 	 FIA Clearing Module which provides for title transfer collateral arrangements 

 

	 	•	 	 Any bespoke agreements granting security by way of transfer of title to the secured party

  

	 	•	 	 Futures & Options Client Agreements 

 

	 	•	 	 FBE European Master Agreement with Product Annex for Repurchase Transactions 

 

	 	•	 	 ISDA Master Agreement incorporating a Japanese Law 1995 Credit Support Annex (Loan) and Japanese Law 2008
Credit Support Annex (Loan) 

  
 Copyright © 2016 by
the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association, the International Securities Lending Association and
SIFMA. Neither the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association and the International Securities Lending
Association nor SIFMA, has reviewed or endorsed any modifications that may have been made to this document. 

	 	•	 	 ISDA Master Agreement incorporating a New York Law ISDA Credit Support Annex with Loan & Set-off language 

  

	 	•	 	 Convention-Cadre FBF Relative aux Operations de Pension Livrees (FBF Master Agreement for Repurchase
Transactions) 

 Security Collateral Arrangement containing a right of use Such 

arrangements may include without limitation: 
  

	 	•	 	 An ISDA Master Agreement incorporating a New York Law ISDA Credit Support Annex 

 

	 	•	 	 An ISDA/FIA Client Cleared OTC Derivatives Addendum which provides for security collateral arrangements and in
particular where entered into in connection a New York law governed ISDA Master Agreement including the New York law CSA Collateral Terms as set out in Appendix 2 thereto, or when entered into in connection with a relevant FIA client clearing
agreement 

  

	 	•	 	 An ISDA Master Agreement in respect of which an English Law ISDA Credit Support Deed incorporating a right of
use is a credit support document 

  

	 	•	 	 Prime brokerage agreements which provide for the creation of security over financial instru ments

  

	 	•	 	 FIA client clearing agreements for exchange traded and other cleared derivatives which provide for a creation
of security over financial instruments 

  

	 	•	 	 FIA Clearing Module which provides for a creation of security over financial instruments

  

	 	•	 	 Security arrangements in relation to margin loan documentation and associated custody agreements

  

	 	•	 	 SIFMA Master Securities Lending Agreement (this agreement is generally a security collateral arrangement with
respect to collateral delivered to the lender; the borrower takes title to the borrowed securities) 

  

	 	•	 	 Any bespoke security agreements creating security in respect of financial instruments with rehypothecation
rights or a right of use over the financial instruments in favour of the secured party 

  

	 	•	 	 SIFMA Master Securities Forward Transaction Agreement 

 

	 	•	 	 Futures & Options Client Agreements 

  
 Copyright © 2016 by
the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association, the International Securities Lending Association and
SIFMA. Neither the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association and the International Securities Lending
Association nor SIFMA, has reviewed or endorsed any modifications that may have been made to this document. 

 Appendix 3 

U.S. BROKER-DEALER, U.S. FUTURES COMMISSION MERCHANT, or U.S. BANK: 

This Appendix describes the Re-use Risks and Consequences that may arise under Collateral Arrangements
with a bank chartered under U.S. federal or state law, a U.S. branch or agency office of a non-U.S. bank (any such bank, branch, or agency office, a “U.S. banking organization”), a U.S. entity
that is registered as a broker-dealer with the U.S. Securities and Exchange Commission (“broker-dealer”), or a U.S. entity that is registered as a futures commission merchant with the Commodity Futures Trading Commission
(“FCM”). A single U.S. entity can operate, and be regulated, as both a broker-dealer and an FCM, but it remains subject to separate regulatory requirements with respect to its separate activities. 

U.S. law draws a distinction between financial instruments delivered to a broker-dealer or FCM and treated as customer assets
(“Customer Assets”), financial instruments held by a U.S. banking organization in a trust or custodial capacity (“Custodial Assets”), and financial instruments delivered or pledged to a U.S. banking organization,
broker-dealer, or FCM in a principal (non-customer) capacity (“Non-Customer Assets”). Customer Assets held by a broker-dealer or FCM are subject to
mandatory segregation requirements under the rules of the SEC and CFTC, respectively, and special-purpose insolvency regimes under which segregated assets, i.e., Customer Assets and cash required to be held in segregated accounts, are
distributed to customers. Custodial Assets held by a U.S. banking organization are generally segregated on an account- or customer-specific basis, while in some circumstances broker-dealers and FCMs are permitted to segregate Customer Assets on an
omnibus basis for all customers. 
 Financial instruments held in a securities account at a broker-dealer or delivered to an FCM as margin
(or “performance bond”) for a cleared derivative generally constitute Customer Assets. On the other hand, securities delivered to us under a repurchase or securities lending agreement generally do not constitute Customer Assets. If, with
respect to Customer Assets received by us as a broker-dealer, you separately agree to lend financial instruments to us under a securities lending agreement, or agree to sell financial instruments to us under a repurchase agreement, then the
financial instruments are removed from your account and are no longer eligible for customer protection. Any financial instruments delivered to us under such transactions are Non-Customer Assets. If you
are uncertain whether a financial instrument pledged or delivered to us is a Customer Asset, please obtain legal advice. 
 With
respect to Customer Assets received by us as an FCM in connection with your CFTC-regulated transactions, we generally cannot use such Customer Assets other than to margin, guarantee or secure those transactions. That is, we may transfer such assets
to segregated or secured accounts established by us with banks, clearing houses and clearing brokers, which acknowledge, via rules or written agreements, that such Customer Assets are the property of the FCM’s customers and can be utilized
solely to margin, guarantee or secure customer transactions. In addition, an FCM may, pursuant to repurchase agreements, substitute such segregated Customer Assets, subject to very strict CFTC regulations, including the requirement that such
substitution is made on a “delivery versus delivery” 

  
 Copyright © 2016 by
the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association, the International Securities Lending Association and
SIFMA. Neither the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association and the International Securities Lending
Association nor SIFMA, has reviewed or endorsed any modifications that may have been made to this document. 

 
basis, and the market value of the substituted securities is at least equal to that of the Customer Assets being substituted. To the extent segregated assets were found to be insufficient to
satisfy customer claims in full, customers would continue to have a claim against the proprietary assets of the FCM. 
 With respect to
Customer Assets received by us as a broker-dealer in connection with your SEC-regulated transactions, we generally can use such Customer Assets only with your consent and subject to regulatory usage limits
that are imposed both at the account level (by reference to the amount of your obligations to us) and across all customers (by reference to the amount of all customer obligations to us). The SEC requires that broker-dealers perform a daily valuation
of Customer Assets (including related customer obligations) and maintain in segregation either Customer Assets or cash or other high-grade assets such that the value of segregated assets will at all times exceed the value of all Customer Assets net
of customer obligations to the broker-dealer. Further, to the extent segregated assets were to be insufficient to satisfy customer claims in full, customers would continue to have a claim against the proprietary assets of the broker-dealer. 

Notwithstanding point (b) of paragraph 2 of Article 15 of the Securities Financing Transactions Regulation, when we use your Customer
Assets, they continue to be included on your account statement reflecting their status as Customer Assets, and we may not identify to you the financial instruments that we have used. 

If we are a broker-dealer or FCM, our exercise of our right to use Customer Assets has no effect on the nature of your property interest in
the financial instruments or on your rights as a customer in the event of our insolvency. The amount of your customer claim in a broker-dealer or FCM insolvency proceeding is a function of the value of assets held in your account and the amount of
your obligations to us, if any. In a broker-dealer or FCM insolvency proceeding, all customers generally receive the same pro rata share of their claims based on Customer Assets (and customer cash), regardless of whether their financial instruments
were subject to use or were used by the broker-dealer or FCM. (In the case of an FCM insolvency, customers are separated into several account classes based on product type, and recoveries may vary across account classes. Customers within the same
account class receive the same pro rata share of all customer claims within that class.) 
 In the insolvency of a U.S. banking
organization, Custodial Assets are generally returned to their owners to the extent such assets are available for distribution. Your consent to our use of your financial instruments may prevent them from being treated as Custodial Assets, and it may
jeopardize your right to obtain their return in the event of our insolvency. 
 Collateral Arrangements with respect to Non-Customer Assets can take a variety of forms with differing legal characterizations and practical consequences. Generally, a title transfer collateral arrangement entitles you only to a creditor claim for the
return of your financial instruments. Under a security collateral arrangement, in some cases you may retain a property interest in the financial instruments delivered to us as collateral, but your property right (if any) may be subject to superior
rights of our creditors or of a party to which we have transferred the financial instruments. Additionally, in the event of our insolvency, you may lose your property interest if you are unable to identify your property as distinct from our other
assets, and our use of your financial instruments may impair your ability to do so. 
 This Appendix is not intended to provide a complete
description of the treatment of Collateral Arrangements under U.S. law or the U.S. customer protection system, and you should not rely on it for that purpose. 

  
 Copyright © 2016 by
the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association, the International Securities Lending Association and
SIFMA. Neither the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association and the International Securities Lending
Association nor SIFMA, has reviewed or endorsed any modifications that may have been made to this document. 

 If we are a U.S. broker-dealer, U.S. FCM, or U.S. banking organization, Sections 2(a)(i) through
(v) of the Information Statement do not apply. Instead, where you provide financial instruments to us under a title transfer collateral arrangement or if we exercise a right of use in relation to any financial instruments that you have provided
to us by way of collateral under a security collateral arrangement containing a right of use, we draw your attention to the following Re-use Risks and Consequences: 

Paragraph 2. Risks in Connection with Financial Instruments That Are Customer Assets 

If we are a U.S. broker-dealer or FCM and your financial instruments are Customer Assets, then we are permitted to use your financial
instruments (i) to post as margin in respect of CFTC-regulated products with a clearing organization or other intermediary, and (ii) as otherwise permitted within the limits imposed by U.S. customer protection rules. When we use your
Customer Assets, we may not hold them in segregation or trust, depending on the applicable U.S. regulation, but we continue to report them on your account statement reflecting their status as Customer Assets. As a result of our use of your Customer
Assets, those assets are subject to the Re-use Risks and Consequences listed in Sections 2(a)(vi) through (x) of the Information Statement. In addition, if we provide you with clearing services (whether
directly as a clearing member or otherwise), Customer Assets are subject to the Re-use Risks and Consequences listed in Section 2(b) of the Information Statement. 

Moreover, as a result of our use of those financial instruments (including, in some cases, your ceasing to have a proprietary interest in
those financial instruments), or the failure of a third party to deliver to us financial instruments, you may not be entitled to exercise any voting, consent or similar rights attached to the financial instruments, and even if we have agreed to
exercise voting, consent or similar rights attached to any equivalent financial instruments in accordance with your instructions or the relevant Collateral Arrangement entitles you to notify us that the equivalent financial instruments to be
delivered by us to you should reflect your instructions with respect to the subject matter of such vote, consent or exercise of rights, in the event that we do not hold and are not able to readily obtain equivalent financial instruments, we may not
be able to comply (subject to any other solution that may have been agreed between the parties). 
 However, our right to use Customer
Assets and our actual use of Customer Assets do not present any insolvency-related Re-use Risks and Consequences. This is because, as described above, in the event of our insolvency your claim for Customer
Assets would be calculated according to a formula that does not take our use of assets into account. 
 In the event that a receiver,
conservator or other insolvency official exercises its powers under an insolvency regime in relation to us, any rights you may have to take any action against us, such as to terminate our agreement, may be subject to a stay by the relevant authority
and a transfer of assets or liabilities may result in your claim on us, or our claim on you, being transferred to different entities. However, this risk exists regardless of whether we have used your financial instruments or you have consented to
their use. 
 Paragraph 3. Risks in Connection with Financial Instruments That Are Non-Customer
Assets 
 Non-Customer Assets are not protected by the U.S. customer protection rules
that apply to Customer Assets. If we are a U.S. broker-dealer or FCM and your financial instruments are Non-Customer Assets, or we are a U.S. banking organization, and you have granted us a right to use your
financial instruments, then we will not hold such financial instruments in segregation or trust. Your rights, including any 

  
 Copyright © 2016 by
the international Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, inc,, the International Capital Market Association, the International Securities Lending Association and
SIFMA. Neither the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association and the International Securities Lending
Association nor SIFMA, has reviewed or endorsed any modifications that may have been made to this document. 

 
proprietary rights that you may have had, in those financial instruments may be replaced by a contractual claim (which would be unsecured unless otherwise agreed) for the delivery of equivalent
financial instruments subject to the terms of the relevant Collateral Arrangement. As a result of our use of your Non-Customer Assets, those assets are subject to the
Re-use Risks and Consequences listed in Sections 2(a)(vi) through (x) of the Information Statement. 

If we are a U.S. banking organization, as a result of your consent to our use of your financial instruments, those financial instruments may
not be held by us in accordance with the rules that apply to Custodial Assets, and, if they had benefited from any protections as Custodial Assets, those protection rights may not apply (for example, the financial instruments will not be segregated
from our assets and will not be held subject to a trust). 
 Moreover, as a result of our use of financial instruments (including, in some
cases, your ceasing to have a proprietary interest in those financial instruments), or the failure of a third party to deliver to us financial instruments, you may not be entitled to exercise any voting, consent or similar rights attached to the
financial instruments, and even if we have agreed to exercise voting, consent or similar rights attached to any equivalent financial instruments in accordance with your instructions or the relevant Collateral Arrangement entitles you to notify us
that the equivalent financial instruments to be delivered by us to you should reflect your instructions with respect to the subject matter of such vote, consent or exercise of rights, in the event that we do not hold and are not able to readily
obtain equivalent financial instruments, we may not be able to comply (subject to any other solution that may have been agreed between the parties). 

In the event of our insolvency your rights in financial instruments that we have used may be replaced by a general claim (which would be
unsecured unless otherwise agreed) against us for equivalent financial instruments or the value of those financial instruments, and you may not receive such equivalent financial instruments or recover the full value of the financial instruments
(although your exposure may be reduced to the extent that we have provided collateral to you or you have liabilities to us which can be set off or netted against or discharged by reference to our obligation to deliver equivalent financial
instruments to you). To the extent you retain a property interest in financial assets we have used, our use of the financial instruments may give other parties superior rights in them and may interfere with your ability to identify the financial
instruments for the purpose of obtaining their return. 
 In the event that a receiver, conservator or other insolvency official exercises
its powers under an insolvency regime in relation to us, any rights you may have to take any action against us, such as to terminate our agreement, may be subject to a stay by the relevant authority and a transfer of assets or liabilities may result
in your claim on us, or our claim on you, being transferred to different entities. However, this risk exists regardless of whether we have used your financial instruments or you have consented to their use. 

  
 Copyright © 2016 by
the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association, the International Securities Lending Association and
SIFMA. Neither the International Swaps and Derivatives Association, Inc., the Association for Financial Markets in Europe, the Futures Industry Association, Inc., the International Capital Market Association and the International Securities Lending
Association nor SIFMA, has reviewed or endorsed any modifications that may have been made to this document.Exhibit 10.10

 

THIRD AMENDED AND RESTATED 

 

LOAN AND SECURITY AGREEMENT 

 

DATED AS OF APRIL 26, 2017

 

by and among

 

SQUADRON CAPITAL LLC

as Lender,

 

ORTHOPEDIATRICS CORP., 

 

ORTHOPEDIATRICS US DISTRIBUTION CORP.,

 

ORTHOPEDIATRICS EU LIMITED, 

 

ORTHOPEDIATRICS AUS PTY LTD,

 

and

 

ORTHOPEDIATRICS NZ LTD

 

as Borrowers

 

     

     

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	1.	DEFINITIONS AND TERMS	2
	 	 	 
	 	1.1	Definitions	2
	 	1.2	Uniform Commercial Code	11
	 	1.3	Rules of Construction	12
	 	 	 
	2.	LOAN: GENERAL TERMS	12
	 	 	 
	 	2.1	Term Loan A	12
	 	2.2	Term Loan B	12
	 	2.3	Usury	13
	 	 	 
	3.	INTEREST; PAYMENT TERMS	13
	 	 	 
	 	3.1	Interest Rates	13
	 	3.2	Interest Payments	14
	 	3.3	Principal Payments	14
	 	3.4	Place of Payment	15
	 	3.5	Application of Payments	15
	 	3.6	Costs and Other Payments	15
	 	 	 
	4.	COLLATERAL	15
	 	 	 
	 	4.1	Grant of Security Interest in the Collateral	15
	 	4.2	Perfection of Security Interest	16
	 	4.3	Disposition of Collateral	17
	 	4.4	Preservation of Collateral	17
	 	4.5	Ownership of Collateral	17
	 	4.6	Defense of Lender’s Interests	18
	 	4.7	Books and Records	18
	 	4.8	Termination and Release	18
	 	4.9	Foreign Collateral	19
	 	 	 
	5.	REPRESENTATIONS AND WARRANTIES	19
	 	 	 
	 	5.1	Organization; Requisite Power and Authority; Qualification	19
	 	5.2	Due Authorization	19
	 	5.3	No Conflict	19
	 	5.4	Binding Obligation	20
	 	5.5	Governmental Consents	20
	 	5.6	Margin Stock	20
	 	5.7	Accuracy of Information	20
	 	5.8	Solvency	20
	 	5.9	Capitalization	20

 

    	i

     

    

 

	6.	AFFIRMATIVE COVENANTS	20
	 	 	 
	 	6.1	Insurance	20
	 	6.2	Financial Reports	21
	 	6.3	Notices	22
	 	6.4	Taxes	23
	 	6.5	Existence	24
	 	6.6	Compliance with Laws	24
	 	6.7	Payment and Performance of Obligations	24
	 	6.8	Inspection	24
	 	6.9	Use of Proceeds	24
	 	6.10	Environmental Covenants	24
	 	6.11	ERISA Covenant	25
	 	 	 
	7.	NEGATIVE COVENANTS	25
	 	 	 
	 	7.1	Indebtedness	25
	 	7.2	Liens	25
	 	7.3	Contingent Obligations	26
	 	7.4	Restricted Payments	26
	 	7.5	Compliance with ERISA	26
	 	7.6	Distributions	26
	 	7.7	Sale of Assets	26
	 	7.8	Mergers and Sales of Equity Interests	27
	 	7.9	Investments and Acquisitions	27
	 	7.10	Transactions with Affiliates	27
	 	7.11	Modification of Organizational Documents	27
	 	 	 
	8.	CLOSING CONDITIONS	27
	 	 	 
	 	8.1	Lender’s Obligations on the Closing Date	27
	 	8.2	Borrowers’ Obligations on the Closing Date	29
	 	8.3	Conditions to All Borrowings	29
	 	 	 
	9.	DEFAULT	30
	 	 	 
	 	9.1	Events of Default	30
	 	9.2	Acceleration	31
	 	9.3	Rights and Remedies	31
	 	9.4	Default Rate of Interest	33
	 	9.5	Setoff Rights	33
	 	9.6	Application of Proceeds	33
	 	 	 
	10.	ASSIGNABILITY	33
	 	 	 
	 	10.1	Assignments by Borrowers	33

 

    	ii

     

    

 

	11.	GENERAL PROVISIONS	34
	 	 	 
	 	11.1	Modification	34
	 	11.2	Severability	34
	 	11.3	Successors and Assigns	35
	 	11.4	Liability Prior to Termination	35
	 	11.5	Waiver of Notice Omitted	35
	 	11.6	Designated Person	35
	 	11.7	Indemnification	35
	 	11.8	No Third Party Beneficiaries; Relationship of Borrowers and Lender	36
	 	11.9	Acceptance by Lender	36
	 	11.10	Prior Agreements; Interpretation	37
	 	11.11	Notice	37
	 	11.12	Section Titles, etc.	38
	 	11.13	Waiver of Claims	38
	 	11.14	Waiver by Borrowers	38
	 	11.15	Governing Law	39
	 	11.16	Representation by Counsel	39
	 	11.17	Plural, Singular	39
	 	11.18	Waiver of Trial by Jury	39
	 	11.19	Counterparts and PDF	40
	 	11.20	Amendment and Restatement; No Novation	40

 

    	iii

     

    

 

Schedules and Exhibits

 

	Schedule 4.5	Location of Inventory (other than customer’s locations)
	Schedule 7.1	Existing Indebtedness
	Schedule 7.2	Existing Liens
	Schedule 7.4	Compensation
	Schedule 7.9	Existing Investments
	Schedule 7.10	Transactions with Affiliates
	 	 
	Exhibit A	Term Note A
	Exhibit B	Term Note B
	Exhibit C	Term Loan B Notice of Borrowing

 

    	iv

     

    

 

THIRD AMENDED AND RESTATED 

LOAN AND SECURITY AGREEMENT

 

THIS THIRD AMENDED
AND RESTATED LOAN AND SECURITY AGREEMENT is dated as of April 26, 2017 and is made by and among Squadron Capital LLC, a Delaware
limited liability company with its principal place of business located at 18 Hartford Avenue, Granby, Connecticut 06035 (“Lender”),
OrthoPediatrics Corp., a Delaware corporation (“OrthoPediatrics”), OrthoPediatrics US Distribution Corp., a
Delaware corporation (“OrthoPediatrics US Distribution”), OrthoPediatrics EU Limited, a company incorporated
and registered in England and Wales (“OrthoPediatrics EU”), OrthoPediatrics Aus Pty Ltd., a company organized
under the laws of Australia (“OrthoPediatrics Aus”) and OrthoPediatrics NZ Ltd., a company organized under the
laws of New Zealand (“OrthoPediatrics NZ” and together with OrthoPediatrics, OrthoPediatrics US Distribution,
OrthoPediatrics EU and OrthoPediatrics Aus, “Borrowers” and individually a “Borrower”, and
each having its principal place of business at 2850 Frontier Drive, Warsaw, Indiana 46582.

 

RECITALS:

 

A.           OrthoPediatrics,
OrthoPediatrics US Distribution and Lender are parties to that certain Second Amended and Restated Loan and Security Agreement
dated as of May 30, 2014 (as amended, modified or supplemented, the “Existing Loan and Security Agreement”);

 

B.           Borrowers
and Lender desire to amend and restate in its entirety the Existing Loan and Security Agreement, without constituting a novation,
all on the terms and subject to the conditions contained herein.

 

NOW THEREFORE, in consideration
of the Term Loan made by Lender to or for the benefit of Borrowers, and of the promises set forth herein, the parties hereto agree
as follows:

 

1.          DEFINITIONS
AND TERMS

 

1.1           Definitions.
In addition to terms defined elsewhere in this Agreement, the following words, terms and/or phrases shall have the meanings set
forth thereafter.

 

“Affiliate”:
Any Person (i) in which one or more Equity Interest holders owning five percent (5%) or more of the total Equity Interests of any
Borrower (excluding the Equity Interests issued to Lender) now or at any time or times hereafter, has or have an equity or other
ownership interest equal to or in excess of three percent (3%) of the total equity of or other ownership interest in such Person;
and/or (ii) which directly or indirectly through one or more intermediaries controls or is controlled by, or is under common control
with any Borrower. For purposes of this definition, “control” shall mean the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of a Person, whether as an officer, director, manager
or through the ownership of Equity Interests, by contract or otherwise. For avoidance of doubt, Lender shall not be deemed an Affiliate
of any Borrower.

 

“Agreement”:
This Third Amended and Restated Loan and Security Agreement, together with all Modifications hereto or hereof.

 

    	 	2	 

     

    

 

“and/or”:
One or the other or both, or any one or more or all, of the things or Persons in connection with which the conjunction is used.

 

“Bankruptcy
Code”: The Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et seq.), as amended and in effect from
time to time and the regulations issued from time to time thereunder.

 

“Borrowing”:
The term as defined in Section 2.1(c).

 

“Business
Day”: Any day, other than a Saturday, Sunday, a day that is a legal holiday under the laws of the State of Illinois or
any other day on which banking institutions located in Chicago, Illinois are authorized or required by law or other governmental
action to close.

 

“Capital Lease”:
Any lease of any property (whether real, personal or mixed) by any Person as lessee that, in conformity with GAAP, is or should
be accounted for as a capital lease on the balance sheet of that Person.

 

“Certificate
of Designation”: The term as defined in Section 3.1(c).

 

“Code”:
The Internal Revenue Code of 1986, as amended.

 

“Collateral”:
All property, now existing or hereafter acquired, mortgaged or pledged to Lender, pursuant to the Loan Documents.

 

“Contingent
Obligation”: With respect to any Borrower, any agreement, undertaking or arrangement by which any Borrower assumes, guarantees,
endorses, contingently agrees to purchase or provide funds for the payment of, or otherwise becomes or is contingently liable upon,
the obligation or liability of any other Person, or agrees to maintain the net worth or working capital or other financial condition
of any other Person, or otherwise assures any creditor of such other Person against loss, including, without limitation, any comfort
letter, operating agreement, take-or-pay contract or the obligations of any such Person as general partner of a partnership with
respect to the liabilities of the partnership. However, the term “Contingent Obligation” (as defined in this Agreement)
does not include endorsements of instruments for deposit or collection in the ordinary course of business. For purposes of this
Agreement, the amount of any Contingent Obligation will be that amount which is equal to the stated or determinable amount of the
primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum anticipated
liability in respect of such primary obligation (assuming a Borrower is required to perform thereunder), as determined by Lender.
If any Borrower has such Contingent Obligation, such Borrower will provide Lender, on demand, with all information, documents and
instruments Lender requests in connection with the determination of the amount of such Contingent Obligation.

 

“Contractual
Obligation”: As to any Person, any provision of any security issued by such Person or of any agreement, undertaking,
contract, indenture, mortgage, deed of trust or other instrument or arrangement (whether in writing or otherwise) to which such
Person is a party or by which it or any of such Person’s property is bound or subject.

 

    	 	3	 

     

    

 

“Costs”:
Any and all reasonable costs and expenses incurred by Lender at any time, including reasonable costs and expenses of attorneys,
in connection with: (i) the preparation, negotiation, execution and administration of this Agreement and the Loan Documents; (ii)
the preparation, negotiation and execution of any Modification of this Agreement or any Loan Document; (iii) the custody, preservation,
use, operation of, sale of, collection from or other realization upon the Collateral; (iv) the exercise or enforcement of any of
the rights of Lender under this Agreement or under any Loan Document; (v) any failure by any Borrower to perform or observe any
of the provisions of this Agreement or any Loan Document; (vi) any litigation, contest, dispute, suit, proceeding or action in
any way relating to this Agreement, the Loan Documents or the transactions contemplated herein or therein; (vii) the payment or
performance by Lender of any liabilities or obligations of any Borrower to third parties under the terms of this Agreement or,
including, without limitation, the performance of any obligation of any Borrower under the terms of any Loan Document and (vii)
amounts reasonably necessary to protect the lien or priority of the lien or any security interest created by or granted pursuant
to the terms of this Agreement, or any Loan Document on the Collateral or any part thereof or permitted hereunder or to pay, settle,
compromise or contest any lien or claim of lien against the Collateral or any part thereof or permitted hereunder, including any
amount paid with respect to any Charge, imposition or other taxes and assessments, whether or not a lien upon the Collateral.

 

“Default Rate”:
Interest at a rate equal to eighteen percent (18%) per annum.

 

“Distribution”:
The declaration or payment of any dividend or distribution on or in respect of any shares of any class of Equity Interests of any
Person or any distribution of cash or cash flow in respect of any partnership, membership or other ownership interest in any Person,
other than dividends payable solely in shares of common stock or additional Equity Interests of such Person; or the purchase, redemption,
or other retirement of any class of Equity Interests or ownership interest of any Person or ownership interests in such Person,
directly or indirectly through a subsidiary (of any tier) or otherwise; the making of any loans to any shareholder, member, constituent
partner or affiliate; the return of capital by any Person to its shareholders, members or partners as such; or any other distribution
on or in respect of any class of Equity Interests or ownership interest of any Person or any partnership, membership or other ownership
interest in any Person.

 

“Dollars”
or “$”: Unless otherwise qualified, dollars in lawful currency of the United States.

 

“E-mail”:
The term as defined in Section 11.11.

 

“Environmental
Laws”: Any and all applicable federal, state, local and foreign statutes, laws, judicial decisions, regulations, ordinances,
rules, judgments, orders, decrees, codes, injunctions, permits, licenses, agreements and governmental restrictions, whether now
or hereafter in effect, relating to protection of the environment or of human health or to emissions, discharges or releases of
pollutants, contaminants, Hazardous Materials or wastes into the environment, including ambient air, surface water, groundwater
or land, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling
of pollutants, contaminants, Hazardous Materials or wastes or the clean-up or other remediation thereof.

 

    	 	4	 

     

    

 

“Equity Interests”:
The interest of any (a) shareholder in a corporation; (b) partner in a partnership (whether general, interest, limited liability
or joint venture); (c) member in a limited liability company; or (d) other Person having any form of equity security or ownership
interest.

 

“ERISA”:
The Employee Retirement Income Security Act of 1974, as amended from time to time, and regulations promulgated thereunder.

 

“ERISA Affiliate”:
Borrowers and all persons (whether or not incorporated) under common control with any Borrower or treated as a single employer
within the meaning of Section 414(b), 414(c), 414(m) or 414(o) of the Code or Section 4001 of ERISA.

 

“ERISA Event”:
(a) a Reportable Event with respect to a Qualified Plan; (b) a withdrawal by any Borrower or any ERISA Affiliate from a Qualified
Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2)
of ERISA); (c) the filing of a notice of intent to terminate a Qualified Plan or the adoption of resolutions to terminate a Qualified
Plan, the treatment of a plan amendment as a termination under Section 4041 or 4041A of ERISA or the commencement of proceedings
by the PBGC to terminate a Qualified Plan subject to Title IV of ERISA; (d) a failure by any Borrower or any ERISA Affiliate to
make required contributions to a Qualified Plan; (e) an event or condition which might reasonably be expected to constitute grounds
under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Qualified Plan; (f) the
imposition of any liability under Title IV of ERISA, other than PBGC premiums due but not delinquent under Section 4007 of ERISA,
upon any Borrower or any ERISA Affiliate; (g) the failure to make required installment payments under Section 412 of the Code or
an application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code with respect
to any Plan; (h) a non-exempt prohibited transaction occurs with respect to any Plan for which any Borrower or any ERISA Affiliate
may be directly or indirectly liable; (i) an event requiring any Borrower or any of its ERISA Affiliates to provide security for
a plan under Code Section 401(a)(29); or (j) a violation of the applicable requirements of Section 404 or 405 of ERISA or the exclusive
benefit rule under Section 401(a) of the Code by any fiduciary or disqualified person with respect to any Plan for which Any Borrower
or any ERISA Affiliate may be directly or indirectly liable.

 

“Event of
Default”: The term as defined in Section 9.1.

 

“Existing
Indebtedness”: The term as defined in Section 2.1(a).

 

“Extension
Fee”: The term as defined in Section 3.1(c).

 

“GAAP”:
Generally accepted accounting principles in the United States of America in effect from time to time.

 

“Governmental
Authority”: The government of the United States of America, any other nation or any political subdivision thereof, whether
foreign, state, regional, local, municipal, or any department, commission, board, bureau, agency, public authority or instrumentality
thereof, regulatory body, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
powers or functions of or pertaining to government, any court or arbitrator.

 

    	 	5	 

     

    

 

“Guaranty
Equivalent”: Without duplication, any agreement, document or instrument pursuant to which a Person (the “Guarantor”)
directly or indirectly guarantees or in effect guarantees any Indebtedness (the “primary obligation”) of any
other person (the “primary obligor”) including any obligation of the Guarantor, whether or not contingent, direct
or indirect, for the benefit of another Person: (i) to purchase or assume, or to supply funds for the payment, purchase or satisfaction
of, any primary obligation; (ii) to make any loans, advance, capital contribution or other investment in the primary obligor; (iii)
to purchase or lease any property or services for the purpose of assuring the owner of any such primary obligation of the ability
of the primary obligor to make payment of such primary obligation; (iv) to maintain the solvency of the primary obligor; (v) to
enable the primary obligor to meet any other financial condition; (vi) to enable the primary obligor to satisfy any primary obligation;
(vii) to assure the holder of an obligation against loss; (viii) to purchase or lease property or services from the primary obligor
regardless of the non-delivery of or failure to furnish such property or services; or (ix) in respect of any other transaction
the effect of which is to assure the payment or performance (or payment of damages or other remedy in the event of nonpayment or
nonperformance) of any obligation, provided that the term Guaranty Equivalent shall not include endorsements of instruments in
the ordinary course of business.

 

“Hazardous
Materials”: (i) Any “hazardous substance” as defined in the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, (ii) asbestos, (iii) polychlorinated biphenyls, (iv) petroleum, its derivatives, by-products and other
hydrocarbons, and (v) any other toxic, radioactive, caustic or otherwise hazardous substance regulated under any applicable Environmental
Laws.

 

“Hazardous
Materials Contamination”: Contamination (whether now existing or hereafter occurring) of the improvements, buildings,
facilities, soil, groundwater or air on or of the relevant property by Hazardous Materials, or any derivatives thereof, or on or
of any other property as a result of Hazardous Materials, or any derivatives thereof, generated on, emanating from or disposed
of in connection with the relevant property.

 

“Highest Lawful
Rate”: The maximum rate of interest which Lender is allowed to contract for, charge, take, reserve or receive under applicable
law after taking into account, to the extent required by applicable law, any and all relevant payments or charges hereunder.

 

“Incumbency
Certificates”: The term as defined in Section 8.1.

 

“Indebtedness”:
With respect to any Person, at a particular time, without duplication (i) indebtedness for borrowed money or for the deferred purchase
price of property or services in respect of which such Person is liable (other than current trade payables incurred in the ordinary
course of such Person’s business), contingently or otherwise, as obligor, guarantor or otherwise; (ii) obligations under
Capital Leases; (iii) all obligations evidenced by notes, bonds, debentures or other similar instruments; (iv) Guaranty Equivalents;
(v) all obligations, contingent and non-contingent, of such Person to reimburse any lender or other Person in respect of amounts
paid under a letter of credit, surety bond or similar instrument; (vi) all equity securities of such Person subject to repurchase
or redemption otherwise that at the sole option of such Person; (vii) all obligations secured by a Lien on any asset of such Person,
whether or not such obligation is otherwise an obligation of such Person; (viii) earnout payments and similar payment obligations;
and (ix) accruals and other items characterized as Indebtedness in accordance with GAAP.

 

    	 	6	 

     

    

 

“Intellectual
Property”: With respect to any Person the collective reference to all rights, priorities and privileges relating to intellectual
property, whether arising under United States, multinational or foreign laws or otherwise, including, all patents, trademarks,
tradenames, copyrights, technology, know how and processes, and all applications therefor, used in or necessary for the conduct
of business by such Person.

 

“Investments”:
All expenditures made and all liabilities incurred (contingently or otherwise) for the acquisition of Equity Interest or Indebtedness
of, or for loans, advances, (including loans and advances to officers of Any Borrower) capital contributions or transfers of property
to, or in respect of any guaranties (or other commitments as described under Indebtedness), or obligations of, any Person. In determining
the aggregate amount of Investments outstanding at any particular time: (a) the amount of any Investment represented by a guaranty
shall be taken at not less than the principal amount of the obligations guaranteed and still outstanding (subject to any limits
applicable thereto); and (b) there shall be deducted in respect of each such Investment any amount received as a return of capital
(but only by repurchase, redemption, retirement, repayment, liquidating dividend or liquidating distribution).

 

“Laws”:
All federal, state or provincial laws, statutes, ordinances, rules, decrees, judgments, orders, and/or regulations of any kind
whatsoever, including, without limitation, those relating to building, zoning, health, safety, life code, environmental protection,
access, environmental barriers, public highway and public access, and specifically including Environmental Laws, the Americans
with Disabilities Act and similar state and local laws.

 

“Lease”:
All rights under all leases, licenses, occupancy agreements, concessions or Loan Documents entered into by a party as tenant or
lessee or licensee or concessionaire thereunder, whether written or oral, whether now existing or entered into at any time hereafter,
whereby a party is granted the right, either exclusively or in common with others, to use, possess, or occupy real estate.

 

“Lender”:
Squadron Capital LLC.

 

“Lien”:
With respect to any asset, any mortgage, deed of trust, pledge, hypothecation, assignment, encumbrance, lien (statutory or other),
charge, preference, priority or other security interest or similar preferential arrangement of any kind or nature whatsoever (excluding
preferred stock and equity related preferences) including, without limitation, those created by, arising under or evidenced by
any conditional sale or other title retention agreement, the interest of a lessor under a Capital Lease, or any financing lease
having substantially the same economic effect as any of the foregoing.

 

    	 	7	 

     

    

 

“Loan Documents”:
Collectively, this Agreement, the Term Note A, the Term Note B, the Incumbency Certificates, the Closing Certificate, security
agreements and collateral agreements in connection with the pledge of Collateral of the Non U.S. Loan Parties and all documents,
certificates, agreements and other written matter heretofore, now and/or from time to time hereafter executed by and/or on behalf
of Borrowers and delivered to Lender, or issued by Lender upon the application and/or other request of, and on behalf of, Borrowers
in any way relating to, evidencing or securing the Term Loan A, the Term Loan B and all Modifications thereto and thereof.

 

“Margin Stock”:
The term as defined in Regulation U of the Federal Reserve Board.

 

“Material
Adverse Effect”: A material adverse change in, or a material adverse effect on:

 

(a)          the
business, operations, properties, prospects, condition (financial or otherwise), assets and income of Borrowers taken as a whole;

 

(b)          the
ability of any Borrower to pay or perform any Obligation under any of the Loan Documents; or

 

(c)          (i)
the validity, binding effect or enforceability of this Agreement or any of the Loan Documents or (ii) the rights, remedies or benefits
available to Lender under this Agreement or the Loan Documents taken as a whole.

 

“Modifications”:
Any extension, renewal, substitution, replacement, supplement, amendment or modification of any agreement, certificate, document,
instrument or other writing, whether or not contemplated in the original agreement, document or instrument.

 

“Non U.S.
Loan Party”: The term as defined in Section 4.9.

 

“Notice of
Borrowing”: The term as defined in Section 2.1(c).

 

“Obligations”:
Collectively, all obligations, liabilities and indebtedness of Borrowers to Lender whether primary, secondary, direct, contingent,
fixed or otherwise, heretofore, now and/or from time to time hereafter owing, due or payable, however arising, evidenced, created,
incurred, acquired or owing, whether now contemplated or hereafter arising, under this Agreement or the Loan Documents.

 

“Organizational
Documents”: As applicable, a Person’s articles of incorporation, by-laws, certificate of good standing, operating
agreement, shareholders’ agreement, certificate of partnership, certificate of limited partnership, partnership agreement,
articles of organization, or similar documents or agreements governing its management and the rights, duties and privileges of
its equity owners.

 

“PBGC”:
The Pension Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under ERISA.

 

“Permitted
Contest”: A contest maintained in good faith by appropriate proceedings promptly instituted and diligently conducted
and with respect to which such reserve or other appropriate provision, if any, as shall be required in conformity with GAAP shall
have been made.

 

    	 	8	 

     

    

 

“Permitted
Liens”: The term as defined in Section 7.2.

 

“Person”:
Any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association, corporation,
institution, entity, party or government (whether national, federal, state, county, city, municipal or otherwise, including without
limitation any instrumentality, division, agency, body or department thereof).

 

“Plan”:
(i) An employee benefit plan (as defined in Section 3(3) of ERISA) which any Borrower or any ERISA Affiliate sponsors or maintains
and (ii) all other pension, welfare, medical, dental, life, accident insurance, death, sick leave, severance pay, deferred compensation,
excess or supplemental benefit, bonus, vacation, stock, stock option, fringe benefit, contracts, programs or arrangements of any
kind which any Borrower or any ERISA Affiliate sponsors or maintains.

 

“Property”:
Any and all property, whether real, personal, tangible, intangible, or mixed, of a Person, or other assets owned, leased or operated
by such Person.

 

“Qualified
Plan”: A pension plan (as defined in Section 3(2) of ERISA) intended to be tax-qualified under Section 401(a) of the
Code and which any Borrower or any ERISA Affiliate sponsors, maintains, or to which it makes, is making or is obligated to make
contributions, or in the case of a multiple employer plan (as described in Section 4064(a) of ERISA) has made contributions at
any time during the immediately preceding period covering at least five (5) plan years.

 

“Redemption
Date”: The term as defined in Section 3.1(c).

 

“Reportable
Event”: As to any Plan, (a) any of the events set forth in Section 4043(c) of ERISA or the regulations thereunder, (b)
a withdrawal from a Plan described in Section 4063 of ERISA, or (c) a cessation of operations described in Section 4062(e) of ERISA.

 

“Responsible
Officer”: Any of the Chief Executive Officer or the Chief Financial Officer of Orthopediatrics.

 

“Restricted
Payment”: As to any Person (i) any distribution on any equity interest in any Borrower (except those payable solely in
its equity interests of the same class), (ii) any payment on account of (a) the purchase, redemption, retirement, defeasance, surrender
or acquisition of any equity interests in any Borrower or any claim respecting the purchase or sale of any equity interest in any
Borrower or (b) any option, warrant or other right to acquire any equity interests in any Borrower, (iii) any prepayment of principal
of, premium, if any, interest, fees, redemption, exchange, purchase, retirement, defeasance, sinking fund or similar payment with
respect to subordinated indebtedness, (iv) any payment of management, consulting or similar advisory fees to or for the account
of any Person other than on an arms’ length basis to non-Affiliates of any Borrower in the ordinary course of business and
(v) any payment of a royalty, license or similar fee outside of the ordinary course of business and (vi) any charitable contribution
to the extent paid in cash in excess of $1,000.

 

    	 	9	 

     

    

 

“Securities
Act”: The Securities Act of 1933, as amended.

 

“Single Employer
Plan”: a Plan maintained by any Borrower or any member of an ERISA Affiliate for employees of any Borrower or any ERISA
Affiliate.

 

“Solvent”:
With respect to any Person as of a particular date, (i) such Person is able to pay its debts and other liabilities, contingent
obligations and other commitments as they mature in the normal course of business, (ii) such Person does not intend to, and does
not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature
in their ordinary course, (iii) such Person is not engaged in a business or a transaction, and is not about to engage in a business
or a transaction, for which such Person’s assets would constitute unreasonably small capital after giving due consideration
to the prevailing practice in the industry in which such Person is engaged or is to engage, (iv) the fair value of the assets of
such Person is greater than the total amount of liabilities, including, without limitation, contingent liabilities, of such Person
and (v) the aggregate fair saleable value (i.e., the amount that may be realized within a reasonable time, considered to be six
months to one year, either through collection or sale at the regular market value, conceiving the latter as the amount that could
be obtained for the assets in question within such period by a capable and diligent businessman from an interested buyer who is
willing to purchase under ordinary selling conditions) of the assets of such Person will exceed its debts and other liabilities
(including contingent, subordinated, unmatured and unliquidated debts and liabilities). For purposes of this definition, “debt”
means any liability on a claim, and “claim” means (i) a right to payment or (ii) a right to an equitable remedy for
breach of performance, if in light of all of the facts and circumstances existing at such time, such right can reasonably be expected
to give rise to an actual or matured liability.

 

“Termination
Event”: Any event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or for the
appointment of a trustee to administer, any Plan or receipt of notice from the respective Plan sponsor of the complete or partial
withdrawal pursuant to Subtitle E of Title IV of ERISA by any Borrower or any ERISA Affiliate from any Plan to which any Borrower
or such ERISA Affiliate contributes.

 

“Term Loan
A”: The term as defined in Section 2.1(a).

 

“Term Loan
A Commitment”: $18,400,743.38.

 

“Term Loan
B”: The term as defined in Section 2.2(a).

 

“Term Loan
B Commitment”: $10,000,000 (including a $1,000,000 reserve to finance the payment of the Extension Fee in the manner
described in Section 3.1(c)) subject to an increase to $16,000,000 (including such $1,000,000 reserve) on January 1, 2018, provided,
that, on a consolidated basis, Borrowers shall have gross revenues of at least $45,000,000 based on the unaudited financial statements
delivered to the Board of Directors for the fiscal year ended December 31, 2017; provided, however, that in the event
the gross revenues according to the audited financial statements for such period are less than $45,000,000, any Borrowings in excess
of $10,000,000 shall be repaid by the Borrowers within 10 days of the issuance of the audited financial statements, the failure
of which shall constitute an Event of Default.

 

    	 	10	 

     

    

 

“Term Loan
Maturity Date”: The earlier to occur (unless sooner terminated by acceleration or otherwise) of:

 

(i)          there
occurs any transaction or series of transactions pursuant to which any Person(s) in the aggregate acquire(s) (x) capital stock
of OrthoPediatrics possessing the voting power to elect a majority of OrthoPediatrics’ Board of Directors (whether by merger,
consolidation, reorganization, combination, sale or transfer of OrthoPediatrics’ capital stock) or (y) all or substantially
all of OrthoPediatrics’ assets determined on a consolidated basis; or

 

(ii)         May
31, 2019, subject to an automatic extension to May 31, 2020, provided, that, on a consolidated basis, Borrowers shall have
gross revenues of at least $55,000,000 in its audited financial statements for the fiscal year ended December 31, 2018.

 

“Term Note
A”: The term as defined in Section 2.1(a) hereof.

 

“Term Note
B”: The term as defined in Section 2.2(a) hereof.

 

“UCC”:
The Uniform Commercial Code as the same may from time to time be in effect in the State of Illinois (and each reference in this
Agreement to an Article thereof shall refer to that Article as from time to time in effect); provided that in the event
that, by reason of mandatory provisions of law (including, without limitation §9-301 et seq.) any or all of the attachment,
perfection or priority of Lender’s security interest in any Collateral is governed by the Uniform Commercial Code as in effect
in a jurisdiction other than the State of Illinois, the term “UCC” shall mean the Uniform Commercial Code (including
the Articles thereof) as in effect at such time in such other jurisdiction for purposes of the provisions hereof relating to such
attachment, perfection or priority and for purposes of definitions related to such provisions.

 

“Unfunded
Liabilities”: The amount (if any) by which the present value of all vested and unvested accrued benefits under all Single
Employer Plans exceeds the fair market value of all such Plan assets allocable to such benefits, all determined as of the then
most recent valuation date for such Plans using actuarial assumptions used in determining the Plans’ normal cost for purposes
of Section 412(b)(2)(A) of the Code. In each case the foregoing determination shall be made as of the most recent date prior to
the filing of said annual report as of which such actuarial present value of accumulated Plan benefits is determined.

 

“Unmatured
Default”: Any event or condition which, with the passage of time or the giving of notice or both, would constitute an
Event of Default hereunder.

 

“U.S. Loan
Parties” or “ U.S. Loan Party” The term as defined in Section 4.1.

 

1.2           Uniform
Commercial Code.  Except as otherwise defined in this Agreement or the other Loan Documents, all words, terms and/or
phrases used herein and therein shall be defined by the applicable definition therefor (if any) in the UCC including but not limited
to “Account,” “Chattel Paper,” Commercial Tort Claim,” “Deposit Account,” “Document,”
“Equipment,” “General Intangibles,” “Goods,” “Instrument,” “Inventory”,
“Investment Property,” “Letter-of-Credit Right,” and “Supporting Obligation,”.

 

    	 	11	 

     

    

 

1.3          Rules
of Construction. In this Agreement, unless a clear contrary intention appears: (a) the singular number includes the plural
number and vice versa; reference to any gender includes each other gender; (b) the words “herein”, “hereof”
and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular
Article, Section or other subdivision; (c) reference to any Person includes such Person’s successors and assigns but, if
applicable, only if such successors and assigns are permitted by this Agreement, and reference to a Person in a particular capacity
excludes such Person in any other capacity or individually; provided that nothing in this clause is intended to authorize
any assignment not otherwise permitted by this Agreement; (d) unless the context indicates otherwise, reference to any agreement,
document, note or instrument means such agreement, document, note or instrument and all Modifications thereto, thereof or therefor;
(e) unless the context indicates otherwise, reference to any Article, Section, Schedule or Exhibit means such Article or Section
hereof or such Schedule or Exhibit hereto; (f) the word “including” (and with correlative meaning “include”)
means including, without limiting the generality of any description preceding such term; (g) with respect to the determination
of any period of time, the word “from” means “from and including” and the word “to”
means “to but excluding”; (h) reference to any Law means such as amended, modified, codified or reenacted, in
whole or in part, and in effect from time to time; (i) the Article and Section headings herein are for convenience only and shall
not affect the construction of this Agreement; and (j) each reference herein that an event is an “Event of Default”
shall be deemed to mean an immediate Event of Default, without any obligation of notice or cure, unless specifically provided for
in the applicable Section.

 

2.          LOAN:
GENERAL TERMS

 

2.1          Term
Loan A.

 

(a)          General
Provisions. Subject to the terms and provisions hereof, Lender shall continue to lend to Borrowers and Borrowers shall continue
to borrow a term loan (“Term Loan A”) in an aggregate principal amount that will not exceed the Term Loan A
Commitment, the entire amount of which is outstanding as of the date of this Agreement (the “Existing Indebtedness”).
The Term Loan A shall be disbursed in accordance with the provisions of Section 2.1(b) below. The Term Loan A shall be evidenced
by an amended and restated term note made payable by the Borrowers, jointly and severally, to the order of the Lender in the form
attached as Exhibit A hereto (the “Term Note A”).

 

(b)          Reserved.

 

2.2          Term
Loan B.

 

(a)          General
Provisions. Subject to the terms and provisions hereof, Lender shall lend to Borrowers and Borrowers shall borrow a term loan
(the “Term Loan B”) from time to time in an aggregate principal amount that will not exceed the Term Loan B
Commitment. The Term Loan B shall be disbursed in accordance with the provisions of Section 2.2(b) below. The Term Loan
B shall be evidenced by the term note made payable by the Borrowers, jointly and severally, to the order of the Lender in the form
attached as Exhibit B hereto (the “Term Note B”). The Term Note B, the Term Note A, the obligations of
the Borrowers thereunder and the rights and remedies of the Lender are senior to all other Indebtedness of the Borrowers.

 

    	 	12	 

     

    

 

(b)          Disbursements
of Term Loan B. Borrowers shall give Lender a notice of borrowing of its request for funds under the Term Loan B (“Borrowing”)
in the form attached as Exhibit C (“Notice of Borrowing”). Each Borrowing of the Term Loan B shall be
funded within seven (7) Business Days from the receipt of a Notice of Borrowing. Each Borrowing of the Term Loan B shall be a minimum
of $500,000. For avoidance of doubt, the $1,000,000 of the Term Loan B which is reserved for funding of the Extension Fee pursuant
to Section 3.1(c) hereof shall not be available to Borrowers for Borrowing under a Notice of Borrowing.

 

2.3          Usury.
The provisions of this Section 2.3 shall govern and control over any irreconcilably inconsistent provision contained in
this Agreement, the Term Note A, Term Note B or in any Loan Document. Lender shall not be entitled to receive, collect, or apply
as interest hereon (for purposes of this Section 2.3, the word “interest” shall be deemed to include
any sums treated as interest under applicable law governing matters of usury and unlawful interest), any amount in excess of the
Highest Lawful Rate and, in the event Lender ever receives, collects, or applies as interest any such excess, such amount which
would be excessive interest shall be deemed a partial prepayment of principal and shall be treated hereunder as such; and, if the
principal of this Agreement is paid in full, any remaining excess shall forthwith be paid to Borrowers. In determining whether
or not the interest paid or payable, under any specific contingency, exceeds the Highest Lawful Rate, Borrowers and Lender shall,
to the maximum extent permitted under applicable law: (i) characterize any non-principal payment as an expense, fee or premium
rather than as interest, (ii) exclude voluntary prepayments and the effects thereof, and (iii) spread the total amount of interest
throughout the entire contemplated term of this Agreement, provided, that if this Agreement is paid and performed
in full prior to the end of the full contemplated term hereof, and if the interest received for the actual period of existence
hereof exceeds the Highest Lawful Rate, Lender shall refund to Borrowers the amount of such excess.

 

3.          INTEREST;
PAYMENT TERMS

 

3.1          Interest
Rates.

 

(a)          Term
Loan A. The Term Loan A shall bear interest at the rate of 10% per annum; provided that (i) following the Term Loan
Maturity Date, whether by acceleration or otherwise, the Term Loan A shall bear interest at the Default Rate and (ii) following
the occurrence of any Event of Default under Section 9.1 hereof (including after acceleration or judgment), the Term Loan
A shall bear interest at the Default Rate. Interest in respect of the Term Loan A shall be calculated based on a 360 day year for
the actual number of days elapsed. Interest shall accrue on amounts actually drawn by Borrowers under the Term Note A beginning
on the date of disbursement by Lender.

 

(b)          Term
Loan B. The Term Loan B shall bear interest at the rate of 11% per annum; provided that (i) following the Term Loan
Maturity Date, whether by acceleration or otherwise, the Term Loan B shall bear interest at the Default Rate and (ii) following
the occurrence of any Event of Default under Section 9.1 hereof (including after acceleration or judgment), the Term Loan
B shall bear interest at the Default Rate. Interest in respect of the Term Loan B shall be calculated based on a 360 day year for
the actual number of days elapsed. Interest shall accrue on amounts actually drawn by Borrowers under the Term Note B beginning
on the date of disbursement by Lender.

 

    	 	13	 

     

    

 

(c)          Automatic
Increase in Term Loan B Outstanding. Borrowers acknowledge and agree that pursuant to Section 6 of the Amended and Restated
Certificate of Designations, Preferences and Rights of Preferred Stock dated as of May 31, 2014 (“Certificate of Designation”),
Lender has the right to require the redemption of the shares of Preferred Stock (as defined in the Certificate of Designation)
held by Lender on or after May 31, 2017 (“Redemption Date”). Borrowers and Lender further acknowledge that Lender
has agreed to extend the Redemption Date to on or after May 31, 2019 (subject to a further extension of one year provided, on a
consolidated basis, Borrowers shall have gross revenues of at least $55,000,000 in its audited financial statements for the fiscal
year ended December 31, 2018), and in consideration for the extension of the Redemption Date, Lender shall be entitled to receive
a fee (“Extension Fee”) in the amount of $1,000,000, payable as follows: (i) the first installment of the Extension
Fee in the amount of $333,334 shall be paid by the Borrowers through an increase in the principal amount outstanding under the
Term Loan B on the Closing Date; (ii) the second installment of the Extension Fee in the amount of $333,333 shall be paid by the
Borrowers through an increase in the principal amount outstanding under the Term Loan B on the first anniversary of the Closing
Date; and (iii) the third installment of the Extension Fee in the amount of $333,333 shall be paid by the Borrowers through an
increase in the principal amount outstanding under the Term Loan B on the second anniversary of the Closing Date; provided,
however, that the second and/or third installment of the Extension Fee shall not be due and payable if, prior to either
such date, (x) OrthoPediatrics shall have completed a firm commitment underwritten public offering pursuant to an effective registration
statement under the Securities Act of 1933, as amended or (y) OrthoPediatrics or its stockholders shall have entered into a binding
agreement to sell (A) the capital stock of OrthoPediatrics possessing the voting power to elect a majority of OrthoPediatrics’
Board of Directors (whether by merger, consolidation, reorganization, combination, sale or transfer of OrthoPediatrics’ capital
stock) or (B) all or substantially all of OrthoPediatrics’ assets determined on a consolidated basis.

 

3.2          Interest
Payments. Borrowers promise to pay to the order of Lender, jointly and severally, accrued but unpaid interest on the unpaid
amount disbursed under the Term Loan A and the Term Loan B monthly in arrears on the last Business Day of each month during the
term of the Term Loan A and Term Loan B. Interest shall be paid in the manner described in Section 3.4.

 

3.3          Principal
Payments.

 

(a)          Term
Loan. Borrowers promise to pay, jointly and severally, to the order of Lender the Term Loan A and Term Loan B, plus all accrued
but unpaid interest on the Term Loan A and Term Loan B, respectively, on the Term Loan Maturity Date.

 

(b)          Optional
Prepayment. The Obligations may be prepaid in whole or in part, in each case without premium or penalty upon ten (10) Business
Days written notice to Lender. No amount of the Term Loan A or Term Loan B once repaid may be reborrowed.

 

    	 	14	 

     

    

 

3.4          Place
of Payment. All payments to Lender hereunder and under the Loan Documents shall be payable at Lender’s principal place
of business specified at the beginning of this Agreement or at such other place or places as Lender may designate in writing to
Borrowers. All payments by Borrowers to Lender shall be paid without demand, diminution, defense, reduction or offset. If any payment
is or becomes due on a day which is not a Business Day, such payment shall be due on the next succeeding Business Day.

 

3.5          Application
of Payments.

 

(a)          Application
of Optional Prepayments. Any prepayment of the Obligations pursuant to Section 3.3(b) shall be applied to the principal
of the Term Loan A or the Term Loan B, as specified in writing by Borrowers (and in the absence of any written specification, pro
rata between the Term Loan A and Term Loan B) after application to any Costs then due and payable and unpaid interest, penalties,
charges and other amounts due under this Agreement. Any principal amount of the Term Loan A or Term Loan B which may be repaid
by the Borrowers during the term of this Agreement may not be reborrowed at any time.

 

(b)          Revival.
To the extent that Lender receives any payment on account of the Obligations and any such payment(s) and/or proceeds or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, subordinated and/or required to be
repaid to a trustee, receiver or any other Person under any bankruptcy act, state or federal law, common law or equitable cause,
then, to the extent of such payment(s) or proceeds received, the Obligations or part thereof intended to be satisfied shall be
revived and continue in full force and effect, as if such payment(s) and/or proceeds had not been received by Lender and applied
on account of the Obligations and any lien on the Collateral and all other collateral shall be deemed to continue in full force
and effect notwithstanding any release of such lien executed by Lender. Borrowers shall execute any and all agreements, notes,
documents, mortgages, security agreements or financing statements reasonably requested by Lender to effect the provisions of this
Section 3.5(b).

 

3.6          Costs
and Other Payments. If an Event of Default occurs hereunder, then any Cost incurred by Lender under this Agreement or under
any Loan Document, or any other advance, disbursement or payment made by Lender pursuant to this Agreement or any Loan Document
including but not limited to payments of charges or other protective advances, together with interest thereon at 11% per annum,
shall be part of the Obligations secured by the Collateral, payable by Borrowers promptly upon demand therefore.

 

4.          COLLATERAL

 

4.1          Grant
of Security Interest in the Collateral. To secure the prompt payment and performance to Lender of the Obligations, each of
OrthoPediatrics and OrthoPediatrics US Distribution (collectively, the “U.S. Loan Parties” and each a “U.S.
Loan Party”) hereby assigns, pledges and grants to Lender a continuing security interest in and to and Lien on all personal
Property of such U.S. Loan Party, including all of the following Property, whether now owned or existing or hereafter acquired
or arising and wherever located:

 

 

    	 	15	 

     

    

 

(a)           Accounts;

 

(b)          Chattel
Paper, including electronic chattel paper;

 

(c)          Commercial
Tort Claims;

 

(d)          
Deposit Accounts;

 

(e)          Documents;

 

(f)          General
Intangibles, including Intellectual Property;

 

(g)          Goods,
including Inventory;

 

(h)          Equipment
and fixtures;

 

(i)          Instruments;

 

(j)          Investment
Property;

 

(k)          Letter-of-Credit
Rights;

 

(l)          Supporting
Obligations;

 

(m)          all
monies, whether or not in the possession or under the control of Lender;

 

(n)          all
accessions to, substitutions for, and all replacements, products, and cash and non-cash proceeds of the foregoing, including proceeds
of and unearned premiums with respect to insurance policies, and claims against any Person for loss, damage or destruction of any
Collateral; and

 

(o)          all
books and records (including customer lists, files, correspondence, tapes, computer programs, print-outs and computer records)
pertaining to the foregoing.

 

4.2          Perfection
of Security Interest. Each U.S. Loan Party shall take all action that may be necessary or desirable, or that Lender may request,
so as at all times to maintain the validity, perfection, enforceability and priority of Lender’s security interest in and
Lien on the Collateral or to enable Lender to protect, exercise or enforce its rights hereunder and in the Collateral, including,
but not limited to, (i) promptly discharging all Liens other than Permitted Liens, (ii) obtaining lien waiver agreements, (iii)
delivering to Lender, endorsed or accompanied by such instruments of assignment as Lender may specify, and stamping or marking,
in such manner as Lender may specify, any and all chattel paper, instruments, letters of credits and advices thereof and documents
evidencing or forming a part of the Collateral, and (iv) executing and delivering financing statements, control agreements, instruments
of pledge, mortgages, notices and assignments, in each case in form and substance satisfactory to Lender, relating to the creation,
validity, perfection, maintenance or continuation of Lender’s security interest and Lien under the Uniform Commercial Code
or other applicable law. By its signature hereto, each U.S. Loan Party hereby authorizes Lender to file against such U.S. Loan
Party, one or more financing, continuation or amendment statements pursuant to the Uniform Commercial Code in form and substance
satisfactory to Lender (which statements may have a description of Collateral which is broader than that set forth herein). All
charges, expenses and fees Lender may incur in doing any of the foregoing, and any local taxes relating thereto, shall be paid
to Lender promptly upon demand or, at Lender’s option, added to the Obligations.

 

    	 	16	 

     

    

 

4.3          Disposition
of Collateral. Each U.S. Loan Party will safeguard and protect all Collateral for Lender’s general account and make no
disposition thereof whether by sale, lease or otherwise except for the sale of Inventory in the ordinary course of business.

 

4.4          Preservation
of Collateral. Following the occurrence of an Event of Default in addition to the rights and remedies set forth in Article
9 hereof, Lender: (a) may at any time take such steps as Lender deems necessary to protect Lender’s interest in and to
preserve the Collateral, including the hiring of such security guards or the placing of other security protection measures as Lender
may deem appropriate; (b) may employ and maintain at any of a U.S. Loan Party’s premises a custodian who shall have full
authority to do all acts necessary to protect Lender’s interests in the Collateral; (c) may lease warehouse facilities to
which Lender may move all or part of the Collateral; (d) may use a U.S. Loan Party’s owned or leased lifts, hoists, trucks
and other facilities or equipment for handling or removing the Collateral; and (e) shall have, and is hereby granted, a right of
ingress and egress to the places where the Collateral is located, and may proceed over and through any of a U.S. Loan Party’s
owned or leased property. Each U.S. Loan Party shall cooperate fully with all of Lender’s efforts to preserve the Collateral
and will take such actions to preserve the Collateral as Lender may direct. All of Lender’s expenses of preserving the Collateral,
including any expenses relating to the bonding of a custodian, shall be added to the Obligations.

 

4.5          Ownership
of Collateral.

 

(a)          With
respect to the Collateral, at the time the Collateral becomes subject to Lender’s security interest: (i) each U.S. Loan Party
shall be the sole owner of and fully authorized and able to sell, transfer, pledge and/or grant a first priority security interest
in each and every item of the Collateral to Lender; and, except for Permitted Liens the Collateral shall be free and clear of all
Liens and encumbrances whatsoever; (ii) each document and agreement executed by a U.S. Loan Party or delivered to Lender in connection
with this Agreement shall be true and correct in all respects; (iii) all signatures and endorsements of a U.S. Loan Party that
appear on such documents and agreements shall be genuine and such U.S. Loan Party shall have full capacity to execute same; and
(iv) each U.S. Loan Party’s Equipment and Inventory shall be located as set forth on Schedule 4.5 and shall not be
removed from such location(s) without the prior written consent of Lender except with respect to the sale of Inventory in the ordinary
course of business.

 

(b)          (i)
There is no location at which any U.S. Loan Party has any Inventory (except for Inventory in transit or at customers’ locations)
other than those locations listed on Schedule 4.5; (ii) Schedule 4.5 hereto contains a correct and complete list,
as of the Closing Date, of the legal names and addresses of each warehouse (other than customers’ locations) at which all
Inventory of such U.S. Loan Party is stored; none of the receipts received by any U.S. Loan Party from any warehouse states that
the goods covered thereby are to be delivered to bearer or to the order of a named Person or to a named Person and such named Person’s
assigns; (iii) Schedule 4.5 hereto sets forth a correct and complete list as of the Closing Date of (A) each place of business
of a U.S. Loan Party and (B) the chief executive office of each U.S. Loan Party; and (iv) Schedule 4.5 hereto sets forth
a correct and complete list as of the Closing Date of the location, by state and street address, of all real property owned or
leased by each U.S. Loan Party, together with the names and addresses of any landlords.

 

    	 	17	 

     

    

 

4.6           Defense
of Lender’s Interests. Until (a) payment and performance in full of all of the Obligations and (b) termination of this
Agreement, Lender’s interests in the Collateral shall continue in full force and effect. During such period no U.S. Loan
Party shall, without Lender’s prior written consent, pledge, sell (except Inventory in the ordinary course of business),
assign, transfer, create or suffer to exist a Lien upon or encumber or allow or suffer to be encumbered in any way except for Permitted
Liens, any part of the Collateral. Each U.S. Loan Party shall defend Lender’s interests in the Collateral against any and
all Persons whatsoever. At any time following demand by Lender for payment of all Obligations upon an Event of Default, Lender
shall have the right to take possession of the indicia of the Collateral and the Collateral in whatever physical form contained,
including: labels, stationery, documents, instruments and advertising materials. If Lender exercises this right to take possession
of the Collateral, each U.S. Loan Party shall, upon demand, assemble it in the best manner possible and make it available to Lender
at a place reasonably convenient to Lender. In addition, with respect to all Collateral, Lender shall be entitled to all of the
rights and remedies set forth herein and further provided by the Uniform Commercial Code or other Law. Each U.S. Loan Party shall,
and Lender may, at its option, instruct all suppliers, carriers, forwarders, warehousers or others receiving or holding cash, checks,
Inventory, documents or instruments in which Lender holds a security interest to deliver same to Lender and/or subject to Lender’s
order and if they shall come into any U.S. Loan Party’s possession, they, and each of them, shall be held by such U.S. Loan
Party in trust as Lender’s trustee, and such U.S. Loan Party will immediately deliver them to Lender in their original form
together with any necessary endorsement.

 

4.7           Books
and Records. Each Borrower shall (a) keep proper books of record and account in which materially correct entries will be made
of all dealings or transactions of or in relation to its business and affairs; (b) set up on its books accruals with respect to
all taxes, assessments, charges, levies and claims; and (c) on a reasonably current basis set up on its books, from its earnings,
allowances against doubtful Accounts, advances and investments and all other proper accruals (including by reason of enumeration,
accruals for premiums, if any, due on required payments and accruals for depreciation, obsolescence, or amortization of properties),
which should be set aside from such earnings in connection with its business. All determinations pursuant to this subsection shall
be made in accordance with, or as required by, GAAP consistently applied in the opinion of such independent public accountant as
shall then be regularly engaged by such Borrower.

 

4.8           Termination
and Release. Upon the payment in full of all Obligations, the security interest granted hereby shall terminate and all rights
to the Collateral shall revert to the applicable U.S. Loan Party. Within 5 Business Days of any such termination Lender will, at
such U.S. Loan Party’s expense, execute and deliver to such U.S. Loan Party such documents as such U.S. Loan Party shall
reasonably request to evidence such termination.

 

    	 	18	 

     

    

 

4.9           Foreign
Collateral. Within 120 days from the Closing Date, each of OrthoPediatrics EU, OrthoPediatrics Aus and OrthoPediatrics NZ (each
a “Non U.S. Loan Party”) shall execute all security and collateral agreements and amendments to this Agreement
that are necessary in the sole discretion of Lender in order for the Lender to have a priority lien on all Collateral owned by
such Non U.S. Loan Party including all filings and recordations under the laws of the jurisdiction where such party is organized
or where the Collateral may be located.

 

5.          REPRESENTATIONS
AND WARRANTIES

 

In order to induce
Lender to enter into this Agreement and to make the Term Loan A and Term Loan B, each Borrower represents and warrants to Lender,
on the Closing Date and, in the case of each Borrowing of the Term Loan A and Term Loan B on the date of each such Borrowing, that
the following statements are true and correct (it being understood and agreed that the representations and warranties made on the
Closing Date are deemed to be made concurrently with the consummation of each Borrowing under the Term Loan A or Term Loan B):

 

5.1           Organization;
Requisite Power and Authority; Qualification. Each Borrower (a) is duly organized, validly existing and in good standing under
the laws of its jurisdiction of organization; (b) has all requisite power and authority to own and operate its properties, to carry
on its business as now conducted and as proposed to be conducted, to enter into the Loan Documents to which it is a party and to
carry out the transactions contemplated hereby; and (c) is qualified to do business and in good standing in every jurisdiction
where its assets are located and wherever necessary to carry out its business and operations, except in jurisdictions where the
failure to be so qualified or in good standing has not had, and would not be reasonably expected to have, a Material Adverse Effect.

 

5.2           Due
Authorization. The execution, delivery and performance by each Borrower of the Loan Documents to which it is a party have been
duly authorized by all necessary action on the part of such Borrower pursuant to its Organizational Documents.

 

5.3           No
Conflict. The execution, delivery and performance by each Borrower of the Loan Documents to which it is a party and the consummation
of the transactions contemplated by the Loan Documents do not and will not (a) to the best of such Borrower’s knowledge,
violate any provision of any law or any rule or regulation imposed by any Governmental Authority applicable to such Borrower, any
provision of the Organizational Documents of such Borrower, or any order, judgment or decree of any court or other Governmental
Authority binding such Borrower; (b) conflict with, result in a breach of or constitute (with due notice or lapse of time or both)
a default under any Contractual Obligation of such Borrower; (c) result in or require the creation or imposition of any Lien upon
any of the properties or assets of such Borrower (other than any Liens created under any of the Loan Documents in favor of Lender);
or (d) require any approval of stockholder, or any approval or consent of any Person under any Contractual Obligation of such Borrower,
except for such approvals or consents which will be obtained on or before the Closing Date and disclosed in writing to Lender.

 

    	 	19	 

     

    

 

5.4           Binding
Obligation. Each Loan Document to which a Borrower is a party is the legally valid and binding obligation of such Borrower,
enforceable against it in accordance with its respective terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally or by general
equitable principles (whether enforcement is sought by proceedings in equity or at law) relating to enforceability.

 

5.5           Governmental
Consents. The execution, delivery and performance by each Borrower of the Loan Documents to which it is a party and the consummation
of the transactions contemplated by the Loan Documents do not and will not require any registration with, consent or approval of,
or notice to, or other action to, with or by, any Governmental Authority, except for (a) such approvals or consents which will
be obtained on or before the Closing Date and (b) filings and recordings with respect to the Collateral to be made, or otherwise
delivered to Lender for filing and/or recordation, as of the Closing Date.

 

5.6           Margin
Stock. No Borrower is engaged principally, or as one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying any Margin Stock. No part of the proceeds of the Term Loan A or Term Loan B made to any Borrower
will be used by any Borrower to purchase or carry any such Margin Stock or to extend credit to others for any purpose that violates
the provisions of Regulation T, U or X of the Federal Reserve Board.

 

5.7           Accuracy
of Information. No information, exhibit or report furnished by each Borrower to Lender in connection with the negotiation of,
or compliance with, the Loan Documents contained any material misstatement of fact or omitted to state a material fact or any fact
necessary to make the statements contained therein not misleading.

 

5.8           Solvency.
OrthoPediatrics on a consolidated basis is, and after taking into effect the transactions contemplated by this Agreement will be,
Solvent.

 

5.9           Capitalization.
OrthoPediatrics owns all of the issued and outstanding capital stock of each of the other Borrowers. There are no outstanding subscriptions,
options, warrants, rights (including preemptive rights), calls, convertible securities or other agreements or commitments of any
character relating to the issued or unissued capital stock or other securities of the Borrowers (other than OrthoPediatrics) obligating
any Borrower (other than OrthoPediatrics) to issue any securities of any kind.

 

6.          AFFIRMATIVE
COVENANTS

 

Each Borrower covenants with Lender that
until such time as the Obligations have been indefeasibly paid in full, such Borrower shall, unless it obtains Lender’s prior
written consent waiving or modifying any of the covenants hereunder, do or cause to be done all of the following during the term
hereof:

 

6.1          Insurance.

 

(a)          Each
Borrower will maintain with financially sound and reputable insurance companies insurance on all its Property in such amounts and
covering such risks as is consistent with sound business practice. Each Borrower will furnish to Lender upon request full information
as to the insurance carried by itself.

 

    	 	20	 

     

    

 

(b)          Each
Borrower will at all times keep the Collateral insured in favor of Lender, and all policies or certificates (or certified copies
thereof) with respect to such insurance (i) shall be endorsed to Lender’s reasonable satisfaction (including, without limitation,
by naming Lender as loss payee and to the extent permitted by Law, as an additional insured), (ii) shall state that such insurance
policies shall not be canceled without 30 days’ prior written notice thereof (or 10 days’ prior written notice in the
case of cancellation for the non-payment of premiums) by the insurer to Lender, (iii) shall provide that the respective insurers
irrevocably waive any and all rights of subrogation with respect to Lender, and (iv) shall in the case of any such certificates
or endorsements in favor of Lender be delivered to or deposited with Lender.

 

(c)          If
any Borrower shall fail to maintain all insurance in accordance with this Section 6.1, or if any Borrower shall fail to
so endorse and deliver or deposit all endorsements or certificates with respect thereto, Lender shall have the right (but shall
be under no obligation), upon prior written notice to such Borrower, to procure such insurance, and each Borrower agrees to reimburse
Lender, on demand, for all reasonable costs and expenses of procuring such insurance.

 

6.2          Financial
Reports. Each Borrower shall keep true and accurate books of account and prepare true and accurate financial statements in
accordance with GAAP consistently applied throughout the periods reflected therein and with prior periods (except for the treatment
of stock options). Each Borrower shall furnish Lender with the following:

 

(a)          Annual
Financial Statements. As soon as available, but not later than 120 calendar days after the close of each fiscal year of OrthoPediatrics:
(i) consolidated financial statements of OrthoPediatrics, (including a consolidated and consolidating balance sheet and consolidated
and consolidating statements of income, owners’ equity and cash flow with supporting footnotes) as at the end of such year
and for the year then ended, all in form and detail as required by Lender, audited and accompanied by a report and an unqualified
opinion by a firm of independent certified public accountants selected by OrthoPediatrics and acceptable to Lender; and (ii) a
written statement by such accountant, stating that such accountant has no knowledge that an Event of Default or Unmatured Default
hereof has occurred and is continuing except as specified in such statement. The financial statements shall be accompanied by a
comparison of the actual financial results with the Financial Plan (which need not be audited by such public accountants), all
in reasonable detail;

 

(b)          Monthly
Financial Statements. As soon as available, but in no event later than 30 calendar days after the end of each month, consolidated
financial statements of OrthoPediatrics (including a consolidated and consolidating balance sheet and consolidated and consolidating
statements of income, retained earnings, owners’ equity and cash flow) as at the end of such month. The financial statements
shall be accompanied by a comparison of the actual financial results with the Financial Plan and such month during the prior fiscal
year, all in reasonable detail;

 

    	 	21	 

     

    

 

(c)          Certificate
of Responsible Officer. Concurrently with each delivery of the financial statements described in Sections 6.2(a) and
6.2(b), a certificate executed by a Responsible Officer in form and substance satisfactory to Lender and certifying that
the Financial Statements delivered thereunder present fairly in all material respects the consolidated financial position and consolidated
results of operations of OrthoPediatrics as of the dates and for the periods indicated and shall have been prepared in accordance
with GAAP (subject, in the case of unaudited financial statements, to the absence of footnotes required by GAAP and to normal year-end
audit adjustments that are not material);

 

(d)          Monthly
Reports. As soon as available, but in no event later than 30 calendar days after the end of each month, an accounts receivable
aging summary of each customer, an accounts payable aging summary and an inventory report, each certified as to accuracy by the
Responsible Officer, together will all information in each Borrower’s possession or control reasonably requested by Lender
with respect to thereto;

 

(e)          Financial
Plan. As soon as available, but not later than (i) 45 calendar days prior to the beginning of each fiscal year, a consolidated
operating budget for OrthoPediatrics and each of the other Borrowers for such fiscal year (prepared on a monthly basis) consisting
of projected consolidated and consolidating balance sheet, statement of income and cash flows (“Financial Plan”),
together with a certificate of a Responsible Officer to the effect that the Financial Plan has been prepared in good faith and
is a reasonable estimate of the consolidated financial position and results of operations of OrthoPediatrics for the period covered
thereby and (ii) 10 days of their preparation, any (x) operating budget of OrthoPediatrics and each of the other Borrowers and
(y) revisions or amendments made by any Borrower to the Financial Plan; and

 

(f)          Other
Data. Such other data and information (financial and otherwise) as Lender, from time to time, may reasonably request bearing
upon or related to any Borrower’s financial condition and/or result of operations, all in form and detail reasonably acceptable
to Lender.

 

6.3          Notices.

 

(a)          Defaults.
Promptly upon any Borrower obtaining knowledge thereof, such Borrower will give written notice to Lender of the occurrence of any
Unmatured Default or Event of Default, together with a reasonably detailed description thereof, and the actions such Borrower proposes
to take with respect thereto. If any Person shall give any notice or take any other action in respect of a claimed default (whether
or not constituting an Event of Default) under this Agreement or any other note, evidence of indebtedness, indenture or other obligation
exceeding $25,000 to which or with respect to which any Borrower is a party or obligor, whether as principal, guarantor, surety
or otherwise, such Borrower shall forthwith give written notice thereof to Lender, describing the notice or action and the nature
of the claimed default.

 

(b)          Notification
of Claim against Collateral. Promptly upon any Borrower obtaining knowledge thereof, such Borrower will give written notice
to Lender of any setoff, claims (including, with respect to the Property, environmental claims), withholdings or other defenses
exceeding $25,000 to which any of the Collateral, or Lender’s rights with respect to the Collateral, are subject.

 

    	 	22	 

     

    

 

(c)          Notice
of Litigation and Judgments. Within 15 days of any Borrower obtaining knowledge thereof, such Borrower will give written notice
to Lender of any litigation or proceedings threatened in writing or any pending litigation and proceedings affecting such Borrower
or to which such Borrower is or becomes a party involving an uninsured claim against such Borrower that could, if adversely determined,
reasonably be expected to have a Material Adverse Effect (and in any event litigation where the amount claimed is $25,000 or more)
and stating the nature and status of such litigation or proceedings. Each Borrower will give notice to Lender, in writing, in form
and detail satisfactory to Lender, within 10 days of any judgment not covered by insurance, final or otherwise, against such Borrower
in an amount in excess of $100,000.

 

(d)          Auditor’s
Reports. Promptly upon receipt thereof, OrthoPediatrics will deliver to Lender a copy of each “management letter”
or other report submitted by its independent accountants in connection with any annual, interim or special audit of the books of
any Borrower.

 

(e)          Governmental
Authority. Promptly upon receipt thereof from any Governmental Authority, each Borrower will give written notice to Lender
of (i) any notice asserting any failure by such Borrower to be in compliance with applicable requirements of law or that threatens
the taking of any action against such Borrower or sets forth circumstances that, if taken or adversely determined, could reasonably
be expected to have a Material Adverse Effect, or (ii) any notice of any actual or threatened suspension, limitation or revocation
of, failure to renew, or imposition of any restraining order, escrow or impoundment of funds in connection with, any license, permit,
accreditation or authorization of any Borrower.

 

(f)          Material
Default. Promptly upon the occurrence thereof, each Borrower will give written notice to Lender of any material default under,
or any proposed or threatened termination or cancellation of, any material Contractual Obligation or other material contract or
agreement to which such Borrower is a party, or a material change in the relationship between such Borrower and any of its customers.

 

(g)          Any
Other Event Likely to Cause Material Adverse Effect. Promptly upon the occurrence of any other matter or event that has, or
would reasonably be expected to have, a Material Adverse Effect, each Borrower will give written notice to Lender, together with
a written statement of a Responsible Officer setting forth the nature and period of existence thereof and the action that such
Borrower has taken and proposes to take with respect thereto.

 

6.4          Taxes.
Each Borrower will duly pay and discharge, or cause to be paid and discharged, before the same shall become overdue, all Taxes,
assessments and other governmental charges imposed upon them and their real properties, sales and activities, or any part thereof,
or upon the income or profits therefrom, as well as all claims for labor, materials, or supplies that if unpaid might by law become
a lien or charge upon any of its properties; provided, that any such Tax, assessment, charge, levy or claim need not be
paid if the validity or amount thereof shall be the subject of a Permitted Contest; and provided further that such Borrower
shall pay all such Taxes, assessments, charges, levies or claims forthwith upon the commencement of proceedings to foreclose any
Lien that may have attached as security therefor. Each Borrower will accurately prepare and timely file all tax returns required
by law to be filed by it.

 

    	 	23	 

     

    

 

6.5          Existence.
Each Borrower shall continue to preserve and maintain its existence, rights, privileges and franchises in the jurisdictions of
its organization, and qualify and remain qualified to do business in each other jurisdiction in which such qualification is necessary
in view of its business or operations and shall continue to engage in business of the same general type as it now conducts.

 

6.6          Compliance
with Laws. Each Borrower shall comply in all material respects with all Laws (including all Environmental Laws) having applicability
to it or to the business at any time conducted by it.

 

6.7          Payment
and Performance of Obligations. Each Borrower (i) will pay and discharge at or before maturity, all of its obligations and
liabilities, except where the same may be the subject of a Permitted Contest, (ii) will maintain appropriate reserves, in accordance
with GAAP, for the accrual of all of its obligations and liabilities and (iii) will not breach or permit to exist any default under,
the terms of any material lease, commitment, contract, instrument or obligation to which they are a party, or by which their properties
or assets are bound.

 

6.8          Inspection.
Each Borrower will permit Lender, at reasonable times and following reasonable notice, to visit and inspect such Borrower and examine
and make abstracts or copies from any of its books and records which Lender deems reasonably necessary in connection with its administration
of the Term Loan A and Term Loan B.

 

6.9          Use
of Proceeds. Each Borrower will use the proceeds of the Term Loan A and the Term Loan B for the Borrowers’ working
capital and general corporate purposes.

 

6.10        Environmental
Covenants. Each Borrower will:

 

(a)          use
and operate all of its facilities and properties in material compliance with all Environmental Laws, keep all necessary permits,
approvals, certificates and licenses in effect and remain in material compliance therewith, and handle all Hazardous Materials
in material compliance with all applicable Environmental Laws;

 

(b)          promptly
notify Lender and provide copies upon receipt of all written claims, complaints, notices or inquiries relating to the condition
of its facilities and properties or compliance with Environmental Laws, and shall promptly cure and have dismissed with prejudice
any such actions and proceedings to the reasonable satisfaction of Lender, in each case to the extent such claims, complaints,
notices, inquiries, actions and proceedings might be expected to have a Material Adverse Effect; and

 

(c)          provide
such information and certifications, which Lender may reasonably request from time to time to insure compliance with this Section
6.10.

 

    	 	24	 

     

    

 

6.11        ERISA
Covenant. OrthoPediatrics will:

 

(a)          maintain
all Plans of OrthoPediatrics so that the aggregate Unfunded Liabilities of all such Plans do not exceed $25,000 determined in accordance
with Financial Accounting Standards Board Statement No. 36 as in effect on the date hereof, and

 

(b)          as
soon as reasonably possible after OrthoPediatrics knows or has reason to know that any Reportable Event or any Termination Event
with respect to any Plan of OrthoPediatrics or an ERISA Affiliate has occurred, furnish to Lender a statement signed by a Responsible
Officer of OrthoPediatrics setting forth details as to such Reportable Event or Termination Event and the action, if any, which
OrthoPediatrics or the ERISA Affiliate proposes to take with respect thereto, together with a copy of any notice of such Reportable
Event or Termination Event furnished to PBGC.

 

7.          NEGATIVE
COVENANTS

 

Until such time as
the Obligations have been indefeasibly paid in full, each Borrower covenants with Lender that unless such Borrower obtains Lender’s
prior written consent waiving or modifying any of the covenants hereunder:

 

7.1          Indebtedness.
Such Borrower will not, directly or indirectly, create, incur, assume, guarantee or otherwise become or remain directly or indirectly
liable with respect to, any Indebtedness, except for:

 

(a)          Indebtedness
created in favor of Lender under the Loan Documents;

 

(b)          without
duplication of any Indebtedness otherwise permitted under this Section 7.1, Indebtedness described on Schedule 7.1
the amounts under which shall not be increased by amendments entered into after the date hereof;

 

(c)          additional
funded Indebtedness through a single transaction or series of related transactions that do not exceed $1,000,000;

 

(d)          Indebtedness
owing to OrthoPediatrics by OrthoPediatrics EU not to exceed $2,000,000 at any time outstanding;

 

(e)          Indebtedness
owing to OrthoPediatrics by OrthoPediatrics Aus not to exceed $2,500,000 at any time outstanding; and

 

(f)          Indebtedness
owing to OrthoPediatrics by OrthoPediatrics NZ not to exceed $500,000 at any time outstanding.

 

7.2          Liens.
No Borrower will directly or indirectly, create, assume or suffer to exist any Lien on any Property now owned or hereafter acquired
by any Borrower, except for the following Liens (the “Permitted Liens”):

 

(a)          Liens
in favor of Lender granted pursuant to the Loan Documents; and

 

    	 	25	 

     

    

 

(b)          Liens
for taxes, assessments or governmental charges or levies on its Property if the same shall not at any time be delinquent or thereafter
can be paid without penalty, or are the subject of a Permitted Contest;

 

7.3          Contingent
Obligations. No Borrower will make or suffer to exist any Contingent Obligation, except by endorsement of instruments for deposit
or collection in the ordinary course of business.

 

7.4          Restricted
Payments. No Borrower will, directly or indirectly, declare, order, pay, make or set apart any sum for any Restricted Payment;
provided; that the foregoing shall not restrict or prohibit:

 

(a)          payment
of reasonable compensation and expense reimbursements in the ordinary course of business; and

 

(b)          payment
of regularly scheduled interest payments with respect to the Indebtedness set forth on Schedule 7.1 so long as before and
after giving effect to any such payment no Event of Default shall have occurred and be continuing and in no event shall any principal
be paid until the Term Loan A and the Term Loan B are paid in full.

 

7.5          Compliance
with ERISA. OrthoPediatrics shall not:

 

(a)          establish,
maintain, or operate any Plan that is not in compliance in all material respects with ERISA, the Code and all other Laws, and the
regulations and interpretations thereunder;

 

(b)          terminate
any Plan subject to Title IV of ERISA so as to result in any material liability to it;

 

(c)          permit
to exist any ERISA Event or any other event or condition, which would reasonably be expected to result in any material liability
to it;

 

(d)          enter
into any new Plan or modify any existing Plan so as to increase its obligations thereunder which would reasonably be expected to
have a Material Adverse Effect; or

 

(e)          permit
the present value of all nonforfeitable accrued benefits under any Plan (using the actuarial assumptions utilized by the PBGC upon
termination of a Plan) materially to exceed the fair market value of Plan assets allocable to such benefits, all determined as
of the most recent valuation date for each such Plan.

 

7.6          Distributions.
No Borrower will declare or make any Distributions on its Equity Interests or redeem, repurchase or otherwise acquire or retire
any of its Equity Interests at any time outstanding.

 

7.7          Sale
of Assets. No Borrower will lease, sell or otherwise dispose of its Property to any other Person, except sales of Inventory
in the ordinary course of business.

 

    	 	26	 

     

    

 

7.8          Mergers
and Sales of Equity Interests. No Borrower will merge or consolidate with or into any other Person or cause or permit more
than 50% of the Equity Interests held by Persons in any Borrower to be sold or transferred.

 

7.9          Investments
and Acquisitions. No Borrower will make or suffer to exist any Investments or commitments therefor, or to create any subsidiary
or to become or remain a partner in any partnership or joint venture, or to make any acquisition of any Person except for:

 

(a)          Investments
not to exceed existing amounts on the date hereof as described on Schedule 7.9;

 

(b)          Investments
by OrthoPediatrics described in Sections 7.1(d), 7.1(e) and 7.1(f).

 

7.10        Transactions
with Affiliates. Except as described on Schedule 7.10, No Borrower will enter into any transaction (including, without
limitation, the purchase, sale or lease of any Property or service) with, or make any payment or transfer to, any Person except
in the ordinary course of business and pursuant to the reasonable requirements of such Borrower’s business and upon fair
and reasonable terms no less favorable to such Borrower than it could obtain in a comparable arms’-length transaction.

 

7.11        Modification
of Organizational Documents. No Borrower will amend or otherwise modify any of its Organizational Documents (including any
shareholders agreement).

 

8.          CLOSING
CONDITIONS

 

8.1          Lender’s
Obligations on the Closing Date. The obligations of Lender hereunder shall be subject to the satisfaction (as determined by
Lender) of the following conditions precedent:

 

(a)          Loan
Documents. Lender shall have received a fully executed copy of each of the following documents which shall have been duly executed
and delivered by the respective parties thereto, shall be in full force and effect and shall be in form and substance satisfactory
to Lender:

 

(i)          this
Agreement;

 

(ii)         the
Term Note A, Term Note B; and

 

(iii)        such
other agreements as Lender may reasonably require in order to continue to evidence, grant or perfect its security interest in the
Collateral.

 

(b)          Certified
Copies of Organizational Documents. Lender shall have received from each Borrower a copy, certified by a duly authorized officer
of such Borrower to be true and complete on the Closing Date, of each of its Organizational Documents as in effect on such date
of certification and, in the case of the articles of organization or similar formation documents for such Borrower, such document
shall have been certified as of a recent date by the secretary of its state of formation.

 

    	 	27	 

     

    

 

(c)          Corporate
Action. All corporate action necessary for the valid execution, delivery and performance by each Borrower of this Agreement
and the other Loan Documents shall have been duly and effectively taken, and evidence thereof satisfactory to Lender, certified
by a Responsible Officer shall have been provided to Lender.

 

(d)          Incumbency
Certificate. Lender shall have received from each Borrower, an incumbency certificate, dated as of the Closing Date, signed
by a duly authorized officer of such Borrower and giving the name and bearing a specimen signature of each individual who shall
be authorized: (a) to sign, in the name and on behalf of such Borrower each of the Loan Documents and (b) to give notices and to
take other action on its behalf under the Loan Documents (collectively, the “Incumbency Certificates”).

 

(e)          Validity
of Liens. The applicable Loan Documents shall be effective to create in favor of Lender a legal, valid and enforceable first
priority (except for Permitted Liens entitled to priority under Law) security interest in and Lien upon the Collateral. All filings,
recordings, deliveries of instruments and other actions necessary or desirable in the reasonable opinion of Lender to protect and
preserve such security interests shall have been duly effected.

 

(f)          Closing
Certificate. Lender shall have received a certificate of a Responsible Officer dated as of the Closing Date certifying (a)
that OrthoPediatrics on a consolidated basis is Solvent and will be Solvent following the consummation of the transactions contemplated
herein, (b) that each of the conditions set forth in this Section 8.1 have been satisfied, and (c) such other matters as
Lender may request, in form and substance reasonably satisfactory to Lender (the “Closing Certificate”).

 

(g)          No
Litigation. There shall be no action, suit, or proceeding pending against, or threatened against or affecting, any Borrower
before any court or arbitrator or any Governmental Authority in which an adverse decision would reasonably be expected to have
a Material Adverse Effect or which in any manner purports to affect or pertain to any of the Loan Documents, or any of the transactions
contemplated hereby or thereby.

 

(h)          Consents
and Approvals. Lender shall have received evidence that all material governmental and third-party approvals necessary or advisable
in connection with the credit facilities contemplated hereby and the continuing operations of each Borrower shall have been obtained
(or, to the extent consented to in writing by Lender, waived) and shall be in full force and effect, and all applicable waiting
periods shall have expired without any action being taken or threatened by any competent authority that would restrain, prevent
or otherwise impose materially adverse conditions on any Borrower, the Term Loan A or the Term Loan B.

 

(i)          Proceedings
and Documents. All proceedings in connection with the transactions contemplated by this Agreement, the other Loan Documents
and all other documents incidental thereto, shall be reasonably satisfactory in substance and in form to Lender and Lender’s
counsel, and Lender and such counsel shall have received all information and such counterpart originals or certified or other copies
of such documents as Lender may reasonably request.

 

    	 	28	 

     

    

 

(j)          Certificates
of Good Standing. Lender shall have received certificates of good standing, existence or its equivalent with respect to each
Borrower certified as of a recent date by the appropriate Governmental Authorities of the state or other jurisdiction of organization
and each other jurisdiction in which the failure to so qualify and be in good standing could have or be reasonably expected to
have a Material Adverse Effect.

 

(k)          Certificates
of Insurance. Lender shall have received updated certificates of insurance pursuant to the requirements set forth in Section
6.1.

 

(l)          Payment
of Accrued Interest. OrthoPediatrics shall have paid (or caused to be paid) to Lender all accrued but unpaid interest under
the existing term and revolving notes.

 

8.2          Borrowers’
Obligations on the Closing Date. The obligations of Borrowers hereunder shall be subject to the satisfaction of the following
conditions precedent:

 

(a)          Existing
Term and Revolving Notes. Lender shall surrender the existing term and revolving notes to Borrowers for cancellation.

 

8.3          Conditions
to All Borrowings. The obligations of Lender to make the Term Loan A and Term Loan B whether on or after the Closing Date,
shall also be subject to the satisfaction of the following conditions precedent:

 

(a)          Representations
True; No Event of Default. Each of the representations and warranties of Borrowers contained in this Agreement or any of the
other Loan Documents shall be true in all material respects as of the date as of which they were made and shall also be true and
deemed remade as such at and as of the time of the making of the Term Loan A or Term Loan B, with the same effect as if made at
and as of that time (except to the extent that such representations and warranties relate expressly to an earlier date) and no
Event of Default shall have occurred and be continuing.

 

(b)          No
Legal Impediment. No change shall have occurred in any law or regulations thereunder or interpretations thereof that would
make it illegal for Lender to make such Term Loan A or Term Loan B.

 

(c)          No
Material Adverse Effect. Since December 31, 2016, there shall have been no event or condition which has had or could reasonably
be expected to have a Material Adverse Effect.

 

(d)          Required
Notice and Consent. With respect to any requested Borrowing of the Term Loan A or Term Loan B, Lender shall have received the
applicable notice required by the terms of this Agreement and Lender shall have granted its consent in its sole and absolute discretion.

 

    	 	29	 

     

    

 

9.          DEFAULT

 

9.1          Events
of Default. The occurrence of any one of the following events shall constitute a default (“Event of Default”)
under this Agreement:

 

(a)          Borrowers
shall fail to pay interest under the Term Loan A, the Term Loan B or other Obligations under this Agreement within 10 calendar
days after the same becomes due;

 

(b)          any
Borrower shall breach any of the terms or provisions of Articles 6 or 7 above and such breach is not remedied or
waived within 30 calendar days after the earlier of (i) receipt by such Borrower of notice from Lender of such breach or (ii) knowledge
by such Borrower of such breach;

 

(c)          any
Borrower shall default in the performance of or compliance with any term contained in this Agreement (other than occurrences described
in other provisions of this Section 9.1 for which a different grace or cure period is specified or which constitute immediate
Events of Default) and such default is not remedied or waived within 30 calendar days after the earlier of (i) receipt by such
Borrower of notice from Lender of such default or (ii) knowledge by such Borrower of such default;

 

(d)          any
representation or warranty on the part of any Borrower contained in this Agreement or the Loan Documents, or any document, instrument
or certificate delivered pursuant hereto or thereto shall have been incorrect in any material respect when made or deemed made;

 

(e)          the
occurrence of a default of or under (i) the Stock Issuance and Purchase Agreement, (ii) any contract, agreement, document or instrument
(other than the Loan Documents) now or hereafter existing to which any Borrower is a party and the effect of such default, individually
or in the aggregate exceeds $250,000;

 

(f)          one
or more judgments, decrees, arbitration awards or settlement agreements shall be entered against or by any Borrower involving,
individually or in the aggregate, $250,000;

 

(g)          the
Collateral, or any material portion thereof, is attached, seized, subjected to a writ of distress warrant, or are levied upon,
or come within the possession of any receiver, trustee, custodian or assignee for the benefit of creditors and the same is not
terminated or dismissed within 60 days thereafter;

 

(h)          any
proceeding shall be instituted against any Borrower seeking to adjudicate it bankrupt or insolvent, or seeking dissolution, liquidation,
winding up, reorganization, protection, relief of debtors, or seeking the entry of an order for relief or the appointment of a
receiver, trustee, custodian or other similar official for any Borrower or for any substantial part of its property, and either
such proceeding shall remain undismissed or unstayed for a period of 60 days or any of the actions sought in such proceeding (including,
without limitation, the entry of an order for relief against any Borrower or the appointment of a receiver, trustee, custodian
or other similar official for it or for any substantial part of its property) shall occur;

 

    	 	30	 

     

    

 

(i)          a
petition under any section or chapter of Bankruptcy Code or any similar law or regulation shall be filed by any Borrower or any
Borrower shall make an assignment for the benefit of its creditors or if any case or proceeding is filed by any Borrower for its
dissolution or liquidation;

 

(j)          any
Borrower is enjoined, restrained or in any way prevented by court order from conducting all or any material part of its business
affairs or if a petition under any section or chapter of Bankruptcy Reform Act of 1978, as amended, or any similar law or regulation
is filed against any Borrower or if any case or proceeding is filed against any Borrower for its dissolution or liquidation and
such injunction, restraint or petition is not dismissed or stayed within 60 days after the entry or filing thereof; or

 

(k)          there
occurs any event or circumstance that could reasonably be expected to result in a Material Adverse Effect.

 

9.2          Acceleration.
Upon the occurrence and during the continuance of an Event of Default, Lender may by written notice to Borrowers declare the Obligations
to be, and the Obligations shall thereupon become, immediately due and payable without presentment, demand, protest or other notice
of any kind, all of which are hereby waived by each Borrower and Borrowers will pay the same; provided that in the case
of any of the Events of Default specified in any of Sections 9.1(h), 9.1(i) or 9.1(j) above, without any notice
to any Borrower or any other act by Lender, all of the Obligations shall become immediately due and payable without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by all Borrowers and Borrowers will pay the same.

 

9.3          Rights
and Remedies.

 

(a)          Lender
shall have the right to exercise any and all rights and remedies provided for herein, under the other Loan Documents, under the
Stock Issuance and Purchase Agreement or under the Uniform Commercial Code and at law or equity generally, including the right
to foreclose the security interests granted herein and to realize upon any Collateral by any available judicial procedure and/or
to take possession of and sell any or all of the Collateral with or without judicial process. Lender may enter any of any Borrower’s
premises or other premises without legal process and without incurring liability to any Borrower therefor, and Lender may thereupon,
or at any time thereafter, in its discretion without notice or demand, take the Collateral and remove the same to such place as
Lender may deem advisable and Lender may require any Borrower to make the Collateral available to Lender at a convenient place.
With or without having the Collateral at the time or place of sale, Lender may sell the Collateral, or any part thereof, at public
or private sale, at any time or place, in one or more sales, at such price or prices, and upon such terms, either for cash, credit
or future delivery, as Lender may elect. Except as to that part of the Collateral which is perishable or threatens to decline speedily
in value or is of a type customarily sold on a recognized market, Lender shall give Borrowers reasonable notification of such sale
or sales, such notice being deemed sufficient to provide notice to all Borrowers, it being agreed that in all events written notice
mailed to Borrowers at least 10 days prior to such sale or sales is reasonable notification. At any public sale Lender may bid
for and become the purchaser, and Lender or any other purchaser at any such sale thereafter shall hold the Collateral sold absolutely
free from any claim or right of whatsoever kind, including any equity of redemption and all such claims, rights and equities are
hereby expressly waived and released by each Borrower. In connection with the exercise of the foregoing remedies, including the
sale of Inventory, Lender is granted a perpetual nonrevocable, royalty free, nonexclusive license and Lender is granted permission
to use all of Borrowers’ (a) trademarks, trade styles, trade names, patents, patent applications, copyrights, service marks,
licenses, franchises and other proprietary rights which are used or useful in connection with Inventory for the purpose of marketing,
advertising for sale and selling or otherwise disposing of such Inventory and (b) Equipment for the purpose of completing the manufacture
of unfinished goods. The cash proceeds realized from the sale of any Collateral shall be applied to the Obligations in the order
set forth in Section 9.6 hereof. Noncash proceeds will only be applied to the Obligations as they are converted into cash.
If any deficiency shall arise, each Borrower shall remain liable to Lender therefor.

 

    	 	31	 

     

    

 

(b)          To
the extent that the Law imposes duties on the Lender to exercise remedies in a commercially reasonable manner, each Borrower acknowledges
and agrees that it is not commercially unreasonable for Lender (i) to fail to incur expenses reasonably deemed significant by Lender
to prepare Collateral for disposition or otherwise to complete raw material or work in process into finished goods or other finished
products for disposition, (ii) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain
or, if not required by other law, to fail to obtain governmental or third party consents for the collection or disposition of Collateral
to be collected or disposed of, (iii) to fail to exercise collection remedies against Customers or other Persons obligated on Collateral
or to remove Liens on or any adverse claims against Collateral, (iv) to exercise collection remedies against customers and other
Persons obligated on Collateral directly or through the use of collection agencies and other collection specialists, (v) to advertise
dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized
nature, (vi) to contact other Persons, whether or not in the same business as any Borrower, for expressions of interest in acquiring
all or any portion of such Collateral, (vii) to hire one or more professional auctioneers to assist in the disposition of Collateral,
whether or not the Collateral is of a specialized nature, (viii) to dispose of Collateral by utilizing internet sites that provide
for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match
buyers and sellers of assets, (ix) to dispose of assets in wholesale rather than retail markets, (x) to disclaim disposition warranties,
such as title, possession or quiet enjoyment, (xi) to purchase insurance or credit enhancements to insure Lender against risks
of loss, collection or disposition of Collateral or to provide to Lender a guaranteed return from the collection or disposition
of Collateral, or (xii) to the extent deemed appropriate by Lender, to obtain the services of other brokers, investment bankers,
consultants and other professionals to assist Lender in the collection or disposition of any of the Collateral.

 

(c)          Each
Borrower acknowledges that the purpose of this Section 9.3 is to provide non-exhaustive indications of what actions or omissions
by the Lender would not be commercially unreasonable in Lender’s exercise of remedies against the Collateral and that other
actions or omissions by Lender shall not be deemed commercially unreasonable solely on account of not being indicated in this Section
9.3. Without limitation upon the foregoing, nothing contained in this Section 9.3 shall be construed to grant any rights
to any Borrower or to impose any duties on Lender that would not have been granted or imposed by this Agreement or by Law in the
absence of this Section 9.3. Lender shall have the right in its sole discretion to determine which rights, Liens, security
interests or remedies Lender may at any time pursue, relinquish, subordinate, or modify or to take any other action with respect
thereto and such determination will not in any way modify or affect any of Lender’s or Lenders’ rights hereunder.

 

    	 	32	 

     

    

 

(d)          The
enumeration of the foregoing rights and remedies is not intended to be exhaustive and the exercise of any rights or remedy shall
not preclude the exercise of any other right or remedies provided for herein or otherwise provided by law, all of which shall be
cumulative and not alternative.

 

9.4          Default
Rate of Interest. At the election of Lender, after the occurrence of an Event of Default and for so long as it continues, the
Term Loan A and Term Loan B and other Obligations shall bear interest at the Default Rate.

 

9.5          Setoff
Rights. During the continuance of any Event of Default, Lender is hereby authorized by each Borrower at any time or from time
to time, with reasonably prompt subsequent notice to such Borrower (any prior or contemporaneous notice being hereby expressly
waived and such notice being deemed sufficient to provide notice to all Loan Parties) to set off and to appropriate and to apply
any and all (A) balances held by Lender at any of its offices for the account of any Borrower (regardless of whether such balances
are then due to such Borrower), and (B) other property at any time held or owing by Lender or any of its Affiliates to or for the
credit or for the account of any Borrower against and on account of any of the Obligations then due and payable. Each Borrower
agrees, to the fullest extent permitted by law, that Lender may exercise its right to set off with respect to the Obligations as
provided in this Section 9.5.

 

9.6          Application
of Proceeds. Notwithstanding anything to the contrary contained in this Agreement, upon the occurrence and during the continuance
of an Event of Default, (a) each Borrower irrevocably waives the right to direct the application of any and all payments at any
time or times thereafter received by Lender from or on behalf of such Borrower of all or any part of the Obligations and (b) all
such payments and all proceeds of any sale of, or other realization upon, all or any part of the Collateral shall be applied: first,
to all Costs; second, to accrued and unpaid interest on the Obligations (including any interest which but for the provisions
of the Bankruptcy Code, would have accrued on such amounts); third, to all outstanding principal of the Obligations; and
fourth to any other indebtedness or obligations of such Borrower owing to Lender under the Loan Documents. Any balance remaining
shall be delivered to the applicable Borrower or to whomever may be lawfully entitled to receive such balance or as a court of
competent jurisdiction may direct.

 

10.         ASSIGNABILITY

 

10.1        Assignments
by Borrowers. None of the Borrowers shall have the right to assign this Agreement or any interest therein except with the prior
written consent of Lender.

 

    	 	33	 

     

    

 

11.         GENERAL
PROVISIONS

 

11.1        Modification.

 

(a)          Neither
this Agreement nor any other Loan Document shall be amended, modified or supplemented, or any provision waived, without the written
agreement of Borrowers and Lender at the time of such amendment, modification, supplement or waiver, and each such amendment, modification,
supplement or waiver shall be effective only in the specific instance and for the specific purpose for which given.

 

(b)          Lender
shall have the absolute right to require full and complete performance of Borrowers’ covenants and obligations and strict
compliance with the provisions of this Agreement and the other Loan Documents by Borrowers. Failure by Lender to insist upon full
and prompt performance of any provision of this Agreement or any other Loan Documents, or failure by Lender to take action in the
event of any breach of any such provision or Event of Default, shall not constitute a waiver of any rights of Lender or any course
of conduct, and Lender may at any time thereafter exercise all rights specified herein, in any other Loan Document or provided
by Law with respect to such breach or Event of Default. If Lender fails to insist on strict performance of any covenant or condition
herein, Lender shall make such election or determination, in Lender’s exclusive discretion. Unless otherwise specifically
provided herein, all consents, to be granted herein, shall be granted or withheld, or continued to be granted or withheld, in Lender’s
exclusive discretion. Lender shall have no duty to Borrowers to exercise any judgment or discretion under the terms of this Agreement
or any other Loan Document for the benefit of Borrowers. Each Borrower hereby expressly acknowledges that failure to require strict
compliance by such Borrower with the provisions of this Agreement or any other Loan Document shall not constitute a waiver by Lender
or establish a course of conduct, and that Lender shall not be deemed to have waived any right to insist on strict compliance with
all provisions thereafter. Each Borrower hereby expressly waives any right to assert that it detrimentally relied upon such continued
waiver or that Lender acted in bad faith in insisting upon strict compliance by such Borrower with the provisions of this Agreement
or in exercising any right or remedy expressly granted to Lender hereunder. Receipt by Lender of any instrument or document shall
not constitute or be deemed to be an approval thereof.

 

11.2        Severability.
If any provision (in whole or in part) of this Agreement or any other Loan Document or the application thereof to any Person or
circumstance is held invalid or unenforceable, then such provision shall be deemed modified, restricted, or reformulated to the
extent and in the manner necessary to render the same valid and enforceable, or shall be deemed excised from this Agreement and/or
such Loan Document, as the case may require, and this Agreement and/or such Loan Document shall be construed and enforced to the
maximum extent permitted by law, as if such provision had been originally incorporated herein as so modified, restricted, or reformulated
or as if such provision had not been originally incorporated herein, as the case may be. Borrowers and Lender further agree to
seek a lawful substitute for any provision found to be unlawful. If such modification, restriction or reformulation is not reasonably
possible, the remainder of this Agreement and other the Loan Documents and the application of such provision to other Persons or
circumstances will not be affected thereby and the provisions of this Agreement and any other Loan Document shall be severable
in any such instance.

 

    	 	34	 

     

    

 

11.3         Successors
and Assigns. This Agreement and the other Loan Documents shall be binding upon and inure to the benefit of the successors and
assigns of Borrowers and Lender, provided that this Agreement, the other Loan Documents and no interest or right hereunder or thereunder
may be assigned by any Borrower without prior written consent of Lender which may be withheld in Lender’s sole and exclusive
discretion.

 

11.4         Liability
Prior to Termination. Except to the extent provided to the contrary in this Agreement and in the other Loan Documents, no termination
or cancellation (regardless of cause or procedure) of this Agreement or the other Loan Documents shall in any way affect or impair
the powers, obligations, duties, rights and liabilities of Borrowers or Lender in any way or respect relating to any transaction
or event occurring prior to such termination or cancellation with respect to any of the undertakings, agreements, covenants, warranties
and representations of Borrowers or Lender contained in this Agreement or the other Loan Documents.

 

11.5         Waiver
of Notice Omitted. Except as otherwise specifically provided in this Agreement, each Borrower waives any and all notice or
demand which such Borrower might be entitled to receive with respect to this Agreement or the other Loan Documents by virtue of
any applicable statute or law, and waives presentment, demand and protest and notice of presentment, protest, default, dishonor,
non-payment, maturity, release, compromise, settlement, extension or renewal of any or all commercial paper, accounts, contract
rights, documents, instruments, chattel paper and guaranties at any time held by Lender on which such Borrower may in any way be
liable and hereby ratifies and confirms whatever Lender may do in this regard.

 

11.6         Designated
Person. Until Lender is notified by any Borrower to the contrary in writing by registered or certified mail directed to Lender’s
principal place of business, the signature upon this Agreement or upon any of the other Loan Documents of any officer, partner,
manager or employee of any Borrower or of any other Person designated in writing to Lender by any of the foregoing, or of a Responsible
Officer shall bind all Borrowers and be deemed to be the duly authorized act of such Borrower.

 

11.7         Indemnification.
Borrowers shall, jointly and severally, indemnify, defend, and hold Lender harmless from and against any and all losses, Costs,
liabilities, actual damages, and expenses (including other expenses incident thereto) of every kind, nature and description, that
result from or arise out of (a) the breach of any representation or warranty of any Borrower set forth in this Agreement or in
any certificate, schedule, or other instrument by any Borrower pursuant hereto, (b) the breach of any of the covenants of any Borrower
contained in or arising out of this Agreement or the transactions contemplated hereby, or (c) any third party claims relating to
the conduct of any Borrower’s business (except to the extent that any of the foregoing are found by a final and nonappealable
decision of a court of competent jurisdiction to have resulted from Lender’s own gross negligence or willful misconduct).

 

    	 	35	 

     

    

 

11.8         No
Third Party Beneficiaries; Relationship of Borrowers and Lender. This Agreement and the other Loan Documents are solely for
the benefit of Lender, Borrowers and their respective permitted successors and assigns. Nothing contained herein or therein shall
be deemed to confer upon any other Person any right to insist on or to enforce the performance or observance of any of the obligations,
terms or covenants contained herein or therein. All conditions to the obligations of Lender to make the Loan are imposed solely
and exclusively for the benefit of Lender and its successors and assigns and no other Person shall have standing to require satisfaction
of such conditions in accordance with their terms and no other Persons shall under any circumstances be deemed to be a beneficiary
of such conditions. No Borrower is and shall not be an Affiliate of Lender for any purpose. Unless and until Lender expressly assumes
the Obligations following an Event of Default, Lender shall not be deemed to be in privity of contract with any contractor or provider
of services to the Collateral, and in no event shall any payment of funds directly to a contractor or subcontractor or provider
of services by itself be deemed to create any third-party beneficiary status or recognition of same by Lender. Lender is not an
Affiliate of any Borrower for any purposes, unless Lender expressly exercises a right or remedy hereunder or under any Loan Document
as the attorney-in-fact of such Borrower. The relationship between Borrowers and Lender shall be solely that of borrower and lender.
No term in this Agreement or in the Loan Documents and no course of dealing between the parties, nor any action taken or omitted
to be taken by Lender or by any Borrower shall be deemed to create any relationship of agency, partnership or joint venture or
any fiduciary duty by Lender to any Borrower or any other Person. Lender undertakes no responsibility to any Borrower to review
or inform such Borrower of any matter in connection with any phase of such Borrower’s business or operations. All rights
and remedies granted to Lender in the Loan Documents shall be in addition to and not in limitation of any rights and remedies to
which it is entitled in equity, at law or by statute, and the invalidity of any right or remedy herein provided by reason of its
conflict with Law or statute shall not affect any other valid right or remedy afforded to Lender. No waiver of any Event of Default
or of any default in the performance of any covenant contained in this Agreement or any Loan Document shall at any time thereafter
be held to be a waiver of any rights of Lender under this Agreement or any Loan Document, nor shall any waiver of a prior Event
of Default or default operate to waive any subsequent Event of Default or default. All remedies provided for herein and in any
Loan Document, at law or in equity are cumulative and may, at the election of Lender, be exercised alternatively, successively,
or concurrently. No act of Lender shall be construed as an election to proceed under any one provision herein or in any other Loan
Document to the exclusion of any other provision or to proceed against one portion of the Collateral to the exclusion of any other
portion. Each Borrower agrees that Lender shall not have any liability to any Borrower (whether sounding in tort, contract or otherwise)
for losses suffered by such Borrower in connection with, arising out of, or in any way related to, the transactions contemplated
and the relationship established by the Loan Documents, or any act, omission or event occurring in connection therewith, unless
it is determined in a final non-appealable judgment by a court of competent jurisdiction that such losses resulted from the gross
negligence or willful misconduct of the party from which recovery is sought.

 

11.9         Acceptance
by Lender. This Agreement and the other Loan Documents are submitted by Borrowers to Lender (for Lender’s acceptance
or rejection thereof) at Lender’s principal place of business as an offer by Borrowers to borrow monies from Lender now and
from time to time hereafter and shall not be binding upon Lender or become effective until and unless accepted by Lender, in writing,
at said place of business. If so accepted by Lender, this Agreement and the other Loan Documents shall be deemed to have been made
at said place of business.

 

    	 	36	 

     

    

 

11.10         Prior
Agreements; Interpretation. Except as otherwise provided herein, this Agreement and the other Loan Documents supersede in their
entirety any other agreement or understanding between Lender, and Borrower with respect to loans and advances made by Lender and
all commitments of Lender in connection therewith.

 

11.11         Notice.
Any and all notices given in connection with this Agreement shall be deemed adequately given only if in writing and addressed to
the party for whom such notices are intended at the address set forth below. All notices shall be sent by personal delivery, FedEx
or other overnight messenger service, first class registered or certified mail, postage prepaid, return receipt requested or electronic
mail (“E-mail”). A written notice shall be deemed to have been given to the recipient party on the earlier of
(a) the date it shall be delivered to the address required by this Agreement; (b) the date delivery shall have been refused at
the address required by this Agreement; (c) the date as of which the postal or delivery service shall have indicated such notice
to be undeliverable at the address required by this Agreement; or (d) if by E-mail, upon the sender’s receipt of an acknowledgment
from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other
written acknowledgment); provided, that if such E-mail is not sent during the normal business hours of the recipient, such
E-mail shall be deemed to have been sent at the opening of business on the next Business Day for the recipient. Any and all notices
referred to in this Agreement, or which either party desires to give to the other, shall be addressed as follows:

 

	If to any Borrower:	OrthoPediatrics Corp.
	 	2850 Frontier Drive
	 	Warsaw, Indiana 46582
	 	Attn: Mark Throdahl
	 	E-mail: mthrodahl@orthopediatrics.com,
	 	and
	 	Attn: Fred Hite
	 	E-mail: fhite@orthopediatrics.com,
	 	and
	 	Attn: Daniel Gerritzen
	 	E-mail: dgerritzen@orthopediatrics.com
	 	 
	with a copy to (which shall not constitute notice):
	 	 
	 	Bingham Greenebaum Doll LLP
	 	2700 Market Tower
	 	10 West Market Street
	 	Indianapolis, Indiana 46204
	 	Attn: Jeremy E. Hill
	 	E-mail:
	 	 
	If to Lender:	Squadron Capital LLC
	 	18 Hartford Avenue
	 	Granby, Connecticut 06035
	 	Attn: David R. Pelizzon
	 	E-mail: dpelizzon@sqdncap.com,

 

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	 	and
	 	Attn: Doug Pascoe
	 	E-mail: dpascoe@sqdncap.com
	 	and
	 	Attn: Harold Ruf
	 	E-mail: hruf@sqdncap.com
	 	 
	with a copy to (which shall not constitute notice):
	 	 
	 	Reed Smith LLP
	 	10 South Wacker Drive
	 	Suite 4000
	 	Chicago, IL 60606
	 	Attn: Joel R. Schaider
	 	E-mail: jschaider@reedsmith.com

 

The above addresses may be changed by notice
of such change, mailed as provided herein, to the last address designated.

 

11.12         Section
Titles, etc. The Section titles and table of contents, if any, contained in this Agreement are and shall be without substantive
meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto. All references herein
to Section, paragraphs, clauses and other subdivisions refer to the corresponding Sections, paragraphs, clauses and other subdivisions
of this Agreement; and the words “herein”, “hereof”, “hereby”, “hereto”, “hereunder”,
and words of similar import refer to this Agreement as a whole and not to any particular Section, paragraph, clause or subdivision
hereof. All Exhibits and Schedules which are referred to herein or attached hereto are hereby incorporated by reference.

 

11.13         Waiver
of Claims. Each Borrower hereby acknowledges, agrees and affirms that, as of the date hereof, it possesses no claims, defenses,
offsets, recoupment or counterclaims of any kind or nature against or with respect to the enforcement of this Agreement, or any
of the other Loan Documents and any amendments thereto (collectively, the “Claims”), nor does such Borrower
now have knowledge of any facts that would or might give rise to any Claims. If facts now exist which would or could give rise
to any Claim against or with respect to the enforcement of this Agreement, the Term Note A, Term Note B and/or any other Loan Documents,
as amended by the amendments thereto. Each Borrower hereby unconditionally, irrevocably and unequivocally waives and fully releases
any and all such Claims as if such Claims were the subject of a lawsuit, adjudicated to final judgment from which no appeal could
be taken and therein dismissed with prejudice.

 

11.14         Waiver
by Borrowers. EXCEPT AS OTHERWISE PROVIDED FOR IN THIS AGREEMENT OR REQUIRED BY LAW, EACH BORROWER WAIVES PRESENTMENT, DEMAND
AND PROTEST, NOTICE OF PROTEST, NOTICE OF PRESENTMENT, DEFAULT, NON-PAYMENT, MATURITY, RELEASE, COMPROMISE, SETTLEMENT, EXTENSION
OR RENEWAL OF ANY OR ALL COMMERCIAL PAPER, ACCOUNTS, CONTRACT RIGHTS, DOCUMENTS, INSTRUMENTS, CHATTEL PAPER AND GUARANTIES AT ANY
TIME HELD BY LENDER ON WHICH SUCH BORROWER MAY IN ANY WAY BE LIABLE AND HEREBY RATIFIES AND CONFIRMS WHATEVER LENDER MAY DO IN
THIS REGARD.

 

    	 	38	 

     

    

 

11.15         Governing
Law. THIS AGREEMENT HAS BEEN DELIVERED FOR ACCEPTANCE BY LENDER IN ILLINOIS AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICTS OF LAW PROVISIONS) OF THE STATE OF ILLINOIS. EACH BORROWER HEREBY (A) IRREVOCABLY
SUBMITS, TO THE EXTENT PERMITTED BY LAW, TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED IN CHICAGO, ILLINOIS AND OF
THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS, OVER ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY
MATTER ARISING FROM OR RELATED TO THIS AGREEMENT; (B) IRREVOCABLY WAIVES, TO THE FULLEST EXTENT SUCH BORROWER MAY EFFECTIVELY DO
SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT; (C) AGREES THAT,
TO THE EXTENT PERMITTED BY LAW, A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT SHALL BE CONCLUSIVE AND MAY
BE ENFORCED IN ANY OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW; AND (D) TO THE EXTENT PERMITTED
BY LAW, AGREES NOT TO INSTITUTE ANY LEGAL ACTION OR PROCEEDING AGAINST LENDER OR ANY OF ITS DIRECTORS, OFFICERS, EMPLOYEES, AGENTS
OR PROPERTY, CONCERNING ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT IN ANY COURT OTHER SUCH FEDERAL COURTS. NOTHING
IN THIS SECTION SHALL AFFECT OR IMPAIR LENDER’S RIGHT TO SERVE LEGAL PROCESS IN ANY MANNER PERMITTED BY LAW OR LENDER’S
RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST SUCH BORROWER’S PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION.

 

11.16         Representation
by Counsel. Each Borrower hereby represents that it has been represented by competent counsel of its choice in the negotiation
and execution of this Agreement and the other Loan Documents; that it has read and fully understood the terms hereof; Borrowers
and their counsel have been afforded an opportunity to review, negotiate and modify the terms of this Agreement and the other Loan
Documents and that Borrowers intend to be bound hereby. In accordance with the foregoing, the general rule of construction to the
effect that any ambiguities in a contract are to be resolved against the party drafting the contract shall not be employed in the
construction and interpretation of this Agreement and the other Loan Documents.

 

11.17         Plural,
Singular. The singular shall be deemed to include the plural and the plural to include the singular.

 

11.18         Waiver
of Trial by Jury. TO THE EXTENT PERMITTED BY LAW, BORROWERS AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT
OR THE OTHER LOAN DOCUMENTS OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF
EITHER PARTY IN CONNECTION HEREWITH. EACH BORROWER HEREBY EXPRESSLY ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR
LENDER TO MAKE THE TERM LOANS.

 

    	 	39	 

     

    

 

11.19         Counterparts
and PDF. This Agreement may be executed in identical counterparts, and all said counterparts when taken together shall constitute
one and the same Agreement and the parties hereto are hereby authorized to collate such counterparts into one original. For purposes
of negotiating and finalizing this Agreement (including any subsequent amendments thereto), any signed document transmitted in
portable document format (“PDF”) shall be treated in all manner and respects as an original document. The signature
of any party by PDF shall be considered for these purposes as an original signature. Any PDF document shall be considered to have
the same binding legal effect as an original document. Upon request, an original of such PDF document shall be mailed by first
class U.S. mail or personally delivered to the recipient. At the request of either party, any PDF document subject to this Agreement
shall be re-executed by both parties in an original form. The undersigned parties hereby agree that neither shall raise the use
of the PDF or the fact that any signature or document was transmitted or communicated through the use of a PDF as a defense to
the formation of this Agreement.

 

11.20         Amendment
and Restatement; No Novation. This Agreement constitutes an amendment and restatement of the Existing Credit Agreement, effective
from and after the Closing Date. The execution and delivery of this Agreement shall not constitute a novation of any Existing Indebtedness
or other obligations owing to the Lender under the Existing Loan and Security Agreement based on facts or events occurring or existing
prior to the execution and delivery of this Agreement. On the Closing Date, the credit facilities described in the Existing Loan
and Security Agreement, shall be amended, supplemented, modified and restated in their entirety by the facilities described herein,
and all loans and other obligations of OrthoPediatrics and OrthoPediatrics US Distribution outstanding as of such date under the
Existing Loan and Security Agreement, shall be deemed to be loans and obligations outstanding under the corresponding facilities
described herein.

 

The remainder of this page is intentionally
left blank. Signature page follows.

 

    	 	40	 

     

    

 

IN WITNESS WHEREOF,
this Third Amended and Restated Loan and Security Agreement has been duly executed as of the day and year specified at the beginning
hereof.

 

	 	BORROWERS:
	 	 
	 	ORTHOPEDIATRICS CORP.
	 	 	 	 
	 	By:	/s/ Mark Throdahl
	 	 	Name:	Mark Throdahl
	 	 	Title:	President and Chief Executive Officer
	 	 	 	 
	 	ORTHOPEDIATRICS U.S. DISTRIBUTION CORP.
	 	 	 	 
	 	By:	/s/ Mark Throdahl
	 	 	Name:	Mark Throdahl
	 	 	Title:	President and Chief Executive Officer
	 	 	 	 
	 	ORTHOPEDIATRICS EU LIMITED
	 	 	 	 
	 	By:	/s/ Fred Hite
	 	 	Name:	Fred Hite
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	ORTHOPEDIATRICS AUS PTY LTD
	 	 	 	 
	 	By:	/s/ Fred Hite
	 	 	Name:	Fred Hite
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	ORTHOPEDIATRICS NZ LTD
	 	 	 	 
	 	By:	/s/ Fred Hite
	 	 	Name:	Fred Hite
	 	 	Title:	Chief Financial Officer

 

Signature Page
to Third Amended and Restated Loan and Security Agreement

 

     

     

    

 

	 	LENDER:
	 	 
	 	SQUADRON CAPITAL LLC
	 	 	 
	 	By:	/s/ David R. Pelizzon
	 	 	Name: 	David R. Pelizzon
	 	 	Title: 	President

 

Signature Page
to Third Amended and Restated Loan and Security Agreement

 

     

     

    

 

EXHIBIT A

 

Term Note A

 

     

     

    

 

AMENDED AND RESTATED TERM NOTE A

 

	$18,400,743.38	April 26, 2017

 

FOR VALUE RECEIVED, the undersigned, OrthoPediatrics
Corp., a Delaware corporation (“OrthoPediatrics”), OrthoPediatrics US Distribution Corp., a Delaware corporation,
(“OrthoPediatrics US Distribution”), OrthoPediatrics EU Limited, a company incorporated and registered in England
and Wales (“OrthoPediatrics EU”), OrthoPediatrics Aus Pty Ltd., a company organized under the laws of Australia
(“OrthoPediatrics Aus”) and OrthoPediatrics NZ Ltd., a company organized under the laws of New Zealand (“OrthoPediatrics
NZ” and together with OrthoPediatics, OrthoPediatrics US Distribution, OrthoPediatrics EU and OrthoPediatrics Aus, “Borrowers”
and individually a “Borrower”), jointly and severally promise to pay to the order of Squadron Capital LLC, a
Delaware limited liability company (the “Lender”), at the place and times provided in the Third Amended and
Restated Loan and Security Agreement referred to below, the principal sum of $18,400,743.38, together with all accrued and unpaid
interest under this Amended and Restated Term Note A (“Term Note”) pursuant to that certain Third Amended and
Restated Loan and Security Agreement, dated as of April 26, 2017 (as amended, supplemented, modified or restated from time to time,
the “Third Amended and Restated Loan Agreement”) by and among Borrowers and Lender. Capitalized terms
used herein and not defined herein shall have the meanings assigned thereto in the Third Amended and Restated Loan Agreement.

 

The unpaid principal amount of this Term
Note from time to time outstanding is subject to mandatory repayment as provided in the Third Amended and Restated Loan Agreement
and shall bear interest as provided in Section 3.1 of the Third Amended and Restated Loan Agreement. This Term Note may be voluntarily
prepaid from time to time as provided in the Third Amended and Restated Loan Agreement. All payments of principal and interest
on this Term Note shall be payable in lawful currency of the United States of America in immediately available funds to such account
as the Lender shall specify from time to time by notice to the Borrowers. The principal and all accrued and unpaid interest under
this Term Note shall be due and payable on the Term Loan Maturity Date.

 

This Term Note is entitled to the benefits
of, and evidences Obligations incurred under, the Third Amended and Restated Loan Agreement, to which reference is made for a description
of the security for this Term Note and for a statement of the terms and conditions on which Borrowers are permitted and required
to make prepayments and repayments of principal of the Obligations evidenced by this Term Note and on which such Obligations may
be declared to be immediately due and payable.

 

THIS TERM NOTE SHALL BE GOVERNED, CONSTRUED
AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF ILLINOIS, WITHOUT REFERENCE TO THE CONFLICTS OR CHOICE OF LAW
PRINCIPLES THEREOF.

 

Each Borrower hereby waives all requirements
as to diligence, presentment, demand of payment, protest and (except as required by the Third Amended and Restated Loan Agreement)
notice of any kind with respect to this Term Note.

 

     

     

    

 

This Term Note constitutes a renewal and
restatement of, and replacement and substitution for, (i) that certain Revolving Note dated as of November 19, 2015 in the principal
amount of $7,000,000 and (ii) that certain Term Note dated as of May 30, 2014 in the principal amount of $11,400,743.38 (collectively
the “Prior Notes”). The indebtedness evidenced by the Prior Notes are continuing indebtedness evidenced hereby,
and nothing herein shall be deemed to constitute a payment, settlement or novation of the Prior Notes, or to release or otherwise
adversely affect any lien, mortgage or security interest securing such indebtedness or any rights of the Lender against any guarantor,
surety or other party primarily or secondarily liable for such indebtedness.

 

* * Signature Page to Follow * *

 

     

     

    

 

IN WITNESS WHEREOF,
the undersigned has executed this Term Note as of the day and year first written above.

 

	 	BORROWERS:
	 	 
	 	ORTHOPEDIATRICS CORP.
	 	 	 
	 	By:	 
	 	 	Name: Mark Throdahl
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	ORTHOPEDIATRICS US DISTRIBUTION CORP.
	 	 	 
	 	By:	 
	 	 	Name: Mark Throdahl
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	ORTHOPEDIATRICS EU LIMITED
	 	 	 
	 	By:	 
	 	 	Name: Fred Hite
	 	 	Title: Chief Financial Officer
	 	 	 
	 	ORTHOPEDIATRICS AUS PTY LTD
	 	 	 
	 	By:	 
	 	 	Name: Fred Hite
	 	 	Title: Chief Financial Officer
	 	 	 
	 	ORTHOPEDIATRICS NZ LTD
	 	 	 
	 	By:	 
	 	 	Name: Fred Hite
	 	 	Title: Chief Financial Officer

 

     

     

    

 

EXHIBIT B

 

Term Note B

 

     

     

    

 

TERM NOTE B

 

	$16,000,000	April 26, 2017

 

FOR VALUE RECEIVED, the undersigned, OrthoPediatrics
Corp., a Delaware corporation (“OrthoPediatrics”), OrthoPediatrics US Distribution Corp., a Delaware corporation,
(“OrthoPediatrics US Distribution”), OrthoPediatrics EU Limited, a company incorporated and registered in England
and Wales (“OrthoPediatrics EU”), OrthoPediatrics Aus Pty Ltd., a company organized under the laws of Australia
(“OrthoPediatrics Aus”) and OrthoPediatrics NZ Ltd., a company organized under the laws of New Zealand (“OrthoPediatrics
NZ” and together with OrthoPediatics, OrthoPediatrics US Distribution, OrthoPediatrics EU and OrthoPediatrics Aus, “Borrowers”
and individually a “Borrower”), jointly and severally promise to pay to the order of Squadron Capital LLC, a
Delaware limited liability company (the “Lender”), at the place and times provided in the Third Amended and
Restated Loan and Security Agreement referred to below, the principal sum of $16,000,000, together with all accrued and unpaid
interest under this Term Note B (“Term Note”) pursuant to that certain Third Amended and Restated Loan and Security
Agreement, dated as of April 26, 2017 (as amended, supplemented, modified or restated from time to time, the “Third Amended
and Restated Loan Agreement”) by and among Borrowers and Lender. Capitalized terms used herein and not defined herein
shall have the meanings assigned thereto in the Third Amended and Restated Loan Agreement.

 

The unpaid principal amount of this Term
Note from time to time outstanding is subject to mandatory repayment as provided in the Third Amended and Restated Loan Agreement
and shall bear interest as provided in Section 3.1 of the Third Amended and Restated Loan Agreement. This Term Note may be voluntarily
prepaid from time to time as provided in the Third Amended and Restated Loan Agreement. All payments of principal and interest
on this Term Note shall be payable in lawful currency of the United States of America in immediately available funds to such account
as the Lender shall specify from time to time by notice to the Borrowers. The principal and all accrued and unpaid interest under
this Term Note shall be due and payable on the Term Loan Maturity Date.

 

This Term Note is entitled to the benefits
of, and evidences Obligations incurred under, the Third Amended and Restated Loan Agreement, to which reference is made for a description
of the security for this Term Note and for a statement of the terms and conditions on which Borrowers are permitted and required
to make prepayments and repayments of principal of the Obligations evidenced by this Term Note and on which such Obligations may
be declared to be immediately due and payable.

 

THIS TERM NOTE SHALL BE GOVERNED, CONSTRUED
AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF ILLINOIS, WITHOUT REFERENCE TO THE CONFLICTS OR CHOICE OF LAW
PRINCIPLES THEREOF.

 

Each Borrower hereby waives all requirements
as to diligence, presentment, demand of payment, protest and (except as required by the Third Amended and Restated Loan Agreement)
notice of any kind with respect to this Term Note.

 

* * Signature Page to Follow * *

 

     

     

    

 

IN WITNESS WHEREOF,
the undersigned has executed this Term Note as of the day and year first written above.

 

	 	BORROWERS:
	 	 
	 	ORTHOPEDIATRICS CORP.
	 	 	 
	 	By:	 
	 	 	Name: Mark Throdahl
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	ORTHOPEDIATRICS US DISTRIBUTION CORP.
	 	 	 
	 	By:	 
	 	 	Name: Mark Throdahl
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	ORTHOPEDIATRICS EU LIMITED
	 	 	 
	 	By:	 
	 	 	Name: Fred Hite
	 	 	Title: Chief Financial Officer
	 	 	 
	 	ORTHOPEDIATRICS AUS PTY LTD
	 	 	 
	 	By:	 
	 	 	Name: Fred Hite
	 	 	Title: Chief Financial Officer
	 	 	 
	 	ORTHOPEDIATRICS NZ LTD
	 	 	 
	 	By:	 
	 	 	Name: Fred Hite
	 	 	Title: Chief Financial Officer

 

     

     

    

 

EXHIBIT C

 

Notice of Borrowing

 

     

     

    

 

Exhibit C

 

Term Loan B 

Notice of Borrowing

 

Reference is made to that certain Third
Amended and Restated Loan and Security Agreement, dated as of April 26, 2017 (as amended and restated, the “Loan and Security
Agreement”), by and between Squadron Capital LLC (“Lender”), OrthoPediatrics Corp., a Delaware corporation,
(“OrthoPediatrics”), OrthoPediatrics US Distribution Corp., a Delaware corporation (“OrthoPediatrics
US Distribution”), OrthoPediatrics EU Limited, a company incorporated and registered in England and Wales (“OrthoPediatrics
EU”), OrthoPediatrics Aus Pty Ltd., a company organized under the laws of Australia (“OrthoPediatrics Aus”)
and OrthoPediatrics NZ Ltd., a company organized under the laws of New Zealand (“OrthoPediatrics NZ” and together
with OrthoPediatrics, OrthoPediatrics US Distribution, OrthoPediatrics EU and OrthoPediatrics Aus, “Borrowers”
and individually a “Borrower”). All capitalized terms used herein and not otherwise defined shall have the meanings
ascribed to such terms in the Loan and Security Agreement.

 

Pursuant to Section 2.2(b) of the
Loan and Security Agreement, Borrower requests that Lender make a $                
Term Loan B to Borrower in accordance with the applicable terms and conditions of the Loan and Security Agreement on              (“Borrowing
Date”):

 

Borrower hereby certifies to Lender that
as of the Borrowing Date:

 

(i)          after
making the Term Loan B requested on the Borrowing Date, the amount of the Term Loan B outstanding will not exceed $                  
;

 

(ii)        each
of the representations and warranties contained in the Loan and Security Agreement, the Loan Documents or in any document or instrument
delivered pursuant to or in connection with the Loan and Security Agreement are true in all material respects as of the date as
of which they were made and will be true and deemed remade as such at and as of the time of the making of the Term Loan requested
hereby, except to the extent such representations and warranties relate expressly to an earlier date, in which case such representations
and warranties are true, correct and complete on and as of such earlier date;

 

(iii)        no
Event of Default will have occurred and be continuing; and

 

(iv)        there
has been no event or condition which has had or would reasonably be expected to have a Material Adverse Effect.

 

[Signature page
to follow]

 

     

     

    

 

DATED:______________________

 

	 	OrthoPediatrics Corp. 
	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:

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