Document:

Operating Agreement of Chem-Mod International LLC

 Exhibit 10.40 
  
 OPERATING AGREEMENT 
  
 OF 
  
 CHEM-MOD INTERNATIONAL LLC 

 TABLE OF CONTENTS 
  

					
	 ARTICLE

	  	 	  	PAGE

			
	 ARTICLE 1
	  	DEFINITIONS AND INTERPRETATION	  	D-1
	 1.1   
	  	Definitions	  	D-1
	 1.2   
	  	Interpretation	  	4
			
	 ARTICLE 2
	  	FORMATION OF THE COMPANY	  	4
	 2.1   
	  	Formation	  	4
	 2.2   
	  	Entire Agreement	  	5
			
	 ARTICLE 3
	  	NAME AND PRINCIPAL OFFICE	  	5
	 3.1   
	  	Name	  	5
	 3.2   
	  	Principal Office, Registered Office and Registered Agent	  	5
			
	 ARTICLE 4
	  	PURPOSE	  	5
			
	 ARTICLE 5
	  	TERM AND FISCAL YEAR	  	5
	 5.1   
	  	Term	  	5
	 5.2   
	  	Fiscal Year	  	5
			
	 ARTICLE 6
	  	CAPITAL CONTRIBUTIONS, LOANS AND CAPITAL ACCOUNTS	  	6
	 6.1   
	  	Contribution of License	  	6
	 6.2   
	  	Contributions of Cash	  	6
	 6.3   
	  	Additional Contributions	  	6
	 6.4   
	  	Loans	  	6
	 6.5   
	  	Return of Capital Contributions	  	7
	 6.6   
	  	Capital Account	  	7
	 6.7   
	  	Interest on Capital Contributions	  	7
			
	 ARTICLE 7
	  	ALLOCATION OF PROFITS AND LOSSES	  	7
	 7.1   
	  	General Allocation of Profits and Losses	  	7
	 7.2   
	  	Depreciation Recapture	  	8
	 7.3   
	  	Allocations with Respect to Transferred Interests	  	9
	 7.4   
	  	Tax Credits	  	9
	 7.5   
	  	Regulatory Allocations	  	9
	 7.6   
	  	Section 704(c) Allocation	  	10
	 7.7   
	  	Allocation of Excess Nonrecourse Liabilities	  	10
			
	 ARTICLE 8
	  	DISTRIBUTIONS	  	11
	 8.1   
	  	Distribution of Net Cash Receipts	  	11
	 8.2   
	  	Timing of Distribution; No Third-Party Beneficiaries	  	11
			
	 ARTICLE 9
	  	BOOKS OF ACCOUNT, RECORDS AND REPORTS	  	12
	 9.1   
	  	Books of Account and Records	  	12
	 9.2   
	  	Reports to Members	  	12

  

 i 

					
	 ARTICLE 10
	  	MANAGEMENT OF THE COMPANY	  	13
	 10.1    
	  	Management of Company Affairs	  	13
	 10.2    
	  	Major Decisions	  	13
	 10.3    
	  	Budgets	  	15
	 10.4    
	  	Employment of Affiliates	  	16
	 10.5    
	  	Liability of the Members	  	16
	 10.6    
	  	Devotion of Time by Members	  	16
	 10.7    
	  	Other Business of Members	  	16
	 10.8    
	  	Tax Matters Partner	  	17
	 10.9    
	  	Election to Adjust Basis	  	17
	 10.10  
	  	Company Indemnification of Members	  	17
			
	 ARTICLE 11
	  	RIGHTS AND DUTIES OF MEMBERS	  	17
	 11.1    
	  	Admission of Members	  	17
	 11.2    
	  	Limited Liability	  	17
	 11.3    
	  	No Individual Authority	  	18
	 11.4    
	  	Representations by Members	  	18
	 11.5    
	  	Indemnification by the Members	  	18
	 11.6    
	  	Indemnification by the Company	  	18
	 11.7    
	  	Rights of a Former Member	  	18
	 11.8    
	  	Covenants	  	19
			
	 ARTICLE 12
	  	TRANSFER OF MEMBER INTERESTS	  	23
	 12.1    
	  	General Prohibition	  	23
	 12.2    
	  	Permitted Transfers	  	23
	 12.3    
	  	Right of First Offer Refusal	  	24
	 12.4    
	  	Involuntary Transfers	  	25
	 12.5    
	  	Dissolution or Termination of Members	  	25
	 12.6    
	  	Transfers of Ownership Interests in Members	  	25
	 12.7    
	  	Status of Assignee	  	26
	 12.8    
	  	Admission Requirements	  	26
	 12.9    
	  	Effective Date of Assignment	  	26
	 12.10  
	  	Status of Assignor	  	27
	 12.11  
	  	Cost of Admission	  	27
			
	 ARTICLE 13
	  	TAG-ALONG RIGHT	  	27
			
	 ARTICLE 14
	  	BUY/SELL	  	28
	 14.1    
	  	Right to Initiate	  	28
	 14.2    
	  	Initiation and Elections	  	28
	 14.3    
	  	Closing	  	29
	 14.4    
	  	Payment of Loans	  	29
	 14.5    
	  	Other Remedies for Noncompliance	  	30
	 14.6    
	  	Assignees	  	30
	 14.7    
	  	Additional Effects of a Buy/Sell	  	30
	 14.8    
	  	Right to Assign	  	30

  

 ii 

					
	ARTICLE 15	  	DISSOLUTION AND LIQUIDATION OF COMPANY	  	31
	15.1  	  	Dissolution of the Company	  	31
	15.2  	  	Winding Up of Affairs	  	31
	15.3  	  	Accounting	  	31
	15.4  	  	Final Distribution of Company Property	  	31
	15.5  	  	Certificate of Cancellation	  	32
	15.6  	  	No Restoration of Deficit Capital Accounts	  	32
			
	ARTICLE 16	  	AMENDMENTS	  	32
	16.1  	  	Amendment of Agreement	  	32
	16.2  	  	Amendment of Certificate	  	32
			
	ARTICLE 17	  	NOTICES	  	32
			
	ARTICLE 18	  	MISCELLANEOUS PROVISIONS	  	33
	18.1  	  	Severability	  	33
	18.2  	  	Parties Bound	  	33
	18.3  	  	Applicable Law	  	33
	18.4  	  	Additional Documents and Acts	  	33
	18.5  	  	Benefit	  	33
	18.6  	  	Waiver	  	34
	18.7  	  	Survival	  	34
	18.8  	  	Headings	  	34
	18.9  	  	Counterparts	  	34

  
 EXHIBITS 
  

					
	 Exhibit A
	 	 -
	  	Copies of patent applications filed comprising the Technology
	 Exhibit B
	 	 -
	  	License
	 Exhibit C
	 	 -
	  	Development Budget
	 Exhibit D
	 	 -
	  	Capital Accounts of the Members
	 Exhibit E
	 	 -
	  	Confidentiality Agreement

  

 iii 

 OPERATING AGREEMENT OF  
 CHEM-MOD INTERNATIONAL LLC 
  
 This Operating Agreement (this “Agreement”) of CHEM-MOD INTERNATIONAL LLC, an Delaware limited liability company (the “Company”), is made and entered into as of July 8, 2005, by and
between NOX II International, Ltd., an Ohio limited liability company (“NOX”) and AJG Coal, Inc., a Delaware corporation (“AJG”). 
  
 R E C I T A L S: 
  
 The parties to this Agreement desire to form a Delaware limited liability
company for the purpose of developing, using and commercializing certain coal technology in the International Market related to the remediation of combusted carbonaceous materials and described in the patent applications filed in the United States
Patent and Trademark Office (“USPTO”), as the same may be supplemented, modified, or expanded upon, including related filings under the Patent Cooperation Treaty (“PCT Filings”), copies of which are attached as Exhibit A to this
Agreement (collectively, the “Technology”), 
  
 By this
Agreement, the parties desire to create the Company on the terms and conditions set forth herein. 
  
 NOW THEREFORE, in consideration of the foregoing, of the mutual promises contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
  
 ARTICLE 1 
  
 DEFINITIONS AND INTERPRETATION 
  
 1.1    Definitions.    In addition to capitalized terms defined elsewhere in this Agreement, the following capitalized terms shall have the meanings set forth below. 
  
 Act.    The Delaware Limited Liability
Company Act, as amended from time to time and any successor to the Act. 
  
 Adjusted Capital Account Deficit.    With respect to any Member, the deficit balance, if any, in such Member’s Capital Account, as of the end of the relevant fiscal year, after giving effect to the
following adjustments: (i) crediting thereto (A) the amount of such Member’s share of Minimum Gain, including any “partner nonrecourse debt minimum gain” (as defined in Treasury Regulations Section 1.704-2(i)), and
(B) the amount of Company liabilities allocated to such Member under Section 752 of the Code with respect to which such Member bears the economic risk of loss (as defined in Treasury Regulations Section 1.752-2(a)), to the extent such
liabilities do not constitute “partner nonrecourse debt” under Treasury Regulations Section 1.752-2 and (ii) reduced by all reasonably expected adjustments, allocations and distributions described in Treasury Regulations Sections
1.704-l(b)(2)(ii)(d)(4), (5) and (6). 
  

 D-1 

 Affiliate.    (a) Any Person directly or indirectly owning,
controlling or holding the power to vote l0% or more of the outstanding voting securities of an identified other Person; (b) any Person 10% or more of whose voting securities are directly or indirectly owned, controlled or held with power to
vote, by such other Person; (c) any Person directly or indirectly controlling, controlled by, or under common control with such other Person; (d) any officer, director, member, manager or partner of such other Person; (e) if such
other Person is an officer, director, member, manager or partner, any entity for which such Person acts in any such capacity; and (f) any spouse, lineal ancestor or descendant of such other Person. 
  
 Annual Budget.    As defined in
Section 10.3(b). 
  
 Approved
Budget.    The Development Budget and any Annual Budget, in each case for the period to which such Budget applies. 
  
 Annual Tax Liability.    For any Member for any fiscal year, the product of (a) forty percent (40%) multiplied
by (b) the excess, if any, of (i) the amount of all items of taxable income and gain of the Company for federal income tax purposes allocated to such Member for such fiscal year over (ii) the amount of all items of deductible expense and
loss of the Company allocated to such Member for such fiscal year. 
  
 Capital Account.    The capital account maintained for each Member pursuant to Section 6.6. 
  
 Capital Contributions.    With respect to any Member, the amount of money and the fair market value (as agreed by the
Members) of any property or services contributed to the Company by such Member. 
  
 Certificate.    The Certificate of Formation of the Company, as amended from time to time. 
  
 Code.    The United States Internal Revenue Code of 1986, as amended from time to time, or any replacement or successor
law. 
  
 Cumulative Tax
Liability.    For each Member, as of any date during the term of this Agreement, the product of (a) forty percent (40%) multiplied by (b) the excess, if any, of: (i) the amount of all items of
taxable income and gain of the Company for federal income tax purposes allocated to such Member for all periods beginning on the date of this Agreement through the end of the fiscal year immediately preceding such date of calculation, over
(ii) the amount of all items of deductible expense and loss of the Company allocated to such Member for all periods beginning on the date of this Agreement through the end of the fiscal year immediately preceding such date of calculation (with
any excess of amounts in clause (ii) over amounts in clause (i) in prior fiscal periods being carried forward as an item of loss in clause (ii) until absorbed in the subsequent fiscal period). 
  
 Cross Cash Receipts.    With respect
to any period, the amount of all cash funds received by the Company from all sources. 
  

 2 

 Intellectual Property.    Any and all patents, patent
applications, and rights to obtain PCT Filings relating to the Technology, including any patents derivative of any such patents, any enhancements to any of the foregoing and all related property, including all related know-how, development plans,
designs, specifications, flow charts, processes and formulas (limited, however, to the International Market). 
  
 International Market.    The international market, excluding The United States of America and Canada only. 

 
 Investor.    AJG, and its
respective successors and assigns. 
  
 License.    The Technology License Agreement attached to this Agreement as Exhibit B, pursuant to which NOX grants the Company an exclusive, royalty-free right to use the Intellectual Property in perpetuity
in the International Market. 
  
 Major
Decisions.    As defined in Section 10.2. 
  
 Members.    NOX and AJG, and each Person who may become a substituted or additional Member pursuant to the provisions hereof and applicable law. 
  
 Minimum Gain.    As such term is defined in
Treasury Regulation Section 1.704-2(d), which shall generally mean the amount by which the nonrecourse liabilities secured by any assets of the Company exceed the adjusted tax basis of such assets as of the date of determination. A
Member’s share of Minimum Gain (and any net decrease thereof) at any time shall be determined in accordance with Treasury Regulation Section 1.704-2(g). 
  
 Net Cash Receipts.    With respect to any period, the amount by which the Gross Cash
Receipts in such period exceed the sum of the following: (a) all principal and interest payments on any indebtedness of the Company, and all other sums paid to such lenders in such period, but excluding any payments made pursuant to Article 8;
(b) all cash expenditures (including expenditures for capital improvements) made in such period incident to the operation of the Company business, including but not limited to those expenses of the Members paid, either directly or indirectly,
by the Company; and (c) working capital and other reserves in such amounts and for such purposes as the Members deem necessary for proper current and future operation of the Company business. 
  
 Participating Percentage.    For each
Member, the percentage set forth opposite such Member’s name below, as adjusted from time to time as provided in Section 6.2: 
  

			
	 Member

	  	 Participating Percentage

	 	  	 
	 NOX II INTERNATIONAL, LTD.
	  	90%
		
	 AJG
	  	10%

  

 3 

 Permitted Transferee.    As defined in Section 12.2.

  
 Person.    A natural
person, corporation, limited liability company, trust, partnership, estate, unincorporated association, governmental entity or other entity. 
  
 Prime Rate.    The rate of interest announced from time to time as its “prime rate” or “corporate base
rate” (or equivalent rate) by The Bank of America at Chicago, Illinois (or its successor-in-interest). 
  
 Priority Return.    For the Investor, and other Members to the extent of any cash capital contributions,
as of any date, the sum of (a) the Capital Contributions in the form of cash or other immediately available funds of such Investor, plus (b) the Cumulative Tax Liability of such Investor as of such date. 
  
 Profits or Losses.    The net income
or loss of the Company for federal income tax purposes as finally determined by the Company’s accountants for each fiscal year of the Company, as well as, where the context requires, related federal tax items such as tax preferences and
credits, in each case appropriately adjusted with respect to final determination of any of the foregoing for federal income tax purposes. 
  
 1.2    Interpretation.    The definitions in Section 1.1 shall apply equally to both the
singular and plural forms of the terms defined. Wherever the context may require, any pronoun used in this Agreement shall include the corresponding masculine, feminine and neuter forms. For all purposes of this Agreement, the term
“control” and variations thereof shall mean the direct or indirect possession of the power to direct or cause the direction of the management and policies of the specified entity, through the ownership of equity interests therein, by
contract or otherwise. As used in this Agreement, the words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. As used in this Agreement, the terms
“herein,” “hereof” and “hereunder” shall refer to this Agreement in its entirety. Any references in this Agreement to “Sections,” “Articles” of “Exhibits” shall, unless otherwise
specified, refer to Sections, Articles, or Exhibits, respectively, in or attached to this Agreement. 
  
 ARTICLE 2 
  
 FORMATION OF THE COMPANY 
  
 2.1    Formation.    The parties hereto agree to and do hereby form a limited liability company under and pursuant to the provisions of the Act; and the rights and obligations of the
Members shall be as provided therein except as otherwise expressly provided in this Agreement. The Members agree to execute such certificates or documents and to do such filings and recordings and all other acts, including the filing or recording of
the Certificate, and any assumed name filings in the appropriate offices in the State of Delaware and any other applicable jurisdictions as may be required to comply with applicable law. 
  

 4 

 2.2    Entire Agreement.    Each and every
other agreement or understanding, oral or written, relating in any way to the formation or operation of the Company is hereby superseded in its entirety. From and after the execution of this Agreement, the same shall constitute the only Operating
Agreement of the Company except as the same may hereafter be amended pursuant to the provisions hereof. This Agreement represents the entire agreement and understanding of the parties hereto concerning the Company and their relationship as Members,
and all prior or concurrent agreements, understandings, representations and warranties in regard to the subject matter hereof are and have been merged herein. 
  

ARTICLE 3 
  
 NAME AND PRINCIPAL OFFICE 
  
 3.1    Name.    The business of the Company shall be conducted under the name of “Chem-Mod
International LLC,” or such other name as the Members may designate. 
  
 3.2    Principal Office, Registered Office and Registered Agent.    The principal office of the Company shall be located at 4281 Meadowlark Trail, Stow, Ohio
44224. The registered agent and the registered office of the Company shall be Carolyn A. Kelly, 4281 Meadowlark Trail, Stow, Ohio 44224. The Members may from time to time designate another registered agent or another location for the principal
office or registered office of the Company upon notice to all Members. 
  
 ARTICLE 4 
  
 PURPOSE

  
 The purpose of the Company is to engage in developing,
commercializing, using, licensing and otherwise exploiting Intellectual Property pursuant to the License; financing any of the foregoing; and making prudent interim investments of Company funds, including, without limitation, investments in
obligations of federal, state and local governments or their agencies, mutual funds, money market funds and bank certificates of deposit; and engaging in any and all activities related or incidental thereto. Except as specifically limited or
prohibited by this Agreement, the Company is empowered to perform such actions and engage in such activities consistent with, useful or necessary to carry out the purpose of the Company. 
  
 ARTICLE 5 
  
 TERM AND FISCAL YEAR 
  
 5.1    Term.    The term of the Company shall commence as of the date hereof and shall continue in
perpetuity, unless sooner terminated pursuant to the provisions of this Agreement or as otherwise provided by law. 
  
 5.2    Fiscal Year.    The fiscal year of the Company shall be the calendar year. 

 

 5 

 ARTICLE 6 
  
 CAPITAL CONTRIBUTIONS, LOANS AND CAPITAL ACCOUNTS 
  
 6.1    Contribution of License.    Concurrently with the
execution of this Agreement, NOX shall enter into the License. Immediately after a PTC Filing and/or patent application with respect to all or any portion of the Technology has been filed, NOX and AJG shall be provided with a copy of such patent
application or filing. 
  
 6.2    Contributions of Cash.    AJG shall contribute Seven Hundred Fifty Thousand Dollars ($750,000.00) to the company, in cash, in return for its membership interests. Three Hundred
Seventy-Five Thousand Dollars ($375,000.00) shall be paid to NOX or its assigns in exchange for the License and Technology rights obtained herein, and Three Hundred Seventy-Five Thousand Dollars ($375,000.00) shall remain in the Company for use as
working capital. 
  
 6.3    Additional
Contributions.    Except as specifically set forth in Section 6.1 and Section 6.2 of this Agreement, no Member shall be required to make any additional contributions to the capital of the Company. 
  
 6.4    Loans. 
  
 (a)    If at any time in the opinion of
the Members, the Company’s revenues and funds are not sufficient to satisfy the obligations and liabilities of the Company or to preserve, protect and develop the property of the Company, the Members may arrange for the Company to borrow such
required funds from a third party on such terms and conditions as the Members deem advisable, provided that: 
  
 (i)    No Member shall have any personal liability for repayment of any loan without such Member’s prior written
consent; and 
  
 (ii)    No
Member shall be required to make a loan to the Company. 
  
 (b)    If at any time the Members determine that the Company’s revenues and funds are not sufficient to satisfy the obligations and liabilities of the Company or to develop, preserve and protect the property of the
Company, and the Company cannot borrow the required funds from commercial lenders on terms that are reasonable under the circumstances (including but not limited to the terms described in Section 6.4(a) above), then one or more of the Members
or their Affiliates, in such person’s sole discretion, may loan the required funds to the Company. Loans made available to the Company by Members shall not be considered Capital Contributions. Any such loans shall be made by the lending Members
or their Affiliates in proportion to the applicable lending Members’ respective Participating Percentages or in such other proportion as the lending Members or their Affiliates may agree upon. All such loans (i) shall be payable only from
the assets of the Company without any recourse against or right of contribution from any Member, (ii) shall bear interest at an annual rate equal to the Prime Rate plus 
  

 6 

 three percent (3%), adjusting when and as the Prime Rate shall adjust, compounded annually; and
(iii) shall mature and be due and payable, to the extent not paid pursuant to other provisions of this Agreement, upon termination of the Company. 
  
 6.5    Return of Capital Contributions.    Except as specifically provided in this Agreement, a
Member shall not be entitled to the return of its capital contribution to the Company. 
  
 6.6    Capital Account.    A separate Capital Account shall be established and maintained for each Member in accordance with the Code and the regulations
promulgated thereunder, including but not limited to the rules regarding the maintenance of partners’ capital accounts set forth in Treasury Regulation Section 1.704-1. Subject to the immediately preceding sentence, there shall be credited
to each Member’s Capital Account (i) the amount of money and the fair market value (as determined by the Members) of any property (net of related liabilities) contributed by the Member to the Company, and (ii) the Member’s share
of income or gain (or items thereof) of the Company, including income and gain exempt from tax. There shall be charged against each Member’s Capital Account (i) the amount of money and the fair market value (as determined by the Members)
of any property (net of related liabilities) distributed to the Member by the Company and (ii) the Member’s share of loss and deduction (or items thereof) of the Company. If property is contributed to the capital of the Company or if there
is a revaluation of any Company property such that the book value of such property differs from its adjusted tax basis, the Members’ Capital Accounts shall be appropriately adjusted for income, gain, loss and deduction as required by Treasury
Regulation Section 1.704-1(b)(2)(iv)(g). To the extent a Member’s Capital Account is greater than zero, such excess is hereinafter referred to as a “positive balance.” To the extent that a Member’s Capital Account is less
than zero, said amount is hereinafter referred to as a “deficit balance.” The initial Capital Accounts of the Members are set forth on Exhibit D attached hereto. 
  
 6.7    Interest on Capital Contributions.    Except as specifically
provided in this Agreement, the Company shall not pay interest on Capital Contributions or undistributed Profits. 
  
 ARTICLE 7 
  
 ALLOCATION OF PROFITS AND LOSSES 
  
 7.1    General Allocation of Profits and Losses.    After giving effect to the allocations set forth in Sections 7.5 and 7.6, all Profits and Losses (including all
items of income and expense entering into the determination of such Profits and Losses), as finally determined for federal income tax purposes for each fiscal year of the Company, shall be allocated among the Members as follows: 
  
 (a)    Profits.    Profits shall be allocated among the Members in the following order of priority: 
  
 (i)    First, to the Members in proportion to and to the extent of the excess, in the
case of each Member, of (A) all Losses allocated to such Member 
  

 7 

 pursuant to Section 7.l(b)(iii), over (B) all Profits previously allocated to such Member
pursuant to this Section 7.1(a)(i). 
  
 (ii)    Second, to the Members in proportion to and to the extent of the excess, in the case of each Member, of (A) all Losses allocated such Member pursuant to Section 7.1(b)(ii), over (B) all Profits
previously allocated to such Member pursuant to this Section 7.1(a)(ii). 
  
 (iii)    Third, to the Investor, and if applicable, the other Members, in proportion to and to the extent of the excess of (A) the amount of all distributions of Net Cash Receipts to
such Investor pursuant to Section 8.1(b) over (B) all prior allocations of Profits to such Member pursuant to this Section 7.1(a)(iii). 
  
 (iv)    Fourth, to the Members in proportion to and to the extent of the excess, in the case of each Member, of
(A) the amount of all distributions of Net Cash Receipts to such Member pursuant to Section 8.1(c) over (B) all prior allocations of Profits to such Member pursuant to this Section 7.1(a)(iv). 
  
 (v)    Fifth, any remaining Profits shall
be allocated to the Members in accordance with their Participating Percentages. 
  
 (b)    Losses.    Losses shall be allocated among the Members in the following order
of priority: 
  
 (i)    First,
to the Members in proportion to and to the extent of the excess, in the case of each Member, of (A) all Profits allocated to such Member pursuant to Section 7.1(a)(v), over (B) all Losses previously allocated to such Member pursuant
to this Section 7.1(b)(i). 
  
 (ii)    Second, to the Members having positive balances in their Capital Accounts in proportion to and to the extent of such positive balances. 
  
 (iii)    Third, to the Members in accordance with their Participating Percentages.

  
 7.2    Depreciation
Recapture.    Subject to Section 7.6, if any portion of Profit recognized from the disposition of property by the Company represents the “recapture” of previously allocated deductions by virtue of the
application of Code Section 1(h)(1)(D), 1245 or 1250 (“Recapture Gain”), such Recapture Gain shall be allocated as follows: 
  
 (a)    First, to the Members in proportion to the lesser of each Member’s (i) allocable share of the total
Profit recognized from the disposition of such property and (ii) share of depreciation or amortization with respect to such property (as determined in the manner provided in Treasury Regulations Sections 1.1245-1(e)(2) and (3)), until each such
Member has been allocated Recapture Gain equal to such lesser amount. 
  

 8 

 (b)    Second, the balance of Recapture Gain shall be allocated among
the Members whose allocable shares of total Profit from the disposition of such property exceed their shares of depreciation or amortization with respect to such property (as determined in the manner provided in Treasury Regulations Sections
1.1245-1(e)(2) and (3)), in proportion to their shares of total Profit (including Recapture Gain) from the disposition of such property; provided, however, that no Member shall be allocated Recapture Gain under this Section 7.2 in excess of the
total Profit otherwise allocated to such Member from such disposition. 
  
 7.3    Allocations with Respect to Transferred Interests.    Except as otherwise provided below or unless otherwise required by the provisions of the Code or agreed by the Members, any
Profit or Loss allocable to an interest in the Company which has been transferred during any year shall be allocated among the Persons who were holders of such interest during such year in proportion to the number of days during such year that each
holder was recognized as the holder of the interest, without regard to the results of Company operations during the period the holder was recognized as the owner thereof. 
  
 7.4    Tax Credits.    Unless otherwise required by the Code, any tax
credits of the Company shall be allocated among the Members in accordance with their Participating Percentages. Any recapture of tax credits shall be allocated among the Members in the same ratio as the applicable tax credits were allocated to the
Members. 
  
 7.5    Regulatory
Allocations. 
  
 (a)    Minimum Gain Chargeback.    Notwithstanding any other provision of this Agreement, if there is a net decrease in Minimum Gain for a Company taxable year, each Member shall be
allocated, before any other allocation of Company items for such taxable year, items of gross income and gain for such year (and, if necessary, for subsequent years) in proportion to, and to the extent of, the amount of such Member’s share of
the net decrease in Minimum Gain during such year. The income allocated pursuant to this Section 7.5(a) in any taxable year shall consist first of gains recognized from the disposition of property subject to one or more nonrecourse liabilities
of the Company, and any remainder shall consist of a pro rata portion of other items of income or gain of the Company. The allocation otherwise required by this Section 7.5(a) shall not apply to a Member to the extent provided in
Treasury Regulation Section 1.704-2(f)(2) through (5). 
  
 (b)    Qualified Income Offset.    Notwithstanding any other provision of this Agreement, if a Member unexpectedly receives an adjustment, allocation or
distribution described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) that causes or increases an Adjusted Capital Account Deficit with respect to such Member, items of Company gross income and gain shall be
specially allocated to such Member in an amount and manner sufficient to eliminate such Adjusted Capital Account Deficit as quickly as possible. 
  

 9 

 (c)    Gross Income
Allocation.    If at the end of any Company taxable year, a Member has an Adjusted Capital Account Deficit, such Member shall be specially allocated items of Company income or gain in an amount and manner sufficient to
eliminate such deficit Adjusted Capital Account Deficit as quickly as possible. 
  
 (d)    Nonrecourse Deductions.    Any deductions attributable to partnership
nonrecourse liabilities (as determined pursuant to Treasury Regulation Section 1.704-2(c)) of the Company for any taxable year shall be allocated among the Members in the same proportion as Profits or Losses (as may apply) for such year are
allocated. 
  
 (e)    Member Nonrecourse Debt.    Notwithstanding any other provision of this Agreement, any item of Company Loss, deduction or expenditures described in Code Section 705(a)(2)(B)
that is attributable to a partner nonrecourse debt (as defined in Treasury Regulation Section 1.704-2(b)(4)) of a Member shall be allocated to those Members that bear the economic risk of loss for such partner nonrecourse debt, and among such
Members in accordance with the ratios in which they share such economic risk, determined in accordance with Treasury Regulation Section 1.704-2(i). If there is a net decrease for a Company taxable year in any partner nonrecourse debt minimum
gain of the Company, each Member with a share of such partner nonrecourse debt minimum gain as of the beginning of such year shall be allocated items of gross income and gain in the manner and to the extent provided in Treasury Regulation
Section 1.704-2(i)(4). 
  
 (f)    Interpretation.    The foregoing provisions of this Section 7.5 are intended to comply with Treasury Regulation Sections 1.704-1(b) and 1.704-2 and shall be interpreted
consistently with this intention. Any terms used in such provisions that are not specifically defined in this Agreement shall have the meaning, if any, given such terms in the Regulations cited above. 
  
 7.6    Section 704(c)
Allocation.    Notwithstanding the foregoing allocations of Profits and Losses, if any property contributed to the Company has a fair market value (as agreed by the Members) that differs from its adjusted basis for
federal income tax purposes at the time of such contribution, or if there is a revaluation of any Company property such that the book value of such property differs from its adjusted basis for federal income tax purposes, items of income, gain,
loss, and deduction with respect to any such property shall be allocated among the Members so as to take account of such difference, in the manner intended by Section 704(c) of the Code and the Treasury Regulations from time to time promulgated
thereunder, using such method permitted by such Treasury Regulations as the Members may determine. 
  
 7.7    Allocation of Excess Nonrecourse Liabilities.    Solely for the purpose of allocating excess
nonrecourse liabilities of the Company among the Members in connection with the determination of the Members’ adjusted tax bases for their interests in the Company, in accordance with Section 752 of the Code and the Treasury Regulations
from time to time promulgated thereunder, the Members agree that each Member’s interest in Company Profits equals such Member’s Participating Percentage. 
  

 10 

 ARTICLE 8 
  
 DISTRIBUTIONS 
  
 8.1    Distribution of Net Cash Receipts.    Net Cash Receipts, if any, shall be applied and
distributed in the following order of priority: 
  
 (a)    First, to pay principal and unpaid accrued interest on any loans made to the Company by any Member or any Affiliate thereof pursuant to Section 6.4(b), in proportion to the respective amounts of the
outstanding principal and accrued interest of such loans. 
  
 (b)    Second, until each Investor, and if applicable, the other Members to the extent that the other Members make cash capital contributions pursuant to this Agreement, has received
distributions of Net Cash Receipts pursuant to this Section 8.1(b) in the amount of its Priority Return, to the Investor (other Members) in proportion to and to the extent of the excess, in the case of each Investor (other Members), of
(i) such Investor’s (other Members) Priority Return over (ii) all prior distributions of Net Cash Receipts to such Investor (other Members) pursuant to this Section 8.1(b). 
  
 (c)    Third, from and after such time as each Investor has received aggregate
distributions pursuant to Section 8.1(b) in the amount of such Investor’s Priority Return, Net Cash Receipts shall be distributed to the Members in accordance with their Participating Percentages. To the extent that Net Cash Receipts are
available for distribution pursuant to this Section 8.1(c), the Company shall distribute Net Cash Receipts pursuant to this Section 8.1(c) on a quarterly basis in an amount sufficient to distribute to each Member pursuant to this
Section 8.1(c) not less than twenty-five percent (25%) of such Member’s Annual Tax Liability for the immediately preceding fiscal year. 
  
 8.2    Timing of Distribution; No Third-Party Beneficiaries.    Subject to Section 8.1(c), Net
Cash Receipts shall be distributed to the Members in such amounts and at such intervals as the Members, in their sole discretion, may determine, but no less frequently than annually. The foregoing priorities of application of Net Cash Receipts are
for the benefit of the Members only and not for the benefit of any third party or creditor of the Company or of any Member and neither the Company nor any Member shall be liable or responsible to any third party or creditor of the Company or of any
Member for any deviation from such priorities. 
  

 15 

 ARTICLE 9 
  
 BOOKS OF ACCOUNT, RECORDS AND REPORTS  
  
 9.1    Books of Account and Records. 
  
 (a)    The Members shall maintain at the
principal place of business of the Company all of the following: 
  
 (i)    a list of the full name and last known business address of each Member setting forth the amount of cash each Member has contributed, a description and statement of the agreed value of any
other property or services each Member has contributed or has agreed to contribute in the future, and the date on which each became a Member; 
  
 (ii)    a copy of the Certificate and all amendments thereto, together with executed copies of any powers of attorney
pursuant to which any such instrument was executed; 
  
 (iii)    copies of the Company’s federal, state and local income tax returns and reports, if any, for the three most recent years; 
  
 (iv)    copies of this Agreement and any amendments hereto; 
  
 (v)    copies of the financial
statements, if any, of the Company for the three most recent years; and 
  
 (vi)    Proper and complete records and books of account for the Company. 
  
 Any of the foregoing may be inspected and copied by any Member or its duly authorized representatives, at the expense of such Member,
during ordinary business hours. 
  
 (b)    If a Member reasonably requests the Company to assemble or compile information, the Members shall have the authority to pass on all costs of labor, duplicating or other related charges so incurred to the Member
making the request. 
  
 9.2    Reports
to Members.    The Members, at Company expense, shall cause to be furnished to each of the Members as soon as practicable after the end of each calendar year the following: 
  
 (a)    A copy of the federal income tax
return filed by the Company for the calendar year, except for Schedules K-1 applicable to other Members; 
  
 (b)    All information relative to the Company necessary for the preparation of the Members’ federal and state
income tax returns; and 
  

 16 

 (c)    A balance sheet as of the close of such calendar year and
statements of Profits or Losses, and Net Cash Receipts, if any, all of which shall be prepared in accordance with generally accepted accounting principles or tax accounting principles, with or without audit or review by an independent certified
public accountant, in each case in the discretion of the Members. 
  
 In addition,
the Company shall provide each Member with copies of any additional reports in existence regarding the Company or the Intellectual Property as such Member may reasonably request; provided the information requested does not jeopardize the ability of
the Company to obtain foreign patents. 
  
 ARTICLE 10

  
 MANAGEMENT OF THE COMPANY 
  
 10.1    Management of Company
Affairs.    Except as otherwise specifically provided in this Agreement, the management of the Company shall be vested in the Members. Except as provided in Section 10.2 or as otherwise specifically provided in this
Agreement, all rights and authority granted to the Members under this Agreement or the Act, and all decisions and determinations to be made by the Members may be exercised or made only upon the approval of Members having more than fifty percent
(50.0%) of the aggregate Participating Percentages of all Members at such time. Any action (authorized in accordance with this Agreement) taken by a Member (in its capacity as such) shall constitute the act of and serve to bind the Company.
Each Member may designate one or more of its employees, agents or Affiliates to carry out its duties and responsibilities to the Company. Persons dealing with the Company shall be entitled to rely conclusively on the power and authority of each
Member as set forth in this Agreement. The Members shall not employ, or permit another Person to employ any funds or assets of the Company in any manner other than for the exclusive benefit of the Company. Except as all Members may agree from time
to time, the Members shall not be entitled to any fees or other compensation for the performance of their duties as such; provided, however, the Company shall reimburse each Member for all direct costs incurred by such Member, its Affiliates,
employees or agents on behalf of the Company or otherwise in connection with performance of the duties of a Member. 
  
 10.2    Major Decisions.    Notwithstanding the provisions of Section 10.1 or any other
provision of this Agreement, the following actions and decisions (“Major Decisions”) by or on behalf of the Company shall require the prior written approval of all Members: 
  
 (a)    The adoption of Annual Budgets pursuant to Section 10.3. 
  
 (b)    Any modification or amendment to
any Approved Budget. 
  
 (c)    Any expenditure in excess of one hundred ten percent (110%) of the amount set forth in an Approved Budget for such expenditure. 
  
 (d)    Any modification or amendment to the License. 
  

 17 

 (e)    Any sale, sublicense or other grant or disposition of the
ownership of or right to use all or any portion of the property of the Company, including the Intellectual Property. 
  
 (f)    Any decisions relating to applying for or obtaining any patents with respect to any of the Intellectual
Property. 
  
 (g)    The
amount and timing of any distributions of Net Cash Receipts other than in accordance with Article 8. 
  
 (h)    Subject to Section 10.4, any decisions relating to any transaction between the Company and any Member or
any Affiliate of any Member. 
  
 (i)    The borrowing of any funds or other incurrence of any indebtedness which is either (i) secured by any assets of the Company, or (ii) in excess of Twenty Thousand Dollars ($20,000); and any refinancing of
or material modification of the terms of any such indebtedness. 
  
 (j)    Any expenditures or commitments to make expenditures in excess of Thirty Thousand Dollars ($30,000). 
  

(k)    The acquisition or lease of any real property. 
  
 (1)    The issuance of any membership interest in the Company, any options or other
rights to acquire any membership interest in the Company, or any other securities convertible into any membership interest in the Company, and any purchase or redemption by the Company of any membership interest in the Company (provided that if any
additional membership interests in the Company are issued with the consent of the Members, in no event shall the Participating Percentage of either Investor be reduced). 
  
 (m)    The employment and the dismissal of any employee of the Company, and any changes
in salaries or benefits of any employee of the Company. 
  
 (n)    Any commitments with respect to pensions, phantom equity or deferred compensation to the Company’s employees, any bonuses for the Company’s employees in excess of their base salaries, and any
arrangements concerning the private use of vehicles belonging to the Company. 
  
 (o)    The organization of any subsidiaries of the Company, the investment in any other entity or the acquisition of any equity securities of any other entity. 
  
 (p)    The merger or consolidation of the
Company or any subsidiary of the Company with any other entity. 
  

 18 

 (q)    Any conversion or reorganization of the Company into any other
form of legal entity. 
  
 (r)    The engagement or termination of any independent contractor, the terms of any such engagement and any material modification to any of the foregoing. 
  
 (s)    The engagement of any accountant or attorneys on behalf of the Company.

  
 (t)    The establishment
of or addition to any cash reserve, except to the extent required by any agreement to which the Company is a party. 
  
 (u)    Any material tax elections or decisions required in the preparation and filing of Company tax returns and any
decisions or agreements in connection with any examination or controversy relating to the tax returns or positions of the Company. 
  
 (v)    The commencement, compromise or settlement of any lawsuit, legal proceeding, bankruptcy proceeding or
arbitration proceeding involving the Company or affecting the Intellectual Property. 
  
 (w)    The decision to dissolve the Company. 
  
 (x)    Any transaction outside the ordinary course of the day-to-day business of the
Company. 
  
 10.3    Budgets.

  
 (a)    Development
Budget.    The Members hereby approve and adopt the Corporate Development and Marketing Budget (“Development Budget”) attached hereto as Exhibit C. The Development Budget shall constitute an Approved Budget
through December 31, 2006. 
  
 (b)    Annual Budgets.    On or before November 1 of each year starting in 2006, NOX shall prepare a preliminary annual budget for the Company for the next calendar year, and shall
submit such preliminary annual budget to each Member. Each preliminary annual budget shall set forth reasonably itemized estimates of all revenues, expenses, reserves, capital expenditures and receipts from capital transactions of the Company, as
well as any relevant business plans for the Company for the next calendar year. On or before December 1 of each year, the Members, by the written approval of all Members, shall approve and adopt an annual budget for the Company for the next
calendar year. Each annual budget described above and approved by all Members is referred to herein as an “Annual Budget” and shall constitute an Approved Budget for the period covered by such Annual Budget. If the Members do not approve
an Annual Budget for any calendar year prior to the commencement of such calendar year then, until the Members shall agree upon an Annual Budget for such year, the Annual Budget in effect for the immediately preceding calendar year shall constitute
the Annual Budget for such calendar year, except that any items or portion of the preliminary annual budget for 
  

 19 

 
such calendar year upon which all Members agree shall be substituted for the corresponding items in the preceding year’s Annual Budget. 
  
 (c)    Separate Approval Not
Required.    Any expenditures or other matters set forth in an Approved Budget shall be deemed approved by all Members for purposes of Section 10.2 for the period covered by such Approved Budget, and the separate
approval of the Members of any such matters shall not be required. 
  
 10.4    Employment of Affiliates.    Subject to Section 10.2, the Members may, on behalf and at the expense of the Company, engage any Member or an Affiliate of any Member to render
services or provide goods to the Company. Notwithstanding Section 10.2 or any other provision of this Agreement, all decisions relating to any contract or other arrangements between the Company and any Member or any Affiliate of any Member,
including the License, shall be made solely by the Members that are not parties to such arrangement and whose Affiliates are not parties to such arrangement (the “Other Members”). Any such decision shall require the approval of all of the
Other Members if such matter is a Major Decision or the approval of Members having a majority of the Participating Percentages of the Other Members if such matter is not a Major Decision. Such matters shall include any decision to exercise or waive
any rights or remedies of the Company under, or to amend or modify, the License or any other contract or arrangement from time to time in effect between the Company and any Member or any Affiliate of any Member. 
  
 10.5    Liability of the
Members.    A Member and its respective Affiliates, agents and employees shall not be liable, responsible or accountable in damages or otherwise to the Company or any of the Members or their successors or assigns for any
acts performed or omitted within the scope of his authority as a Member, or otherwise conferred on the Member and such Affiliates, agents and employees by this Agreement, including the execution and delivery of deeds in lieu of foreclosure, provided
that such Member or such Affiliates, agents or employees shall action good faith and shall not be guilty of willful misconduct or gross negligence. 
  
 10.6    Devotion of Time by Members.    Each Member and its agents, Affiliates, employees and agents
of Affiliates shall devote such time to the Company business as is reasonably necessary to manage and supervise the Company business and affairs in an efficient manner and to accomplish the purposes of the Company. Each Member and each employee,
agent or Affiliate thereof shall be free to engage in other business ventures whether or not directly competing with the Company, or to exploit business opportunities whether or not arising from the conduct of Company business. 
  
 10.7    Other Business of
Members.    Subject to Section 11.8, each Member and its Affiliates may engage in or possess any interests in other business ventures of any kind, independently or with others. Subject to Section 11.8, neither
the Company, any Member, nor the holder of any interest in the Company shall have any right by virtue of this Agreement or the relationship created hereby in or to such ventures or activities or to the income or profits derived therefrom, and the
pursuit of such ventures, even if competitive with the business of the Company, shall not be deemed wrongful or improper. 
  

 20 

 10.8    Tax Matters Partner.    AJG, for so long as
it shall be a Member, shall be the “tax matters partner” (within the meaning of Section 6231 of the Code) of the Company, and as such, subject to Section 10.2, shall have all powers and authorities granted tax matters partners
under the applicable provisions of the Code and any regulations promulgated thereunder. All costs and expenses incurred by the tax matters partner in connection with an audit by the Internal Revenue Service or other government tax agency of a
Company income tax return shall be borne by the Company. 
  
 10.9    Election to Adjust Basis.    In the event of a distribution of property made in the manner provided in Section 734 of the Code (or any comparable provision of any succeeding
law), or in the event of a transfer of any membership interest in the Company permitted by this Agreement made in the manner provided in Section 743 of the Code, the Members, in their sole discretior, may make or revoke on behalf of the Company
the election referred to in Section 754 of the Code permitting adjustments to basis as provided in Sections 734 and 743 of the Code. Any additional costs or expenses incurred by the Company as a result of such an election shall be borne
pro rata by the Member or Members benefiting from such an election. 
  
 10.10    Company Indemnification of Members.    The Company shall indemnify, defend, and hold the Members and their respective Affiliates, officers,
directors, employees and agents, on their respective successors, executors, administrators or personal representatives harmless from and against any loss, liability, damage, cost or expense (including reasonable attorneys’ fees) sustained or
incurred as a result of any act or omission concerning the business or activities of the Company; provided that the Member or any Affiliate, employee, or agent is not guilty of gross negligence, willful misconduct or violation of fiduciary duty and
was acting in good faith within what it reasonably believed to be the scope of its authority for a purpose which it reasonably believed to be not opposed to the best interests of the Company. The foregoing indemnity shall not be enforceable against
any Member personally but solely from such Member’s interest in the Company. 
  
 ARTICLE 11 
  
 RIGHTS AND DUTIES OF MEMBERS 
  
 11.1    Admission of Members.    Each of NOX and AJG is hereby recognized and admitted as a Member of the Company. No other person shall be recognized or admitted as a Member of the
Company unless such person has satisfied the requirements of Article 12. 
  
 11.2    Limited Liability.    Except to the extent provided in Section 11.5, the debts, obligations and liabilities of the Company, whether arising in
contract, tort, or otherwise, shall be solely the debts, obligations, and liabilities of the Company, and the Members shall not be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Member of
the Company. Except as provided in Section 11.5, no Member, in its capacity as a Member of the Company, shall be responsible or liable for any indebtedness or obligation of any other Member, nor, except to the extent provided in
Section 11.6, shall the Company be responsible or liable for any indebtedness or obligation of any Member. 
  

 21 

 11.3    No Individual Authority.    Except as
otherwise expressly provided in this Agreement or in the Act, no Member, acting alone, shall have any authority to act for, or to create, undertake or assume any liabilities, obligations or responsibilities on behalf of the Company or any other
Member. 
  
 11.4    Representations by
Members.     Each Member represents and warrants to the other Members and to the Company that (i) all transactions contemplated by this Agreement to be performed by such Member have been duly authorized by all
necessary action and do not require the consent or approval of any third party, (ii) such Member has all necessary power with respect thereto, (iii) the consummation of such transactions will not (and with the giving of notice or lapse of
time or both would not) result in a breach or violation of, or a default or loss of contractual benefits under, any trust agreement or other agreement by which such Member or any of such Member’s properties is bound, or any statute, regulation,
order or other law to which such Member or any of such Member’s properties is subject, or give rise to a lien or other encumbrance upon any of such Member’s properties or assets, and (iv) this Agreement is a valid and binding
agreement on the part of such Member, enforceable in accordance with its terms. 
  
 11.5    Indemnification by the Members.     Each Member hereby agrees to indemnify the Company and each of its other Members and hold them each harmless from and
against all liability, loss, cost, damage and expense (including attorneys’ fees and costs incurred in the investigation, defense and settlement of the matter) which the Company or any of such other Members shall ever sustain, suffer or incur
which relate or arise out of or in connection with a breach by the indemnifying Member of any representation, warranty or covenant made by the indemnifying Member in this Agreement, in any agreement or instrument delivered pursuant hereto, on any
other agreement with the Company. If the Company is made a party to any litigation or otherwise incurs any loss or expense as a result of or in connection with any Member’s personal obligations or liabilities unrelated to Company business, such
Member shall indemnify and reimburse the Company for all such loss and expense incurred, including reasonable attorneys’ fees. The liability of any Member pursuant to this Section 11.5 may be assessed against such Member’s interest in
the Company, including the right to receive any distributions of Net Cash Receipts; provided, however, the liability of a Member under this Section 11.5 shall not be limited to such Member’s interest in the Company but shall also be
enforceable against such Member personally. 
  
 11.6    Indemnification by the Company.    The Company shall indemnify each of its Members and former Members for all costs, losses, liabilities and damages paid or incurred by any of
them in connection with the business of the Company, including any judgments, settlements, penalties, fines and expenses incurred in a proceeding to which any such person is a party because the person is or was a Member of the Company, to the
fullest extent provided or allowed by the Act or any other applicable laws; provided, however, that such liability does not arise by reason of the willful misconduct or gross negligence of such Member or any matter described in Section 11.5
with respect to which the Member is obligated to indemnify the Company. 
  
 11.7    Rights of a Former Member.    Except as otherwise provided herein, no Member shall have the right or power to resign or withdraw by voluntary act from the Company. If a

  

 22 

 Member shall cease to be a Member, and if the Company is not then dissolved, then (i) such former Member shall be in
breach of this Agreement, and (ii) notwithstanding the terms of Section 18-604 of the Act, such former Member shall not thereby be entitled to receive the fair value of such former Member’s membership interest in the Company or any
other payment or any other distribution except as specifically provided in this Agreement. 
  
 11.8    Covenants.     Notwithstanding anything contrary herein, each Member covenants as follows: 
  
 (a)    Confidential Information.    Each Member
acknowledges the economic value of the Confidential Information (as defined below) of the Company. Accordingly, during the Confidential Restricted Period (as defined below), each such Member shall not, in whole or in part, directly or indirectly:

  
 (i)    divulge, furnish,
make available or disclose any Confidential Information in any manner to any person, firm, corporation, partnership, limited liability company, association or other entity, except with respect to business of the Company where a Confidentiality
Agreement in substantially the form of Exhibit E attached hereto has been obtained for the benefit of the Company; 
  
 (ii)    use any Confidential Information for itself or for any other Person except as may be necessary in connection
with the performance of its duties hereunder; or 
  
 (iii)    bring to the Company’s offices nor use, disclose to the Company, or induce the Company to use, any confidential information or documents belonging to a third party. 
  
 As used herein, the term “Confidential Information”
shall mean all information used in or relating to the Intellectual Property or the business of the Company which is not generally known to the competitors of the Company, whether or not a trade secret as defined under applicable law, and which gives
an advantage to the Company, including, without limitation, its patents, know-how and other intellectual property, its development plans, designs, specifications, flow charts, processes, formulas, data, all such information relating to the identity
of the potential and actual customers of the Company, their respective methods of operation, financial data and pricing policies. Notwithstanding the foregoing, the term “Confidential Information” shall not include (i) any information
which is or becomes publicly known through no wrongful act of a Member; (ii) any information which is rightfully received by a Member from any third party who is not known by the Member to be bound by any similar restriction; and (iii) any
information required to be disclosed by order of a court of competent jurisdiction, administrative body or governmental body, or by subpoena, summons or legal process, or by law, rule or regulation, but only to the extent required by law and after
the Member required to make such disclosure has provided to the Company prompt notice of such disclosure, if such notice is permitted by law. 
  

 23 

 As used herein, the term “Confidential Restricted Period” with respect to each
Member shall mean with respect to each particular item of Confidential Information: (a) the period commencing with the date such Member first becomes a Member of the Company and ending three (3) years after such Member ceases to be a
Member of the Company if the item of Confidential Information at issue does not constitute a trade secret; or (b) the period commencing with the date such Member first becomes a Member of the Company and continuing indefinitely, if the item of
Confidential Information at issue constitutes a trade secret, until such item of Confidential Information at issue ceases to be a trade secret, but in no event ending earlier than three (3) years after such Member ceases to be a Member of the
Company. 
  
 Each Member shall provide at least
the same care to avoid disclosure or unauthorized use of the Confidential Information as it generally provides to protect its own proprietary information, which shall, in all events, equal or exceed a standard and level of care generally recognized
as being reasonable for the protection of highly confidential information. 
  
 Notwithstanding anything herein to the contrary, each Member (and each employee, representative, or other agent of such Member) may (i) consult any tax advisor regarding the U.S. federal income tax treatment or
tax structure of the transaction, and (ii) disclose to any and all persons, without limitation of any kind, the U.S. federal income tax treatment and tax structure of the transaction and all materials of any kind (including opinions or other
tax analyses) that are provided to the Member relating to such tax treatment and tax structure. For this purpose, “tax structure” is limited to any facts relevant to the U.S. federal income tax treatment of the transaction and does not
include information relating to the identity of the Members. 
  
 (b)    Diversion of Customers.    For so long as a Member is a Member and for a period of three (3) years thereafter (the “Restricted Period”), a
Member shall not, either directly or indirectly, on its own account or as a partner, joint venturer, consultant, employee, agent, member or shareholder of any other Person or in any other capacity, in any way, solicit, divert or take away, or
attempt to solicit, divert or take away, any potential transaction with the Company’s customers or potential customers, wherever located. 
  
 (c)    Solicitation for Employment.    Throughout the Restricted Period, a Member
shall not, either directly or indirectly, on its own account or as a partner, joint venturer, consultant, employee, agent, member or shareholder of any other Person or in any other capacity, in any way, solicit or hire for employment or for
engagement as an independent contractor in a business that is competitive with the business of the Company any person who is then, or within a period of twelve (12) months prior to any such relevant solicitation was, an employee of or
independent contractor engaged by the Company. 
  

 24 

 (d)    Business
Opportunities.    Throughout the period it is a Member of the Company, a Member shall not directly or indirectly have any financial interest in or derive any financial benefits from contacts made by the Company with any
third party (except in its capacity as a Member of the Company) without first disclosing such interest or benefit to the other Members and obtaining the approval of all such other Members thereto. 
  
 (e)    Inventions.    All Inventions (as defined below) shall be the sole and exclusive property of the Company. Such ownership of Inventions shall inure to the benefit of the Company
from the date of the conception, creation or fixation of the Invention in a tangible medium of expression, as applicable. All newly-created copyright aspects of the Inventions, whether created solely or jointly, shall be considered a
“work-made-for-hire” within the meaning of the Copyright Act of 1976, as amended. If and to the extent the Inventions, or any part thereof, are found by a court of competent jurisdiction not to be a “work-made-for-hire” within
the meaning of the Copyright Act of 1976, as amended, each Member agrees that all exclusive, right, title and interest in and to those newly-created copyrightable aspects of the Inventions, and all copies thereof, are hereby expressly assigned
automatically to the Company without further consideration. Any agreement entered into by a Member and a third party in connection with the development of an Invention shall require the prior consent of the Company and shall further include
substantially the same terms as those appearing in this Section 11.8(e) to ensure that the Company obtains the same rights in the Inventions generated under such third party agreement as those set forth in this Section 11.8(e). Each Member
agrees to: (a) assist the Company in obtaining and enforcing all rights and other legal protections for the Inventions; (b) perform all acts deemed necessary or desirable by the Company to permit and assist it, at the Company’s
expense, in registering, recording, obtaining, maintaining, defending, enforcing and assigning Inventions or works made for hire in the International Market; and (c) execute any and all documents that the Company may reasonably request from
time to time in connection therewith, including any copyright assignment document(s), without further consideration. Each Member hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as such Member’s
agents and attorneys-in-fact to act for and in such Member’s behalf and instead of such Member, to execute and file any documents and to do all other lawfully permitted acts to further the above purposes with the same legal force and effect as
if executed by such Member. This designation and appointment constitutes an irrevocable power of attorney and is coupled with an interest. Each Member agrees to promptly disclose to the Company all Inventions, all original works of authorship and
all work product relating thereto. This disclosure will include complete and accurate copies of all source code, object code or machine-readable copies, documentation, work notes, flowcharts, diagrams, test data, reports, samples and other tangible
evidence or results (collectively, “Tangible Embodiments”) of such Inventions, works of authorship and work product. All Tangible Embodiments of any Invention, work of authorship or work product related thereto will be deemed to have been
assigned to the Company as a result of the act of expressing any invention or work of authorship therein. 
  

 25 

 As used herein, the term “Inventions” shall mean any and all inventions,
developments, discoveries, improvements, works of authorship, concepts or ideas or expressions thereof, whether or not subject to patent, copyright, trademark, trade secret protection or other intellectual property right protection, and whether or
not reduced to practice, which both (i) relate to or result from any Intellectual Property or the actual or anticipated business, work, research or investigation of the Company, and (ii) are conceived or developed by a Member while such
Member has an interest in the Company or within one (1) year following termination of such Member’s interest in the Company. 
  
 The Members agree that the Inventions contemplated by this Section are only those inventions related to the remediation of combusted
carbonatious materials. 
  
 (f)    Remedies.    The covenants of Section 11.8 above, singly and collectively are sometimes referred to herein as “Covenants.” Each Member agrees that the Covenants are
the minimum such restrictions necessary to protect the goodwill, Confidential Information and legitimate business interests of the Company and its successors and assigns, that the time periods and the territorial areas described above (in view of
the scope of the business to be conducted by the Company), are reasonable and necessary for said protection, and that damages cannot adequately compensate the Company in a event of a Member’s violation of any Covenant. Accordingly, each Member
agrees that if it shall violate or breach any Covenant, then the Company shall be entitled to obtain injunctive relief against such Member, without bond but upon due notice, in addition to such further relief as may be available at law or in equity.
In the event of the entry of any such injunction, such Member’s sole remedy shall be the dissolution of such injunction, if such is warranted following a full hearing, and all claims for damages by reason of the wrongful issuance of any such
injunction are hereby waived by such Member. The Company’s obtaining of any such injunction shall not be considered an election of remedies or a waiver of any right by the Company to assert any other remedy or remedies the Company may have
against a Member at law or in equity. Each Covenant shall be construed as an agreement which is independent of the other provisions of this Agreement and severable and separate, and the existence of any claim or cause of action against the Company,
of whatever nature, shall not constitute a defense to the Company’s enforcement of any Covenant. Any of the foregoing applicable restricted periods will be extended with respect to a Member for any equivalent period of time during which such
Member violates the provisions of this Section 11.8. To the extent any Covenant may be deemed unenforceable by virtue of its scope in terms of geographical area, length of time or otherwise, but may be made enforceable by limitations thereon,
each Member agrees that such Covenant shall be modified and enforced to the fullest extent permissible under the laws and public policies of the jurisdiction in which such enforcement is sought. The parties hereto hereby authorize any court of
competent jurisdiction to modify or reduce the scope of any such Covenant to the extent necessary to make such Covenant enforceable. 
  

 26 

 ARTICLE 12 
  
 TRANSFER OP MEMBER INTERESTS 
  
 12.1    General Prohibition.    A Member may not sell, transfer,
encumber, pledge or assign all or any part of its interest in the Company except (a) to a Permitted Transferee in accordance with Section 12.2, (b) in accordance with the procedure set forth in Section 12.3, (c) in
accordance with the procedure set forth in Article 13, (d) pursuant to the procedures of Article 14, or (e) with the prior written consent of all of the other Members, which consent may be granted or withheld in each Member’s sole and
absolute discretion. In order for an assignee to constitute a substituted or additional Member, the conditions set forth in Section 12.8 must be satisfied. In no event shall a Member consent to an assignment of any interest of a Member in the
Company unless in the opinion of counsel satisfactory to the Company such assignment (i) will not result in a termination of the Company for federal income tax purposes (or the transferring Member and its transferee jointly and severally
indemnify the Company and each other Member against any and all loss or cost arising from such termination), (ii) will not result in the Company failing to qualify for an exemption from the registration requirements of the federal or any
applicable state securities laws, (iii) will not result in the imposition of fiduciary responsibility on the Company, any Member, or any Affiliate of any of the foregoing under the Employee Retirement Income and Security Act of 1974, as amended
from time to time (“ERISA”), and (iv) will not result in the violation of any term or provision of any agreement to which the Company is a party or the acceleration of any indebtedness of the Company. 
  
 12.2    Permitted
Transfers.    A Member may assign all or any part of its interest in the Company without the consent of any other Member to a “Permitted Transferee.” For purposes of this Agreement, the term “Permitted
Transferee” shall mean, with respect to any Member (i) a partnership in which such Member, Persons controlled by such Member or Persons controlling such Member on the date hereof are the sole or controlling general partner(s) and other
partners are Persons controlled by such Member, Persons controlling such Member on the date hereof, or members of the immediate family of such Member or Persons controlling such Member on the date hereof, (ii) a corporation controlled by such
Member or persons controlling such Member on the date hereof, and all of the issued and outstanding capital stock of all classes of such corporation is owned and controlled by such Member, Persons controlled by such Member, Persons controlling such
Member on the date hereof, or by members of the immediate family of such Member or of Persons controlling such Member on the date hereof, (iii) a trust controlled by such Member or Persons controlling such Member on the date hereof and for the
benefit of such Member, Persons controlling such Member on the date hereof, or members of the immediate family of such Member or of Persons controlling such Member on the date hereof, (iv) a limited liability company controlled by such Member
or Persons controlling such Member on the date hereof and all of the membership interests of which are owned by such Member, Persons controlled by such Member, Persons controlling such Member on the date hereof, or members of the immediate family of
such Member or Persons controlling such Member on the date hereof, or (v) another Member. For purposes of this Agreement, the immediate family of any Person shall mean the spouse and lineal descendants (either natural or by adoption) of such
Person. 
  

 27 

 Notwithstanding anything in this Section 12.2 to the contrary, a Member may not assign all or part
of its interest in the Company if such assignment would, in the opinion of counsel to the Company, (v) result in a termination of the Company for federal income tax purposes (or the transferring Member and its transferee jointly and severally
indemnify the Company and each other Member against any and all loss or cost arising from such termination), (w) result in the Company not qualifying for an exemption from the registration requirements of the federal or any applicable state
securities laws, (x) result in the imposition of fiduciary responsibility on the Company, any Member, or any Affiliate of any of the foregoing under ERISA, or (y) result in the violation of any term or provision of any agreement to which
the Company is a party or the acceleration of any indebtedness of the Company. 
  
 Notwithstanding the right of a Member to transfer all or any portion of its interest to a Permitted Transferee, a Permitted Transferee shall not be admitted as an additional or substituted Member of the Company unless
and until the provisions of Section 12.8 are satisfied. Until the provisions of Section 12.8 are satisfied with respect to a Permitted Transferee, such Permitted Transferee shall not be a Member but shall be an assignee having the rights
described in Section 1 2.7. 
  
 12.3    Right of First Refusal. 
  
 (a)    If a Member (the “Transferring Member”) shall desire to transfer all or any portion of its interest as a Member of the Company (the “Offered Membership Interest”) to any
Person other than a Permitted Transferee or pursuant to a transaction that has been approved by all of the other Members pursuant to clause (e) of Section 12.1, pursuant to a bona fide written offer (a “Third-Party Offer”) for
the purchase of such interest in exchange for a cash price payable entirely at closing, the Transferring Member shall deliver written notice (the “Offer Notice”) to each other Member (the “Offeree Members”) setting forth the
Participating Percentage that the Transferring Member desires to transfer and a copy of the Third-Party Offer. The Offer Notice shall constitute an offer (the “Offer”) by the Transferring Member to the Offeree Members to purchase the
Offered Membership Interest in exchange for the price and on the terms set forth in the Third-Party Offer. The Offeree Members shall have the right, for a period of thirty (30) days after the Offer Notice is delivered, to accept the Offer in
proportion to their Participating Percentages or in such other proportion as they may agree upon. The Offeree Members shall accept the Offer, if at all, by delivering of written notice setting forth such acceptance to the Transferring Member within
the 30-day period described above. 
  
 (b)    If the Offeree Members, in the aggregate, accept the Offer with respect to the entire Offered Membership Interest, the purchase and sale of the Offered Membership Interest shall close not later than sixty
(60) days following the expiration of the 30-day period described in Section 12.3(a). At the closing, the Transferring Member shall deliver to those Offeree Members accepting the Offer an assignment of the Offered Membership Interest, free
and clear of all liens and encumbrances. At the closing, the Offeree Members purchasing the Offered Membership Interest shall pay to the 
  

 28 

 Transferring Member immediately available funds in the aggregate amount of the price set forth in the
Third-Party Offer. 
  
 (c)    If the Offeree Members, in the aggregate, fail to accept the Offer with respect to the entire Offered Membership Interest within the 30-day period described in Section 12.3(a), then the Transferring Member
may transfer the Offered Membership Interest to the Person submitting the Third-Party Offer, at the price and on the terms set forth therein, without the consent of any other Member provided that (i) such transfer is completed within one
hundred twenty (120) days following the expiration of the 30-day period described in Section 12.3(a); (ii) such transfer complies with the limitations set forth in clauses (v) through (y) of Section 12.2; and (iii) such
transfer shall be subject to Article 13, if applicable. Any Person acquiring an interest in the Company pursuant to this Section 12.3(c) shall not be a Member but shall be an assignee having the rights described in Section 12.7, until the
provisions of Section 12.8 are satisfied with respect to such Person. 
  
 12.4    Involuntary Transfers.    In the event (i) of the death or adjudication of insanity or incompetency of an individual Member, or (ii) any
Member shall be adjudged bankrupt, enter into proceedings for reorganization or into an assignment for the benefit of creditors, have a receiver appointed to administer the Member’s interest in the Company, be the subject of a voluntary or
involuntary petition for bankruptcy, apply to any court for protection from its creditors, or have its interest in the Company seized by a judgment creditor (such Member being referred to herein as a “Bankrupt Member”), the personal
representative or trustee (or successor-in-interest) of the deceased, insane or incompetent Member or Bankrupt Member shall be an assignee of such Member’s interest in the Company having the rights set forth in Section 12.7 and shall not
become an additional or substituted Member unless and until the conditions set forth in Section 12.8 are satisfied; and any such Member’s estate (or successor-in-interest) shall be liable for all of its obligations as a Member. 

 
 12.5    Dissolution or Termination of
Members.    In the event of the dissolution of a Member that is a partnership, limited liability company or a corporation or the termination of a Member that is a trust, the successors-in-interest of the dissolved or
terminated Member shall, for the purposes of winding up the affairs of the dissolved or terminated Member, have the rights of an assignee of such Member’s interest in the Company, as described in Section 12.7, and shall not become
additional or substituted Members unless and until the conditions set forth in Section 12.8 are satisfied. 
  
 12.6    Transfers of Ownership Interests in Members.    For purposes of this Article 12, any
transfer or assignment of any direct or indirect ownership or other interest in a Member that (taking into account any prior such transfers or assignments, and any prior pledges, encumbrances or collateral assignments described below) results in
such Member being controlled by a Person or Persons other than the Person or Persons that control such Member on the date hereof shall be deemed an assignment of the interest in the Company of such Member and therefore subject to all of the
restrictions and provisions of this Article 12. In addition, any encumbrance, pledge or other collateral assignment of a direct or indirect ownership or other interest in a Member that, if the pledgee or other assignee were to exercise its right to
acquire 
  

 29 

 such interest, would (taking into account any prior transfers or assignments described above and any prior such pledges,
encumbrances or collateral assignments) result in such Member being controlled by a Person or Persons other than the Person or Persons that control such Member on the date hereof shall be deemed an assignment of the interest in the Company of such
Member and therefore subject to all of the restrictions and provisions of this Article 12. 
  
 12.7    Status of Assignee.    Any person who acquires all or any portion of the interest of a Member in the Company in any manner (including a Permitted
Transferee), shall not be a Member of the Company unless and until the conditions of Section 12.8 are satisfied. Unless and until such conditions are satisfied, such person shall, to the extent of the interest acquired, be entitled only to the
transferor Member’s rights, if any, in the Profits, Losses, Net Cash Receipts and other distributions to the Members pursuant to this Agreement, subject to the liabilities and obligations of transferor Member hereunder; but such person shall
have no right to act on behalf of the Company or otherwise participate in the management of the business and affairs of the Company, and such person and his Participating Percentage shall be disregarded in determining whether the approval, consent
or any other action has been given or taken by the Members. Any such assignee shall have the same right, subject to the same limitations, as the transferor Member had under the provisions of this Article 12 to assign its interest as a Member
(including the right to assign such interest to any Permitted Transferee of such Member pursuant to Section 12.2), but any such further assignee shall have only the rights set forth in this Section 12.7 and shall not become an additional
or substituted Member of the Company unless and until the conditions of Section 12.8 have been satisfied. 
  
 12.8    Admission Requirements.    No assignee of all or any portion of a Member’s interest in
the Company (including a Permitted Transferee) or any other person shall be admitted as an additional or substituted Member of the Company unless and until: 
  
 (a) such admission has been approved in writing by all of the other Members, which approval may be given or withheld in the sole
discretion of each Member; 
  
 (b) such assignment
is made in writing, signed by the assigning Member (or its successor) and accepted in writing by the assignee, and a duplicate original of such assignment has been delivered to each Member; 
  
 (c) the Company has received an opinion of counsel as
contemplated by Section 12.1 or each Member has waived this requirement; and 
  
 (d) the assignee executes and delivers to the Company and each other Member a written agreement in form reasonably satisfactory to all of
the other Members, pursuant to which such assignee agrees to be bound by and confirms the obligations, representations and warranties contained in this Agreement. 
  
 12.9    Effective Date of Assignment.    If an assignment is made in
accordance with this Agreement, unless otherwise required by the Code: 
  

 30 

 (a)    the effective date of such assignment shall be the first date
that both the written instrument of assignment is received by the other Members and, if required, approved by the other Members; provided that such assignee shall not be admitted as a Member unless and until the approvals and other requirements of
Section 12.8 are satisfied; 
  
 (b)    the Company and the other Members shall be entitled to treat the assignor of the assigned interest as the absolute owner thereof in all respects and shall incur no liability for allocations of Profits or Losses
and distributions of Net Cash Receipts or other amounts made in good faith to such assignor until such time as the written instrument of assignment has been actually received by each Member, and recorded in the books of the Company, and, if
required, approved by the Members described in Section 12.1; and 
  
 (c)    any Profits and Losses shall be allocated between the assignor and the assignee of the assigned interest in the manner described in Section 7.3. 
  
 12.10    Status of
Assignor.    If there is a transfer or assignment of a Member’s interest in the Company, then, without regard to whether or when such assignee or transferee is admitted as a Member of the Company, from and after the
effective date of such assignment or transfer, the assigning or transferring Member shall cease to be a Member with respect to the transferred or assigned interest; and if such Member has transferred or assigned his entire membership interest in the
Company, upon the effective date of such transfer or assignment, such Member shall cease to be a Member of the Company. 
  
 12.11    Cost of Admission.    The cost of processing and perfecting an admission contemplated by
this Article 12 (including reasonable attorneys’ fees incurred by the Company) shall be borne by the party seeking admission as a Member to the Company. 
  
 ARTICLE 13 
  
 TAG-ALONG RIGHT 
  
 If at any time Members owning seventy-five percent (75%) or more of the Participating Percentages (“Controlling Members”) shall desire to
sell 50% or more of their aggregate membership interests in the Company to any third party (other than a Permitted Transferee), and the other Members do not elect to purchase such interests pursuant to Section 12.3, such Controlling Members
shall give written notice thereof (a “Tag-Along Notice”) to each of the other Members (“Minority Members”) specifying the Participating Percentage to be sold and the price and terms of such sale. Each Minority Member may elect to
participate in any such transaction as an additional selling Member on identical terms and conditions (with the aggregate price to be paid to the Controlling Members and the Minority Members electing to participate in the transaction allocated among
them in proportion to the amounts each such Member would receive upon a hypothetical distribution of the aggregate purchase price pursuant to Section 15.4(c) in complete liquidation of the Company), by delivering a written notice thereof (a
“Tag-Along Election Notice”) to the Controlling Members within fifteen (15) days after such 

  

 31 

 
Minority Member’s receipt of such Tag-Along Notice, thereby electing to sell in such transaction any portion of its interest in the Company specified in
the Tag-Along Election Notice which is less than or equal to the product of (i) the aggregate Participating Percentage which the Controlling Members propose to transfer in such transaction, multiplied by (ii) a fraction, the numerator of
which is the Participating Percentage owned by such Minority Member, and the denominator of which is the aggregate Participating Percentage owned by the Controlling Members and all Minority Members electing to participate in such transaction. If
Minority Members elect to sell interests pursuant to this Article 13, the aggregate Participating Percentage to be sold or transferred to such third party by the Controlling Members and the Minority Members shall remain constant. 
  
 ARTICLE 14 
  
 BUY/SELL 
  
 14.1    Right to
Initiate.    Each Member shall have the right, exercisable at any time after two (2) years from the execution of this Agreement, in its sole discretion, to initiate the buy/sell procedures of this Article 14
in the manner described in Section 14.2. 
  
 14.2    Initiation and Elections.    A Member (the “Initiating Party”) shall initiate the buy/sell procedures of this Article 14, if at all, by delivering to one or more
Members (the “Other Party”) a written notice stating that the Initiating Party intends to proceed with this buy/sell procedure (a “Buy/Sell Notice”). The Buy/Sell Notice shall in addition set forth a gross value (without
reduction for liabilities) for all of the assets owned by the Company other than cash and cash equivalents (such cash and cash equivalents being referred to herein as “Cash Assets” and such other assets being referred to herein as
“Non-Cash Assets”), which assets shall include the Intellectual Property (the “Asset Value”), such value to be determined in the sole discretion of the Initiating Party. The Other Party shall have a period of ninety
(90) days after the receipt of the Buy/Sell Notice (the “Exercise Period”) within which to notify the Initiating Party in writing (the “Reply Notice”) whether the Other Party shall either (x) sell to the Initiating
Party its entire interest in the Company at a price computed in the manner set forth in Section 14.2(a) (the “Reply Price”), or (y) buy the entire interest in the Company of the Initiating Party at a price computed in the manner
set forth in Section 14.2(b) (the “Buy/Sell Price”). If the Other Party timely gives the Reply Notice electing (x) above, the Initiating Party shall be conclusively deemed to have agreed to purchase, and the Other Party shall be
conclusively deemed to have agreed to sell, the entire interest in the Company of the Other Party at the Reply Price. If the Other Party timely gives the Reply Notice electing (y) above, the Initiating Party shall be conclusively deemed to have
agreed to sell, and the Other Party shall be conclusively deemed to have agreed to purchase, the entire interest in the Company of the Initiating Party at the Buy/Sell Price. If the Other Party fails to give a Reply Notice prior to the expiration of
the Exercise Period, it shall be conclusively presumed that the Other Party has properly elected (x) above. 
  
 (a)     Reply Price.    The Reply Price for the purchase of the interest in the
Company of the Other Party shall be the amount that would be distributed to the Other Party pursuant to Section 15.4(c) if the Company sold all of its Non-Cash Assets for cash in the amount of the Asset Value, sold all of its Cash Assets for
cash in the amounts 

  

 32 

 
shown for them on the books of the Company, applied such cash in full payment of all liabilities on the books of the Company, and the amount of such cash not
so applied was available for distribution to the Members pursuant to Section 15.4(c) upon liquidation of the Company as of the date of the closing of this buy/sell. 
  
 (b)    Buy/Sell Price.    The Buy/Sell Price for the
purchase of the interest in the Company of the Initiating Party shall be the amount that would be distributed to the Initiating Party pursuant to Section 15.4(c) if the Company sold all of its Non-Cash Assets for cash in the amount of the Asset
Value, sold all of its Cash Assets for cash in the amounts shown for them on the books of the Company, applied such cash in full payment of all liabilities on the books of the Company, and the amount of such cash not so applied was available for
distribution to the Members pursuant to Section 15.4(c) upon liquidation of the Company as of the date of the closing of this buy/sell. 
  
 (c)    Price Determinations.    The determination of the amount of the Buy/Sell
Price, the Reply Price and any other amounts payable pursuant to this Article 14 shall be made by the independent accountants then employed by the Company on the basis of the Asset Value set forth in the Buy/Sell Notice and the Cash Assets and
liabilities of the Company reflected on the books of the Company as of the date of closing of the buy/sell, and shall not include any adjustments for lack of liquidity or minority or majority ownership interests. Their determination shall be final
and nonappealable, absent manifest error. 
  
 (d)    Exclusivity of Buy/Sell Notice.    Only one Buy/Sell Notice shall be entertained at any one time. The order of consideration of Buy/Sell Notices shall be determined by the date
upon which the Other Party receives the Buy/Sell Notice in accordance with Article 17. 
  
 14.3    Closing.    The transactions contemplated by the applicable buy/sell shall be consummated (herein, the “Closing”) at the principal office of the
Company on the business day specified by the purchasing Member, provided that such date shall be not less than thirty (30) days and not more than sixty (60) days after the expiration of the Exercise Period. At the Closing, the purchase
price shall be paid by the purchasing Member to the selling Member in cash, by wire transfer of immediately available funds to the account or accounts designated by the selling Member, or by certified bank check. The selling Member shall execute and
deliver at the Closing an assignment, instrument of conveyance or other instrument appropriate to convey the entire interest in the Company of the selling Member to the purchasing Member, and shall deliver to the purchasing Member such evidence as
the purchasing Member may reasonably request showing that the interest in the Company being sold is owned free and clear of any and all claims, liens and encumbrances of any kind or nature. 
  
 14.4    Payment of
Loans.    If there shall be any outstanding loans due from the Company to the selling Member or any Affiliates thereof (other than loans payable pursuant to Section 8.1(a), which shall be taken into account in
determining the Reply Price or the Buy/Sell Price, as may apply), such loans, including accrued and unpaid interest, shall be purchased at par by the purchasing Member as a condition precedent to the Closing. The purchase price for such 

  

 33 

 
loans shall be paid in full at the Closing in the same manner as the Reply Price or the Buy/Sell Price (as may apply) is paid. At the Closing, the selling
Member (or any Affiliates thereof) shall deliver and endorse without recourse to the purchasing Member each note or other instrument evidencing such loans and all documents securing such loans (including any loans referred to in
Section 8.1(a)). 
  
 14.5    Other
Remedies for Noncompliance.    It is the intent of the Members that the requirements or obligations, if any, of any Member to sell or purchase an interest in the Company in accordance with the provisions of this Article
14 shall be enforceable by an action for specific performance, with the same force and effect and at least to the same extent as is permitted at law or in equity for the specific performance of a contract relating to the purchase of real property or
an interest therein. 
  
 14.6    Assignees.    For purposes of this Article 14, the interest in the Company of each Member shall include all membership interests owned by such Member and any portion of such
interest that is owned by any Affiliate of such Member or that such Member has assigned or transferred to an Affiliate of such Member or any other Person (other than to a Person that is a Member or Affiliate of any other Member at the time of such
transfer). Any elections made by a Member under this Article 14 shall bind each Affiliate of such Member and any such assignee of such Member. All references in this Article 14 to a Member shall include all Affiliates of such Member and, except as
provided above, all Persons to which such Member has transferred or assigned any portion of his membership interest in the Company. 
  
 14.7    Additional Effects of a Buy/Sell.    If the selling Member or any Affiliate thereof is a
guarantor or an indemnitor of or with respect to any obligations of the Company, a condition precedent to the Closing shall be that the purchasing Member shall obtain a release of such guaranty or liability; or, if such a release is not so
obtainable and the selling Member agrees, the purchasing Member shall fully indemnify the selling Member and his Affiliates with respect to any such obligations. Any such indemnity by the purchasing Member shall be secured by its right to all
distributions by the Company (including both distributions with respect to such purchased interest in the Company and with respect to all other interests in the Company of the purchasing Member or his Affiliates) arising from and after the date
there has been a default on an indemnified debt or obligation of the Company. 
  
 14.8    Right to Assign.    The purchasing Member may assign its rights obtained with respect to any participating interest under this Article 14 in whole or in
part to a third party who, upon Closing, shall become a Member of the Company, without the consent of the selling Member but subject to the consent of all other Members, provided that (a) the purchasing Member delivers written notice to the
selling Member of such assignment and of the identity of the assignee prior to the Closing; (b) such assignment, in the opinion of counsel to the Company, would not require registration of any interests in the Company under the Securities Act
of 1933 or any applicable state securities or “Blue Sky” law, or result in any violation of any such laws; and (c) no such assignment shall relieve the purchasing Member of his obligations and liabilities under this Article 14.

  

 34 

 ARTICLE 15 
  
 DISSOLUTION AND LIQUIDATION OF COMPANY 
  
 15.1    Dissolution of the Company.    The Company shall be dissolved
upon the happening of any of the following: 
  
 (a)    the agreement of the Members pursuant to Section 10.2 to dissolve and wind up the affairs of the Company; 
  
 (b)    any event that makes it unlawful for the Company business to be continued; or 
  
 (c)    the sale, disposition, or
abandonment of all or substantially all of the non-cash assets of the Company. 
  
 The death, retirement, resignation, bankruptcy, court declaration of incompetence, or dissolution of any one or more Members or the occurrence of any other event that terminates the continued membership of any one or
more Members (except as provided in the immediately preceding sentence) shall not cause the dissolution of the Company. 
  
 15.2    Winding Up of Affairs.    In the event of the dissolution and liquidation of the Company for
any reason, the Members shall commence to wind up the affairs of the Company and shall convert all of the Company’s assets to cash or cash equivalents within such reasonable period of time as may be required to receive fair value therefor. All
items of income, gain, loss, deduction and credit during the period of liquidation shall be allocated among the Members in the same manner as before the dissolution. 
  
 15.3    Accounting.    In the case of the dissolution and termination
of the Company, prior to any distributions to Members pursuant to Section 15.4(c), a proper accounting shall be made of the Capital Accounts of the Members and of each item of income, gain, loss, deduction and credit of the Company from the
date of the last previous accounting to the date of dissolution. A copy of such accounting shall be provided to all Members. 
  
 15.4    Final Distribution of Company Property.    Upon termination of the Company, the Members
shall apply and distribute the remaining property of the Company, together with the proceeds of any sales of same, as follows: 
  
 (a)    first, all of the Company’s debts and liabilities shall be paid and discharged, except any debts
(i) described in Section 8.1, or (ii) that are nonrecourse to the extent that the Members elect not to pay such debts; 
  
 (b)    second, to establish any reserve which the Members may deem reasonably necessary for any contingent or
unforeseen liabilities or obligations of the Company. Such funds may be placed in escrow by the Members for the purposes of disbursing such funds in payment of any of the contingencies, liabilities, or obligations, and, at the 
  

 35 

 
expiration of such period as the Members shall deem advisable, the balance then remaining shall be distributed pursuant to Section 15.4(c); and

  
 (c)    third, to apply and
distribute the balance in the manner and priority set forth in Section 8.1. 
  
 15.5    Certificate of Cancellation.    Upon completion of the liquidation of the Company and the distribution of all Company property, the Company shall terminate
and the Members shall have the authority to execute and record one or more Certificates of Cancellation of the Company as well as any and all other documents required or considered advisable by the Members to effectuate and evidence the dissolution
and termination of the Company. 
  
 15.6    No Restoration of Deficit Capital Accounts.    Except as otherwise expressly provided herein, at no time shall a Member with a deficit balance in its Capital Account have any
obligation to the Company or to another Member or to any other person to restore such deficit balance. 
  
 ARTICLE 16 
  
 AMENDMENTS 
  
 16.1    Amendment of Agreement.    This Agreement may be amended only with the written concurrence of all of the Members. 
  
 16.2    Amendment of Certificate.    If this Agreement shall be
amended pursuant to this Article 16, the Members shall cause the Certificate to be amended, to the extent required by applicable law, to reflect such change. Each Member shall promptly be notified of any amendments made under this Section 16.2.

  
 ARTICLE 17 
  
 NOTICES 
  
 Any and all notices to be served hereunder shall be in writing and shall be
personally delivered, sent by private courier, sent by certified mail, postage prepaid, or sent by facsimile transmission and (a) if intended for the Company, to the Company at the address of the principal place of business of the Company set
forth herein, with a copy to each Member or (b) if intended for a Member, to such Member at the address set forth below; or to such other address or facsimile telecopier number as the Members, on behalf of the Company, or a Member, on his own
behalf, may designate from time to time in a written notice served upon the Company and each other Member in accordance herewith. Any notice personally delivered shall be deemed delivered on the date actually delivered. Any notice sent by private
courier shall be deemed delivered on the date of delivery or rejection of delivery, as shown on the receipt for delivery. Any notice sent by certified mail as provided above shall be deemed delivered on the third (3rd) business day next
following the postmark date which it bears. Any notice sent by facsimile 
  

 36 

 transmission shall be deemed delivered on the date shown on the evidence of completed transmission. The addresses of the
Members are as follows: 
  

			
	 NOX:
	 	 Carolyn A. Kelly
 4281 Meadowlark Trail
 Stow, Delaware 44224
 Fax No.:  330-686-8916

		
	 AJG:
	 	 AJG Coal, Inc.

	 	 	 Two Pierce Place
 Itasca, Illinois 60143-3141
 Attn: Kerry Abbott
 Fax No.:  (630)284-4272

  
 ARTICLE 18

  
 MISCELLANEOUS PROVISIONS 
  
 18.1    Severability.    If any provision of this Agreement or the application of such provision to any Person or circumstance shall be held invalid, the remainder of this Agreement, or
the application of such provision to Persons or circumstances other than those as to which it is held invalid, shall not be affected. 
  
 18.2    Parties Bound.    Any Person acquiring or claiming an interest in the Company, in any manner
whatsoever, shall be subject to and bound by all terms, conditions and obligations of this Agreement to which his or its predecessor in interest was subject or bound, without regard to whether such Person has executed a counterpart hereof or any
other document contemplated hereby. No Person, including the legal representative, heir or legatee of a deceased Member, shall have any rights or obligations greater than those set forth in this Agreement and no Person shall acquire an interest in
the Company or become a Member thereof except as permitted by the terms of this Agreement. This Agreement shall be binding upon the parties hereto, their successors, heirs, devises, assigns, legal representatives, executors and administrators.

  
 18.3    Applicable
Law.    The Company and this Agreement shall be governed by the laws of the State of Delaware. 
  
 18.4    Additional Documents and Acts.    In connection with this Agreement as well as all
transactions contemplated by this Agreement, each party hereto shall execute and deliver such additional documents and instruments, and perform such additional acts, as any other party hereto may reasonably deem necessary or desirable from time to
time to effectuate, perform and evidence all of the terms, provisions and conditions of this Agreement and all such transactions. 
  
 18.5    Benefit.    Nothing contained herein, express or implied, is intended to confer upon any
person other than the parties hereto and their respective successors and permitted assigns any rights or remedies under or by reason of this Agreement. 
  

 37 

 18.6    Waiver.    The failure to insist upon
strict enforcement of any of the provisions of this Agreement or of any agreement or instrument delivered pursuant hereto shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Agreement
or any agreement or instrument delivered pursuant hereto or any provision hereof or the right of any party hereto to thereafter enforce each and every provision of this Agreement and each agreement and instrument delivered pursuant hereto. No waiver
of any breach of any of the provisions of this Agreement or any agreement or instrument delivered pursuant hereto shall be effective unless set forth in a written instrument executed by the party against which enforcement of such waiver is sought,
and no waiver of any such breach shall be construed or deemed to be a waiver of any other or subsequent breach. 
  
 18.7    Survival.    The representations, warranties and covenants of the Members contained herein
or in any agreement or instrument delivered pursuant hereto shall survive the consummation of the transactions contemplated hereby, and shall not be affected by any investigation which may have been made by any of the parties hereto. 
  
 18.8    Headings.    The headings in this Agreement are inserted for convenience and identification only and are in no way intended to describe, interpret, define or limit the scope,
extent or intent of this Agreement or any provision. 
  
 18.9    Counterparts.    This Agreement may be executed in multiple counterparts with separate signature pages, each such counterpart shall be considered an original, but all of which
together shall constitute one and the same instrument. 
  
 [signature page follows] 
  

 38 

 IN WITNESS WHEREOF, each of the parties has executed this Agreement as of the date first set forth above, confirms
its agreement to become a Member of the Company, agrees to be bound by this Agreement, and swears that the statements set forth herein are true and correct. 
  

			
	
	NOX II INTERNATIONAL LTD., an
	 Ohio limited liability company

		
	 By:
	 	 /s/ Carolyn A. Kelly

	 Name:
	 	 Carolyn A. Kelly

	 Title:
	 	 President

  

					
	 AJG COAL, INC., a Delaware corporation

		
	 By:
	 	 /s/ Sally Wasikowski

	 	 	 Name:
	 	 Sally Wasikowski

	 	 	 Title:
	 	 Vice President

  

 39 

 IN WITNESS WHEREOF, each of the parties has executed this Agreement as of the date first set forth above, confirms
its agreement to become a Member of the Company, agrees to be bound by this Agreement, and swears that the statements set forth herein are true and correct. 
  

			
	NOX II INTERNATIONAL LTD., an
	 Ohio limited liability company

		
	By:	 	 /s/ Carolyn A. Kelly

	 Name:
	 	 Carolyn A. Kelly

	 Title:
	 	 Managing Member

  

					
	AJG COAL, INC., a Delaware corporation
		
	 By:
	 	  

	 	 	 Name:
	 	  

	 	 	 Title:
	 	  

  

 40 

 IN WITNESS WHEREOF, each of the parties has executed this Agreement as of the date first set forth above, confirms
its agreement to become a Member of the Company, agrees to be bound by this Agreement, and swears that the statements set forth herein are true and correct. 
  

			
	NOX II INTERNATIONAL LTD., an
	Ohio limited liability company
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

					
	AJG COAL, INC., a Delaware corporation
		
	By:	 	 /s/ Sally Wasikowski

	 	 	Name:	 	Sally Wasikowski
	 	 	Title:	 	Vice President

  

 41 

 IN WITNESS WHEREOF, each of the parties has executed this Agreement as of the date first set forth above, confirms
its agreement to become a Member of the Company, agrees to be bound by this Agreement, and swears that the statements set forth herein are true and correct. 
  

			
	NOX II INTERNATIONAL LTD., an
	Ohio limited liability company
		
	By:	 	 /s/ Carolyn A. Kelly

	Name:	 	Carolyn A. Kelly
	Title:	 	Managing Member

  

					
	AJG COAL, INC., a Delaware corporation
		
	By:	 	  

	 	 	Name:	 	  

	 	 	Title:	 	  

  

 42 

 IN WITNESS WHEREOF, each of the parties has executed this Agreement as of the date first set forth above, confirms
its agreement to become a Member of the Company, agrees to be bound by this Agreement, and swears that the statements set forth herein are true and correct. 
  

			
	NOX II INTERNATIONAL LTD., an
	Ohio limited liability company
		
	By:	 	 /s/ Carolyn A. Kelly

	Name:	 	Carolyn A. Kelly
	Title:	 	President

  

					
	
	AJG COAL, INC., a Delaware corporation
		
	By:	 	 /s/ Sally Wasikowski

	 	 	Name:	 	Sally Wasikowski
	 	 	Title:	 	Vice President

  

 43 

 AMENDMENT NO. 1 TO 
 OPERATING AGREEMENT OF 
 CHEM-MOD INTERNATIONAL LLC 
  
 This Amendment No. 1 (this “Amendment”) to the
Operating Agreement of Chem-Mod International LLC, a Delaware limited liability company (the “Company”), is entered into as of August 2, 2005 by and between the undersigned members (the “Members”) of the Company.

  
 PRELIMINARY STATEMENTS 
  
 The Members have entered into the Operating Agreement of the Company dated as
of July 8, 2005 (the “Agreement”). 
  
 The
Members desire to amend the Agreement as set forth herein. 
  
 AGREEMENTS 
  
 NOW, THEREFORE, in consideration of
the mutual execution hereof and other good and valuable consideration, the parties hereto agree to amend the Agreement as follows: 
  
 1.    Defined Terms.    Capitalized terms used herein and not otherwise defined herein shall have the
meanings attributed to such terms in the Agreement, as amended hereby. 
  
 2.    Amendment to Agreement.    The Agreement is hereby amended as follows: 
  
 2.1    The definition of “Participating Percentage” located in Section 1.1 of the Agreement is hereby
deleted in its entirety and replaced as follows: 
  
 Participating Percentage.    For each Member, the percentage set forth opposite such Member’s name below, as adjusted from time to time: 
  

			
	 Member

	  	 Participating Percentage

	NOX II INTERNATIONAL, LTD.	  	80%
	AJG	  	20%

  
 2.2    Section 6.2 of the Agreement is hereby deleted in its entirety and replaced as follows: 
  
 6.2    Contributions of Cash    AJG shall contribute One Million Five Hundred
Thousand Dollars ($1,500,000.00) to the company, in cash, in return for its membership interests. Three Hundred Seventy-Five Thousand Dollars ($375,000.00) shall be paid to NOX or its assigns in 

 exchange for the License and Technology rights obtained herein, and Three Hundred
Seventy-Five Thousand Dollars ($375,000.00) shall remain in the Company for use as working capital. 
  
 3.    Reaffirmation of Agreement.     Except as expressly amended hereby, the Agreement shall remain in
full force and effect. All references in the Agreement to the “Agreement” shall refer to the Agreement as amended pursuant to this Amendment 
  
 4.    Severability.    If any provision of this Amendment or its application to any Person or circumstance
is held invalid or unenforceable to any extent, the remainder of this Amendment and the application of that provision to other Persons or circumstances is not affected and that provision will be enforced to the greatest extent permitted by
applicable law. 
  
 5.    Governing
Law.    This Amendment shall be governed by and construed in accordance with the laws of the State of Delaware for all purposes and in all respects, without regard to the conflict of laws provisions of such state. 

 
 6.    Headings.    Section
headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purposes. 
  
 7.    Counterparts.    This Amendment may be executed in any number of counterparts, each of which when so
executed shall be deemed an original but all such counterparts shall constitute one and the same instrument. This Amendment, to the extent signed and delivered by means of a facsimile machine, shall be treated in all manner and respects as an
original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. 
  
 [signature page follows] 

 IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above
written. 
  

			
	NOX II INTERNATIONAL LTD., an Ohio
	limited liability company
		
	By:	 	 /s/ Carolyn A. Kelly

	Name:	 	Carolyn A. Kelly
	Title:	 	President
	
	AJG COAL, INC., a Delaware corporation
		
	By:	 	 /s/ Sally Wasikowski

	Name:	 	Sally Wasikowski
	Title:	 	Vice PresidentForm of International Swaps and Derivatives Association Master Agreement

 EXHIBIT 10.31 
  
 (Multicurrency — Cross Border) 
  
 ISDA® 
 International Swap Dealers Association, Inc. 
  
 MASTER AGREEMENT 
  
 dated as of
                         
  
                                       
                                        
               and
                                        
                                        
                 
  
 have entered and/or anticipate entering into one or more transactions (each a “Transaction”) that are or will be governed by this Master Agreement, which includes the schedule (the “Schedule”), and
the documents and other confirming evidence (each a “Confirmation”) exchanged between the parties confirming those Transactions. 
  
 Accordingly, the parties agree as follows:— 
  
 1. Interpretation 
  
 (a) Definitions. The terms defined in Section 14 and in the Schedule 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 (including the Schedule), 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. 
  
 (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 applicable condition precedent specified in this Agreement.

  
 (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 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. 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 whom 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 will be determined in respect of all amounts payable on the same date in the same currency in respect of such Transactions, regardless of
whether such amounts are payable in respect of the same Transaction. The election may be made in the Schedule or a Confirmation by specifying that subparagraph (ii) above will not apply to the Transactions identified as being subject to the
election, together with the starting date (in which case subparagraph (ii) above will not, or will cease to, apply to such Transactions from such date). 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; 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 
  
 (3) 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, on or after the date on which 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)). 
  
 (e) Default Interest; Other Amounts. Prior to the occurrence or effective designation of an Early Termination Date in respect of the relevant Transaction, a party that defaults in the performance of any payment obligation
will, to the extent permitted by law and 

 
subject to Section 6(c), be required to pay interest (before as well as after judgment) on the overdue amount to the other party on demand in the same
currency as such overdue amount, for the period from (and including) the original due date for payment to (but excluding) the date of actual payment, at the Default Rate. Such interest will be calculated on the basis of daily compounding and the
actual number of days elapsed. If, prior to the occurrence or effective designation of an Early Termination Date in respect of the relevant Transaction, a party defaults in the performance of any obligation required to be settled by delivery, it
will compensate the other party on demand if and to the extent provided for in the relevant Confirmation or elsewhere in this Agreement. 
  
 3. Representations 
  
 Each party represents 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) that:— 
  
 (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; 
  
 (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 or any of its Affiliates 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. 
  
 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
subparagraph (iii) below, to such government or taxing authority as the other party reasonably directs:— 
  
 (i) any forms, documents or certificates relating to taxation specified in the Schedule or any Confirmation; 
  
 (ii) any other documents specified in the Schedule or any Confirmation; and

  
 (iii) upon reasonable demand by such other party, any form or
document that may be required or 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
in which a branch or 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 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 2(e) required to be made by it if such failure is not remedied on or before the third Local Business Day after notice of such failure is given to the party; 
  
 (ii) Breach of Agreement. 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 2(e) 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 on or before the thirtieth day after notice of such failure is given to the party; 

 
 (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 to be in full force and effect for the purpose of this Agreement (in either 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; 
  
 (iv) Misrepresentation. A representation (other than a representation under Section 3(e) or (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 under a Specified Transaction and, after giving effect to any applicable notice requirement or grace period, there occurs 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 or delivery due on the last payment, delivery or exchange date of, or any payment on early
termination of, a Specified Transaction (or such default continues for at least three Local Business Days if there is no applicable notice requirement or grace period) or (3) disaffirms, disclaims, repudiates or rejects, in whole or in part, a
Specified Transaction (or such action is taken by any person or entity appointed or empowered to operate it or act on its behalf); 
  
 (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) in an aggregate amount of 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 on the due date thereof in an aggregate amount of not less than the applicable Threshold Amount under such agreements or instruments (after giving effect to any
applicable notice requirement or grace period); 
  
 (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) institutes or 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, in the case of any
such proceeding or petition instituted or presented against it, such proceeding or petition (A) 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
(B) is not dismissed, discharged, stayed or restrained in each case within 30 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 30 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) (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 
  
 (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, another entity and, at the time of such consolidation,
amalgamation, merger or transfer:— 
  
 (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 by operation of law or pursuant to an
agreement reasonably satisfactory to the other party to this Agreement; 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 an Illegality if the event is specified in (i) below, a Tax Event if the event is specified in (ii) below or a Tax Event Upon
Merger if the event is specified in (iii) below, and, if specified to be applicable, a Credit Event Upon Merger if the event is specified pursuant to (iv) below or an Additional Termination Event if the event is specified pursuant to
(v) below:— 
  
 (i) Illegality. Due to
the adoption of, or any change in, any applicable law after the date on which a Transaction is entered into, or due to the promulgation of, or any change in, the interpretation by any court, tribunal or regulatory authority with competent
jurisdiction of any applicable law after such date, it becomes unlawful (other than as a result of a breach by the party of Section 4(b)) for such party (which will be the Affected Party):— 
  
 (1) to perform any absolute or contingent obligation to make a payment or
delivery or 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) to perform, or for any Credit Support Provider of such party to perform, any contingent or other obligation which the
party (or such Credit Support Provider) has under any Credit Support Document relating to such Transaction; 
  
 (ii) Tax Event. Due to (x) any action taken by a taxing authority, or brought in a court of competent jurisdiction, on or after the
date on which a Transaction is entered into (regardless of whether such action is taken or brought with respect to a party to this Agreement) or (y) 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 Payment Date (1) 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 2(e), 6(d)(ii) or 6(e)) or (2) 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 2( e), 6(d)(ii) or 6(e)) 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)); 
  
 (iii) Tax Event Upon Merger. The party (the “Burdened Party”) on the next succeeding Scheduled Payment 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 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount has been
deducted or withheld for or on account of any Indemnifiable 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 to, another entity (which will be the Affected Party) where such action does not constitute an event described in
Section 5(a)(viii); 
  
 (iv) Credit Event Upon
Merger. If “Credit Event Upon Merger” is specified in the Schedule as applying to the party, such party (“X”), any Credit Support Provider of X or any applicable Specified Entity of X consolidates or amalgamates with, or
merges with or into, or transfers all or substantially all its assets to, another entity and such action does not constitute an event described in Section 5(a)(viii) but the creditworthiness of the resulting, surviving or transferee entity is
materially weaker than that of X, such Credit Support Provider or such Specified Entity, as the case may be, immediately prior to such action (and, in such event, X or its successor or transferee, as appropriate, will be the Affected Party); or

  
 (v) 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 shall be as specified for such Additional Termination
Event in the Schedule or such Confirmation). 
  
 (c) Event of Default and
Illegality. If an event or circumstance which would otherwise constitute or give rise to an Event of Default also constitutes an Illegality, it will be treated as an Illegality and will not constitute an Event of Default. 
  
 6. Early Termination 
  
 (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 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 such other information about that Termination Event as the other party may reasonably
require. 
  
 (ii) Transfer to Avoid Termination
Event. If either an Illegality under Section 5(b)(i)(1) or 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, excluding 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 an Illegality under
Section 5(b)(i)(1) or 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 thereof is given under Section 6(b)(i) on action to avoid that
Termination Event. 
  
 (iv) Right to Terminate.
If:— 
  
 (1) 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 
  
 (2) an Illegality under Section 5(b)(i)(2), 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, 
  
 either party in the case of an Illegality, 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 is more than one Affected Party, or the party which is not the Affected Party in the case of a Credit Event Upon Merger or an Additional Termination Event if there is only one Affected Party may, by not more than 20 days
notice to the other party and provided that the relevant Termination Event is then continuing, designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of all Affected Transactions. 
  
 (c) Effect of Designation. 
  
 (i) If notice designating an Early Termination Date is given under
Section 6(a) or (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 2(e) 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 shall be
determined pursuant to Section 6(e). 
  
 (d)
Calculations. 
  
 (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 all relevant quotations and specifying any amount payable under Section 6(e)) and (2) 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 obtained in determining a Market Quotation, the records of the party obtaining such quotation will be conclusive evidence of the existence and accuracy of such
quotation. 
  
 (ii) Payment Date. An amount
calculated as being due in respect of any Early Termination Date under Section 6(e) will be payable on the day that 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 on the day which is two Local Business Days after the day on which notice of the amount payable is effective
(in the case of an Early Termination Date which is designated as a result of a Termination Event). Such amount will be paid together with (to the extent permitted under applicable law) interest thereon (before as well as after judgment) in the
Termination Currency, from (and including) the relevant Early Termination Date to (but excluding) the date such amount is paid, at the Applicable Rate. Such interest will be calculated on the basis of daily compounding and the actual number of days
elapsed. 
  
 (e) Payments on Early Termination. If an Early
Termination Date occurs, the following provisions shall apply based on the parties’ election in the Schedule of a payment measure, either “Market Quotation” or “Loss”, and a payment method, either the “First
Method” or the “Second Method”. If the parties fail to designate a payment measure or payment method in the Schedule, it will be deemed that “Market Quotation” or the “Second Method”, as the case may be, shall
apply. The amount, if any, payable in respect of an Early Termination Date and determined pursuant to this Section will be subject to any Set-off. 
  
 (i) Events of Default. If the Early Termination Date results from an Event of Default:— 
  
 (1) First Method and Market Quotation. If the First Method and Market
Quotation apply, the Defaulting Party will pay to the Non-defaulting Party the excess, if a positive number, of (A) the sum of the Settlement Amount (determined by the Non-defaulting Party) in respect of the Terminated Transactions and the
Termination Currency Equivalent of the Unpaid Amounts owing to the Non-defaulting Party over (B) the Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party. 
  
 (2) First Method and Loss. If the First Method and Loss apply, the
Defaulting Party will pay to the Non-defaulting Party, if a positive number, the Non-defaulting Party’s Loss in respect of this Agreement. 
  
 (3) Second Method and Market Quotation. If the Second Method and Market Quotation apply, an amount will be payable equal to (A) the sum of the
Settlement Amount (determined by the Non-defaulting Party) in respect of the Terminated Transactions and the Termination Currency Equivalent of the Unpaid Amounts owing to the Non-defaulting Party less (B) the Termination Currency Equivalent of
the Unpaid Amounts owing to the Defaulting Party. If that 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 that amount to
the Defaulting Party. 
  
 (4) Second Method and Loss. If
the Second Method and Loss apply, an amount will be payable equal to the Non-defaulting Party’s Loss in respect of this Agreement. If that 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 that amount to the Defaulting Party. 
  
 (ii) Termination Events. If the Early Termination Date results from a Termination Event:— 
  
 (1) One Affected Party. If there is one Affected Party, the amount
payable will be determined in accordance with Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if Loss applies, except that, in either case, references to the Defaulting Party and to the Non-defaulting Party will be
deemed to be references to the Affected Party and the party which is not the Affected Party, respectively, and, if Loss applies and fewer than all the Transactions are being terminated, Loss shall be calculated in respect of all Terminated
Transactions. 
  
 (2) Two Affected Parties. If there are
two Affected Parties:— 
  

	 	(A)	 	if Market Quotation applies, each party will determine a Settlement Amount in respect of the Terminated Transactions, and an amount will be payable equal to (I) the sum of
(a) one-half of the difference between the Settlement Amount of the party with the higher Settlement Amount (“X”) and the Settlement Amount of the party with the lower Settlement Amount (“Y”) and (b) the Termination
Currency Equivalent of the Unpaid Amounts owing to X less (II) the Termination Currency Equivalent of the Unpaid Amounts owing to Y; and 

  

	 	(B)	 	if Loss applies, each party will determine its Loss in respect of this Agreement (or, if fewer than all the Transactions are being terminated, in respect of all Terminated
Transactions) and an amount will be payable equal to one-half of the difference between the Loss of the party with the higher Loss (“X”) and the Loss of the party with the lower Loss (“Y”). 

  
 If the amount payable is a positive number, Y will pay it to X; if it is a
negative number, X will pay the absolute value of that amount to Y. 

 (iii) Adjustment for Bankruptcy. In circumstances where an Early Termination Date occurs
because “Automatic Early Termination” applies in respect of a party, the amount determined under this Section 6(e) will be subject to such adjustments as are appropriate and permitted by 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) Pre-Estimate. The parties agree that if Market Quotation
applies 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 such losses. 
  
 7. Transfer 
  
 Subject to Section 6(b)(ii), 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
amount payable to it from a Defaulting Party under Section 6(e). 
  
 Any purported transfer that is not in compliance with this Section 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 a reasonable manner and in good faith 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 (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 purposes of such judgment or order and the rate of exchange at which such party is able, acting in a reasonable manner and in good faith 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. The term “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. 
  
 (c) Separate
Indemnities. To the extent permitted by applicable law, these indemnities 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 and supersedes all
oral communication and prior writings with respect thereto. 
  
 (b)
Amendments. No amendment, modification or waiver in respect of this Agreement will be effective unless 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 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), 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 shall 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 or by an exchange of electronic messages on an electronic messaging system, 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 or electronic message 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. 
  
 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 the other party that, notwithstanding the place of booking office or jurisdiction of incorporation or organisation of such party, the obligations of such party are the same as if it had entered into the Transaction through its head or
home office. This representation will be deemed to be repeated by such party on each date on which a Transaction is entered into. 
  
 (b) Neither party may change the Office through which it makes and receives payments or deliveries for the purpose of a Transaction without the prior written consent of
the other party. 
  
 (c) If a party is specified as a Multibranch Party in the
Schedule, such Multibranch Party may make and receive payments or deliveries under any Transaction through any Office listed in the Schedule, and the Office through which it makes and receives payments or deliveries with respect to a Transaction
will be specified in the relevant Confirmation. 
  
 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 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 set forth below (except that a notice or other
communication under Section 5 or 6 may not be given by facsimile transmission or electronic messaging system) to the address or number or in accordance with the electronic messaging system 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 that transmission 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 that mail is delivered or its delivery is attempted; or 
  
 (v) if sent by electronic messaging system, on the date that electronic
message is received, 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 shall be deemed given and effective on the first following day that is a Local Business Day. 
  
 (b) Change of Addresses. Either party may by notice to the other change the address, telex or facsimile number or electronic messaging system 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 this Agreement (“Proceedings”), each party irrevocably:— 
  
 (i) submits to the jurisdiction of the English courts, if this Agreement is
expressed to be governed by English law, or 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, if this Agreement is expressed to be
governed by the laws of the State of New York; and 
  
 (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. 
  
 Nothing in this Agreement precludes either party from bringing Proceedings in any other jurisdiction (outside, if this Agreement is expressed to be governed by English law, the Contracting States, as defined in Section 1(3) of the
Civil Jurisdiction and Judgments Act 1982 or any modification, extension or re-enactment thereof for the time being in force) nor will the bringing of Proceedings in anyone or more jurisdictions 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. Nothing in this
Agreement will affect the right of either party to serve process in any other manner permitted by law. 
  
 (d) Waiver of Immunities. Each party irrevocably waives, to the fullest 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, order for specific performance or for 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. 

 14. Definitions 
  
 As used in this Agreement:— 
  
 “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, Tax Event or Tax Event Upon Merger, all Transactions affected by the occurrence of such Termination Event 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. 
  
 “Applicable Rate” means:— 
  
 (a) 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; 
  
 (b) in respect of an obligation to pay an amount under
Section 6(e) of either party from and after the date (determined in accordance with Section 6(d)(ii)) on which that amount is payable, the Default Rate; 
  
 (c) in respect of all other obligations payable or deliverable (or which would have been but for Section 2(a)(iii)) by a Non-defaulting
Party, the Non-default Rate; and 
  
 (d) in all other cases, the Termination Rate.

  
 “Burdened Party” has
the meaning specified in Section 5(b). 
  
 “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 on or after the date on which the relevant
Transaction is entered into. 
  
 “consent” includes a
consent, approval, action, authorisation, exemption, notice, filing, registration or exchange control consent. 
  
 “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. 
  
 “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). 
  
 “Early Termination Date” means the date determined in accordance with Section 6(a) or 6(b)(iv). 

 
 “Event of Default” has the
meaning specified in Section 5(a) and, if applicable, in the Schedule. 
  
 “Illegality” has the meaning specified in Section 5(b). 
  
 “Indemnifiable Tax” means any Tax other than a Tax that would not be imposed in respect of a payment under this Agreement but for a present or
former connection between the jurisdiction of the government or taxation authority imposing such Tax and the recipient of such payment or a person related to such recipient (including, without limitation, a connection arising from such recipient or
related person being or having been a citizen or resident of such jurisdiction, or being or having been 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 “lawful” and “unlawful” will be construed accordingly. 
  
 “Local Business Day” means, subject to the Schedule, a day on which
commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) (a) in relation to any obligation under Section 2(a)(i), in the place(s) specified in the relevant Confirmation or, if 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) in relation to any other payment, 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, (c) in relation to any notice or other communication, including notice contemplated under Section 5(a)(i), in the city 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 (d) in relation to Section 5(a)(v)(2), in the relevant locations for
performance with respect to such Specified Transaction. 
  
 “Loss”
means, with respect to this Agreement or one or more Terminated Transactions, as the case may be, and a party, the Termination Currency Equivalent of an amount that party reasonably determines in good faith to be its total losses and costs
(or gain, in which case expressed as a negative number) in connection with this Agreement or that Terminated Transaction or group of Terminated Transactions, as the case may be, including any loss of bargain, cost of funding or, at the election of
such party but without duplication, loss or cost incurred as a result of its terminating, liquidating, obtaining or reestablishing any hedge or related trading position (or any gain resulting from any of them). Loss includes losses and costs (or
gains) in respect of any payment or delivery required to have been made (assuming satisfaction of each applicable condition precedent) on or before the relevant Early Termination Date and not made, except, so as to avoid duplication, if
Section 6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies. Loss does not include a party’s legal fees and out-of-pocket expenses referred to under Section 11. A party will determine its Loss as of the relevant Early Termination Date,
or, if that is not reasonably practicable, as of the earliest date thereafter as is reasonably practicable. A party may (but need not) determine its Loss by reference to quotations of relevant rates or prices from one or more leading dealers in the
relevant markets. 
  
 “Market Quotation” means, with
respect to one or more Terminated Transactions and a party making the determination, an amount determined on the basis of quotations from Reference Market-makers. Each quotation will be for an amount, if any, that would be paid to such party
(expressed as a negative number) or by such party (expressed as a positive number) in consideration of an agreement between such party (taking into account any existing Credit Support Document with respect to the obligations of such party) and the
quoting Reference Market-maker to enter into a transaction (the “Replacement Transaction”) that would have the effect of preserving for such party the economic equivalent of any payment or delivery (whether the underlying obligation was
absolute or contingent and assuming the satisfaction of each applicable condition precedent) by the parties under Section 2(a)(i) in respect of such 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. For this purpose, Unpaid Amounts in respect of the Terminated Transaction or group of Terminated Transactions are to be excluded but, without limitation, any payment or
delivery that would, but for the relevant Early Termination Date, have been required (assuming satisfaction of each applicable condition precedent) after that Early Termination Date is to be included. The Replacement Transaction would be subject to
such documentation as such party and the Reference Market-maker may, in good faith, agree. The party making the determination (or its agent) will request each Reference Market-maker to provide its quotation to the extent reasonably practicable as of
the same day and time (without regard to different time zones) on or as soon as reasonably practicable after the relevant Early Termination Date. The day and time as of which those quotations are to be obtained will be selected in good faith by the
party obliged to make a determination under Section 6(e), and, if each party is so obliged, after consultation with the other. If more than three quotations are provided, the Market Quotation will be the arithmetic mean of the quotations,
without regard to the quotations having the highest and lowest values. If exactly three such quotations are provided, the Market Quotation will be the quotation remaining after disregarding the highest and lowest quotations. For this purpose, if
more than one quotation has the same highest value or lowest value, then one of such quotations shall be disregarded. If fewer than three quotations are provided, it will be deemed that the Market Quotation in respect of such Terminated Transaction
or group of Terminated Transactions cannot be determined. 
  
 “Non-default Rate” means a rate per annum equal to the cost (without proof or evidence of any actual cost) to the Non-defaulting Party (as certified by it) if it were to fund the relevant amount. 
  
 “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. 
  
 “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.

 “Reference Market-makers” means four leading dealers in the relevant market selected by the party
determining a Market Quotation in good faith (a) from among dealers of the highest credit standing which satisfy all the criteria that such party applies generally at the time in deciding whether to offer or to make an extension of credit and
(b) to the extent practicable, from among such dealers having an office in the same city. 
  
 “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.

  
 “Scheduled Payment Date” means a date on which a
payment or delivery is to be made under Section 2(a)(i) with respect to a Transaction. 
  
 “Set-off” means set-off, offset, combination of accounts, right of retention or withholding or similar right or requirement to which the payer of an amount under Section 6 is entitled or
subject (whether arising under this Agreement, another contract, applicable law or otherwise) that is exercised by, or imposed on, such payer. 
  
 “Settlement Amount” means, with respect to a party and any Early Termination Date, the sum of:— 

 
 (a) the Termination Currency Equivalent of the Market Quotations (whether positive or
negative) for each Terminated Transaction or group of Terminated Transactions for which a Market Quotation is determined; and 
  
 (b) such party’s Loss (whether positive or negative and without reference to any Unpaid Amounts) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation cannot be determined or would not (in the reasonable belief of the party making the determination) produce a commercially reasonable result. 
  
 “Specified Entity” has the meanings 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 thereto) 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 a rate swap transaction, 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 or any other similar transaction (including any option with respect to any
of these transactions), (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. 
  
 “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 a Termination Event, all Affected Transactions and (b) if resulting from an Event of Default, all Transactions (in either case) in effect 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” has the meaning specified in the Schedule. 
  
 “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 Market Quotation or Loss (as the case may be), 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 Tax Event or 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. 
  
 “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)) to such party under Section 2(a)(i) on or prior to such Early Termination Date and which remain unpaid as at such Early Termination
Date and (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)) 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 as of the originally scheduled date for delivery, in each
case together with (to the extent permitted under applicable law) interest, in the currency of such amounts, from (and including) the date such amounts or obligations were or would have been required to have been paid or performed to (but excluding)
such Early Termination Date, at the Applicable Rate. Such amounts of interest will be calculated on the basis of daily compounding and the actual number of days elapsed. The fair market value of any obligation referred to in clause (b) above
shall be reasonably determined by the party obliged to make the determination under Section 6(e) or, if each party is so obliged, it shall be the average of the Termination Currency Equivalents of the fair market values reasonably determined by
both parties. 
  
 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. 
  

							
	  

	  	  

	(Name of Party)	  	(Name of Party)
				
	By:	 	  

	  	By:	 	  

	Name:	 	 	  	Name:	 	 
	Title:	 	 	  	Title:	 	 
	Date:	 	 	  	Date:	 	 

 (Multicurrency - Cross Border) 
  
 ISDA 
  
 SCHEDULE 
  
 to the 
  
 Master Agreement 
  
  dated as of
December 20, 2005 
   
 between
Jefferies Financial Products, LLC, a limited liability company organized under the laws of Delaware (“Party A”), 
  
 and 
  
 Frontier Trading Company VIII, LLC, a limited liability company organized under the laws of the State of Delaware (“Party B”). 
  
 Part 1. Termination Provisions. 
  

	(a)	 	“Specified Entity” means in relation to Party A for the purpose of: 

  

			
	Section 5(a)(v) (Default under Specified Transactions),	  	Jefferies Group, Inc.
	Section 5(a)(vi) (Cross Default),	  	Jefferies Group, Inc.
	Section 5(a)(vii) (Bankruptcy),	  	Jefferies Group, Inc.
	Section 5(b)(iv) (Credit Event Upon Merger),	  	Jefferies Group, Inc.

  
 and in relation to
Party B for the purpose of: 
  

			
	Section 5(a)(v) (Default under Specified Transactions),	  	None.
	Section 5(a)(vi) (Cross Default),	  	None.
	Section 5(a)(vii) (Bankruptcy),	  	None.
	Section 5(b)(iv) (Credit Event Upon Merger),	  	None.

  

	(b)	 	“Specified Transaction” means, in lieu of the meaning specified in Section 14, any contract or transaction, including an agreement with respect thereto
(whether or not documented under or effected pursuant to a master agreement) 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 party or any application Specified Entity of such party). 

  

	(c)	 	The “Cross Default” provisions of Section 5(a)(vi) will apply to Party A and to Party B. 

  
 “Specified Indebtedness”, will have the meaning
specified in Section 14. 
  
 “Threshold
Amount” means in respect of Party A, 3% of the Stockholders’ Equity of its Credit Support Provider or its equivalent in any currency, and in respect of Party B, 3% of its Net Asset Value or its equivalent in any currency.

  

	(d)	 	The “Credit Event Upon Merger” provisions of Section 5(b)(iv) will apply to Party A and to Party B. 

  

	(e)	 	The “Automatic Early Termination” provisions of Section 6(a) will not apply to Party A or to Party B. 

  

	(f)	 	Payments on Early Termination. For the purpose of Section 6(e) of this Agreement: 

  

	 	(i)	 	Loss will apply; provided, however, that for purposes of calculating Loss, Loss shall only include out of pocket losses which were actually and reasonably incurred in good faith;
and provided, further, that Loss shall not include any amounts for any lost profits, special, punitive, consequential or indirect damages, or loss of the benefit of the bargain or re-establishing any trading or hedging position.

  

	 	(ii)	 	Second Method will apply. 

  

	*	 	Delete as applicable 

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

  

	(h)	 	“Additional Termination Event” will apply. The following shall constitute Additional Termination Events with respect to Party B:

  

	 	(i)	 	Decline in Net Assets. As of the close of business on any Business Day, the Net Asset Value of Party B (as defined below) declines by 50% from the Net Asset Value as of the calendar
month-end that is twelve months prior to the immediately preceding month-end. For purposes of the foregoing Termination Event, Party B shall be the Affected Party and all Transactions shall be Affected Transactions. 

  

	 	(ii)	 	Failure to Provide Interim Net Asset Value Calculation. Party B fails to notify Party A in writing of the Net Asset Value in accordance with the terms of Part 3 of this Schedule and
such failure is not remedied on or before the third Local Business Day after notice of such failure. 

  
 Part 2. Tax Representations. 
  

	(a)	 	Payer Representations. For the purpose of Section 3(e), Party A will make the following representation and Party B will 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 2(e), 6(d)(ii) or 6(e)
of this Agreement) to be made by it to the other party under this Agreement. In making this representation, it may rely on: (i) the accuracy of any representations made by the other party pursuant to Section 3(f) of this Agreement,
(ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and effectiveness of any document provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of this
Agreement, and (iii) the satisfaction of the agreement of the other party contained in Section 4(d) of this Agreement, provided that it shall not be a breach of this representation where reliance is placed on clause (ii) and the other
party does not deliver a form or document under Section 4(a)(iii) by reason of material prejudice to its legal or commercial position. 
  

	(b)	 	Payee Representations. For the purpose of Section 3(f) of this Agreement, Party A and Party B make the following payee representations:

  

	 	(i)	 	Party A represents that it is a limited liability company organized under the laws of Delaware and that its United States taxpayer identification number is 270-070-930. Party A
further represents that it is a US person for US federal income tax purposes. 

  

	 	(ii)	 	Party B represents that it is a limited liability company organized under the laws of the State of Delaware and that its United States taxpayer identification number is 20-3445630.
Party B further represents that it is a U.S. person for U.S. federal income tax purposes. 

  
 Part 3. Agreement to Deliver Documents. 
  
 For the purpose of Section 4(a)(i) and (ii) of this Agreement, each party agrees to deliver the following documents, as applicable: 
  

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

  

					
	 Party required to deliver document

	 	 Form/Document/ Certificate

	 	 Date by which to be delivered

	 Party A
	 	IRS Form W-9	 	At execution and thereafter upon request
			
	 Party B
	 	IRS Form W-9	 	At execution and thereafter upon request

  

	*	 	Delete as applicable 

	(b)	 	Other documents to be delivered are: 

  

							
	 Party required to deliver document

	 	 Form/Document/ Certificate

	 	 Date by which to be delivered

	 	 Covered by Section 3(d)
 Representation

	Party A	 	Guarantee of Jefferies Group, Inc. in form and substance satisfactory to Party B.	 	At execution	 	Yes
				
	Party A and Party B	 	Evidence of the authority and genuineness of signature of the individual executing this Agreement.	 	At execution	 	Yes
				
	Party A and Party B	 	Certified resolutions of its board of directors or other governing body.	 	At execution	 	Yes
				
	Party B	 	A copy of organizational documents, constituent documents, investment policies, procedures, restrictions or guidelines or other documents evidencing the authority of Party B to enter into and to
perform its obligation under this Agreement and each Transaction.	 	At execution	 	Yes
				
	Party B	 	Trading Authorization issued in favor of the Asset Manager	 	At execution	 	Yes
				
	Party B	 	Monthly Net Asset Value Report of the Long Only Commodity Series - Class 1 Units of The Frontier Fund	 	Within 10 days after the end of each such calendar month	 	Yes

  
 Part 4. Miscellaneous

  

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

  
 Address for notices or communications to Party A with respect to notices pursuant to Sections 5 and 6 of the Agreement (other than notices
under Section 5(a)(i): 
  

			
	Address:	  	Jefferies Financial Products, LLC
	 	  	The Metro Center
	 	  	One Station Place, Three North
	 	  	Stamford, CT 06902
	Attention:	  	General Counsel
	Telephone:	  	203.708.6500
	Facsimile:	  	203.708.6529

  

	*	 	Delete as applicable 

 With respect to all other notices or communications: 
  

			
	Address:	  	Jefferies Financial Products, LLC
	 	  	The Metro Center
	 	  	One Station Place, Three North
	 	  	Stamford, CT 06902
	Attention:	  	Operations
	Telephone:	  	203.708.6509
	Facsimile:	  	203.708.6529

  
 Address for notices or communications to Party B: 
  

			
	Address:	  	Frontier Trading Company VIII, LLC
	 	  	c/o Equinox Fund Management, LLC
	 	  	1660 Lincoln Street, Suite 100
	 	  	Denver, Co 80264
	Attention:	  	Richard Bornhoft and Ron Montano
	Telephone:	  	303.837.0600
	Facsimile:	  	303.832.9354

  
 With
a mandatory copy to 
  

			
	 Address:
	  	Arnold & Porter LLP
	 	  	399 Park Avenue
	 	  	New York, NY 10022
	Attention:	  	Michael F. Griffin and J.P. Bruynes
	Telephone:	  	212.715.1000
	Facsimile:	  	212.715.1399

  
 Electronic Messaging System Details:
None until mutually agreed otherwise. 
  

	(b)	 	Process Agent. For the purpose of Section 13(c) of this Agreement: Party A irrevocably appoints as its Process Agent: 

  
 Jefferies Group, Inc. 
 Attention: General Counsel 
 520 Madison Avenue 
 New York, NY 10022 
  
 Party B irrevocably appoints as its Process Agent: 
  
  CT Corporation Systems 
   111 Eighth Ave. 
   NY NY 10011 
   

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

  

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

  
 Party A is not a Multibranch Party. 
 Party B is not a Multibranch Party. 
  

	(e)	 	Calculation Agent. The Calculation Agent is Party A, unless otherwise specified in a Confirmation in relation to the relevant Transaction or unless Party A
becomes a Defaulting Party in which case the Calculation Agent shall be Party B; provided, however, that in the event that a calculation or determination by the Calculation Agent is disputed and there is an undisputed amount, the relevant party
shall promptly pay the undisputed amount, if any, owed by it and the parties shall promptly endeavor to resolve such dispute. If they are unable to do so, the parties shall promptly select mutually a dealer in the applicable market to act as
Calculation Agent with respect to the issue in dispute. If they are unable to so select such a dealer, then each party will select a dealer in the applicable market, who, in turn, shall promptly select a dealer in the applicable market to act as
Calculation Agent with respect to the issue in dispute. 

  

	*	 	Delete as applicable 

	(f)	 	Credit Support Document. The Credit Support Annex appended hereto and a part hereof and the Guarantee of Jefferies Group, Inc., substantially in the form
attached, to be delivered by Party A to Party B. 

  

	(g)	 	Credit Support Provider. Credit Support Provider means in relation to Party A, Jefferies Group, Inc. and means, in relation to Party B, Not Applicable.

  

	(h)	 	Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of New York (without reference to choice of law
doctrine). Section 13(b) is amended by (1) deleting “non-” from the second line of clause (i); and (2) deleting the final paragraph. 

  

	(i)	 	Netting of Payments. Subparagraph (ii) of Section 2(c) of this Agreement will apply to all Transactions. 

  

	(j)	 	“Affiliate” will have the meaning specified in Section 14 of this Agreement in relation to Party A; notwithstanding any inconsistent or contrary
provision of this Agreement, the Credit Support Annex, or any Confirmation, Party B will be deemed not to have any Affiliates. 

  
 Part 5. Other Provisions. 
  

	(a)	 	Scope of Agreement — Incorporation of Existing and Future Transactions. Unless specifically agreed to the contrary in writing by the parties as to a
specific transaction, each and every existing and future Specified Transaction between Party A and Party B, whether or not reference is made to this Agreement in the trade call or confirmation thereof, is incorporated herein and is subject to,
governed by and construed in accordance with the terms of this Agreement and each such Specified Transaction shall be a “Transaction” for purposes of this Agreement. 

  

	(b)	 	ISDA Definitions and Inconsistency. Unless otherwise expressly specified in a Confirmation, this Agreement incorporates, and is subject to and governed by, the
2000 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. (“ISDA”) and the 1993 ISDA Commodity Derivatives Definitions as supplemented by the 2000 Supplement to the 1993 ISDA Commodity Derivatives
Definitions (except Sections 7.4, 7.5, and 7.6 thereof), as published by ISDA (together, the “Definitions”). In the event of any inconsistency between the provisions contained in this Agreement (which includes the Schedule, Credit Support
Annex and any Confirmation) and those contained in any of the Definitions, whether incorporated by reference in this Schedule or in a Confirmation, the provisions contained in this Agreement will prevail. In the event of any inconsistency between
the provisions of any Confirmation, this Agreement, and the Definitions, such Confirmation will prevail for the purpose of the relevant Transaction. 

  

	(c)	 	Additional Representations. The parties agree to amend Section 3 by adding new Sections 3(g), (h), (i), and (j) as follows: 

 

	 	(g)	 	Eligible Contract Participant. It is an “eligible contract participant” as defined in the U.S. Commodity Exchange Act. 

  

	 	(h)	 	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 shall not be considered investment advice or a recommendation to enter into that Transaction. No communication (written or oral)
received from the other party shall be deemed to be an assurance or guarantee as to the expected results of that Transaction. 

  

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

  

	 	(j)	 	Status of Parties. The other party is not acting as a fiduciary for or an adviser to it in respect of that Transaction. 

  

	*	 	Delete as applicable 

	(d)	 	Recording of Telephone Conversations. Each party (i) consents to the recording of the telephone conversations of 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 notice of such recordings to, such personnel of it and its Affiliates; and (iii) agrees that the recordings
may be submitted in evidence in any Proceedings under this Agreement. 

  

	(e)	Set-off. Section 6 is hereby amended by adding the following additional clause: 

  
 “(f) Upon the occurrence of an Event of Default with respect to a party
(“X”), the other party (“Y”) will have the right (but not be obliged) without prior notice to X or any other person to set-off or apply any obligation of X owed to Y (whether or not matured or contingent and whether or not
arising under this Agreement, and regardless of the currency, place of payment or booking office of the obligation) against any obligation of Y owed to X (whether or not matured or contingent and whether or not arising under this Agreement, and
regardless of the currency, place of payment or booking office of the obligation). Y will give notice to the other party of any set-off effected under this Section 6(f). 
  
 Amounts (or the relevant portion of such amounts) subject to set-off may be converted by Y into the Termination Currency at
the rate of exchange at which such party would be able, acting in a reasonable manner and in good faith, to purchase the relevant amount of such currency. 
  
 If any obligation is unascertained, Y 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) shall be effective to create a charge or other security interest. This Section 6(f) shall be without prejudice and in addition to any right of set-off, combination of accounts, lien or other right to
which any party is at any time otherwise entitled (whether by operation of law, contract or otherwise).” 
  

	(f)	 	Confirmations. Counterparty shall be deemed to have agreed to the terms contained in any Confirmation (as amended and revised) sent by Party A to Party B unless
Party B objects to such terms within three (3) Business Days of receipt, absent manifest error. 

  

	(g)	 	Service of Process. With respect to the provisions of Section 13(c) of the Agreement, the reference therein to Section 12 to the contrary
notwithstanding, no consent is given by either party to service of process by telex, facsimile transmission or electronic messaging system. 

  

	(h)	 	Additional Covenants of Party B. Party B hereby covenants and agrees that it will, and that each Transaction entered into hereunder will, at all times, comply
with: 

  

	 	(i)	 	Any policies, guidelines, restrictions or limitations imposed on Transactions by the constituent documents or management of Party B, and 

  

	 	(ii)	 	Any rules, regulations, laws, restrictions or limitations imposed on Transactions by a commission, regulatory body or other agency of government applicable to it or any of its
assets. 

  
 Party B further covenants and agrees
that: 
  

	 	(i)	 	It is not, nor will it be at any time, an investment company required to be registered under the Investment Company Act of 1940, as amended; 

  

	 	(ii)	 	None of the assets of Party B are, or will be at any time while any Transactions are outstanding hereunder, deemed to be the assets of any “plan” as defined in Title I of
ERISA or Section 4975 of the Internal Revenue Code of 1986, as amended, or under United States Department of Labor regulation 29 C.F.R. § 2510.3-101; 

  

	 	(iii)	 	Asset Manager is, and at all times will be, fully authorized to act as the agent of Party B and to bind Party B with respect to all the assets of Party B as to any Transaction
contemplated hereunder, including without limitation entering into Transactions on behalf of Party B, negotiation and execution of agreements and Confirmations on behalf of Party B, delivery of Confirmations on behalf of Party B and the receipt of
payments and making of transfers on behalf of Party B; 

  

	*	 	Delete as applicable 

	 	(iv)	 	The appointment by Party B of the Asset Manager as an agent of Party B with the authority to take all actions necessary to enter into and perform the Transactions hereunder on
behalf of Party B does not, and will not conflict with any agreement, charter, constitutional document, statute, regulation or other authority to which Party B is subject; 

  

	 	(v)	 	Party A shall not be under any obligation to inquire, as to the authority of the Asset Manager (or any employee or agent of Advisor named on the list of individuals provided by
Party B pursuant to Part 3 hereof) to bind Party B; 

  

	 	(vi)	 	Any action taken or purported to be taken by the Asset Manager on behalf of Party B, shall be binding on Party B; and 

  

	 	(vii)	 	Party B will indemnify, defend and hold harmless Party A in respect of any and all actions taken or purported to be taken (including, without limitation, in respect of any
Transaction) on behalf of Party B by Asset Manager (or any employee or agent of Asset Manager named on the list of individuals provided by Party B pursuant to Part 3 hereof) in connection with this Agreement that exceed the authority of Asset
Manager or such employee or agent. 

  

	(i)	 	Definitions. Section 14 is hereby amended by adding the following definitions in their appropriate alphabetical order: 

  
 “Asset Manager” means Equinox Fund Management, LLC.

  
 “Net Asset Value” means, as of any date of
determination, an amount equal to the gross assets minus the aggregate amount of liabilities, including all absolute and contingent liabilities of any kind, calculated in accordance with generally accepted accounting principles. 
  
 “Stockholders’ Equity” means with respect to any
entity, at any time, the sum at such time of (i) its capital stock (including preferred stock) outstanding, taken at par value, (ii) its capital surplus and (iii) its retained earnings, minus (iv) treasury stock, each to be
determined in accordance with generally accepted accounting principles. 
  
 “Trading Authorization” means the Asset Management Agreement or analogous agreement between Party B and the Asset Manager authorizing the Asset Manager to act on behalf of Party B in entering into
Transactions hereunder. 
  

	(j)	 	Inter Series Limitation on Liability. Party A acknowledges and agrees that Party B is a wholly-owned subsidiary of The Frontier Fund, a Delaware statutory trust (the
“Trust”) which is organized in series pursuant to Sections 3804(a) and 3806(b)(2) of the Delaware Statutory Trust Act. As such, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to
each series of the Trust shall be enforceable against the assets of such series of the Trust only, and not against the assets of the Trust generally or the assets of any other series of the Trust or against the Trustee of the Trust. There may be
several series of the Trust created pursuant to the Declaration of Trust and Trust Agreement of the Trust. 

  

	(k)	 	Optional Early Termination. Notwithstanding anything to the contrary in the Definitions or the Agreement, the parties hereby agree to the following Optional Early Termination
provisions: 

  
 Party B shall have the right (but
not the obligation) to terminate any Transaction hereunder, in whole or in part, effective as of any Business Day (the “Optional Early Termination Date”), by providing Party A with notice of its exercise of this right one Business Days
prior to the Optional Early Termination Date. This notice shall be irrevocable and may be given orally, including by telephone. Such notice shall be followed by a written confirmation confirming the substance of any telephonic notice before the
close of business on the Business Day that telephonic notice is provided. 
  
 Such Transaction shall be terminated in accordance with Section 6(e)(ii)(1) (without the occurrence of a Termination Event or an Event of Default) such that the amount payable (the “Cash Settlement
Amount”) will be determined by the Calculation Agent as if the party electing to terminate such Transaction were the sole Affected Party. The Calculation Agent shall determine such Cash Settlement Amount in good faith and in a commercially
reasonable manner in accordance with normal market practice in the relevant market, taking into account market conditions at such time. Party B acknowledges and agrees that market value used to calculate such Cash Settlement Amount may not
correspond with closing prices of a commodity index or the futures components of a commodity index, particularly during a period of disrupted market conditions. Such determination shall be made on the Optional Early Termination Date. Party A or
Party B (as determined by the Calculation Agent) shall pay to the other party the Cash Settlement Amount on the second Business Day following the Optional Early Termination Date. Once the Cash Settlement Amount has been fully and finally paid, then
all rights, duties and obligations of the parties under and with respect to such Transaction, or part of such Transaction, as applicable, shall terminate. 
  

	*	 	Delete as applicable 

 Part 6. Terms of Transactions 
  

	(a)	 	Fallback Price, Etc. 

  

	 	(i)	 	With respect to Transactions with a Calculation Period consisting of eight or more Commodity Business Days, if a Commodity Reference Price that would normally be determinable is not
available or would not produce a commercially reasonable result on any Commodity Business Day, then the Commodity Reference Price shall be the Commodity Reference Price published on the next Commodity Business Day, provided that if the Commodity
Reference Price is not available for eight (8) consecutive Commodity Business Days in that Calculation Period, then the Commodity Reference Price shall be calculated on the basis of the fallback price, if any, specified in the applicable
Confirmation (the “Fallback Price”). If no such Fallback Price is specified, the parties shall promptly endeavor to agree on an alternative source for determination of such Commodity Reference Price for that day. If such agreement is not
reached by the parties within three (3) business days, Party A shall determine such Commodity Reference Prices by taking the average of the price quotations for the relevant Commodity and the relevant Commodity Business Days obtained from at
least two and no more than four internationally recognized dealers in such Commodity, as mutually agreed by the parties. 

  

	 	(ii)	 	With respect to Transactions with a Calculation Period consisting of less than eight Commodity Business Days, if a Commodity Reference Price that would normally be determinable is
not available or would not produce a commercially reasonable result on any Commodity Business Day, then the Commodity Reference Price shall be calculated on the basis of the Fallback Price, if any, specified in the applicable Confirmation. If no
such Fallback Price is specified, the parties shall promptly endeavor to agree on an alternative source for determination of such Commodity Reference Price for that day. If such agreement is not reached by the parties within three (3) business
days, Party A shall determine such Commodity Reference Prices by taking the average of the price quotations for the relevant Commodity and the relevant Commodity Business Days obtained from at least two and no more than four internationally
recognized dealers in such Commodity, as mutually agreed by the parties. 

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

			
	 JEFFERIES FINANCIAL PRODUCTS, LLC

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 FRONTIER TRADING COMPANY VIII, LLC

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

	*	 	Delete as applicable 

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

  
 ISDA® 
 International Swaps and Derivatives Association, Inc. 
  
 CREDIT SUPPORT ANNEX 
 to the Schedule
to the 
  
 dated as of
                         
  
 between 
  
                                       
                                        
               and
                                        
                                        
                 
  

			
	(“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 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 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. 
  
 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 Transferred to or received by the Secured Party hereunder. Upon the Transfer
by the Secured Party to the Pledgor of Posted Collateral, the security interest and lien granted hereunder on that Posted Collateral will be released immediately and, to the extent possible, without any further action by either party. 
  
 Paragraph 3. Credit Support Obligations 
  
 (a) Delivery Amount. Subject to Paragraphs 4 and 5, upon demand made by the
Secured Party on or promptly following a Valuation Date, if the Delivery Amount 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 having
a Value as of the date of Transfer at least equal to the applicable Delivery Amount (rounded pursuant to Paragraph 13). Unless otherwise specified in Paragraph 13, the “Delivery Amount” applicable to the Pledgor
for any Valuation Date will equal the amount by which: 
  
 (i)
the Credit Support Amount 
  
 exceeds 
  
 (ii) the Value as of that Valuation Date of all Posted Credit Support held by
the Secured Party. 

 (b) Return Amount. Subject to Paragraphs 4 and 5, upon a demand made by the Pledgor on or promptly
following a Valuation Date, if the Return Amount 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 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 (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 held by the Secured Party 
  
 exceeds 
  
 (ii) the Credit Support Amount. 
  
 “Credit Support Amount” 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, minus (iv) the Pledgor’s
Threshold; provided, however, that the Credit Support Amount will be deemed to be zero whenever the calculation of Credit Support Amount yields a number less than zero. 
  
 Paragraph 4. Conditions Precedent, Transfer Timing, Calculations and Substitutions 
  
 (a) Conditions Precedent. Each Transfer obligation of the Pledgor under
Paragraphs 3 and 5 and of the Secured Party under Paragraphs 3, 4(d)(ii), 5 and 6(d) 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, if a demand for the Transfer of Eligible Credit Support or Posted
Credit Support is made by the Notification Time, then the relevant Transfer will be made not later than the close of business on the next Local Business 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 second Local Business Day thereafter. 
  
 (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. 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 Second
Party specifying the items of Posted Credit Support to be exchanged, the Pledgor may, on any Local Business Day, Transfer to the Secured Party substitute Eligible Credit Support (the “Substitute Credit Support”); and 
  
 (ii) subject to Paragraph 4(a), the Secured Party will Transfer to the
Pledgor the items of Posted Credit Support 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, unless otherwise specified in Paragraph 13
(the “Substitution Date”); provided that the Secured Party will only be obligated to Transfer Posted Credit Support with a Value as of the date of Transfer of that Posted Credit Support equal to the Value as of that date of the
Substitute Credit Support. 

 Paragraph 5. Dispute Resolution 
  
 If a party (a “Disputing Party”) disputes (I) the Valuation Agent’s calculation of a Delivery Amount or a Return Amount
or (II) the Value of any Transfer of Eligible Credit Support or Posted Credit Support, then (1) 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 the Local Business Day following (X) the date that the demand is made under Paragraph 3 in case of (I) above or (Y) the date of Transfer in the case of (II) above, (2) 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 the Local Business Day following (X) the date that the demand is made under Paragraph 3 in the case of (I) above or (Y) the date of
Transfer in the case of (II) above, (3) the parties will consult with each other in an attempt to resolve the dispute and (4) if they fail to resolve the dispute by the Resolution Time, then: 
  
 (i) In the case of a dispute involving a Delivery Amount or Return Amount,
unless otherwise specified in Paragraph 13, the Valuation Agent will recalculate the Exposure and the Value as of the Recalculation Date by: 
  
 (A) utilizing any calculations of Exposure for the Transactions (or Swap Transactions) that the parties have agreed are not in dispute; 
  
 (B) Calculating the Exposure for the Transactions (or Swap 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; provided that if four quotations are not available for a
particular Transaction (or Swap Transaction), then fewer than four quotations may be used for that Transaction (or Swap Transaction); and if no quotations are available for a particular Transaction (or Swap Transaction), then the Valuation
Agent’s original calculations will be used for that Transaction (or Swap Transaction); 
  
 (C) utilizing the procedures specified in Paragraph 13 for calculating the Value, if disputed, of Posted Credit Support. 
  
 (ii) In the case of a dispute involving the Value of any Transfer of Eligible Credit Support or Posted Credit Support, 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 (3) above and subject to Paragraphs 4(a) and 4(b), make the appropriate Transfer. 
  
 Paragraph 6. Holding and Using Posted Collateral 
  
 (a) Care of Posted Collateral. 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 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, including, without
limitation, any duty to collect any Distributions, or enforce or preserve any rights pertaining thereto. 
  
 (b) Eligibility to Hold Posted Collateral; Custodians. 
  
 (i) General. Subject to the satisfaction of any conditions specified in Paragraph 13 for holding Posted Collateral, the Secured Party will
be entitled to hold Posted Collateral or to appoint an agent (a “Custodian”) to hold Posted Collateral for the Secured Party. Upon notice by the Secured Party to the Pledgor of the appointment of a Custodian, the Pledgor’s obligations
to make any Transfer will be discharged by making the Transfer to that Custodian. The holding of Posted Collateral by a Custodian will be deemed to be the holding of that Posted Collateral by the Secured Party for which the Custodian is acting.

  
 (ii) Failure to Satisfy Conditions. If the
Secured Party or its Custodian fails to satisfy conditions for holding Posted Collateral, 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 to
Transfer all Posted Collateral held by it to a Custodian 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 to the same extent that the Secured Party would
be liable hereunder for its own acts or omissions. 

 (c) Use of Posted Collateral. 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 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 in the name of the Secured Party, its
Custodian or a nominee for either. 
  
 For purposes of the obligation to Transfer
Eligible Credit Support or Posted Credit Support 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 and to receive Distributions made
thereon, regardless of whether the Secured Party has exercised any rights with respect to any Posted Collateral pursuant to (i) or (ii) above. 
  
 (d) Distributions and Interest Amount. 
  
 (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 Business Day any Distributions it receives or is deemed to receive to the extent that a Delivery Amount 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. 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 in the form of Cash (all of which may be retained by the Secured Party), the Secured Party will Transfer to the Pledgor at the times specified in Paragraph 13 the Interest Amount to the extent that a Delivery Amount 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). The Interest Amount or portion thereof not Transferred pursuant to this Paragraph will
constitute Posted Collateral in the form of Cash and will be subject to the security interest granted under Paragraph 2. 
  
 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) to make, when due,
any Transfer of Eligible Collateral, Posted Collateral or the Interest Amount, 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 held by the Secured Party; 
  
 (ii) any other rights and remedies available to the Secured Party under the terms of Other Posted Support, if any; 

 (iii) the right to Set-off any amounts payable by the Pledgor with respect to any Obligations against any
Posted Collateral or the Cash equivalent of any Posted Collateral held by the Secured Party (or any obligation of the Secured Party to Transfer that Posted Collateral); and 
  
 (iv) the right to liquidate any Posted Collateral 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 to be sold) and to apply the proceeds (or the Cash equivalent thereof) from the liquidation of the Posted Collateral to any amounts payable by the Pledgor with respect to any Obligations in that
order as the Secured Party may elect. 
  
 Each party acknowledges and agrees that
Posted Collateral 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 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 less than all Transactions (or Swap 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 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, if any; 
  
 (iii) the Secured Party will be obligated immediately to Transfer all Posted Collateral and the Interest Amount to the
Pledgor; and 
  
 (iv) to the extent that Posted Collateral or the
Interest Amount 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 or the Cash equivalent of any Posted Collateral held by the Secured Party (or any obligation of the Secured
Party to Transfer that Posted Collateral); and 
  
 (B) to the
extent that the Pledgor does not Set-off under (iv)(A) 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 held by the Secured Party, until that
Posted Collateral is Transferred to the Pledgor. 
  
 (c) Deficiencies and
Excess Proceeds. The Secured Party will Transfer to the Pledgor any proceeds and Posted Credit Support 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; 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), the Secured Party will Transfer to the Pledgor all Posted Credit Support and the Interest Amount, if any. 
  
 Paragraph 9. Representations 
  
 Each party represents to the other party (which representation will be deemed to be repeated
as of each date on which it, as the Pledgor, Transfers Eligible Collateral) that: 
  
 (i) it has the power to grant a security interest in and lien on any Eligible Collateral 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 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 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 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 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.
The Pledgor will promptly pay when due all taxes, assessments or charges of any nature that are imposed with respect to Posted Credit Support held by the Secured Party upon becoming aware of the same, regardless of whether any portion of that Posted
Credit Support 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. 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 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 or the Interest Amount will be obliged 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 or Interest Amount was required to be Transferred to (but excluding) the date of Transfer of
that Posted Collateral or Interest Amount. 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 or an Interest Amount or to effect or document a release of a security interest on Posted Collateral or an Interest Amount. 
  
 (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 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 given 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. 

 Paragraph 12. Definitions 
  
 As used in this Annex: — 
  
 “Cash” means the lawful currency of the United States of America. 
  
 “Credit Support Amount” has the meaning specified in Paragraph 3. 
  
 “Custodian” has the meaning specified in Paragraphs
6(b)(i) and 13. 
  
 “Delivery Amount” has
the meaning specified in Paragraph 3(a). 
  
 “Disputing
Party” has the meaning specified in Paragraph 5. 
  
 “Distributions” means, with respect to Posted Collateral 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 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 or, with respect to any
Posted Collateral in the form of Cash, any distributions on that collateral, unless otherwise specified herein. 
  
 “Eligible Collateral” means, with respect to a party, the items, if any, specified as such for that party in Paragraph 13.

  
 “Eligible Credit Support” means Eligible
Collateral and Other Eligible Support. 
  
 “Exposure” means for any Valuation Date or other date for which Exposure is calculated and subject to Paragraph 5 in the case of a dispute, 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 Transactions (or Swap
Transactions) were being terminated as of the relevant Valuation Time; provided that Market Quotation will be determined by the Valuation Agent 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”). 
  
 “Independent Amount” means, with respect to party, the amount specified as such for that party in Paragraph 13; if no amount is specified, zero. 
  
 “Interest Amount” means, with respect to an Interest
Period, the aggregate sum of the amounts of interest calculated for each day in that Interest Period on the principal amount of Posted Collateral in the form of Cash held by the Secured Party on that day, determined by the Secured Party for each
such day as follows: 
  

	 	(x)	 	the amount of Cash on that day; multiplied by 

  

	 	(y)	 	the Interest Rate in effect for that day; divided by 

  

	 	(z)	 	360. 

  
 “Interest Period” means the period from (and including) the last Local Business Day on which an Interest Amount was Transferred (or, if no Interest Amount has yet been Transferred, the Local Business
Day on which Posted Collateral in the form of Cash was Transferred to or received by the Secured Party) to (but excluding) the Local Business Day on which the current Interest Amount is to be Transferred. 
  
 “Interest Rate” means
the rate specified in Paragraph 13. 
  
 “Local Business
Day”, unless otherwise specified in Paragraph 13, has the meaning specified in the Definitions Section of this Agreement, except that references to a payment in clause (b) thereof will be deemed to include a Transfer under
this Annex. 
  
 “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 Eligible Support” means, with respect to a party, the items, if any, specified as such for that party in Paragraph 13. 
  
 “Other Posted Support” means all Other Eligible Support
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 under Paragraph 3(a) or (ii) has Transferred
Eligible Credit Support under Paragraph 3(a). 
  
 “Posted
Collateral” means all Eligible Collateral, 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) or 6(d)(i) or released by the Secured Party under Paragraph 8. Any Interest Amount or portion thereof not Transferred pursuant to Paragraph 6(d)(ii) will constitute Posted Collateral in the form of Cash. 
  
 “Posted Credit
Support” means Posted Collateral and Other Posted Support. 
  
 “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. 
  
 “Resolution Time” has the meaning specified in Paragraph 13. 
  
 “Return Amount” has
the meaning specified in Paragraph 3(b). 
  
 “Secured
Party” means either party, when that party (i) makes a demand for or is entitled to receive Eligible Credit Support under Paragraph 3(a) or (ii) holds or is deemed to hold Posted Credit Support. 
  
 “Specified Condition”
means, with respect to a party, any event specified as such for that party in Paragraph 13. 
  
 “Substitute Credit Support” has the meaning specified in Paragraph 4(d)(i). 
  
 “Substitution Date”
has the meaning specified in Paragraph 4(d)(ii). 
  
 “Threshold” means, with respect to a party, the amount specified as such for that party in Paragraph 13; if no amount is specified, zero. 
  
 “Transfer” means, with respect to any Eligible Credit Support, Posted Credit Support or Interest
Amount, and in accordance with the instructions of the Secured Party, Pledgor or Custodian, 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, the giving of written instruments to the relevant depository institution or other entity specified by the recipient, together with a written copy thereof to the recipient, sufficient if
complied with to result in a legally effective transfer of the relevant interest to the recipient; and 
  
 (iv) in the case of Other Eligible Support or Other Posted Support, as specified in Paragraph 13. 
  
 “Valuation Agent” has
the meaning specified in Paragraph 13. 
  
 “Valuation Date” means each date specified in or otherwise determined pursuant to Paragraph 13. 
  
 “Valuation Percentage” means, for any item of Eligible Collateral, the percentage specified in
Paragraph 13. 

 “Valuation Time” has the meaning specified in
Paragraph 13. 
  
 “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 or Posted Collateral that is: 
  
 (A) Cash, the amount thereof; and 
  
 (B) a security, the bid price obtained by the Valuation Agent multiplied by the applicable Valuation Percentage, if any; 
  
 (ii) Posted Collateral that consists of items that are not specified as
Eligible Collateral, zero; and 
  
 (iii) Other Eligible Support
and Other Posted Support, as specified in Paragraph 13. 

 Elections and Variables 
 to the ISDA Credit Support Annex 
  dated as of December 15, 2005

  between 
  
 Jefferies Financial Products, LLC 
 (“Party A”) 
  
 and 
  
 Frontier Trading Company VIII, LLC 
 (“Party B”) 
  
 Paragraph 13. Elections and Variables 
  
 (a) Security Interest for “Obligations.” The term “Obligations” as used in this Annex has the meaning
specified in Paragraph 12 and includes no additional obligations with respect to either Party A or Party B. 
  
 (b) Credit Support Obligations. 
  
 (i) “Delivery Amount,” “Return Amount” and “Credit Support Amount” have the meanings specified in Paragraph 3(a), Paragraph 3(b), and the final sentence of Paragraph 3, respectively. 
  
 (ii) Eligible Collateral. The following items will qualify as
“Eligible Collateral” for each party: 
  

					
	 ICAD Code

	    	 Remaining Maturity

	  	 Valuation
 Percentage

	 US-CASH
	    	 	  	100%
	 US-TBILL
	    	 	  	99%
	 US-TNOTE
	    	- One (1) year or under	  	99%

  
 (iii) Other Eligible
Support. There will be no “Other Eligible Support” for Party A or Party B. 
  
 (iv) Thresholds. 
  
 (A)
“Independent Amount” means with respect to Party A: None, unless otherwise specified in a Confirmation. 
  
 “Independent Amount” means with respect to Party B: For any Valuation Date, ten percent (10%) of the Fixed Swap Notional Amounts. “Fixed Swap
Notional Amount” means the absolute value of the product of (A) the fixed price for such Transaction, and (B) the notional volume covered by such Transaction. 
  
 (B) “Threshold” means $0 with respect to both Party A and Party B. 
  
 (C) “Minimum Transfer Amount” means as to Party A and Party B: $250,000.

  
 (D) Rounding. The Delivery Amount will be rounded up and the
Return Amount down in each case to the nearest integral multiple of $250,000. 
  
 (c) Valuation and Timing. 
  
 (i) “Valuation
Agent” means, for purposes of this Annex, Party A. 
  
 (ii)
“Valuation Date” means each Business Day. 
  
 (iii)
“Valuation Time” means the close of business on the Local Business Day before the Valuation Date or date of calculation, as applicable; provided that the calculations of Value and Exposure will be made as of
approximately the same time on the same date. 
  
 (iv) “Notification
Time” means 12:00 noon New York time, on a Local Business Day. 

 (d) Conditions Precedent and Secured Party’s Rights and Remedies. The following Termination Event(s)
will be a “Specified Condition” for both Party A and Party B (that party being the Affected Party if the Termination Event occurs with respect to that party): 
  

			
	Illegality	  	x
		
	Tax Event	  	 ̈
		
	Tax Event Upon Merger	  	 ̈
		
	Credit Event Upon Merger	  	x

  
 (e) Substitution.

  
 (i) “Substitution Date” has the meaning specified in
Paragraph 4(d)(ii). 
  
 (ii) Consent. Pledgor need not obtain the
Secured Party’s consent for any substitution pursuant to Paragraph 4(d). 
  
 (f) 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(i)(C) and 5(ii), disputes over Value will be resolved by the Valuation Agent
seeking three mid-market quotes as of the Valuation Date or date of Transfer from parties that regularly act as dealers in the securities or properties in question. The Value will be the arithmetic mean of the quotes received by the Valuation Agent.

  
 (iii) Alternative. The provisions of Paragraph 5 will
apply; provided, however, that notwithstanding the contrary provision of Paragraph 5, the undisputed amount of each Delivery Amount as calculated by the Valuation Agent shall be transferred by the Pledgor to the Secured Party in accordance with the
provisions of 4(b) and 13(c)(iv). 
  
 (g) Holding and Using Posted Collateral.

  
 (i) Eligibility to Hold Posted Collateral; Custodian.

  
 Party A and its Custodian will be entitled to hold Posted Collateral pursuant
to Paragraph 6(b); provided that the following conditions applicable to it are satisfied: 
  
 (1) Party A is not a Defaulting Party. 
  
 (2)
Posted Collateral is held only in the State of New York. 
  
 Initially, the
Custodian for Party A is: Jefferies & Co., Inc. 
  
 Party B and
its Custodian will be entitled to hold Posted Collateral pursuant to Paragraph 6(b); provided that the following conditions applicable to it are satisfied: 
  
 (1) Party B is not a Defaulting Party. 
  
 (2) Posted Collateral is held only in the States of New York. 
  
 (3) The long-term unsecured debt of such Custodian is rated at least in the “A” category by Standard & Poor’s Rating Group, a division of McGraw
Hill Companies, Inc. or Moody’s Investor Services, Inc. 
  
  Initially,
the Custodian for Party B is U. S. Bank, N.A. . 
   
 (ii) Use of
Posted Collateral. The provisions of Paragraph 6(c) will apply to each party. 
  
 (h) Distributions and Interest Amount. 
  
 (i) Interest Rate. The “Interest Rate” will be the federal funds overnight rate as published by the Board of Governors of the Federal Reserve System in the H15 (519) or its successor publication,
or such other rate as the parties may agree from time to time. 
  
 (ii)
Transfer of Interest Amount. The Transfer of the Interest Amount will be made on the first Local Business Day of each calendar month and on any Local Business Day that Posted Collateral in the form of Cash is transferred to the Pledgor
pursuant to Paragraph 3(b). 

 (iii) Alternative to Interest Amount. The provisions of Paragraph 6(d)(ii) will apply. 
  
 (i) Additional Representation(s). None. 
  
 (j) Other Eligible Support and Other Posted Support. None. 
  
 (k) Demands and Notices. 
  
 All demands, specifications and notices under this Annex will be made pursuant to the Notices
Section of this Agreement, unless otherwise specified here: 
  
 Party A: As
specified in Part 4(a) of the Schedule to the Master Agreement. 
  
  Party B:
As specified in Part 4(a) of the Schedule to the Master Agreement. 
   
 (l)
Addresses for Transfers. 
  
 Party A: To be provided by Party A.

 Party B: To be advised prior to time transfer required. 
  
 (m) Other Provisions. 
  
 (i) Transfer Timing. With respect to any Transfer of Eligible Credit Support demanded under Paragraph 3(a), Paragraph 4(b) shall be modified and amended as
follows: (i) replace the word “next” in the third line thereof with the word “same” and (ii) replace the word “second” in the last line thereof with the word “next.” 
  
 (ii) Amendment to Paragraph 7 Events of Default. Paragraph 7 of this Credit Support
Annex is amended by substituting in clause (i) the words “one Local Business Day” in place of “two Local Business Days”; by inserting in clause (iii) the words “under this Annex” immediately after the words
“or obligation”; and by substituting in clause (iii) “10 days” in place of “30 days.” 
  
 (iv) Collateral Asset Definitions. The definitions and provisions contained in the Collateral Asset Definitions First Edition—June 2003 (the “Collateral
Asset Definitions”), as published by the International Swaps and Derivatives Association, Inc. (“ISDA”), are incorporated into this Annex. In the event of any inconsistency between any of the following, the first listed shall prevail
(i) this Annex, (ii) the Agreement and (iii) the Collateral Asset Definitions. 
  

			
	Accepted and Agreed:
	
	Jefferies Financial Products, LLC
		
	By:	 	

	Name:	 	 
	Title:	 	 
	Date:	 	 
	
	Frontier Trading Company VIII, LLC
		
	By:	 	

	Name:	 	 
	Title:	 	 
	Date:

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